What to do with the money that you make online!
Once you build up your internet business you will need to know what to do with all of the money that you have made online! Here are 5 simple yet effective ideas that you can use to manage your money better and make sure that it continues to come in from your online income streams.
Lets assume that your earning an extra $100 a week to start off with.
1. Pay off all of your debts.
With an extra $100 a week, I would put that towards any high interest credit card debt. As that gets paid off you will pay much less interest and its enough to see some noticable differences over a couple of months. Aim to get any other debt paid off as well if you get your credit card cleared.
2. Save all of your money into a high interest cash account.
A $100 dollars per week really isn’t enough to live off, however if you can diligently put $100 away into a high interest bank account, such as those offered by ING, then you save away $5200 over 12 months. This doesn’t include interest. This could be a great little emergency fund for that day when your car needs urgent repairs, or use it for something that is rewarding such as a holiday away.
3. Invest it back into your website.
This may seem a bit counterintuitive, however if you are low on debts and you already have some savings, you could look at using it invest back into your website. Maybe you could get a custom designed website, or improve your hosting. If you have products to sell, now could be the time to start advertising on Google if you aren’t already. This is great so you can continue to make even more money online!
You may also want to hire another blogger for your site, or start a new site. Get more content on there and more relevance to search engine results for your niche.
4. Relax and enjoy your earnings.
Depending on your financial needs, you may be able to splurge a little bit. Chances are you have worked hard to get your site to $100 a week. Good on you. Now you can relax a bit and enjoy it. So treat yourself a little. Don’t go overboard and remember why you wanted to earn that extra money in the first place. If it was to pay off debt, then refer to step 1!
5. Invest it into a product that you can sell.
This one won’t be for everyone, but perhaps you have a product idea that you want to invest in. Save up your money and use this to get a prototype built, or do some market research to find if it will be profitable. There are plenty of ways to make money online, and some of the best are around selling your own products. There are several companies which you can outsource the design and development to if you don’t have the expertise. Just make sure they can’t steal your idea!
Obviously if your earning more per week/month then you have more options you can use it for.
For instance, if your earning $500 a week, then you could almost start to think about doing the blogging option full time. Or you could use it to seriously make a dent in your house mortgage. Especially at the moment, when interest rates are lower across the globe, the more principal you can pay off your mortgage the better off you will be down the track when the economy begins to stablise.
If your business online is making a significant amount of money each week then I would also recommend you seek independant tax advice from your accountant, as depending on where you live your tax obligations will vary. If you are earning $500 a week however, be encouraged, because with a it of tweaking, you are well on your way to turning that $2000 per month website into a $10,000 per month cash cow! I would start to look at getting your website fully customised if it isn’t already, you could even start to sell advertising spaces for a decent monthly fee and outsource a few extra authors to start on other popular blog topics or help you add more content to your own site.
Once you are earning $1000+ a week, then it really is up to you. For me, personally, when I got to this stage, I worked on my site alongside my normal job for 2 months to ensure the income would continue before quitting to work from home. This worked well for me because I knew that I needed to continue to make money online in order to be financially secure. The two months gave me enough time to tweak it and ensure that the income payments continued to increase. Its also a good idea to diversify and have a few sites setup, incase one has a drop in traffic for instance.
Suggestions like paying off debt are even easier when your earning more money online. If you get this side of life covered off reasonably easy then your options for your money are enourmous, anything from helping family members out, investing in new or existing companies, putting money away for the future, supporting charity organisations and having a bit of fun in the process, such as a new car or overseas holidays. Making money online really can be a life changing experience, so its certainly worthwhile investing the time and energy into making it work for you!
