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How to make money: 5 ways for beginners


It would be nice to live to your heart’s content. Travel a lot around the country and the world. Do your favorite thing. Spend more time with family. And all that is needed is that the money would be credited to the account every month and cover all these expenses. But what if there is no such money now? How to earn money with minimal investment?

You can earn money with minimal investment using various tools. These are PAMM accounts, stock market, forex and many others. The main thing is to thoroughly study and understand the specific tool that we plan to use and always exercise caution and prudence. In this article, we will consider tools that allow you to earn without our active participation, that is, in a passive mode. Let’s start with the basics of investing.

Investment Pitfalls

In order to properly and harmoniously interact with money and, moreover, to attract it into your life, you need to develop money skills in yourself. There are 7 such skills. Developing these abilities will help you achieve financial freedom. Money skills include:

  1. Value
  2. Dispose of
  3. save
  4. Invest
  5. Earn
  6. Protect
  7. Share

The first three skills form the basis of financial success. They are all important. When at least one of them is missing, the rest will not be useful. All money skills are interconnected. When we do not know how to value money, we lack the desire to manage it. When we do not want to manage money, we are unable to save it. Without the skill to save, it is difficult to create a surplus of money that could be invested. Without knowledge about investments, it is difficult to create a decent income. When there is no money, then there is nothing to protect. Accordingly, there will be nothing to share with others.

To develop the Value skill, you need to improve your financial literacy. Maintaining a family or personal budget helps a lot in developing the skills to manage and save.

Further in the article, we will consider how to develop the following monetary skills, namely Investing and Earning. Before you start investing your money, you need to sort out your debts and get rid of bad debts.

Read more about good and bad debts in the article (link will open in a new window).

There are 4 basic rules that will help you get rid of debt:

– stop using credit cards if there are overdue debts on them.

– refinance the loan so that the loan payment is as low as possible.

– start keeping a personal or family budget. 50% of the remaining money, after the distribution by item of expenditure, must be set aside. The remaining 50% is used for early repayment of loans.

– start to control your spontaneous spending. You can, for example, put a note: “Is this really necessary?" In your purse.

For more information on how to use credit cards and earn at the same time, read the article (the link will open in a new window).

The magic of these rules is that at the moment when the last loan is repaid, you will have money on hand for investments. And while the process of getting rid of debts and / or accumulating funds is underway, you need to study the issue of investing.

How to make money: 5 ways for beginners


Fundamentals of Investing

Any investment is inextricably linked with the risk of losing the money invested. This must always be remembered! Therefore, we strongly recommend that you do not invest your last money, especially borrowing it for these purposes.

It is generally accepted that the risk in investments is proportionally related to income, that is, the higher the risk, the higher the return, or the lower the risk, the lower the return.

For example, federal loan bonds are a low-risk instrument, since they are issued by the state. Accordingly, the yield on them is not high 5-7% per annum. Many investors buy them as a defensive tool.

Therefore, when investing money in any project for the purpose of investing, it is necessary first of all to assess the level of risk and work out the algorithm for exiting the transaction. In other words, you need to protect yourself from losses as much as possible. And only then, work on increasing profitability.

The key parameters in the evaluation of investments are:

– risk – the amount of loss that an investor can incur;

– profitability – the potential amount of profit that an investor can receive;

– payback period – the period of time after which the investor will receive back all his invested funds;

– minimum investment amount – the minimum amount that can be invested in a particular project or transaction.

One way to protect against investment losses is to diversify your investments. That is, an increase in the number of investment projects.

For example, we have 300’000.00 🪙. We can invest the entire amount in one project or in three projects of 100’000.00 🪙. In the first case, the risk of loss is significantly higher. After all, if the project fails, we lose the entire amount. In the second case, even if two projects fail, we will continue to profit from the third project.

Venture funds operate on a similar principle, which invest in a large number of start-ups. Most of which, in practice, fail. In some of them, the funds go to zero. And only a few projects are successful and the profit from them repeatedly covers all investments.

Passive or active income?

You need to understand that passive income has a smaller amount of profitability than active income. In other words, the more we are involved in the process of creating money, the more income we receive.

For example, suppose we have an apartment that we plan to rent out. To do this, we need to put the apartment in order. Then start looking for tenants and produce apartment showings. After we agree on the delivery, prepare a lease agreement. Further, each month, collect meter readings and pay utility bills or monitor tenant payments. This is an active process of renting an apartment.

An alternative option is to rent an apartment to the management of an organization or service that will take care of all routine issues. We will receive monthly rent minus a certain percentage for their services.

How to make money: 5 ways for beginners

passive or active income?

Therefore, you need to decide in advance for yourself which source of income is preferable.

