The Dough Roller

Saturday Night at the Movies: Declaring War on Bad Debt (Braveheart)

Rob Berger — Sun, 12 Feb 2012 00:00:19 +0000

Saturday Night at the Movies uses great films to explore some aspect of personal finance. Published Saturdays at 7 PM, get your front row seat by subscribing to The Dough Roller.

Sir William Wallace was born in the 1270s (the exact date is disputed). Barely reaching the age of 30 before his death, he led a resistance against the English occupation of Scotland. His story was told in the 1995 movie, Braveheart, starring Mel Gibson. The intensity and single-mindedness of Wallace in his fight against the English reminded me of the intensity we should bring to fighting bad debt. Let’s take a look at a short clip from the movie in which Mel Gibson delivers the famous Freedom Speech, and then we’ll return to the issue of fighting bad debt.

It’s time to declare war on bad debt. It’s time to paint our faces, take up our swords, and fight bad debt to the death. Are you with me?! Now before we charge the enemy (no pun intended), we need to make sure we’re all fighting the same nemesis.

What is “bad” debt?

Bad debt takes many forms, and even includes certain home mortgages. Here are several examples of bad debt:

Consumer debt: Any consumer debt is bad debt, period. Whether the debt was used to buy dinner, a vacation or furniture, consumer debt is our #1 enemy.
Car loans: Money borrowed to buy a car is bad debt. Why? Because it represents borrowed money for an asset that depreciates in value. In addition, we tend to overspend on cars because the monthly payments are” manageable.”
401(k) loans: Even though you’re borrowing from and paying interest to yourself, 401(k) loans are a no-no. They take your money out of the stock market, decrease your monthly cashflow, and redirect interest payments that could go to pay down other debt or to new investments.
Home equity lines of credit: Easy credit encourages one to make bad purchasing decisions. As easy credit goes, home equity lines of credit are the ugliest. Interest rates are often low and sometimes tax deductible, all of which can prompt us to make some really bad financial decisions.
Certain home mortgages: Home mortgages with adjustable rates and “flexible” payment plans are usually bad debt. There may be some situations where an adjustable rate loan is best, but these are rare. Generally, anything other than a fixed rate home loan at competitive rates is bad debt. So is a mortgage that results from buying more home than you should.

If the list of bad debt seems overwhelming, imagine how Sir Wallace felt. As I’ve often reminded readers, nobody said this was going to be easy. There are many ways to tackle debt. But the first and most important step is to stop borrowing. As they say, if you find yourself in a hole, stop digging. If you want some articles to help you spend less and manage your money, check out these articles:

But beyond budgets and frugality and planning is one critical step in the war against bad debt–determination. How determined are you to win the battle against debt? Watch Wallace’s Freedom Speach one more time, and then let’s go to war!

Stop borrowing now

The first act of war is to commit that you will stop borrowing money effective immediately. Yes, you need to go cold turkey. My wife and I committed several years ago that we would borrow no money except to remodel our home. We had just borrowed some money to buy dinning room furniture, and I knew in my gut that we’d made a mistake.

A few months later when we bought some furniture for our living room, the furniture company offered us credit at 0% for 12 months. I turned it down! Yes, I know it was “free” money, but it would have resulted in us buying more furniture than we needed. So we paid cash and bought less.

Cut up the credit cards

If you will succumb to temptation, cut up the credit cards. The easiest way not to use credit is not to have it available to you. Now notice I didn’t say cancel the credit card. You can certainly do this, but you should understand that it could negatively impact your credit score. Your credit score is based, in part, on the amount of available credit you have. Getting rid of your credit cards reduces your available credit. And your credit score will be critical if you ever borrow money to buy a home or start a business.

Get help

Sir Wallace didn’t fight alone, so why should you? The best place to start is with your spouse or anybody else with whom you share your finances. If you are both equally committed to fighting debt, the chances of success are greatly improved. Regardless, you should have somebody you can call or e-mail when you are tempted to buy something on credit. You need a life line. And if it helps, feel free to e-mail me (dr @ doughroller . net), and I’ll do my best to talk you in off the ledge.

And as a starting point, check out our recent series on How to Crush Your Credit Card Debt for more ideas.

Recognize the power of habit

Habits are powerful. Habits drive almost all of what we do from day to day. Some of our habits are positive and some negative. The bad news is that breaking a bad habit is not easy. The good news is that once broken, you turn a bad habit into a good one that is equally as powerful.

We don’t buy on credit anymore, and we don’t miss it. We don’t even think about buying on credit. We’ve turned a bad habit into a good one, and so can you. There are two important points to recognize here: (1) it will be painful at first when you stop buying on credit; and (2) it will get easier, much easier.

I hope you’ll make the decision to stop buying on credit. Trust me, your future self will thank you. And if Sir Wallace doesn’t provide enough motivation, then check out Rocky.

Blue American Express Cards: A Cornucopia of Credit Card Rewards

Rob Berger — Fri, 10 Feb 2012 19:00:39 +0000

The American Express Blue Cash and Blue Sky credit cards represent some of the best rewards cards available. These cards offer everything from 0% APR introductory rates on purchases, to great travel rewards, to as much as 6% cash back on purchases. Which card is best for you depends on your financial goals and objectives.

So let’s review each card, starting with Consumer Report’s pick for one of the best cash back rewards cards available, Blue Cash from American Express.

Blue Cash Everyday from American Express

Blue Cash Everyday(SM) from American Express is THE best cash back rewards credit card available today. If you are looking for cash back rebates from a card, this is the card of choice, and one selected by Consumer Reports this year as a top credit card.

