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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How to Start Your Own Business With Little or No Money, Part 2

(Continued from Part 1)

4-Become an affiliate.
An affiliate sells products and services for a commission. You are probably familiar with Avon and Tupperware, in which people sell products to friends and family, host parties and so on. This is commonly referred to as direct selling, and is done in person.

You can also sell products online for a commission, in which case it is referred to as being an affiliate. There are many affiliate marketplaces in which top companies and designer brands recruit people to sell for them.

The largest marketplaces for affiliate selling are Commission Junction (cj.com), LinkShare and ShareASale. Amazon and eBay also have affiliate programs. You don’t even need a website to sell these products. Simply create your links and put them in the signature files of your emails, put at the end of any posting you create on notice board or forum, use in the comments section of a blog you read and use in your social networking area.

If you do have a website, so much the better. You can post [honest] reviews of the products you are selling, the latest hot items in your niche, and more.

Choose a niche, that is, an area of expertise, and stick to it. Study it carefully and know what people like and are genuinely interested in. For example, if you are a real movie buff, then selling DVDS is a great option. Do not do it, however, if you barely ever see a film.

Being an affiliate can be a fun and interesting way to make your own money and even start your own side business. You promote the products, and the company you are an affiliate for does the rest, taking care of all the order fulfillment, packing and shipping. The commissions may not be that high, but they are better than nothing.

You can also consider being an affiliate as an ‘instant discount’ on any products and services that you buy. For example, you shop online at Amazon anyway (and tens of millions of people do), become an Amazon Associate, then set up a second account so you can buy through your own link and get instant savings.

Being between jobs doesn’t mean you have to do without income. You might also want to supplement your income from your day job, or start moving towards the financial and personal freedom you long for by starting your own business.

There are many ways to start your own business even with little or no spare cash, if you are willing to put in the time and effort. The ideas above are just a starting point to get you thinking about all of your available options.

As an added bonus, by earning any sort of temporary income, you can start creating the kind of wealth you need to start the business of your dreams. You will also be coming into contact with people who may be able to help you find a permanent position.

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
YOUR RECESSION SURVIVAL GUIDE: How to Save Money and Even Boost Your Income in This Recession

How to Start a Successful Small Business Even If You Don’t Have Much Cash

How to Make Money with Affiliate Marketing Even Without a Website

Information Marketing Success: How to Make the Most of Your Online Content for Increased Traffic and Profits

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How to Start Your Own Business With Little or No Money, Part 1

Many people long to own their own business, but don’t know how to get started. Thanks to the Internet, many people are now able to start their own business and work from home, using the assets that they already have.

If you are eager to start your own business, but think you can’t because you haven’t got a lot of spare cash, here are some ideas that can help you get started today.

1-Clean out your house, and buy garage sale or eBay items to re-sell them for a profit.
One man’s trash is another man’s treasure. Clean out your house of any old items you no longer use or might already have replaced with a newer model. Why have it cluttering up the house when you can sell it and put that money in the bank or pay off your debts?

Spending Fridays and Saturdays snapping up bargains from garage sales and selling them at flea markets or on eBay can be very lucrative. So can buying items in bulk at wholesale prices from websites or eBay and selling them on your own site or in the Amazon Marketplace. In the past decade or so since Internet shopping has taken off, this has become a profession that provides a full-time living with part-time hours for many people.

You need to know your niche and the prices for things, and what is hot at the moment, to do really well financially. You will also need to know about packaging and shipping rules and have a good customer service mind set in order to get good reviews. The good reviews will help keep repeat customers coming back for more. If you have a particular skill set or in-depth knowledge of a certain topic, known as a niche, you can do well by providing exactly what the people in that niche are eager to buy.

2-Try landscaping.
Landscaping has become a profitable hobby or full-time living for many. If you have a way with plants and an eye for design, you can charge some good professional fees for doing some landscaping. Start with your own garden and those of as many neighbors as possible to get your portfolio going, and then you should be able to start charging competitive rates to new clients.

3-Make money from your hobby.
You can build furniture or decorative items, arts and crafts, create personalized scrapbooks, home-made gifts of all kinds, and so on. If you don’t have a hobby like this, the skills for many of them are easily learned and enjoyable as well. Sell your items at flea markets, on Etsy.com or eBay, or spread the word through friends.

(Continued in Part 2)

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Top Tips on Outsourcing For Your Small Business, Part 2

(Continued from Part 1)

* What to Outsource
The first few things to outsource are:
1. Low-level tasks that take up a lot of time
2. Things that take up a lot of your energy
3. Things that you are not very good at, annoy you, or you dislike

By easing the burden on both your time and energy, you will feel less drained and be better able to tackle the really important challenges in your business.

* When to Outsource

The real answer is as soon as you start your business, but you might not have the cash for that. However, do include it as a built-in part of your business plan. Once you have some cash coming in, go to the freelance marketplaces and fiver.com and see who you can find to lend a hand with certain tasks. You can easily get rid of the bad workers and find some reliable good ones to help you. Just remember that outsourcing should actually make you money, not cost you money.

For example, if your work is ultimately worth $50 an hour but you are spending your time on $10-an-hour tasks, you can hire 4 workers at $10 an hour and still be making a profit, but you will have reduced the value of your time. However, if you can boost the value of your time to $100 an hour because you are free to focus on what you do best, then your outsourcing will more than pay for itself and leave you plenty of profits besides.
* Outsource In All Areas of Your Life the Box

Don’t just outsource things inside your business, but in your personal life as well, to help you become more efficient. You might not like the idea of people ‘waiting on you’, but especially in this economy, think of all the people you can help earn money in gainful employment.
If your time is worth $50 an hour, then by all means pay someone $10 an hour to do your laundry, clean your house, shop for your essentials, and so on. Even if you are only paying your child or spouse, remember that there are many acceptable tax deductions once you own a business.

It might seem like an extraneous expense, but again, every extra hour you can put into your business is more money earned. More money earned means more success for you and your loved one, and more ability to help others.
*Outsourcing Online
Outsourcing online can give you access to people all around the world willing to work to earn money. In this case, you might not outsource ongoing tasks, but small projects. Logo creation, website creation, and other one-off projects can all be running in the background simultaneously while you do other work. You can also outsource ongoing tasks like attending to customer service, virtual assistant tasks and more. See how you spend your time every day and what you can safely hand over to others and free up your time to generate more revenue more rapidly thanks to outsourcing.

FURTHER READING
HOW TO INCREASE YOUR PROFITS THROUGH OUTSOURCING

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