Golden rules of competent investment – TOP 5 tips

As mentioned earlier, the money skills Invest and Earn are responsible for the growth of personal capital. The following principles will contribute to the successful development of these skills:

  1. Don’t keep all your eggs in one basket. That is, we need to avoid investing all our money in one investment vehicle. Since, in this case, the risk of incurring losses increases significantly. It would be smarter to distribute the entire amount between several investments. For example, you can divide the entire amount into 4 parts and invest them in bonds, stocks, real estate and in a new business or any other investment instrument, according to our plan.

If you don’t have much money, consider starting your own business.

  1. We invest most of our money in conservative instruments that are subject to minimal risk of losing their value. One of these instruments can be rental property or bonds. It is worth remembering that risk is the main indicator to think about! High-risk instruments can also be in our portfolio, but their share should be small, and we should be ready to lose them completely.

Before engaging in high-risk investments (forex, bitcoins, futures, options, and so on), they need to be thoroughly studied and understood. If necessary, get the necessary training from a trusted broker.

  1. We create a financial cushion or a nest egg, which should cover all our expenses for 3-6 months in case of loss of the main source of income. Having this cash will help us get through the tough times, find a new main source of income and, just as important, keep our existing assets safe and not sold off.

Read more about creating an airbag in the article (link will open in a new window).

  1. When investing, we focus on creating an asset, that is, what brings us passive income. This can be rental property, bonds, dividend stocks, and so on. This will allow you to always receive income, even when you stop working.
  2. We study the company or instrument in which we plan to invest in as much detail as possible. You need to make sure that this is a real and functioning organization, and not scammers.

When deciding to invest in any business, it is recommended:

  1. Check the company’s website. How long has it been registered and to whom? Fortunately, there are many resources on the Internet for this. For example, the whois.com resource .
  2. Obtain a feasibility study or financial model for the project.
  3. Analyze the market to understand if the numbers in the model are realistic.
  4. Review the financial history of the company. Pay attention to how they work with cash gaps or how they cope with seasonal sales downturns.
  5. View information on the owners of the company, its leaders. This is where surprises are possible, like real estate in other countries or a family that has been living abroad for the past few years after an unsuccessful project. Or a criminal case for fraud in the past, and moving abroad after parole.

If there is the slightest doubt at any of the stages, it is better to refuse this investment.

How to make money: 5 ways for beginners

investment analysis

It is also worth remembering the three fundamental rules of profitable investment. Investments must: be reliable, profitable and easy to manage.

What can you earn money on

Now is the time to figure out how to make money with minimal investment.

There are many ways to make money and there is a lot of information on the Internet on this topic. We offer to consider options that allow you to earn money in a passive mode. That is, with our minimal participation.

It takes money to create passive or residual sources of income. Therefore, it is necessary to control the existing cash flows. The best tool for this is a family or personal budget. A properly drawn up family budget will allow us to accumulate the necessary funds for investing and creating passive sources of income.

1st method – bank deposits

This is the simplest and most common way. A bank deposit or savings account is a conservative instrument. Unfortunately, this method allows you to save money and, at best, protect it from inflation, but not increase savings.

The yield of this method is only 4-6% depending on the bank and tends to decrease. It is better to choose savings accounts with monthly capitalization. That is, interest payments on the deposit will be made every month. These accounts allow you to make income and expenditure transactions. The accrued interest remains the same.

It must be remembered that the deposit protection guarantee covers the amount of 1’400’000.00 🪙. Also, from 2021, an additional tax of 13% will be charged on income on all deposits from an amount exceeding 1’000’000.00 🪙. For this reason, it becomes not interesting to hold large amounts, because. the final income on deposits will be even less than 4-6%.

Thus, it is advisable to place on savings accounts the means of a protective fund, or, in other words, airbags. As well as money for our daily expenses.

For more information on how to keep a family budget, read the article (the link will open in a new window).

2nd method – paper assets

The next source of income can be called investments in the stock market. These include bonds, stocks, mutual funds, ETFs, and others. You can earn on these instruments, both by increasing their value, and by receiving dividends, coupons. Standard dividends and coupons on bonds are paid 1-2 times a year. You can invest in these instruments from 1000 🪙.

How to make money: 5 ways for beginners

stock market

This is a more risky way than the previous one. Therefore, you need to responsibly approach the choice of assets for investment. And it is better to be trained by a reliable broker (BCS, Finam and others).

It is also worth remembering that a 13% tax must be paid on the profits received. Most brokers are tax agents and withhold this tax from the investor on their own.

In addition, starting from 2020, all investors are divided into 2 types: qualified and unqualified. This division determines access to the type of investment instruments and the amount of allowable annual investments. So, an unqualified investor cannot invest more than 600’000.00 🪙 per year.

3rd way – debt assets

You can also make money on lending to other people or organizations. Now there are more and more platforms that allow you to do this more simply and easily.

This is also a risky method, as there is a possibility of late payments. And this issue will need to be addressed.

4th way – real estate

Earnings on real estate can be divided into 2 types. 1 – earnings due to the increase in the value of the asset. Those. buy an apartment, house, etc. for the lowest possible price, and sell after some time at a higher price. For example, buy an apartment in a new building at the stage of excavation and sell it after putting the house into operation. The second way is to rent out a property and receive monthly payments for it.

You can rent an apartment, a house, a garage, a separate room and so on. Let’s look at the types of leases.

  1. Long-term lease – renting out real estate for a long period of time, 4-5 months or even more. According to this principle, individuals who rent an apartment work. As well as legal entities renting offices, warehouses, etc.
  2. Short-term rental – renting out real estate for a short period of time 1-2 days or even a couple of hours. According to this principle, hotels, hotels or individuals renting an apartment by the day or hourly work. This is a more profitable way of renting compared to a long-term lease and requires our more active participation.

5th way – on daily spending

Quite an unusual way to earn money. It implies high financial discipline and maintaining a personal or family budget. Now there are a large number of services and programs that return part of the money spent. These programs are called cashback.

The idea behind this method is simple. We make our daily, planned expenses and part of this money is returned to us in the form of money.

Read more about earning on cashback in the article (the link will open in a new window).

Sleight of hand and no cheating

One of the principles of wealth sounds like this: multiply by dividing. In terms of creating additional income, it can be interpreted as follows: the more small sources of income we have, the more stable our income will be. After all, the loss of one or more sources will not significantly affect the overall level of income.

How to make money: 5 ways for beginners

how to earn money

For example, Nikolay works as an office manager and receives a salary of 50’000.00 🪙 plus quarterly bonuses. He has no other sources of income. His colleagues Vasily also receive 50’000.00 🪙 plus quarterly bonuses. In addition, he rents a garage for 4’000.00 and an apartment for 15’000.00 🪙, plus a bank deposit brings 5’000.00 monthly. In total, he receives 24’000.00 additionally every month. If, due to the economic crisis or for another reason, they are reduced, Nikolai will be left with nothing and will be forced, after a while, to agree to any job, even with worse conditions. In Vasily, the situation will be radically opposite. He will have a monthly income of 24’000.00 and will be able to choose the job that suits him best.

This same “multiply by dividing” principle can help us improve the returns on our assets. Suppose we have our own apartment, which we are ready to rent out. As discussed above, we have several options for making money on this.

The first option is to leave it as is. That is, we rent the entire apartment for a long time. The advantage of this option is that we are minimally involved in the process. All we need is to find a client, rent an apartment and receive rent every month. Periodically visiting the tenant in order to check the integrity of the apartment and property.

The second option is a daily or hourly apartment rental. This option allows you to increase profitability by ~30% per month compared to the first option. True, everything will depend on the location of the apartment. Paying for increased profitability is our active participation in the process. That is, you will need to constantly look for clients, put things in order in the apartment, etc.

Now let’s apply the principle of "multiply by dividing" and create the Third option for renting an apartment. To do this, you need to take and divide the apartment into several studios with their own amenities and rent each one separately at a price slightly lower than a one-room apartment. As a result, the yield of change can be increased by ~ 80%.

For example, a one-room apartment is rented at a price of 20’000.00 🪙 per month plus utility bills of 3’000.00 🪙. The total is 23’000.00 🪙. Now let’s divide this apartment into 2 studios, each of which will have its own bathroom. We will rent each studio for 17-18’000.00 🪙 per month. We will share utility bills between tenants, that is, it turns out 1’500 🪙 from each studio. In total, from the same apartment we will receive 38’000.00 🪙, together with utility bills.

It is also beneficial for tenants as they only have to pay 19’500.00 🪙 per month instead of 23’000.00.

How to make money with minimal investment

Let’s look at where you can invest small funds to create capital and passive sources of income.

How to make money: 5 ways for beginners

how to make money with minimal investment

If you have free cash in the amount of 10’000.00 🪙

Bank deposits

This is the most conservative and proven option. It will allow you to start saving money for further investment. Unfortunately, the yield on deposits has only been declining recently and now rarely exceeds 4-6% per annum.

However, this is a good option for storing your airbag and funds for daily needs. Many banks offer savings accounts that allow income and expenditure transactions.

It is also worth remembering that the risk of losing this money is minimal. Most deposits are insured by the state in the amount of 1.4 million 🪙.

Stock market

This option is for those who are not ready to put up with a minimum yield. The opportunity to earn here is much higher, in other matters, as well as to lose. You need to invest in the stock market for a long time, for several years. This will minimize the risk of losing money.

For beginners, it is better to take a closer look at ETFs. These are exchange-traded investment funds that form a portfolio of securities according to a certain principle. Portfolios can include stocks of companies, both a certain industry and the whole country. Thus, by purchasing the fund’s shares, we invest in an entire industry or the economy of a particular country.

