Quora Answer: What Should a 22-Year-Old Do to Earn Extra Money?

The following is my answer to a Quora question: “What should a 22-year-old, who is making $3,500 monthly do, or invest in, to earn extra money on the side?”

First, you need to consider how much money you can afford to put side.  This is the first step in a needs analysis.  Once you have taken out all necessary expenses plus a little extra to maintain your lifestyle, what you have is the excess.  You should also consider money needed for major future expenses.

Secondly, you need to determine for yourself your investment horizon, your risk appetite, the liquidity, and the reason why you want to put money aside.  This helps you rule out certain forms of investments.

Finally, choose the investment vehicle, whether a bank instrument, a fund of some sort, an insurance policy, direct securities or any combination of them.  The choice of securities and your investment horizon, ultimately determines how much you make on the side, or how much you may lose.  Loss management is part of the investment process.

For a detailed strategy on this, you need to engage a financial advisor.  Choose your financial advisor with the same care you choose your doctor, your lawyer, or your investment banker.  There are a lot of competent advisors, but you have to be certain that they share your values, and will provide the level of service you require.  The financial advisor would perform a financial health review, and a Know Your Client.  It is from there, that they can make appropriate recommendations.