The card comes in two versions. The standard version has no annual fee and offers the following cash back rewards structure:

Earn a $100 cash back bonus after spending $1,000 in eligible purchases in the first 3 months of Cardmembership
0% intro APR on purchases for 12 months, flexibility to pay over time
Get 3% cash back at supermarkets, 2% cash back at gas stations and department stores, and 1% cash back on all other purchases
No spend minimum, No enrollment, and No rotating rewards categories
Get a $25 Referral Bonus for each friend or family member who is approved for the Card
No annual fee, flexibility to pay over time

With the preferred version of the card, there is a $75 annual fee, but the rewards increase significantly:

Earn a $150 cash back bonus after spending $1,000 in eligible purchases in the first 3 months of Cardmembership
0% intro APR on purchases for 12 months, flexibility to pay over time
Get 6% cash back at supermarkets, 3% cash back at gas stations and department stores, and 1% cash back on all other purchases
No spend minimum, No enrollment, and No rotating rewards categories
Get a $75 Referral Bonus for each friend or family member who is approved for the Card
$75 annual fee

Which card is best for your depends on how you use the card. If it is your primary cash back card that you’ll use for everyday shopping, I think the preferred card is the clear winner.

You can check them both out at the Amex Blue Cash website.

Blue Sky from American Express

Blue Sky from American Express® is the travel rewards card that, like blue cash, comes in two flavors. The standard version gives you 1 point for every dollar spent with no black out dates or travel restrictions. Points can be redeemed for airline tickets, hotels, car rental, and more. Here are the details:

No annual fee
Travel rewards with no blackout dates or travel restrictions. Redeem with any airline, any car rental, any hotel- anytime
Pay your bill all at once, or over time. It's up to you.
Blue Savings Program®: big deals on big brands, all the time
Rated "Best Airline Credit Card" by Card Ratings Consumer's Choice Awards in 2010
Get approved in 60-seconds

The preferred version of the card comes with a $75 annual fee, but doubles the rewards on certain purchases, adds a 7,500 mile bonus, and adds an annual $100 allowance to cover baggage charges. Here are the details:

7,500 bonus points when you charge $500 on the card within the first 90 days
2X points on dining, hotels, and car rentals
$100 Annual Airline Allowance to cover baggage fees and many in-flight purchases
Travel rewards with no blackout dates or travel restrictions. Redeem with any airline, any car rental, any hotel- anytime
Pay your bill all at once, or over time. It's up to you.
Blue Savings Program®: big deals on big brands, all the time
Rated "Best Airline Credit Card" by Card Ratings Consumer's Choice Awards in 2010
$75 annual fee
Get approved in 60-seconds

If you are a frequent traveler, the preferred card will easily pay for itself over the course of a year. Either way, you can check both cards out at the Amex Blue Sky website.

When you are evaluating credit card offers, please make sure to read the terms and conditions on the credit card issuer’s website, as they may have changed since the information was last updated on this site.

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

How To Take Your Side Hustle Full-Time

Michal — Fri, 10 Feb 2012 13:00:01 +0000

Welcome to our week-long series on How to Earn Extra Income from a Side Hustle. In this final article, we look at how to turn your side hustle into a full time dream job.

Let’s assume you have successfully found a rewarding niche and financially profitable side hustle. That’s impressive! While your initial motivation may have been to save for a vacation, pay off college loans, crush your credit card debt, or pay off an unexpected bill, you have surpassed your expectations and have been thinking seriously about taking it full time. Let’s look at some steps to maximize your success.

What’s Your Number?

What will it take for you to say good bye to your full-time job? Setting a monthly income goal will be different for everyone. You may be single, a sole breadwinner in a marriage, or you may be in a two-income household. Basic to each unique situation is the need to calculate current monthly expenses. Don’t forget to figure the expense of replacing insurance benefits your employer is now providing. This information will allow you to set a target amount.

Assess the Consistency of Your Side Hustle Income

Once you’ve hit your magic number through side income, the next step is to honestly assess how likely you are to consistently achieve your income needs from your side business. If you rely on a single source for a significant portion of your revenue, how confident are that the revenue source will stay with you? What is the likelihood that the market for your goods or services will decline in the foreseeable future?

Diversifying your income streams is one way to address this uncertainty. Another approach is to keep your job until you’ve hit your magic number consistently over a period of months.

Save An Emergency Fund

We often stress the importance of having an emergency fund. But in the case of the self-employed or small business owner, the need is greater and the amount is substantially higher. In order to protect yourself against the unexpected, you should have an emergency fund equal to one year of expenses. Business trends can be unpredictable, so don’t kid yourself into thinking that you can build this fund after you set off on your own. This needs to be accomplished before you cut the cord.

Take care of Health Insurance

Don’t skip this one. Even if you are single, young, and in good health, you need coverage. A high deductible plan can offer reasonable coverage in the event it’s needed. If you have a family — shop around. The cost of these plans can be crazy and the coverage not so good. Consider joining your local Chamber of Commerce. They have group plans that offer savings for small business owners who are members. Although the Chamber doesn’t contribute in any financial way, joining as part of a group does mean lower premiums and more options including better benefits, more responsive customer service and rate stability. You can easily compare health insurance rates online. And HealthInsurance.org is another good resource providing free information on every aspect of purchasing individual plans.

Can you find reliable workers?

If the plan is to grow your business by adding staff to assist with the work load, consider conventional ads, internet sites (such as Craigslist), employment agencies, and your network of friends and colleagues. When your search turns up potential applicants, be sure to check them out thoroughly — including contacting references and testing their skill levels. If freelancers will fit the bill, consider Elance or oDesk and hire a “virtual employee.”

Save for Retirement

This will be a challenge considering you were having it regularly deducted from your guaranteed paycheck. But considering retirement can last 30 years or more, this is not something to put on a “to do” list. Set up a meeting with a financial planner and map out your retirement goals. Walk through the process of rolling over your 401K into an IRA and understanding tax advantages for both you and your business. If you go through a slowdown in cash flow, try to avoid the impulse to back off contributions. It’s hard to catch up at a later date.

