My Answer To: How To Earn $10,000 In Two Months

“Investing money is the process of committing resources in a strategic way to accomplish a specific objective.” – Alan Gotthardt

 

$10,000 In Two Months

This started as an interesting question posted by a few Quora. This is a great question to explain the concepts of compound interest and savings. $10,000 in two months is an ambitious goal. Outside of the conventional means of a full-time job, this is a high amount to earn.

With different combinations of risk tolerance, time and starting capital. There are a lot of different answers to this question. For simplicity, let’s adjust these variables to create two different personas. Each of these persons will have a different strategy to earn $10,000 in two months.

  1. If you have high starting capital and high annual expenses, see strategy A.
  2. If you have low starting capital and average annual expenses, see strategy B.

Strategy A ($1,000,000 Starting Capital, $60,000 Annual Expenses)

For this strategy, the key driving factors are utilizing the large starting capital and amount of annual expenses to earn as much interest and cash back as possible. The majority (70%) of the $10,000 will come as free money. The remaining sum (30%) will come from a low-effort, part-time job for a few hours a day.

Using this strategy, the total yield for two months is $10,007

Strategy: Convert All Payments to Cash Back Credit Card + EBates + Open Checking Accounts With Sign-On Bonus + Invest In A 5 Year High Yield Certificate of Deposit (CD) + Drive For Lyft

Convert All Payments to American Express Premier Rewards Gold Card

With a large amount of annual expense, it makes sense to earn back as much cash as possible without having to pay high annual fees for rewards credit cards. Searching across many different credit cards, the best offer available is through the American Express Rewards Gold Card.

This card offers a sign-up bonus of 25,000 points when spending $2000 in the first 3 months. This card also offers a $100/year airline credit to be used on baggage fees, airplane food, seat upgrades…etc. Points can also be redeemed for statement credits or gift cards at a rough conversion rate of 7500 points = $100.

With annual expenses of $60,000, this translates to 35,000 points within the first two months (25,000 points sign-on bonus + 5,000 points for 2 months of expenses). 30,000 points roughly converts (7500 points = $100) to $466 in gift cards or statement credits. There is also a $100 airline credit bringing the two-month return to $500.

Go Through Ebates for All Purchases

In addition to utilizing a high rewards credit card for your annual expenses, we can double down on annual expenses by earning more cash back through sites like Ebates. On average Ebates offers 5% cash back across 2500 different stores across most storefronts that consumers use like Amazon, Walmart, Kohls, Ebay, Macys, CVS, Sephora…etc).

Since it would be a stretch to assume that all annual expenses could fall under Ebates stores I took a conservative amount of half. With a two month expense of $5000 at an average of 5% cash back, this translates to $250 within the first two months.

Open HSBC Premier Checking Account and Sun Trust Checking Account

With a large starting capital, you can earn free money for leaving it with certain financial institutions. Since 2009 credit has become extremely valuable to banks and the more customers they attract, the more capital they have to work with. This has resulted in banks competing with each other and one of the ways to attract more customers is by offering sign-up bonuses. These bonuses large amounts of money that a bank will give you just for opening an account and using that account.

With a large amount of starting capital, you can open up multiple of these accounts (ethically of course) and capitalize on the sign-up bonuses.

Using bankrate I was able to search for the top sign-up bonus offers and top two are HSBC and Sun Trust. Opening an HSBC Premier checking account and depositing $100,000 will earn you $750. Opening a Sun Trust Checking Account and depositing $100 (along with other conditions) will earn you $500

Invest In A 5 Year High Yield Certificate of Deposit (CD)

With the federal reserve raising interest rates multiple times in 2018, banks are offering high interesting yields for savings accounts and CDs. With a high starting capital the need to have your money liquid and readily available is low. The best way to capitalize on this is to invest it in a high-yield CD that allows your money to compound and grow.

According to bankrate, the highest yield CD is from Synchrony Bank. They are offering 2.85% APY for a 5 year CD.

Assuming that $110,000 must be used and kept with Sun Trust and HSBC in order to get the sign-up bonuses that leaves a capital investment of $890,000. Put into the Synchrony Bank 5 year CD will yield $4227 in interest for two months.

Drive For Lyft

Unfortunately, reaching $10,000 in two months cannot be achieved on interest alone. Unless you are willing to take on risk and put your principle at stake, you will need to take on a supplementary income stream of revenue.

