Please email me at:
![Jason [at] LiveRealNow [dot] net](https://liverealnow.net/wp-content/uploads/2010/11/email.jpg "Jason [at] LiveRealNow [dot] net"){kind=small}
Or use the form below.
[contact-form 1 “Contact form 1”]
Money Problems – Day 5: Boosting Your Income
Today, I am continuing the series, Money Problems: 30 Days to Perfect Finances. The series will consist of 30 things you can do in one setting to perfect your finances. It’s not a system to magically make your debt disappear. Instead, it is a path to understanding where you are, where you want to be, and–most importantly–how to bridge the gap.
I’m not running the series in 30 consecutive days. That’s not my schedule. Also, I think that talking about the same thing for 30 days straight will bore both of us. Instead, it will run roughly once a week. To make sure you don’t miss a post, please take a moment to subscribe, either by email or rss.
Today we’re going to look at ways to boost your income.
People spend a lot of time talking about ways to reduce your expenses, but there is a better way to make ends meet. If you make more money, you will—naturally—have more money to work with, which will make it easier to balance your expenses. I’ve found it to be far less painful to make more money than to cut expenses I enjoy.
I can hear what you’re thinking. It’s easy to tell people to make more money, but what about telling them how? Guess what? I’m going to tell you how to make money because I rock.
By far, the simplest way to make more money is to convince whoever is paying you to pay you more for what you are already doing. In other words, get a raise. I know that’s easy to say. Money’s tight for a lot of companies and layoffs are common. None of that matters. Your company knows that hiring someone new will involve a lot of downtime during training. If you’ve been visibly doing your job, and the company isn’t on the brink of failure, it should be possible to get a bit of the budget tossed your way.
- The first thing you need to do is get visible. If you habitually come in 15 minutes late, make it 15 minutes early. If you are working an alternative schedule, consider switching to the standard schedule, so everyone who matters can see you are at work. Start sending status updates to your boss, including copying him on emails to other people you work with, if those emails signify important milestones in a project.
- Next, log your work. Keep track o what you do, what you’ve accomplished, and—most important—how much money you have made or saved for the company.
- Third, do your research. Hit the salary survey sites to find out what other people in your field are making. Don’t worry if you are on the high side. There is always someone making more than you. If you are the exception to that rule, try using a similar variation of your job description and title. What’s the concrete difference between a software engineer I and and a software engineer II? About $15000.
- Finally, schedule a meeting with your boss and ask. Lay out the things you’ve done, the amount you make for the company and what other companies are paying. Chances are, your boss will have a hard time refusing your request.
Another simple idea is to get a second job. Personally, I hate this idea, but it works wonders for some people. Gas stations and pizza stores offer flexible schedules and they are always hiring. If they aren’t willing to work with your schedule, or it doesn’t work out, you can always quit. This isn’t your main income, after all.
My favorite option is to create a new income stream. What can you do?
Take a piece of paper and a close friend and brainstorm how you can make some money. Write down every type of activity you have ever done or ever wanted to do. Then write down everything you can think of that other people who do those activities need or want. Remember, during a brainstorming session, there are no stupid ideas. Take those two lists and see if there is any product or service you can provide.
You can start a blog—although don’t expect to generate much money early—or try writing for some revenue-sharing article web sites, like hubpages or squidoo. Other options include affiliate marketing, garage sale arbitrage(buying “junk” at garage sales, fixing it up and selling it), or even doing yard work for other people.
One interesting business I’ve seen lately is a traveling poop-scooper. These people travel around and scoop poop out of ddog-owners’ yards. Business booms in the spring when the snow melts, but it can be an ongoing income, since dogs don’t stop pooping.
Raising your income can make it easier to pay your bills, pay off your debt, or even taking nice vacations. How have you made some extra cash?
Hayden Panettiere Gets Engaged – Crazy Wedding or Not?
Hayden Panettiere has formally announced her engagement! The starlet will be marrying Vladimir Klitschko, who is a world renowned boxer that has won an Olympic gold medal. The unexpected public revelation has sparked rumor trails regarding glitzy wedding plans. While no date has been set, and nothing has been confirmed, there is widespread speculation that the event is going to be glamorously over-the-top.
A decadent gala may very well be in the planning stages. The “Nashville” actress, age 24, is one of America’s most idolized entertainers. She appeared on “Live with Kelly & Michael” to declare her commitment. During the show, she flaunted an extravagantly oversized engagement ring. This fancy display could be the precursor to an expensively ostentatious wedding.
Although Panettiere’s fiance is 13 years older than her, it is the first marriage for both partners. This may instill extra incentive for the couple to make their officiation an extremely flashy occasion. Because Klitschko is a famous Ukrainian athlete, he will also be anticipating a magnificently choreographed wedding. Both individuals could invest fortunes in perfecting their walk down the aisle together.
Of course, one of the biggest decisions that Panettiere faces is the selection of her gown. All eyes will be on the fabric that she chooses for this special day. If they go through with a public wedding, the dress will be permanently immortalized in global media. She is going to want to show off flawless class, glimmering austerity and sizzling sultriness. Fashion critics are eagerly anticipating her selection. The high-end designer that she picks will receive a tremendous boost in popularity, especially if she pulls off a beautiful presentation.
A crazy wedding would be completely in character for the young television star. Her most known role was a bubbly cheerleader on the long-running series, “Heroes.” With vivacious charm, she became a sex symbol across the country. Explosiveness is simply a part of her personality, so a bombastic celebration is to be expected. Furthermore, Ukrainian wedding parties have a tendency to be more raucous than American traditions. If they follow any of the groom’s cultural practices, the event could become out of control.
The massive ring on Panettiere’s finger indicates no desire for privacy regarding this affair. In fact, it was an invitation for the mainstream media to cover the entire ordeal. This hints that the couple might be planning a gigantic wedding event. They can easily afford it, and the public celebrations will rapidly enhance the star’s critical acclaim.
In contrast, a private exchange of vows would disappoint her legions of fans. Furthermore, paparazzi could still infiltrate the wedding to snap pictures. To avoid any uninvited intrusions, the couple should be open to media coverage during their nupital arrangements. This will let them control the event, and allow them to recoup some of the expenses through lucrative network contracts. Regardless of how they conduct the wedding, it is certain that the whole world will be diligently watching with admiration, and perhaps a slight tinge of jealousy.
Related articles
20 Lazy Ways to Save Money
- Image by Paul Vivier via Flickr
Investopedia ran a post on 20 lazy ways to save money. I thought it was worth sharing my take on the post.
1. Schedule automatic payments. I do this obsessively. I run all of my regular payments through my bank’s online bill-pay. I think there are 2 bills that get paid manually; 1 is a quarterly payment, the other is due annually.
2. Eat your groceries. According to the post, Americans–on average–throw away 15% of the groceries they buy. I totally believe that. We don’t throw away that much, but it’s still too much. It tends to be the fresh vegetables, which we eat as side dishes instead of the main course. We need to switch that mindset, both to use the vegetable efficiently and to eat healthier.
3. Bundle services. I refuse. I hate the idea of having a single point of failure for multiple systems. If the power goes out, I lose my cable, but I keep the phone. If, for some reason, I can’t pay my phone bill, I don’t lose my internet connection. I like keeping these things separated.
4. Pay off credit card. Hardly a lazy process, but otherwise…duh!
5. Mark your calendar. I use my Google Calendar as obsessively as I use automatic payments. I put in reminders, grocery lists, or anything else I need to know at a specific time.
6. File your taxes on time. I just helped a friend dig out of this mess. I pay as soon as all of my paperwork is delivered. The IRS doesn’t give up and they have leverage, including garnishment and even jail.
7. Roll it over. When you change jobs, take your 401k with you. Don’t leave it behind like a series of red-headed stepchildren. It’s too easy to lose track of the accounts. Don’t cash it out! I made that mistake once and lost far too much to taxes. A rollover doesn’t count against your 401k contribution limits.
8. Switch credit cards. If you can a good balance transfer offer that’s followed by a better interest rate than you currently have, use it. But don’t forget to pay attention to the transfer fees. Do the math. If it costs you $500 to transfer the money, how much interest do you have to save to make it worthwhile?
9. Use your privileges. If you have a AAA membership, use it. It gives you a discount on hotels, oil changes, car rentals, and more. Read the paperwork. Former military gets a ton of random discounts, too. Ask.
10. Rent instead of buy. Renting can save you money over buying, if it’s something you’ll only use once, but borrowing is free.
11. Buy instead of rent. Rent-a-center is a ripoff, but they can’t even legally operate here. If you’re going to use something regularly, buy it.
12. Ask. I love to call up every company I give money to and ask if there’s a way I can give them less. Outside of chain stores and restaurants I almost always ask for a lower price.
13. Just say no. Extended warranties are generally a waste of money. However, if I can’t afford to replace the item, I do get the warranty. On my car, I brought it in for a full inspection and repair a few weeks before the warranty ran out and made all of that money back. We are slowly building a warranty fund to replace the need for any future extended warranties.
14. Have the awkward conversation. We tried giving gift-giving the axe, but nobody enjoyed that. Now, we cap the gifts at $20 and do a round-robin type of gift. $40 for gifts keeps 10 adults happy.
15. Eat at home. Generally, I can cook almost anything better at home, but I really do enjoy eating out and trying new restaurants. We just keep it from being a regular expense.
16. Balance your checkbook. What a waste of time! With automatic payments and cash for all of the discretionary budget items, I balance the checkbook once a month.
17. Stick with your bank. Either use your own bank’s ATM network, or use a bank that refunds ATM fees. I only take out cash on the first of the month, for the entire month and I do that with a teller, so this is never an issue for us.
18. Use your TV. Cable movie packages instead of a video membership? Really? That’s a horrible idea.
19. Quit those bad habits. I quite smoking, saving $200 a month. I don’t drink much and I’m working on fixing my eating habits. Vices are fun, and this is certainly not a fun way to save money.
20. Forget the pet. There is no way this would fly at my house. we have 5 cats, 2 gerbils, and a dog. Our renter has 2 pythons. We’re a flippin’ zoo and honestly, mess and cost aside, we all like it that way.
How do you stand on these ideas?
Budget Lesson, Part 3
I keep calling these lessons, but they are examples and explanations, more than lessons. Names aside, please see Part 1 and Part 2 to catch up. The Google Doc of this example is here.
This time, I’m going to review my non-monthly bills. These are the bills that have to be paid, but not on a monthly basis. Some are annual, others are quarterly, or even weekly. Every month, the amount–adjusted to the monthly equivalent–is set aside in Quicken.
- School Lunch – We don’t qualify for any of the reduced lunch plan, and I don’t know that it is possible to send a brown-bag lunch that is both cheaper and healthier than the school’s menu. This is automatically replenished whenever it gets below $15. This actually gets paid about every other month.
- Property Taxes – Semi-annual and increasing every year. I know the valuations around me, so I don’t think an appeal would win.
- Life insurance – We pay this quarterly. If I die, my family will be completely covered for several years, without adjusting a single expense. If the expenses are adjusted to account for the fact that I won’t be eating, driving, or using electricity, it will last much longer. This is a separate policy from the one discussed in Part 2. GET INSURANCE! Take care of your family.
- AAA – Since we got reliable cars, this hasn’t been a money-saver, but it’s priceless in terms of peace of mind.
- Vehicle Registration – We have two cars and a motorcycle that need registration every year. I’m planning to sell the bike in the spring, but I was planning that for last spring, too. It’s easy to put that off, since I enjoy riding.
- Daycare – Daycare is a weekly expense. As a two-income family, this isn’t an expense we can do away with…yet. As time goes on, the bill will be getting lower. In June, my youngest reaches a cheaper pricing table and my oldest is almost ready to be done with daycare completely.
- City Bill – Our garbage and sewer are paid through the city on a quarterly basis.
- Web host – I’ve got this blog, plus a few other side projects hosted here. I have been simplifying and reducing the projects that aren’t fun or profitable, but I’m not sure this expense will ever go away.
There aren’t too many items here that can be legitimately and responsibly trimmed.
Budgeting tips – sticking to your budget
If you are looking to get out of debt, or you are currently debt-free and want to stay that way, then it is important that you get a grip of your financial situation and live within your means.
A good way to do this is to create a budget as this gives you a clear indication of how much money is coming in, how much is going out and also highlights any areas where you may need to make cut backs should you be falling short each month.
Once you have sorted out the figures and made necessary amendments, for example paying bills by direct debit in order to make savings or cutting existing debts by carrying out a balance transfer to a lower rate credit card, it is time to start focussing on the lifestyle changes.
As you will find, it is one thing to create a budget and quite another to stick to it, but by adhering to the following steps and exercising a certain amount of will power, you should be able to ensure that you live within your means and resist the urge to reach for that credit card.
Keep focussed
Before you start to look at how you can stick to your budget you need to clarify why you need to stick to your budget!
A budget can initially seem like something that has been devised with the sole intention of stopping you having fun and buying or doing the things that you want. So it is important to remember that, though some cutbacks may be necessary in the short term, a budget is a long-term strategy that will allow you to take control of your finances and, all being well, live a happy life that is free from the worry of excessive debt.
Change your habits
Unfortunately, a successful budget can require a change in lifestyle and this can be one of the most difficult things to adhere to.
For example, if you have previously enjoyed eating out regularly then you may have to make cut backs in this area to ensure that you are living within your means. But, instead of seeing this as a negative, try to focus on the positives and remember the reasons why you are budgeting.
And a change in habits doesn’t necessarily mean that you have to cut back on your enjoyment of life and it may actually open your eyes to other pursuits you may not have previously considered.
For example, instead of eating out try preparing a meal at home and turn your dining room into a restaurant. This means that you can still have the fine dining experience but at a fraction of the price and without the worry of making a reservation!
Shop smarter
Lists figure heavily when creating a personal budget and list-making is a habit that you should get used to when trying to stick to your budget.
When budgeting it is vitally important to avoid impulse buying and a great way to do this is to always make a list of things you need before you go shopping.
This means that you will have a clear idea of what you need and you will be less inclined to make random purchases that may just turn out to be an unnecessary drain on your finances. It’s also worth mentioning at this point that you should always differentiate and prioritise the things you need over the things you simply want.
If you are unsure how to make the distinction then put off making the purchase for a couple of days and then reconsider if you actually need it. This cooling off period will often convince you that you can do without it and save you money.
In addition, savings can be made on your shopping by simply swapping big name brands for supermarket own varieties, using discount coupons and looking for any special offers.
Overall, it is important to be fully focussed and committed to your budget plan and to be aware that a change in finances may require a change in lifestyle. But a few short term changes may well add up to better finances in the long term.
Article written by Les Roberts, budget reporter at Moneysupermarket.com.