One benefit of running your own business is opening a SEP IRA. I have one at Scottrade and can contribute up to $50,000 (subject to certain limitations).

Keep in Good Standing with the IRS

Taking it from a side hustle to full-time will change things a bit. Hopefully before now you put a priority on keeping accurate records and maintaining a separate bank account. These practices are imperative when running a small business. Contact a qualified tax accountant. Paying for this expert advice will keep you ahead of what the IRS requires of you. Your tax expert can help with your questions, make sure you have all the necessary licenses and permits, help you take advantage of all qualified tax deductions, and help with your tax filings.

Exit Strategy/Backup Plan

This may seem counterproductive, at least in terms of a positive gung-ho “let’s do it!” sense. While fear of the unknown can keep us from ever taking the first step toward achieving great things, you can feel confident about taking the plunge when you know you have covered all your bases. A back up plan is like keeping one foot on solid ground. It provides a certain sense of comfort. However, if you have taken your time, tracked the growth of your business, funded your emergency account, considered your insurance options, planned for retirement and tracked a course for future expenses (college for the kids maybe), then you have done a great job of hedging your bets.

Minimum Credit Score to Qualify for an FHA Loan

Rob Berger — Thu, 09 Feb 2012 19:15:21 +0000

My sister recently signed a contract to buy a home. Given the market and interest rates, she got a great deal. And she’s financing the purchase with an FHA loan. So it seemed timely to talk about the minimum credit score you need to qualify for an FHA mortgage.

As a quick review, an FHA loan is a mortgage backed by the Federal Housing Administration (which is part of HUD). A big advantage of an FHA mortgage is that the required down payment is typically a lot lower than other mortgages. While the down payment does vary depending on the exact FHA program, 3.5% of the purchase price is common. And for our purposes today, the required credit score is also significantly lower than what most would consider to be a good score. The credit score requirements differ depending on several factors.

First, let’s consider the requirements for maximum FHA financing. The most that the FHA will finance is 96.5% of a home’s value. (In lender parlance, this is expressed as 96.5% loan to value ratio.) This means that an applicant will have to have 3.5% on hand to use for a down payment. In order to receive this sort of loan, an applicant must have a credit score of at least 580.

Other applicants may be able to qualify for loans with smaller financing ratios. Applicants with a credit score between 500 and 579 qualify for an FHA loan, but are required to make a 10% down payment instead of 3.5%. Applicants with scores below 500 are not eligible for FHA-insured financing.

Even with the minimum FICO score requirements, there are certain other requirements to an FHA backed loan. Here’s a list of these requirements an FHA loan applicant needs to meet:

A steady employment history for at least two years. Lenders like to see that applicants are stable, which is why steady job history is a requirement for FHA backed loans.
Your income must have remained steady or risen over the last two years. FHA backed loans have maximums based on your income, so you must prove that your income is consistent and predictable.
You must have fewer than two thirty-day late payments.
Any bankruptcy on your record must be at minimum two years old. Regardless of how long ago the bankruptcy was, you must have good credit for the most recent last two years.
Any foreclosure you’ve had must be at minimum three years old. Also, you must have good credit for the past three years.
By the time you apply for a loan, any state tax liens you have must be paid. Federal liens, on the other hand, needn’t be paid if you can show that you’ll be able to pay both the payment on the lien and the mortgage payment on your FHA backed loan.

To get an idea of what amount you can borrow with an FHA backed loan, your mortgage payment must be at or below about 30 percent of your total monthly gross income. For example, if your household income is $50,000 per year ($4,166 per month), your maximum monthly mortgage would be approximately $1,250. What kind of house that payment could buy would depend on market conditions, the relative value of homes in your area, and mortgage interest rates at the time. In a high-priced market, that might barely buy a studio condominium. In other areas, it could buy a four bedroom single family home.

Keep in mind that FHA guidelines do change form time to time. If you’re considering an FHA backed loan, check FHA.gov for resources and for approved lenders in your area. When you’re ready, apply to several lenders at the same time. If you’re approved by more than one, take the best rate offer to the loan officer at the other lenders who approved your application and ask if they can beat the offered rate. Remember, you’re paying a premium to insure your lender against risk in the event of foreclosure. Make lenders compete for your business and take the best rate. Even a small difference in interest rates can add or subtract thousands to the amount you’ll pay over the life of the loan.

50 Incredibly Useful Resources for Freelancers

Michal — Thu, 09 Feb 2012 13:00:55 +0000

Welcome to our week-long series on How to Earn Extra Income from a Side Hustle. In this fourth of five articles, we look at 50 resources every freelancer can use.

Knowing where to find the right tools to help you get the job done is an important part of the Side Hustle process. The web is a big place and as a result it can be difficult to find exactly what you are looking for. To point you in the right direction we have created a list of 50 Freelance Resources for you to reference.

We would love to keep adding to this list so please share any great resources you have discovered for yourself.

Communication Resources

Communication is a big part in any business. The following Communication Resources include tools for Contact Management, Meetings, and Newsletters.

Go To Meetings
GoToMeetings allows you to do a variety of work related business right over the net. It’s great for communicating with a small group and even sharing documents or ideas. You can sign up for the 30 day trial for no charge to see if it’s a keeper.

Skype
Skype is one of the better known tools to host your business meetings. You can also keep in touch with friends and family with Skype. It’s a great way to keep in contact and best of all there is a free version! You can upgrade and pay a fee if you need more options.

Highrise
Highrise is an online program that help you keep track of your conversations, leads, emails, etc. It’s a way to keep you organized at work so you don’t forget to make a phone call or follow up with a client. You can try it out for 30 days at no charge.