Driving for Lyft offers the ability to quickly earn money without dealing with the logistics of a typical job. You can set your own hours, no extensive interview process and you can work during weekends. Lyft also offers the ability to earn tips which can add to supplementary income without having to work more hours.

Using Glassdoor I was able to find an average hourly rate for Lyft drivers at $15/hour. Working only 4 hours a day that adds up to $3600 for two months. On top of base income, I assumed a 5% ($180) of additional revenue coming from tips. This brings the total for two months to $3780

Strategy B ($5000 Starting Capital, $25,000 Annual Expenses)

For this strategy, the key driving factors are trying to earn as much cash back from annual expenses, putting starting capital to work and utilizing supplementary revenue streams to fill in the gaps. Since there is very little starting capital, the majority (90%) of the $10,000 will come from supplementary income. The remaining sum (10%) will come from cash back on expenses and investing the starting capital. Unlike strategy A, this strategy will be more labor intensive.

Using this strategy, the total yield for two months is $10,093

Strategy: Convert All Payments to Cash Back Credit Card + Open Sun Trust Checking Account + Supplementary Income from (Lyft, Task Rabbit, Surveys, Ebates)

Convert All Payments to American Express Premier Rewards Gold Card

Similar to Strategy A, we want to earn as much cash back as possible for the money spent on expenses. The American Express Premiere Rewards Gold card is still the best choice because of the high sign-up bonus and airline credit.

Annual expenses of $25,000 translates to 29,166 points within the first two months (25,000 points sign-on bonus + 4166 points for 2 months of expenses). 29,166 points roughly converts (7500 points = $100) to $388 in gift cards or statement credits. There is also a $100 airline credit bringing the two month return to $488.

Go Through Ebates for All Purchases

As with Strategy A, we want to double down on annual expenses by earning more cash back through sites like Ebates.

Again, I took a conservative amount of half. With a two month expense of $2083 at an average of 5% cash back, this translates to $104 within the first two months.

Open Sun Trust Checking Account

Due to a small starting capital, the amount of sign-up bonuses and checking accounts is limited. Most of the sign-on bonuses require active investment and use of the accounts and with $5000 starting capital you an only essentially keep your money in one place.

Sun Trust still is a good option in this strategy because there is very little capital needed for opening the account and getting the sign-up bonus. Opening a Sun Trust Checking Account and depositing $100 (along with other conditions) will earn you $500

Drive For Lyft

As mentioned earlier, this strategy will require much more labor than the previous strategy. Reaching $10,000 in two months cannot be achieved without additional supplementary income.

Lyft is still a good option in this strategy because of the ability to set your own hours, no extensive interview process and you can work during weekends. You can leverage Lyft to earn income during as many hours during the day as possible.

Working 7 hours a day that adds up to $6300 for two months. On top of base income, I assumed a 10% ($630) of additional revenue coming from tips. Unlike the previous strategy, you will need to maximize as much revenue from Lyft as possible. Implementing small customer service gestures, tip suggestion signs and punctuality will go a long way to increase the amount of tips you can bring in. This brings the total for two months to $6390

Tasker for Task Rabbit

Unfortunately, Lyft will not solely be able to cover all of your supplementary income. There will be factors (low demand, competition, un-favorable routes) that prevent you from putting in 9–10 hour days on Lyft.

During these down times, you will need to still earn money while still remaining on stand-by when Lyft demand peaks again. Task Rabbit is a good option for filling in this gap. Task Rabbit is a service that pays you to perform tasks for people. Similar to Lyft, you can set your own hours, no extensive interview process and you can work during weekends.

Using Glassdoor I was able to find an average hourly rate for Taskers of Task Rabbit at $10/hour. Working only 3 hours a day that adds up to $1800 for two months.

Survey Junkie (During Free Time)

During any free time that you have between Lyft and Task Rabbit, you can utilize online websites to earn small amounts of money in exchange for taking surveys.

Survey Junkie is one of the top survey sites. It offers a constant stream of different surveys taking various lengths (1 minute all the way to 60 minutes) that reward you with cash.

On average, it is possible to earn $5 per day by taking surveys during every free moment that you have. Across two months this adds up to $300

DISCLAIMERS:

  1. All of the above-mentioned information is a strategy NOT a recommendation
  2. Please consult a financial adviser before implementing any of above-mentioned strategies
  3. Not all options are purely from the internet. Without taking on a large amount of risk, this blend of online and in-person activities is the biggest return while protecting your principle.

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