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Work at Home Scams

Finance, Life

The idea of working from home is certainly appealing.  You get to set your own hours, sleep in some days, and be there when the kids get home from school.  You can be there when the packages get delivered and let the dog out before it’s too late.  Who doesn’t see the attraction?

Unfortunately, when something is so enticing, there will always be predators looking to take advantage of the dreams of others.  They dangle the “be your own boss” bait and reel in the people who their wishes overrule their judgment.

The ads are hard to resist.  “Make $2800 per month without leaving your home!” or “Stuff envelopes in your home for $1 per envelopes.”  I cases like these, the old saw tends to hold true: If it sounds too good to be true, it probably is.

Common work-at-home scams include:

Medical Billing

For only $499.99, you can purchase a “business opportunity”.  A lot of medical bill is actually done on paper so there is very real market for medical billing and processing.  Unfortunately for the respondents to these ads, the vast majority of this market is already taken by large companies with huge marketing budgets.  Finding enough customer to generate enough revenue to recover your investment is almost impossible, but you’ll never see that in an ad.

Envelope Stuffing

You answer an ad in the paper, sending $29.95 for a packet that will instruct you in the fine art of stuffing envelopes for $1 each.  When you get the information, you find out it is a letter instructing you to place an ad in the papers stating “Stuff Envelopes for $1 Each.  $29.95 for Information.”  This forces you to become the scammer, just to recover your costs.  Bad you.

Assembly or Craft Work

This one actually sounds like a business.  You invest in–for example–a sign-making machine for $1500.  The selling company promises to buy a quota  of signs from you each month.  After you buy the equipment and materials you spend countless hours making the product only to find out that either a) the company has disappeared or b) their undefined “Quality Standards” has rejected the work.  Nothing is ever up to standards.

That’s not to say there aren’t legitimate opportunities to make money at home.  Bob at Christian Personal Finance recently listed 24 legitimate home-based businesses, including blogging, eBay selling, wedding planning, car mechanic, and mobile oil changes.

Are you exploring any home-based business opportunities?

How to make room for a paying lodger

Finance

A car boot sale gets its name from the way goo...
Image via Wikipedia

A spare room in your home is an opportunity to boost your income. Imagine how much extra cash you could make by offering that space to a rent-paying tenant.  You can start getting things ready by creating the necessary space right now. Our guest blogger, Big Yellow Self Storage, shows you how in these five simple steps.

1.   What needs to go? Take a good look around your spare room (and the rest of your home, while you’re at it). Decide what you’re happy to part company with and what you want to find a storage solution for.

2.   Sell, donate or trash. For anything with a monetary value, get selling. Try online auctions, your local classified ads, boot sales(ed. That’s a flea market or swap meet for those in the U.S.) – anything that offers a cheap and quick way to raise cash. Alternatively, give your unwanted but perfectly serviceable items to charity. As a last resort, put them out with the trash or take them to a recycling centre.

3.   Decide what sort of storage solution you need. For those items that you’re not getting rid of, you’ll need some form of storage facility. And, depending on what those items are, this could be a garden shed, a loft, a garage or a unit at a secure, temperature-controlled storage site.

4.   Prepare your items to go into storage. Flat pack self assembly furniture and keep the fixings close by in a small bag. Coat wood and metal with varnish and rust protector respectively. Keep mattresses in bags available at DIY stores. (Change the bag every year). Use a wardrobe to store clothes, shoes, bags and bed linen – its small footprint will give you loads of hanging, stacking and shelving space. Be aware that books can get really heavy. Use lots of small boxes instead of fewer large ones and list their contents on the visible sides.

5.   Get ready to welcome your lodger! All that remains now is to prepare and advertise your spare room – and start earning money!

For further information about storing just about anything and to find out more about storage options, visit Big Yellow for Self Storage.

Cheap Drugs – How I Saved $25 in 3 Minutes

Finance

Drugs are bad, mmmkay?
Image by cackhanded via Flickr

Today, I stopped by the grocery store to pick up a couple of prescriptions.  I always get the generics, because they are less than half the price of the name-brands, while still being chemically identical. That’s not what I’m talking about, although it did save me about $75 today.

When the pharmacist rang up my medications, the total came up to $35.   That just wasn’t right.