Techinline Remote Desktop
Techline Remote Desktop gives businesses an instant and secure connection between remote PCs over the web. With this remote desktop support system, it doesn’t matter if you are across the country or the glove this system is browser-based and will help you get the job done.

aWeber
aWeber is email marketing software that helps small businesses, websites and blogs automate email follow up and email newsletter delivery. It offers tools such as professional email signup forms & autoresponder services that make it easy for you to build your email list and stay in touch with prospects.

BigContacts
Big Contacts is another communication management system with an easy to use interface that helps you stay organized with your contacts, tasks, and files all in one place. You can try the 15 day trial for free and download the app.

Campaign Monitor
CampaignMonitor is an email marketing software for designers and their clients. You can send custom email campaigns, track the results and manage your subscribers. You can sign up for free with the trial offer and decide if you like the service before you pay.

Financial Resources

The Financial Resources include tools for Accounting, Invoicing, and Payments.

FreeAgent
FreeAgent is an online accounting software application that is ideal for freelanceers, contractors, and small business owners. With this program you can invoice your clients and track your expenses, and determine what you owe for taxes.

Outright
Outright is designed for small business owners who need a system that can record income and expenses automatically. You can categorizes transactions and prepare your estimated and end of year taxes. I use Outright and absolutely love it.

LessAccounting
LessAccounting makes your bookkeeping simple. With this program you can send invoices and proposals, track expenses, automatically import bank transactions. This makes accounting stress free and takes the guess work out of it.

Freshbooks
Freshbooks is an online invoicing program that will help you track your time, organize your expenses and invoice your clients. This is another resource I use and it saves me a ton of time and makes tracking invoices and payments a snap.

The Invoice Machine
The Invoice Machine lets you invoice your clients for a variety of things like hours, projects, and products. It offers a nice clean interface with easy to use drop down menus. Invoices can be created as a PDF or they can be emailed directly.

Blinksale
The Blinksale gives you the ability to send elegant looking invoices to anyone. It’s $15 a month and for that price you will get unlimited use. There is a 15 day free trial you can sign up for to determine if it’s worth the monthly charge.

PayPal
PayPal is the popular choice for taking payments. This allows you to accept credit card payments or payments from PayPal accounts which includes e-Cheques. PayPal is safe and has gained much popularity for it’s ease of use. You can also send money using PayPal.

DPD – Digital Product Delivery
DPD accepts payments and automatically delivers download products across multiple sites. Sell scripts, programs, graphics, ebooks, and more. DPD provides secure download links to prevent product theft while automating your download sales.

Payneer
Payneer is a payment system that can be used to pay people all over the world. The payment is made directly onto a MasterCard debit card. This card can then be used anywhere that MasterCard is accepted, which is just about everywhere.

Mint
Mint.com is the best way to manage your personal finance because it’s free. It’s easy to use and you can set up all types of accounts. Your information is automatically imported into Mint.com. With the app you can access you accounts in one place from your smartphone.

Xero
Xero is an online accounting system ideal for small businesses. You can access all your important financial figures such as bank transactions, invoices, GST. This can all be done right from your smartphone which means you always have access.

Web Design & Blogging Resources

The Web Design and Blogging Resources include tools for Blogging, Domain Names, Web Design and Web Development.

WordPress
WordPress is web software that allows you to create a website or blog. This one makes the list because it is free. There are thousands of plugins and themes available to help you create the site of your dreams. WordPress is user friendly and there are tons of helpful information online.

Woo Themes
Woo Themes is a WordPress theme that offers a variety of layouts you can use with your existing WordPress site. It comes with themes come with quite a bit of customizable options which will have your site looking fantastic.

Hosting Sesame
Hosting Sesame offers affordable web hosting plans that include domains, hosting, email accounts, tools, etc. Their plans include 24/7 customer service technical supports which will help you get all your questions answered.

ProBlogger
ProBlogger is a great website that provides tons of information on everything you need to know about blogging. This site is a great resource for every level, for the experienced Bloggers, and for those that are not so experienced.

Expression Engine
ExpressionEngine is known for being a flexible, feature-rich content management system that enables users to easily manage their website. It’s designed for individuals, organizations, and companies around the world who need a management system.

Text Pattern
TextPattern is another free content management system that focuses on content. Textpattern is all about flexibility and it offers a variety of plugins so the user can create a unique site and customize the functionality of it to make it their own.

Go Daddy
Go Daddy is the most popular domain and web hosing site out there. They are known for their low prices and high quality. They even have their own app so you can check to see if a domain is available no matter where you are.

Network Solutions
Network Solutions offers just about everything under the sun including, Web hosting, Web design, ecommerce, Web site promotion to name a few. This site has been around for a while and helps users get started by providing them an array of tools.

Planet Domain
Planet Domain has the ultimate goal of providing cheap domain names and solid web hosting services. They are known for their high quality products and and competitive pricing so they make our list of domain resources to consider using.

99 Designs
99 Designs is a site for both designers and those needing a design created. Whether it’s logos, web design, business cards, T-shirts, banners, WordPress themes, etc. you can get it done at 99 Designs. It’s basically a contest and you get to choose which design you like before you buy.

Freelance Jobs

The Freelance Job resources include Job Postings and Job Boards.

Elance
Elance is for both those who are searching for freelance contractors and for those professionals who are seeking work online. If you have the skills and talent you can display them at Elance, choose the job you want and get paid.

Freelancer
Freelancer is known as the world’s largest outsource marketplace for small business. People from all over the world use Freelancer to outsource just about anything you can think of. Freelancer covers all types of work and is not limited to any certain category.

Project 4 Hire
Project4Hire is where you can find web designers, graphic designers, programers, coders, and writers to name a few. It’s for both those who are looking for work and for those needing a project completed. This site is very specific to the categories above.

Smashing Jobs
Smashing Jobs is a job board that lists available jobs in the design or programing categories. You can search for full-time or freelance jobs for well-known companies all over the world. This site is specific to only deisgners and programers.

