How to Earn $1000/Week Investing Online
I’m a year into making money from my money and it feels GREAT.
After a decade of stress creating value for a company someone else built, I’m glad I finally get to experience what it’s like to do so for myself.
I’ll spare you the details of my specific personal journey (unless you want to watch me talk about it here). My main goal with this post is to give you a blueprint for a new strategy that’s guaranteed to get you an additional $48,000 USD annually if you do it right.
I’ll start by listing the five steps to set you up for successfully earning $1,000 per week. Then I’ll go into more detail about how and why this strategy is almost foolproof.
- Save up cash.
Probably didn’t expect that, right? But remember, the goal is to earn money from investing money. So you have to have a seed to plant.
This is not a “get-rich-quick” scheme, but a disciplined approach to financial freedom.
The ideal is to have at least $5,000 in savings to start. You can definitely start investing and earning passive income with a lot less, but I can’t guarantee you that it’ll turn a $1,000/week profit. Saving up $5,000 may seem like a death sentence to your dreams, depending on how much you earn with your current salary (if you have a salary at all). To put things into perspective, you could save up to $5,000 by putting aside $500 a month on a $39,000 gross yearly salary (with $2,750 left per month for expenses).
This is an achievable goal with a minimum wage job ($15-$20/hour). If you’re just out of college, reduce how much you spend by living with your parents for at least one year. If you’re far from your college days but have a family and other obligations, check out this video to help manage your budget and get this first step accomplished.
2. Start an LLC.
The only business plan you need to have for a limited liability company (or LLC) is capital gain via investing. If you book me for a 1-on-1 consultation I can explain to you how to put your documents together for this. Basically, I’m trying to say that the business of your LLC will be to earn money by investing, PERIOD.
I highly recommend hiring services from companies like Legal Zoom to file the LLC application for you, but it’s very important to first know the state in which you want to file. Each state requires you to pay a certain tax rate on your business earnings, and there are some states that have more favorable tax burdens than others.
Talk to a professional to get all the advice on this, along with the requirements for filing for the LLC. The baseline cost for filing could be between $160-$250.
3. Open an LLC brokerage account.
This is where the money-making begins.
With your LLC, you can open an online account through which you can invest in shares of company stock. I personally love TD Ameritrade because the application process is relatively easy, and you can speak with someone on the phone while you’re completing the application in order to make sure it’s done correctly. TD Ameritrade also offers great advice to customers on how best to execute their trades. You won’t have to worry about getting confused or feeling lost through the process.
Once your account is approved, you complete the setup process by adding the funds you saved up into your account. You can do this gradually (no need to invest everything all at once). When you’ve funded your account you’re ready for the next step.
4. Start investing via the covered call strategy.
If you have no idea what I’m talking about, it’s probably a good idea to build your investment vocabulary here before beginning to trade anything on your LLC account.
While you’re learning, you can perhaps buy a small number of shares of stock in companies that are pretty reliable for doing well on the stock market (if you subscribe to this Medium blog and my YouTube channel you’ll get my picks of the week).
However, the strategy that I strongly encourage using is the covered call.
What’s a covered call?
If you’ve traded options before, you know that an option is a contract that gives the buyer of that contract the right to get 100 shares of a company’s stock at a set price. It’s a call option when the buyer is predicting that the cost of 1 share for the company will go up in the future, allowing them to (hopefully) get 100 shares at the set, lower price agreed on in their options contract.
In order to get the rights to do this, a buyer of a call option still needs to pay a premium to the seller of a contract (think of it as a down payment). Now imagine being on the other side of this deal — the seller gets a guaranteed dollar amount for selling that contract to the buyer. Which means they just earned some cash.
I want YOU to become the seller in this scenario, but to do it in a smart, protected way. This is why a covered call is a good strategy, which allows you to sell a call option contract on stocks you already own. Very important: you have to own at least 100 shares of the stock you want to sell a contract on before you can execute a covered call strategy.
With the right amount of cash saved up, and an intelligent approach to investing in the right stocks, this covered call strategy can guarantee that you earn at least $1000 a week.
That brings me to the last step.
5. Create a due diligence research process & schedule.
You worked hard for a whole year to save up that $5,000 to begin investing. Don’t squander it by buying and selling any stocks or options without knowing why. Due diligence is the process of understanding what makes a company a worthwhile investment, and it takes discipline to do it well.
That’s why you (a) first need to study key vocabulary words for trading on the stock market, and (b) understand how to apply those vocabulary words to researching a company trading on the stock market.
I go over how to do this step-by-step every Tuesday on YouTube, so again make sure you subscribe to get those (free) tutorials.
When you buy shares in the right companies, at the right time, and sell call options contracts against those stocks, you can reach your goal of earning $1000 that week by earning the premiums paid by the buyers of the option alone.
For the sake of not rambling, I’ll recommend that you book a 1-on-1 session with me to practice doing this and collaborate to create a 1–2 year plan to get you started on this new side hustle. But this should be a good first start in getting you on a path to additional passive income and, ultimately, the freedom of making money not from your labor but from your money.
Disclaimer: This information is for trading equities in the United States. Please note that this guidance is for general informational purposes only and is not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry.