Month: December 2011

How to Earn Extra Money Even in This Recession, Part 2

(continued from Part 1)

3. Try Fiverr.com.
Fiverr.com is a website that allows anyone to post a product or service that costs $5. The website takes $1, so your earnings will be $4 per task. If the task only takes 15 minutes to complete, then you have the potential to earn up to $16 an hour. If you can think of offering a service that doesn’t take a lot of time, you can make some decent spending money. Logo design, for instance, does not need to take that long if you are skilled at PhotoShop. There are also several other websites similar to Fiverr.com that allow you to charge up to $25 for quick services or products. A Google search for “Fiverr Clones” should show you several sites that are worth considering. Even if you are working full time, you can use your spare time after work, or even before work or during your lunch hour, to start earning more.

4. Buy a storage unit at an auction.
Or more correctly, purchase the contents of a storage unit. This practice occurs when people put items in storage and then fail to pay their rental fees. Eventually the property devolves to the rental place, who will sell the items in order to recoup their rent. The items will be auctioned site unseen. This practice can be hit or miss, since people might be storing a whole bunch of clothes or other personal items with little to no resale value. However, if you think about the success of eBay, you will know that many people are actually making a living from purchasing the contents of abandoned storage units and selling what they find. CDs, old records, books, tapes, and other collectibles can all be found in this way and sold on. Sell the junk at a garage sale and the good stuff on eBay. With a little luck, that $200 storage unit could be worth $10,000 or more.

There are certain rules, tricks and tips to selling on eBay that you will want to become familiar with before making such a commitment, so start small with a few items in your home and then take it from there. Also consider selling the latest titles as used books on Amazon. Become familiar with good packaging and mailing practices to be sure that any parcels you send out go by a traceable means and arrive promptly and undamaged. Remember that you will get ratings as a seller at all of the sites you participate on, so be prepared to offer good customer service.

If you still have a job but you are underpaid, underemployed, or both, these are just a few of the ways that you can make extra money to pay off debts, start an emergency fund, or start saving for your financial goals for the future.

Further Reading

For more great ideas on how to survive and even thrive in this recession, see: Your Recession Survival Guide

For more information on creating wealth to start your own business, see How to Start a Successful Small Business Even If You Don’t Have Much Cash

For more information on how to start an emergency fund, see Emergency Fund 101: How to Save Money for Unexpected Expenses

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How to Earn Extra Money Even in This Recession, Part 1

If you have been affected by the poor economy and are struggling to make ends meet, it may seem almost impossible to come up with any ways to make more money. After all, unemployment is high and there are no jobs, right?

Not necessarily. While there may not be a lot of full-time jobs with high salaries and a good benefits package, the truth is that just because millions of people have been laid off does not mean their work was not important and no longer needs to be done. It is true that some companies have outsourced the work overseas in order to cut down on costs, the truth is that there is a lot of part-time work available if you are willing to take it. And there are jobs out there if you are willing to take a pay cut.

Before you make these decisions, you need to run your numbers. Look at your household budget and trim any luxuries. Then look at the bottom line for the minimum you need each month to keep your household afloat without using credit cards or biting into savings. If you are unemployed, how does your level of payment match up? If it doesn’t you will want to go back to work sooner rather than later, even if you do have to take a pay cut. If you are considering a part-time job, see how it would affect your benefit. You may find that it pays more, though perhaps not much more.

If you are still working but have decided you don’t earn enough and/or want to save for a rainy day in an emergency fund, or for a particular life goal, then you will also want to look at ways to bring in additional income. Here are a few suggestions.

1. Get a part-time job.
This is the first idea that may pop into your mind when you think of sources of temporary income. If you have a certain set of special skills, then you can command a reasonable wage per hour. If you do not have a lot of skills, more menial jobs like shift work and waitressing can help you plug any gaps in your budget. Jobs that pay tips have the possibility of paying very well, though in this economy, don’t bank on it.

2. Freelance.
If you have skills that people need, such as designing websites or creating great graphics or PowerPoint presentations, your skills are in high demand right in your own city and indeed all over the world. Join one of the popular freelancing sites like elance, elancer, odesk or rentacoder and create a great profile for yourself and portfolio of your work There are a lot of people on there now due to so many others being in the same position as yourself, but quality and speed at the right price can help you stand out. You may be able to get enough contract work at one of these sites to keep you pretty busy and you might make more money than you would think. Just remember to stay in close communication with your clients and that good reviews will be the key to getting hired by others.

(Continued in Part 2)

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Frugal Shopping for December

Although you have probably already spent a lot plenty for the holidays, December still has some bargains worth taking advantage of. There are still some discount-priced foods and consumer goods to be had, and don’t forget to use loyalty cards with the stores, and coupons.

Make your holiday dinners extra-special by taking advantage of these December deals at your grocery store:

✴ Dairy, such as butter and cheese
✴ Breads, like ready-made dough, dinner rolls and pie crusts
✴ Dessert items, such as cake mixes, icings, refrigerated cookie dough, pie filling
✴ Baking supplies, like yeast, sugar, flours, chocolate chips, spices, nuts, baking chocolate
✴ Ham
✴ Sweet potatoes
✴ Mushrooms
✴ Pears
✴ Tangerines
✴ Soda pop

You’ll enjoy some fantastic deals on a variety of consumer goods, given the time of year. Watch for big discounts on toys, tools and electronics. Plan to buy extra paper products for the kitchen. Make it a point to explore incredible savings at your local big box stores on the following goods:
✴ Toys
✴ Tools
✴ Gift cards
✴ Electronics, including computers
✴ Plastic wrap
✴ Aluminum foil
✴ Disposable bake ware
✴ Winter clothing, including coats

Did you know that you can also enjoy fantastic buys on wedding attire and home theater equipment this month? Save on these specially-priced items and watch your local sales circulars for even more in December.
Shop only the sales, and don’t forget to hit the after Christmas sales for anything you were putting off buying until you could get the bargain price.

Hint: If it is bright red, consider it as a gift for Valentine’s Day in a few weeks!

Shop smarter, live better, save big. That should be your resolution for 2012. Happy holidays, everyone!

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Credit Card Question, Part 2

Continued from Part 1
*Insurance Coverage
Also remember that charging certain items on a major credit card can confer some extra benefits. For example, car rental liability insurance is offered by some major credit card companies. If your card has this coverage, you don’t need to pay the incredibly high fees for the “loss and damage waiver” car rental companies try to charge you when you rent a car.

Insurance coverage for baggage lost when you fly is also available, depending on the credit card you choose. In fact, some credit card companies offering this insurance actually cover in addition to what the airline will pay you for lost bags. This baggage coverage is no cost on some credit cards and is well worth having. Travel insurance is also included, so that you would not lose the whole cost of the flight, and would just need to pay a ticket change fee of about $50 to $100 if an emergency cropped up. If the flight is a long-haul one, this insurance coverage is worth having.

*Consumer Protection
Price protection for items you purchase that drop in price after you buy them is offered by some companies. Stores must allow a 30 day ‘cooling off’ period with an unconditional money-back guarantee. They should honor any price differences and refund the money within 30 days. Some major credit card companies allow up to 60 days and will refund you such price differences.

*Fraud Protection
A debit card will not usually confer all of these perks. And indeed, the major difference is the most crucial one: You liability with credit cards in the event of identity theft or fraud will be zero or much lower with a credit card than with a debit card. With a credit card, if you suspect anything fraudulent, you have up to 90 days to report it. With a debit card, you need to report it within 2 business days. Otherwise, you will be liable.

If you do not look at your online banking account that often, or you are overseas, for example, this can be a major financial disaster. Therefore, use your debit card only sparingly for online purchases, and use a credit card instead because of all the extras it offers. Then pay off the bill at the end of each month.

*Determine Your Benefits and Weigh Risks Versus Rewards

One final suggestion is to take time to read all the fine print on a credit card application to determine what special privileges and perks you get with your card, or call customer service and ask. Then choose to use the card that gives you the most benefits in terms of cash back, benefits, insurance, and other perks.

Credit cards do not have to be a disaster and can indeed improve your credit score and even help you save money if you care cautious and learn how to use them to your advantage financially.

For more information on how to improve your family finances, see

Emergency Fund 101: How to Save Money for Unexpected Expenses

and

Your Recession Survival Guide

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Credit Card Question, Part 1

Q. I’ve finally learned my lesson when it comes to credit cards. After charging up four credit card accounts and spending four years paying them off, I don’t ever want to see my name on another credit card again. In fact, I want to cut all of them up and close all my accounts. However, my friend says that I should keep the accounts open and keep one card just in case of emergencies. Which one of us is right? And won’t a debit card work just as well?

A. Congratulations on paying off your credit card debt and being so determined never to get in that kind of position again. We are glad that you have found strategies that work well for you to help you manage your money.

However, your friend does have a good point about your credit cards, for a number of reasons.

*Your credit score and credit to debt ratio.
You credit score is in part determined by how much credit you are permitted by financial institutions. If you close all your accounts, you could be lowering your credit score. Therefore, now that your cards are paid off, keep the accounts open, but put the cards in a safe place where you will not be tempted to use them, except in the most dire emergency.

Keep one available with a low interest rate and possibly cash back points and only use if for essentials and items you could not readily pay for in cash, such as online shopping. The key for using a credit card is never to charge more in a month than you can pay off at the end of the month.

*Rewards cards
Some rewards are worth having, such as free airline miles for purchases, but only if you are a great traveller. Otherwise, go for the cash back. Just be aware that studies have recently shown that people who use rewards based cards tend to spend 4% more each time they use it than cards that do not carry such perks. So make your shopping list and stick to it.

Continued in part 2

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