Job Pile
Job Pile brings in jobs listed from various job boards across the entire web and puts them in one place for you to access. This is helpful because you can see what all job boards are listing or you can choose to see certain job boards.

Design Quote
Design Quote is made up of clients and designers. Clients can find someone to complete their project and designers can choose which project suits them the best. This site is specific to designers so if you are a designer this is a good place to find work.

Krop
Krop is another job board and career resource website for creative professionals. Whether you’re looking for job, or your the one searching for the talent, Krop is a place to get connected with the best, well-known companies around.

Project Management Resources

The following Project Management Resources include tools for Organization, Project Management and Time Management.

Remember The Milk
Remember The Milk is an online organizer that helps you keep your personal life separate from your work life. You can stay on task with the to-do list manager, full calendar and even set up task reminders so you don’t forget those important events.

Backpack
Backpack is a web-based organizer for you business. You can keep all your important documents, discussions and schedules in one place. All your information is backed-up daily and you can share any of your information you choose, at any time with your business partners.

Toodledo
Toodledo provides you with an easy to use to-do list you can access online. You can customize all the features and even elect to receive text message reminders for important events. You can track time, and use the iPhone app to get notifications and updates.

Collabtive
Collabtive is a project management systems that can be downloaded and installed on your own webserver. You can add your clients and staff, created projects, list tasks and upload files. It also features a built in instant message system for inner office communication.

GoPlan
GoPlan is another online project management system that is also acts as a communication platform. It’s great for managing projects and it’s a nice communication tool so you can keep everyone in the business up-to-date on what’s going on.

ActiveCollab
ActiveCollab is a project management & collaboration tool that you can set up on your own server or local network. You can work with your own team, clients or contractors. It’s easy to use and allows you to have complete access of your data.

Fanurio
Fanurio is a time tracking software that also features a billing application so you can bill your clients. It receives high marks by freelances for it’s interface and flexibility. It also has the ability to create detailed invoices for billing purposes.

Toggl
Toggl is a time management system that allows you to see where you are spending your time. You can track all your time so you can accurately bill your clients. This system has an iPhone app and an app for Android phones so you can access your information from anywhere.

Paymo Time Tracking & Invoicing
Paymo Time Tracking & Invoicing tracks your time for you so you don’t have to do the math and figure out how much time you have spent on a project. You can enter start and stop times of use the time that is built-in. It’s easy to use and does the work for you.

MakeSomeTime
MakeSomeTime is an easy way to track your time while you are working. It has an easy-to-use interface and can keep time for a variety of different projects. You can also generate reports and invoices to see exactly how much time you are spending on your work.

Side Hustle Comic Strip [Infographic]

Rob Berger — Wed, 08 Feb 2012 17:00:41 +0000

Welcome to our week-long series on How to Earn Extra Income from a Side Hustle. Today we have a guest post and a comic strip infographic I know you’ll enjoy.

Want to earn more money? Of course you do—that’s a silly question. Whether you’re earning $0 or $200,000, everyone could always use a little extra cash flow, especially during this somewhat sticky time in our economy.

Aside from having some extra earnings to help you out with bills and the day-to-days of life, it is also important to have some money set aside for an emergency. In this economy, many people can’t afford to have an emergency fund at all, while experts recommend that you have one of at least $1,000—if not $3,000-$6,000.

Perhaps you’re working a full-time job right now and still struggling to just make ends meet, let alone start saving for emergencies. How can you earn a little extra income? Pick up a “side hustle.”

Use this graphic as your guide to 10 relatively simple side hustle ideas. Of course, feel free to use your imagination.

[Click Image to Enlarge]

So even if you’re strapped for time, you don’t have to be strapped for cash!

What’s your “side hustle?”

Natalie Grigson and Josh Ryan are bloggers for the MangoMoney blog, the official community for Mango Financial. MangoMoney is committed to educating and entertaining consumers on everything from living frugally to current economic events. Mango Financial, Inc. is an innovative consumer financial services company that seeks to empower underserved customers in the U.S. to achieve their financial goals. Mango offers services and products like their reloadable, prepaid card, both in retail and online at www.MangoMoney.com.

Sources: LoanAbles.com, FrugalDad.com, LearnVest.com, Fiverr.com, Etsy.com, EscapeFromCubicleNation.com, MysterShop.org, and BudgetsAreSexy.com.

75 Ways To Make Money On The Side

Rob Berger — Wed, 08 Feb 2012 12:12:48 +0000

Welcome to our week-long series on How to Earn Extra Income from a Side Hustle. In this third of five articles, we cover 75 ways to make a side income.

In yesterday’s article we looked a 5 resources for side hustle ideas. Today we have come up with a list of practical ways to make money on the side. Some of the ideas require specific skills, experience, maybe even a license, but others don’t. If you have the knowledge and drive you can turn your hobby, passion or expertise into dollars.

What side hustles have worked for you? Which side hustles haven’t worked out? Tell us what you have learned from your side hustle adventure in the comments below.

Sports/Recreation

Photo Credit: laffy4k

Shooting Lessons: I have a friend that makes great extra money offering kids basketball shooting lessons. You can make around 30 bucks an hour (maybe more) if you have the knowledge and skill set to teach. The main obstacle is finding gym time, so consider a rec center that offers cheap memberships. You could also partner with local coaches for help. If you have enough business, you could rent a court.
Hitting Lessons: If baseball or softball is your thing, then start signing kids up to take hitting lessons. Partnering with the local school coaches is a great way to develop business.
Referee / Umpire: Referees and umpires are always needed. You can stick with little league or go for adult leagues. It does require a class or two and you have to pass a written test. If you love sports, this is a great way to pocket some extra cash and it’s flexible because you choose when you work.
Coaching: There are plenty of coaching jobs that pay. Usually it’s at the middle school, high school or college level. But, if you love sports or you’re a former athlete, this can be an enjoyable and rewarding way to make some extra money.
Strength and Conditioning Training: This is a great side hustle for former athletes who have been through this type of training. You can connect with local school teams to get your name out there. Parents will pay for this type of training for their athlete and it’s a great way to be involved in the community.
Gun Permit Instructor: If this is an interest of yours then consider teaching the class and getting paid. The rules and regulations vary from state to state, so be sure to find out the process for your state.
Boot Camp Instructor: If you have a fitness background then try giving Boot Camp Classes. You can hold an outdoor class at a local park and not have any sort of overhead costs. Make the class fun and beneficial and people will be lining up to join.

Helpful Links:

Education

Tulane Public Relations

Substitute Teacher: Did you know in many states you only have to have a bachelors degree to be a sub? This would be a great thing to do if you have another job that allows you the flexibility to teach periodically. If you have a day or two off during the week, you can register with your local school system and let them know your availability.
Tutor: If you excel in Math, English, Science or any other subject, then try tutoring. Tutors are known to make between $25 – $35 an hour. You can give your name and number to local schools or your school districts central office as a way to get students. Also, college campuses are a great source of potential students.
Resume Writing: If you have a knack for writing resumes, you can make some money on the side. There are plenty of ways you can advertise your service such as Craigslist. Plus, this type of side hustle doesn’t have any start up cost.
Term Paper Editor: If you are a good writer and you can edit term papers, you will find lots of students willing to pay for your service. This too has little start up costs and just requires time and effort to get started.
Translator: If you are bi-lingual you be a translator. You don’t have to go through a company to get work, instead you can reach out to companies directly that may be in need of a translator.
Sign Language: You can sign for extra cash or teach a sign language class.
Music Lessons: Consider giving lessons for whatever instrument you excel at. Even if you aren’t an expert in the field you can give beginner lessons.

Helpful Links:

Labor

CarbonNYC

Movers: If you have moving experience or you are just willing to work hard, you can make good money on the side. I have friends who have used craigslist to find movers because they felt they could get a better deal than with a big company.
Painter: If you enjoy painting then you will enjoy getting paid for it even more. You can advertise on Craigslist or Facebook when getting started. Getting leads is your biggest obstacle. If you don’t have any experience giving estimates, you might want to consider partnering with a professional painter for some tips.
House Cleaner: It’s not easy work, but if you are dependable you can make some good cash. If you are good at this job then you will find regular clients that you can count on. You can also partner with real estate agents and investors who have the potential to send you a lot of work.
Hauling Service: Owning a truck can be very beneficial for a side hustle. For a fee you can haul off people’s junk.
Run Errands: Run errands for people while they are at work. Here are a few errands you could offer to complete: Dry Cleaning, Post Office, Grocery Shopping, Hardware Store, Office Store, Picking Up Supplies For Your Business, Garden Center, Walking Dogs, Giving Rides, Assembling Furniture (Desks, Beds, Tables, Chairs, Shelves), etc.
Delivery Person: Sometimes having the right type of automobile pays off – like a truck or van. I’ve seen many ads on Craigslist for folks who will delivery big items that can’t fit in a car. You could offer to deliver just about anything throughout your area or even state.
Power Washer: If you own a power washer you can make some quick money. My cousin struck a deal with an apartment complex and power washed all their awnings and made a few thousand dollars for a day’s work.

Helpful Links:

How To Get Painting Jobs

In The Home

Christopher_Hawkins

Babysitter: Babysitting isn’t just for teenagers anymore. As a matter of fact, there are many online sites, like Sitter City, that find sitters and perform background checks. You can sign up to be a babysitter and work when you want.
Sewing/Seamstress: Whether it’s altering school uniforms, making pillows or Halloween costumes, this is a side hustle to consider if you know how to use a sewing machine. You get to hustle from your own home and work while watching T.V.
Handy Man: Finding a good handy man isn’t always easy. If you have the skill then you might as well get rewarded for your abilities. Neighborhood newsletters are a great place to advertise for free.

Helpful Links:

We Love Our Pets

Danny McL

Pet Walker: This really requires no skill set, just a love for our furry friends and the willingness to clean up their mess.
Groomer: Being a professional groomer requires some classes, but it’s a nice way to make some money. If you love animals then consider setting up shop at your home and working on the side.
Pet Sitter: Start withing your community and offer to pet sit while people are out of town. There is a woman in my town who provides this service and as a bonus she picks up and drops off your pet.
Pet Training: If you have a way with animals and a successful training background, you could get paid for your talent. You can also take some classes that will sharpen your skills and your credentials.
Pet Photographer: If you are good a taking pictures then put an ad out there for pet photography. People spoil their pets and will pay for good pics.
Aquarium Service: If you have ever had an aquarium then you know what a pain they are to keep clean. If you are someone who has this type of knowledge then offer to clean aquariums for people.

Helpful Links:

Beauty

CelebfashionLA

Hair Stylist: If you are a former stylist that has another full-time gig, then consider picking your scissors back up and working from home on the weekends.
Hair Braiding: This is a talent that people will pay big bucks for. If you have this skill then try this for your side hustle.
Make-Up Services: If you are good at applying make-up then offer your services to the high school kids around prom time.
Modeling: If you have the desire to work in the modeling industry, now is the time to get started. Even local gigs pay very well and just imagine what your income will be should you sign with a national agency!

Use Your Creative Side

vigo74

Photography: You don’t have to be considered a “professional” to be good at taking pictures. If you have an eye for capturing a special moment then start marketing yourself.
Logo Design: Those who have a creative side and can use programs like PhotoShop are in high demand on the web. Bloggers and businesses need logos designed and often have to hire someone for the job. Check out my favorite design site 99 Designs and choose your first project.
Video Production: You can produce and edit video’s for business or bloggers. There is a huge online market for video production. You can make online commercials or YouTube videos to name a few.
Freelance Writer: There are numerous websites that can help freelance writers find work. The truth is you don’t have to have a writing background to be a good writer or to make money as a freelance writer. Start by checking out a freelance site or reach out to some of your favorite blogs and ask to write a guest post.
Caricature Drawing: You will be nominated as “most popular” at all the birthday parties if you have this talent.
Face Painter: This is another great skill to have so you can market yourself for birthday parties, school events or fundraisers.

Helpful Links:

Computer Geeks

Rebecca and Bernhard

In-Home Computer Repair: Computers are foreign objects to many and having someone come to your home to make the repair is often worth the cost. Post an ad on Craigslist or even send a message out to all your FB friends offering your service.
Develop an iPhone game: If you are an iPhone and computer whiz, then take a crack at this because it can make you a quick fortune. Develop a game or application for the iPhone and sell it through the Apple store. You’ll receive payment for the license and royalties for each sale.

Helpful Links:

Events/Parties

Tonymadrid Photography

Party Planner: Party planning is something you can do all year long. There are many sites that can help you get started by getting your name out there, like Best Party Ever.
Catering: If you feel you are talented enough at baking and/or cooking, the market is always in need. Start small by supplying food or baked goods for intimate parties, events or office meetings. If your services are well received and demand increases, continue to grow. In this case, what begins as a side job could become a lucrative career.
Band/Singer: You might not be the next Bruce Springsteen, but don’t be afraid to take a chance and get paid for what you love to do.
DJ: Offer to DJ parties, events or school dances. When you are just getting started you can rent all the required equipment and build it into your cost.

Helpful Links:

Financial

File Taxes: With tax season here there is no better time to get started. If you are a former CPA or have the knowledge needed to help people file their taxes, then pick it up as a side hustle. You can even consider starting your own blog that offers this type of information to people.
Accounting Services: Sometimes if you are just good with numbers you can get a side gig helping a small business or an individual with their books.

Automotive Jobs

sunflowerdave (professional loungist)

Mechanic: My sister’s mechanic works on the side and he is completely dependable. So dependable, in fact, that he has even made house calls to make sure her car was safe to drive. He has picked up and dropped off her car for repairs, which is something you don’t get from the over-priced shops in her area.
Towing: If you’ve got the equipment then you might as well put it to go use. This doesn’t mean you have to own a tow truck, but there are many other things you can tow. Lawn equipment, boats, motorcycles, etc.
Car Audio Installation: The big stores like Best Buy charge a fortune for this type of service. Make yours affordable and you will beat out the competition. This would be a great side job for someone who used to do this type of work at one of the big stores.

Seasonal Work

eeems

Lawn Care: This is a great spring and summer gig and you have complete control over how much work you take on. Set it up so it’s a weekend or evening job. If you are a teacher, make it your full-time money maker in the summer.
Snow Plow: This is a nice way to make some money during the winter. It requires a truck and a plow, which can be costly, but can also bring in some good money.
Shovel Snow: It’s not easy work, but it’s cash in your pocket. This is a great side hustle for kids or college students who have the energy to get out there and shovel.
Lawn & Garden Clean Up: This doesn’t require much skill, which means anyone can give it a shot. With spring approaching this would be a good time to get an ad on Craigslist or a community bulletin.
Landscaping People pay big bucks to get their yard landscaped. This is a great weekend side job and you get to be outside and enjoy nice weather.
Clean Gutters: Cleaning gutters doesn’t take a special license or skill, just some hard work and no fear of heights. Homeowners pay good money to have their gutters cleaned by expensive roofing companies, so just make your service affordable and get paid for your work.
Tree Service: If you have the knowledge and equipment, then start up a basic Tree Service on the side. This would include things like trimming and deadwood removal.
Deliver/Remove Firewood: Deliver Firewood to folks or offer to remove wood they don’t want.

Helpful Links:

Skilled Trade

Electrician: If you’re a certified electrician there’s a great deal of work available for you. This can be a great way to make extra cash in the evenings and on the weekend.
Plumber: Licensed plumbers can make excellent money, too, but even if you aren’t certified you can still do side jobs. Just be sure you aren’t doing jobs that required you to be licensed.
Siding Repair: If you are handy and can repair siding then market yourself as such. Often the big company’s are too expensive and if you can work a deal out that is good for the homeowner and for yourself, then you’ve got a side hustle.
Brick Mason: This is a learned skill, but if it’s something you did at a previous job then consider making it your side hustle.
Bob Cat, Bulldozer, Backhoe Service: You don’t have to own this type of machinery, you just have to be able to operate it. You can offer your service and the client can pay you and the rental fee for the equipment.

Administrative Work

Social Media Guru: Not everyone knows how to connect with people/businesses on the social media sites, but everyone knows what powerful tools they are. If you know all the in’s and out’s of the social media sites, then offer your knowledge to businesses or bloggers to get them up and running. Social media presence creation, updating, and responding are a few skills you can suggest.
Internet Research: Being good at online research can pay off in a big way. If you can navigate the web then offer to do research for people or businesses.
PowerPoint Expert: Get paid to create and update PowerPoint presentations.
Write/Create Newsletters: Many bloggers, businesses and organizations would love to have a monthly or weekly newsletter, but might not have the time or man-power to get it going. Search for possible leads online and then pitch your idea. There are many free online sites you can use to create newsletters.
Virtual Administrative Assistant: If you are reliable and experienced then market yourself as someone businesses can partner with to get things done. Consider all the tasks you could do online like Schedule/Calendar Management, Manage & Sort Emails, CorrespondenceForms/Documents, Word Processing & Formatting, Writing/Proofreading/Editing, Article Writing/Marketing Press Release, Writing/DistributionDatabase, Creation/Management, Customer Relations/Contact Management, Internet Research, etc. Being a virtual assistant allows you to work from home, too.

