3 Ways To Turn $5,000 Into More Money
Lifestyle | 10 Sep 2019
Picture this. You’re in possession of $5,000 with no clue as to what to do with it. Most people will put the sum into a bank to accumulate interests and forget about it. However, the smart way to use your newfound mini-fortune is to turn it into more money and passive income. Here are 3 ways to start your journey of turning $5,000 into more money.
Buy and Resell or Dropship
If you’re always on the lookout for new drops to cop, you’ve no doubt trawled through online bazaar platforms such as Carousell where users can sell items at customisable prices. The market for certain items such as branded limited edition apparels is huge with people willing to pay over retail to get their hands on them.
Take for example new releases by popular brands such as Off-White, Supreme or A Bathing Ape will always sell fast. However, reselling items requires knowledge on the products and market and not everything can turn a profit for you.
$5,000 capital is a comfortable amount for e-commerce business for the low overhead costs. With next-to-nothing costs, invest a portion of $5,000 into website and logo designs, simple-to-use CRM tools and even video ad productions. That way, you can differentiate your brand from others. Discover best practices to scale your e-business during your free time! Get started on your dropshipping business this weekend.
Better Yourself & Upgrade Your Skills
In an age where machines could do your job better than you, humans need to constantly evolve and adapt to new automation breakthroughs. Gain new experiences and turn your newfound skills into money-making opportunities. For example, learning how to invest could potentially help you start your investing journey or simply provide advice and opinions on such topics.
The Straits Times highlighted 5 key skills Singaporeans need to be future-read in the workplace.
- Digital Agility
- Data Analytics
- Cyber Security
- Service Orientation
Strategic upgrading of highly sought-after skillsets will increase your employability rate. Say hello to your new, better-paying job as you advance to your next stage of career growth.
Beyond work, picking up a hobby could inadvertently allow you to make money off your passion. This does require some long-term planning as in the short term the income might not be much. Some examples of places to learn useful skills are MySkillsFuture or your local community centres.
Explore MySkillsFuture courses here.
Smart Saving & Investing
A simple Google search of what to do with $5,000 in Singapore will bring up pages of investment strategies and tips. Though with $5,000, not many consider investing to be a viable way of making profits due to the high capital requirements. Large minimum deposits also deter new investors afraid of losing their capital.
Prior to starting your investing journey, you need to have practical and theoretical knowledge of the financial markets. Simply throwing your money on the investment with the highest return is a surefire way of losing everything. Proper management of your investment portfolio requires discipline and is essential for long-term investments. With this in mind, many shy away from investing altogether even though it is probably the best way to earn passive income.
Being a relatively safe form of investment, Endowment Funds have become more popular due to the potentially higher returns offered as compared to savings or fixed deposit plans. Some Endowment Funds also guarantee returns such as PolicyPal’s endowment plan. With a $5000 single-premium payment, the new PolicyPal x Singapore Life Endowment Plan investment guarantees 2.38% p.a. for a 5-year term with an immediate 1% rebate.
Read about PolicyPal’s endowment plan: PolicyPal Endowment Plan: 2.38% Guaranteed Returns p.a. + $250 Cash Vouchers + 1% Rebate!
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