Do You Reinvest Your Online Earnings?: Make Money Online with Your Online Money

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Where does the money go?

What do YOU do with money you earn online?

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I learned years ago that there are three principal ways to make money.

  1. Sell your time. You go to your job, punch the time clock, and work a shift. Whether it's four hours or forty, you get paid for the amount of time that you are there. Most people work this way, and often look for opportunities to make more money per hour, and for overtime pay (time and a half!). Hours worked x hourly wage = your paycheck.
  2. Sell your skills. If you have a talent, skill, craft, or trade, you get paid because of your specialized knowledge and expertise --even credentials-- that you bring with you to work -- whether you're a plumber, attorney, or a football player, or endless other professions. You may still get paid based on a set period of time, but it's based more on your skill set. One expertise session-gig-service call x your premium amount = your total fee.
  3. Your money makes money. This is as simple as money in the bank earning some interest, stocks that pay dividends, bonds with coupon payments, or an investment property that throws off monthly rent. (I read once that savings is 'STORED WORK!' I like that concept because its another way of saying the more work you "store" -- i.e., the bigger your savings/IRA/401K -- the less you have to work!) Your money is working for you each month and has a return on investment. Savings/dividends/bonds/rent x calendar time = return!

I'm not earning very much online yet. Actually, I recently wrote a hub chronicling my first two months on Hubpages and InfoBarrel (plus Fiverr), and the $28+ that I've earned. So I'm a long way from my plans... I have a FT day job, and a part-time service business so any extra that I make here is really... EXTRA. So my plan for the money I make online, or any unexpected money, is long-term REINVESTMENT!

WHAT I'M PLANNING: How to Reinvest Your Earnings to have your money work for you (#3 above).

  • OTHER DOMAINS AND NICHE SITES: Eventually fund a niche site and domain for my most successful articles and topics -and generate revenue from clicks and affiliate sales. I WILL NOT do this until I am earning enough online to fund hosting/domains, etc. because too many web entrepreneurs create online properties only to spend money each month on speculation.
  • OUTSOURCED CONTENT: I've read about writers eager to have a great deal of content online. They take every dollar they make online and they OUTSOURCE more content with their keywords and research. Very often this creates some editing work, but it's a way to increase your article count. The trick is to make sure it is original content, by a native English speaker, not spun content, and edited for clarity, spelling, grammar, and flow. The hope here is the increased content pays for itself in adsense earnings.
  • DIVIDEND INVESTING: Each month I purchase General Electric (ticker: GE) stock directly in a DSPP or DRIP plan from the company's transfer agent. We invest $75 (with $1 fee for direct bank debit) monthly in a company that currently has about a 3.9% dividend. My paltry $28 in online earnings does not YET cover a month's investment, but this (or another blue chip, dividend-paying stock) would be a great place to reinvest your online earnings. I would need a Google Adsense payout each month to cover my DRIP investments-- but this is my principal long-term plan! I want the money to come in from online activities and go out to purchase dividend stocks!

If you need the money that you earn online or freelancing for your monthly expenses, then forget about reinvestment. You need it to make ends meet, and that's fine. Bravo to you for finding a way to earn a little extra! But if this is "found money", why not put it back into a position where it can work for you!

Comments 5 comments

umakeit profile image

umakeit 5 years ago

Capstone Trends, your suggestions are good. Reinvest the online money into good stocks might get you good return in long term. Thanks for sharing.


CapstoneTrends profile image

CapstoneTrends 5 years ago from Outside Boston, Massachusetts, USA Author

Thanks umakeit!


Pamela99 profile image

Pamela99 5 years ago from United States

Good suggestions. Thanks.


CapstoneTrends profile image

CapstoneTrends 5 years ago from Outside Boston, Massachusetts, USA Author

Thanks Pamela!


mib56789 5 years ago

Smart advice. Or should I say financial savvy? Either way I voted this up.

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