From a purely financial point of view, an Internet based business offers many benefits. For a start, once you are making some money from selling advertising space or products, you can begin to claim back expenses against your taxes; not just from the income from your internet business, but also against your PAYE taxes. (See: Slash Your Taxes Now! By Peter Sibbald)
Tax benefits aside, did you ever consider how much money you need in the bank to make a meagre $1 per day? At the time of writing, Raboplus (who offer a consistantly higher on-call interest rate than most trading banks) are offering 3.6% interest on-call. To make $1 a day you would need to invest $10,138.88.
Let’s round that down to a nice even $10,000 (how long would it take you to save that much?) and see how much you can make in interest off your savings.
| Interest Rate | Per Day |
| 12% | $3.29 |
| 11% | $3.01 |
| 10% | $2.74 |
| 9% | $2.47 |
| 8% | $2.19 |
| 7% | $1.92 |
| 6% | $1.64 |
| 5% | $1.37 |
| 4% | $1.10 |
| 3% | $0.82 |
| 2% | $0.55 |
| 1% | $0.27 |
So, imagine finding a nice safe investment rate of 12% (at the time of writing, good luck!!) and you’ll make only $3.29. Not quite enough for a latte at most cafés these days. And If you get around 3% you’ll be getting only 82 cents.
To get an idea of of how much money you would need invested to earn $1, $2, $5, or $10 per day, take a look at the table below.
| Interest Rate | To Make $1 Per Day | To Make $2 Per Day | To Make $5 Per Day | To Make $10 Per Day |
| 12% | $3,041.67 | $6,083.33 | $15,208.33 | $30,416.67 |
| 11% | $3,318.18 | $6,636.36 | $16,590.91 | $33,181.82 |
| 10% | $3,650.00 | $7,300.00 | $18,250.00 | $36,500.00 |
| 9% | $4,055.56 | $8,111.11 | $20,277.78 | $40,555.56 |
| 8% | $4,562.50 | $9,125.00 | $22,812.50 | $45,625.00 |
| 7% | $5,214.29 | $10,428.57 | $26,071.43 | $52,142.86 |
| 6% | $6,083.33 | $12,166.67 | $30,416.67 | $60,833.33 |
| 5% | $7,300.00 | $14,600.00 | $36,500.00 | $73,000.00 |
| 4% | $9,125.00 | $18,250.00 | $45,625.00 | $91,250.00 |
| 3% | $12,166.67 | $24,333.33 | $60,833.33 | $121,666.67 |
| 2% | $18,250.00 | $36,500.00 | $91,250.00 | $182,500.00 |
| 1% | $36,500.00 | $73,000.00 | $182,500.00 | $365,000.00 |
In the current financial climate you will need around $50,000 in the bank to earn just $5 per day in interest. Now, imagine that you could earn this by simply investing your spare time into building an internet business. $5 is achievable, especially with our dollar being low when compared to the US$, and you would only need to earn ~US$3.30 per day on Google Adsense to make this NZ$5 per day (~NZ$152 per month / ~NZ$1825 per year).
For those who think that Google Adsense (and other pay per click advertising) is for wimps, then consider how many (or how few) commission based sales you would need if to make this same NZ$5 per day. The answer could be as few as 8 sales if you made NZ$20 (~US$13.20) commission per sale. That is both achievable and a low estimate on what commissions are available (anywhere up to US$100 per sale is reasonable). Who wouldn’t be happy to make an extra US$100 per month?
Ok, so there you have it… how investing your time can start making you a good bit of pocket money, with tax benefits, even if you don’t pursue this as a work-from-home fully self-employed option. Your ’savings’ can then be put into paying off the mortgage, going on holiday, building your business, or you can still save it. And one final thought – imagine waking up in the morning and seeing that you’ve been making money while you sleep… it can be done!
Note: All daily earnings were calculated by working out the per annum amount and dividing by 365. Currency conversion was estimated at US$1 = NZ$0.66.
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