If there is free cash in the amount of 150’000.00 🪙

precious metals

This tool should be considered, first of all, as a means of protecting capital. You won’t be able to make much money from this. Moreover, you need to remember that when buying real gold, you will have to pay tax. Also, do not forget about its storage, which is also associated with financial costs.

It would be more expedient to buy ETF shares for gold. And you don’t have to pay taxes, and you can sell faster.


This does not mean investments in start-ups, but cooperation with small, reliable businesses that have a development plan and results. It can be both beauty salons and coffee houses or points of sale in shopping centers and much more.

You can meet with the owner and offer him a partnership. The main thing is to study the potential business to understand the prospects of investments. Our funds can be spent on opening a new point, for example. The only thing is that it will not work to stay away from business processes, you will need to participate in them. But the reward will be worthy and significantly higher than a bank deposit.

Internet earnings

We live in the age of the Internet and there is a lot of money in it. And we can make money from it too. For example, you can create a profitable site on a close, familiar topic and share useful information on it with other users. Such sites allow you to earn income, both through advertising and through the promotion of their products or affiliate programs.

Such sites can be created from scratch, or you can buy a ready-made one. For example, on the Telderi resource, you can buy and sell websites. In the future, just fill it with content to attract visitors.


Business lending services are gaining more and more popularity. These investment platforms allow individuals to lend money to legal entities and receive additional income in the form of interest on the use of money. As with any other type of investment, there is a risk that the funds will not be returned. Then you will have to collect the debt through the court.

Most services help the investor in this matter. Therefore, you need to carefully study all the nuances and subtleties of the service through which we will lend money. You also need to keep in mind that an individual must pay a tax of 13% on the profits received. Some services are tax agents and independently carry out all operations to withhold tax from the investor.

When choosing a platform for earning, you need to make sure that the service is included in the register of investment platform operators. Registration in the register is a prerequisite in accordance with Federal Law No. 259-FZ.

How to make money: 5 ways for beginners


If there are free funds in the amount of 300’000.00 🪙


Investments in this tool are long-term. Big profits are possible only after a few years, or even decades. Unfortunately, this is a rather costly and risky tool. To invest in art, you need to be well versed in it, in its trends and directions.

commercial real estate

There are many types of commercial real estate investments. This includes the lease of warehouse space, and the lease of offices, and much more. The safest of all forms of real estate investment is commercial real estate with food retail as the main or anchor tenant.

The easiest way to invest in commercial real estate through a collective scheme. There are crowdfunding platforms on the market, the entry threshold for which starts from 300’000.00 🪙. The yield on such transactions is 10-12% before tax.

Field of miracles or not all investments are equally profitable

Money has always attracted and will attract dishonest people who try to appropriate it for themselves. This is especially noticeable in the field of investment. These people invent a variety of schemes to steal money in fraudulent ways.

This is the creation of various funds, following the example of MMM, which promise large percentages of profitability. And all you need is to invest your money in it and attract more participants.

Try to avoid such projects. What else is dangerous to invest money in:

  1. Keep at home under the pillow – inflation will quickly devalue them, and money should work and generate income.
  2. Deposits – It is not wise to keep all your money in the bank. After all, the yield on deposits loses to inflation. So, as in the first case, the money depreciates. To store funds for daily expenses, it is better to use savings accounts. On them, at least, it is possible to make income and expenditure transactions without loss of interest.
  3. State pension programs – the yield on them is not much higher than deposits. Accordingly, it will not work to create capital on them.
  4. Buying and selling real estate requires a good understanding of the market and its trends. There is a high probability of being stuck in a trade for a long time. And whether this deal will be profitable is a big question. Purchasing a property for the purpose of renting out is a better option than for resale.
  5. Projects or tools that you do not understand – as mentioned earlier, you need to thoroughly understand the investment before investing your money in it. In the absence of an understanding of how the project works, what the earnings are based on and how to exit the transaction, it is better to refrain from the project. The probability of losing money will be high. If necessary, it is better to hire a specialist to help sort out this issue.

TOP 5 Skill Development Books

How to make money: 5 ways for beginners

learning is light

In the matter of investing and creating money, it is important not to stand still, but to constantly develop and look for new opportunities. To improve your financial and entrepreneurial thinking, books will be useful:

  • "Multiple Streams of Income" – Robert Allen
  • "No cash advance" – Robert Allen
  • "Invest and Grow Rich" – Heinrich Erdman
  • "Money. Game Master – Tony Robbins
  • "Investment Strategies for the 21st Century" – Frank Armstrong

Now you know how to make money with minimal investment. Do not be afraid, the main thing is to start acting and your income will grow rapidly.

Post source: finstroll.ru

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