How to Gain From the Underground Economy

By eHow Personal Finance Editor

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As long as there has been government control of and tax on employment in America, there has been an underground economy. Whether the goods and services being traded are legal or illegal, any exchange that is hidden from this government oversight is part of the underground economy.

Instructions

Difficulty: Moderately Challenging
Step1
Start with barter. Trading goods or services with your friends or neighbors is one easy way to profit from the underground economy. Although you're not making money in these transactions, you are saving money you can use elsewhere.
Step2
Run a cash transaction business. You can provide many types of services for cash payment, ranging from babysitting to housecleaning to yard work. This way you avoid paying taxes to the government and keep more money in your pocket.
Step3
Host a garage sale. Middle class families profit from the underground economy every weekend when they clean out their basements and garages for profit.
Step4
Go online. Sell your own merchandise on eBay or a similar online auction site. Since the government is not collecting tax on these transactions, you can easily profit from this growing section of the underground economy.
Step5
Think big. These first steps are simple introductions to the underground economy. Start small and grow your network of trading partners or cash customers to increase your personal profit.

Tips & Warnings

  • Avoid trading in illegal substances. Eluding the IRS is risky enough in America. Manufacturing or selling illegal substances is simply not worth the price you will pay if you are found out.

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eHow Article: How to Gain From the Underground Economy

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