Money Making Schemes

Nagesh answers:

Why invest in stock that doesn’t pay dividends? Answer: You’re hoping that the stock price rises. You’d make money off the appreciation in stock value.

Example: You have three stocks. The shares of each cost $100.

The first stock pays an 8% dividend. So you know that at the end of a year, you’ll have received $8 in dividends.

The second stock pays a 3% dividend. So you know that at the end of a year, you’ll have received $3 in dividends.

The third stock pays no dividends. So you know that at the end of a year you’ll have received nothing in dividends.

However, the stocks may go up in value. Or they may go down. Let’s say the first stock goes up 2% in value, to $102. Your total return on that stock is 10%–8% through dividends and 2% through the rise in the value of the stock.

The second stock goes up 5% in value, to $105. Your total return on that stock is 8%–3% through dividends and 5% through appreciation.

The third stock goes up 15% in value, to $115. Your total return on that stock is 15%–all 15% through appreciation.

Now, a stock can pay a nice dividend and still appreciate. However, many of the stocks that appreciate the most (so-called “growth stocks”) pay little or no dividends. Instead, they put most of their profits back into the company, rather than paying the money out as dividends.

Just doing a quick stock screen, during the past 52 weeks (one year), the following stocks–which pay no or insignificant dividends–had the following performances: Radian Group: +205%, CFS Bancorp: +96.75%, Ameriana Bancorp: +93.94%, ADF Group: +84.36%. Bank of America: +57.13%, Citigroup: +51.46%. With that kind of appreciation, you don’t need any dividends.

You certainly can find stocks that have both excellent performance and good dividends. For instance, Icahn Enterprises has a dividend yield of 6.1% and is up 102% in the past 52 weeks. Liberator Medical has a yield of 5.4% and is up 161%. But as you can see, most of the profit you’d make is still from appreciation, not from yield.

At the other extreme, Shoreline Energy has a yield of 19.60% but is DOWN 24% over the past 52 weeks. Sentra Select Primary Metals has a yield of 15.15% but is down 58.85%.

Again, notice that your losses are coming from the price change.

You really only buy stocks with large dividends if you’re retired and plan to live off your dividends. Even then, you want to make sure that the underlying stock is solid.

When analysts look at stocks (to oversimplify a bit), they classify a stock as either a “value” (underpriced) stock or a “growth” (good likelihood of price appreciation) stock. Notice that both are looking at the stock PRICE and the likelihood of it going up, NOT at the dividends.

Final point: While stock prices do go up and down, consider the past year when prices, overall, are up about 23%. The average yield is about 2.5%. People focus on prices, not dividends.

To beef up your mock portfolio, look for stocks with consistent earnings and consistent increases in the total return (dividends plus price appreciation).

Hope that helps.

Nagesh answers:

Write articles, and earn money from ad programs (50%). There are two excellent websites that give you the opportunity to earn money by writing articles.

Triond:
http://www.triond.com/rw/364208
Triond is very good for starters with Google Adsense being the main source of income. I recommend you to start publishing there, until you learn how this works, and then decide for yourself if you want to stay or change to hubpages.

Hubpages:
http://hubpages.com/_manage/user/new
Hubpages is more professional, and has Ebay, Amazon, and Google Adsense as main sources of income. It is more complicated if you are a beginner. But if you are looking for a steady income, this is probably the best thing you can find on the web.

Nagesh answers:

Hey, look at my website. I’ve outlined, in detail, the basics of making extra cash online, how to get the most out of each site, and the big thing to look out for (in terms of scam sites).

Http://quick-cash-sites.webs.com

But if you’re in a hurry, my profile is the condensed version of my website.

Cheers.

Source(s):
personal experience of being scammed by inboxsponsors.com. Avoid at all costs!

