We’ve all heard the old phrase ‘it takes money to make money.’ I always had a little resentment for the concept while I was a poor student without any ‘money to make money’ and I suppose I still have a little resentment now as I’m now a graduate but the money still alludes me! Having said that this fact has not stopped me strategising for my future when I have finally scraped enough of my pennies together to make some kind of tangible investment or business model. In the paragraphs below I’ve shared my favourite (and by this I mean the most ambitious of my ideas.) This was partly to make for an interesting read but also to show you just how easy it is to make money when you already have a whole lot of it!
Easy method #1 Loan your money to the public.
It doesn’t get much simpler as a business model – you have lots of money. You give people a lump sum of your cash (it’s a drop in the ocean as far as you’re concerned) and over the next few years they start paying you back an even greater amount in small increments. You have SO much money that you can afford to give these large lump sums of cash to many people – who all start paying you back more money over time too. Eventually you have so many people paying you back monthly increments that each month you are generating even more lump sums of cash that you can loan out to people… and the cycle continues. Of course I’m being slightly facetious here as I’m aware you would have quite a significant administration cost to handle this amount of person to person management, but the point remains valid.
This administration cost actually becomes quite marginal when you consider how the internet has changed the loaning business. The site in the link illustrates how the entire operation has essentially become automatic. You enter your details into the website and a computer algorithm calculates your liability as a loaner (from your credit score I assume) and then automatically decides within a few minutes whether to dispense the cash into your account! So your only investment in this modern era of loaning is to fund the development and creation of a really high quality website that automates the whole process for you. Maybe you pay for a web designer to keep tabs on the site to ensure it always runs smoothly, but apart from this you’re raking in more cash without having to ever give it a second thought! Now all I need to do is find a way to accumulate this massive money mountain, does anyone have a link to an article about how you do that per chance?