Many chain pharmacies have gone to a cheap pricing model for generic drugs.  That usually means $4-6 per monthly prescription.  Cub Foods doesn’t have that.

So I asked for the price match.

Cub Foods matches prices on generics with whatever large pharmacy is nearby.  In this case, they matched Target’s prices, bringing the price from $35 to $10.   Instant $25 savings. I just had to wait for them to look up my prescriptions in their match-book.

Pharmacies with cheap generics:

K-Mart offers a 3 month supply for $15.

Target and Wal-Mart both have a 30-day supply for $4.

Publix offers a 14-day prescription for some antibiotics for free.  That’s insane! It’s also a heckuva way to get people in the door.  “Why don’t you shop for half an hour while I fill your scrip?”

If your pharmacy is anywhere near any of these stores, call and ask if they’ll match the price for generic drugs.

A few tips:

Before you go get your cheap drugs, call ahead and make sure what you need is on the cheap list.   Don’t assume.

You won’t be able to use your insurance to buy the cheap generics.   The overhead in insurance processing would mean that the pharmacies would be operating at a loss for each prescription.  You can’t make that up in volume.    Between our copays and deductibles, it’s far cheaper to just pay the generic price without involving the insurance company.

Don’t be afraid of generics.  It’s not like Nike.  Generics are chemically identical to the name brands. There are two differences: the price and the letter stamped on the side of the pill.

The stores offering cheap drugs are generally bigger stores hoping to use the drugs as a loss leader.    Places like Walgreens or CVS make up to 70% of their profits from the pharmacy.  They can’t stay open treating that as a loss leader.

How do you save money on prescriptions?

Saturday Roundup: Winter Wonderland

Misc

Today, I am planning to be on the receiving end of a foot of snow coming in at 30 miles per hour. Tomorrow, when it’s time to clean all that crap out, it will be 30 degrees below zero. Fun!

The drawing for a $100 Amazon gift card is still going on!   Go here for details.  It ends on the 15th, so you have 4 more days.

Best Posts

Santa’s got a new phone number!   It plays a simple message when you call it, but it’s an easy way to make a little kids smile.

How many days of your life did that that new gadget cost you?

Go watch Crystal get all survivalist and stuff.  Have you ever though about what would happen if the world as you knew it ended?  Even for a few days, say, after a hurricane hit?

It’s great to live in the future.  I can’t wait to hit Lunar Starbucks.

LRN Timewarp

For those unfortunate enough to not have been tuned in since the beginning, I’m going to spend some time reviewing posts from a year ago.

In How to Have a Perfect Life, I layout the planning necessary to live a life you don’t regret on your deathbed.   Just take the first step.

Babies are Expensive is one of my most-visited posts to date, and was my first carnival submission, and my first editor’s pick for that submission.  The truth is, babies are expensive, but they don’t have to break the bank.

Don’t Screw Future-You was a fun post to write.  What would the you from 20 years in the future have to say to you?

Carnivals I’ve Rocked

Consumer Action Handbook was included in the Carnival of Personal Finance.

Mistakes Made was included in the Carnival of Money Stories.

Thank you! If I missed anyone, please let me know.

Answer: How Much Term Life Insurance Do I Need to Buy?

Finance

From a question posted here:

Thank you for all your help in my previous question. After meeting with the agent, I’ve decided on term life insurance over whole life. But I am still not sure how much term life I should buy. Should I buy as much as I could afford or some specific amount?

My answer(edited a bit):

That question is far too open-ended.

Are you married?  If yes, are you the primary breadwinner?  Do you have children?  Investments?  Savings?

Here’s my situation:

I am married, with three children.  I have the primary income.

We have a mortgage, a car payment, and some consumer debt.

I added up all of the debt as my base level of term life insurance.  My family will not be burdened with debt if anything happens to me.

To the base level, I added 5 years of my net income.  Without changing a thing, my family will be supported exactly as is for 5 years if I die.   They won’t, however, have the same level of expenses, due to the base level of insurance paying off all debt.   All of my living expenses also evaporate.  For example, there will be one car sold, one less mouth to feed and body to dress, etc.

I figure with the lower expenses and no debt, my insurance will support my family for 10 to 15 years if my wife manages the money right.   If she continues to work, it should last almost forever.

How do you figure the “right” amount of life insurance?[ad name=”inlineright”]