Nagesh answers:

1. Social Marketing Consultant

Many companies are looking for qualified candidates who know the ins and outs of Myspace, Facebook, and Twitter to help them with their social marketing efforts. Head over to a job site and search for “social media”.
2. Sell stuff on eBay for Mom and Dad

I am sure mom and dad wouldn’t mind sharing some of the profits, if you sell some of their clutter for them.
3. Freelance Write

As they say on the web “content is king” and everyone wants it. I have a consistent flow of passive income coming in from writing I did for Hubpages and Squidoo. For more on this method, check out How to make money with Hubpages.
4. Have a Garage Sale

If it is something too large or that won’t sell on eBay for some reason, you can always have an old-fashioned garage sale!
5. Write product reviews

There are places like Ciao, Epinions.com, ReviewStream.com that pay for product reviews – if you have an opinion and can type quickly this might be a good option.
6. Find odd-jobs on Craigslist

Some of these might be landscaping work, or similar odd-jobs, but it might be great summer time work for teens!
7. Bank Account Opening Bonuses

Not sustainable, but it’s a quick way to make money. ING Direct offers $25 for opening a new account and Virtual Bank offers $20. If you do some digging you will probably find many other companies offering cash bonuses for opening accounts.
8. Take online surveys

I am not particularly fond of the whole online survey thing since I had a bad experience using CashCrate. But there are lots of online survey sites and people who do it successfully.
9. Sell Digital Photos

Making money as a photographer has become easier over the last decade. There are now lots of sites looking to buy digital photos: Shutterstock.com, 123RF.com, Dreamstime.com, CreStock.com, Fotolia.com. As with most things, the better you are the more money you will make, but it can be nice passive income if you work at it.
10. Sell Plasma

Not sure how old you have to be, nor how painful it is, but if you are into that sort of thing, it can be a way to make some quick money.
11. Take part in medical studies

I have a couple friends who have almost done this exclusively as a job. They were basically human guinea pigs, but they made some decent cash at it. Sometimes they would have be at the medical facility for up to 48 hours, so your schedule may need to be flexible. Just google “medical studies” + your city to find some options.
12. Tutor or give lessons
Are you great at math, science, or kicking a field goal? Why not advertise your skills to those a few years younger than you? Many parents are willing to pay a teenager to tutor their child in an area that needs development.
13. Create Myspace backgrounds

or Twitter backgrounds for that matter. Just set up a simple site to sell your work, get a paypal “buy it now link” and you are off and running.
Jobs requiring a uniquely mature teenager
14. Create Websites

I can’t tell you how many people have asked me to build them a website since I started this one a couple years ago. I am not seeking the work and people are requesting it, so if you do a little legwork and pursue small business owners, there is a lot of work available. Teens might be great for this, because they would be able to work for less than some higher end website developers, which would put them in the price range that it seems many small businesses are looking to spend.
15. Blogging

Two years ago I wasn’t sure if there was money to be made blogging, but I have since found it to work out nicely. It isn’t something that will provide much income quickly, but if you stick at it, it can. I wrote extensively about how to make money from a blog a few months ago.
16. Design Web Logos

If you have a flair for design, it may be worth trying to make some money designing logos for small business or blogs.
17. Freebie Trading

I first heard about freebie trading from Leslie who made $28K last year doing it part time. It seems like it requires a certain kind of person, but clearly there is potential as a decent money maker.
18. Become a Census Taker

The 2010 census is underway and there may still be census taker positions available in your area. You may need to be 18 to apply.
19. Sell articles

Following in that same vein, you can sell articles you write at places like Constant-Content.com, ArticleSale.com, Helium.com.
20. Start an eBay business

Last year I experimented with starting an eBay business to see if there was money to be made. While profit margins can be thin selling on eBay, there are over a million eBay businesses, so it is a viable option.
21. Sell widgets on Etsy.com

If you create any kind of arts or crafts or widgets of any sort, you should check out Etsy.com.
22. Join a Focus Group

There are likely to be focus groups in your area that may be willing to hire teens. Google “focus group” and your city to get started.
23.

Nagesh answers:

Just be super careful as there are an endless number of sites which promise too much money too quick-ly and that is not the way it works. Don’t be greedy, mony has to be earned it doesn’t come from the sky.