Online Gigs

Jorge Quinteros

Sell Your Stuff on eBay or at Consignment: eBay is an ideal place to sell old or unwanted items. As the saying goes, “One man’s junk is another man’s treasure.” If you have some relatively unique items that are easy to ship, eBay is a great place to make some extra money. Consignment shops are also a great way to get rid of old or unwanted clothes.
Sell Other People’s Stuff: You can always sell your own stuff on eBay, but you can also sell things for others. I recently met a lady with an enormous amount of antiques (3 barns full) stacked away where nobody can see them. I am going to get her up and running with an eBay store so the right people can see this jackpot. If you have the know-how you can help someone who already has the goods make some money.
Create your own retail website: If you’re already computer literate, use this knowledge to create a website to sell products or services. There are plenty of free online hosting sites, cheap domain name registries and oodles of places willing to stock your virtual shelves with inventory. Or better yet, use your artist abilities to create your own products and sell them on eBay and Craigslist.

Helpful Links:

Work For Someone Else

Mystery Shopper: People who do the mystery shopping thing seem to have fun doing it. It’s a nice way to make some dough on the side and it sounds like a way to have some fun too.
Wait Tables or Bartend: These are the ideal side jobs for nights and weekends. The hourly rate is not appealing, but you can make some nice tips over the weekend. Most of the time servers and bartenders are required to have some type of previous experience in the industry, particularly to work at higher end establishments.
Deliver Pizzas: This is a sure fire way to bring in some extra cash. You need a reliable car and a good driving record. Usually, pizza delivery drivers make minimum wage plus tips.
Paper Route: At first you might think a paper route is just part-time job for kids, but think again. One reader told us her husband brings in at least $800 a month. This is ideal for those who have their early mornings open and don’t mind getting up extremely early.

Helpful Links:

Additional Ideas

in addition to the ideas above, here are some articles where other bloggers have shared their ideas on how to make money with a side hustle:

5 Incredible Resources for ‘Side Hustle’ Ideas

Rob Berger — Tue, 07 Feb 2012 13:00:04 +0000

Welcome to our week-long series on How to Earn Extra Income from a Side Hustle. In this second of five articles, we look at some resources that can help you find the perfect side hustle for you.

Earlier in this series we talked about ways to supplement your income by finding a side hustle that didn’t necessarily involve working on a computer. They are great ideas and worthy of your consideration, but today we are looking at online resources. We have come a long way from looking to the classifieds, job fairs and postings as the only means to find work.

Whether you want to stick with a side hustle or grow to full-time home-based business, these resources will help you find ideas that will get you closer to your goals. Like any business (full-time or side), you have to make a decision and go for it. Hopefully these resources will help you brainstorm new ways to seek out interesting ideas for earning some extra money. These sites are sophisticated and offer a professional platform for marketing your skills and providing real opportunities that excite you.

Elance

Elance is a great site that offers opportunities for employers and freelancers to connect. We will stick to the opportunities for freelancers and save the “virtual employer” topic for another day. You can register for free and build a marketable profile within its impressive-looking site. You can also add a portfolio of your work for people to view, and you can promote your skills, experience, and areas of interest. Once you have registered (and also as a visitor) you can view positions that are available to freelancers in a multitude of areas.

All the job opportunities, regardless of category, are posted by their hourly rate or by the total amount per project. If you are interested in a posting, you prepare a proposal and bid on the job. With your free registration you are able to bid on up to 10 projects per month. If you determine that 10 bids are not sufficient for you, then you will have to consider purchasing a membership for a monthly fee. On the website you can also check out some of the freelancers who have been working through Elance. Although some have privacy settings that don’t allow you to see their incomes, others are listed.

For our purposes today, Elance is a great source of side business ideas. Let’s look at a sample work history of both a highly technical and a more creative (albeit business-minded) freelancer.

Devin, a Web Designer/Programmer — member of Elance since March 2009, worked 19 jobs this last 12 month period. He put in a total of 12 hours and made $10,380 for his efforts. That’s $865 an hour! His lifetime totals since 2009 indicate that he has worked 89 jobs for a total of 22 hours, earning him $32,372.

Marissa, A Creative Writer/PR Specialist listed with Elance since January 2009, worked 206 jobs in the last 12 months, putting in a total of 309 hours for a total of $67,062. Over her lifetime with Elance she has had 609 jobs, putting in 684 hours for a total of $207,656. We don’t know if this is her side hustle or full-time job, but at that rate it could be either.

When you consider that a regular full-time job is 40 hours a week, for a total of 2080 hours annually, you can see that it would be feasible to wedge in some freelance work to make a difference in your financial life. It’s worth spending some time on ELance to see how others are earning money. It offers a wealth of ideas.

oDesk

oDesk is another online resource for searching out employment opportunities. As with Elance, this site offers tools for linking employers with freelancers. I personally didn’t find it as appealing in appearance, but no big deal if it provides the same rewarding possibilities.

Looking through the categories they seem to be pretty much the same. I think there is more info available to the guest (before you register) which allows you to get many questions answered upfront. For instance, they explain how they protect intellectual property and explain that there is never a fee for applying for positions no matter how many times you apply. However, oDesk has a somewhat complex system where new freelancers can only apply to 3-5 positions at a time, but can earn a higher “quota” (number of applications you can make per month) based on number of jobs awarded, positive reviews, testing outcomes, and the like.

But regardless of whether you ever use oDesk to find work, it offers a lot of side hustle ideas.

eBay

eBay is great option for turning what you have into cash. I have several friends that regularly sell on eBay and love it. There’s very little that you CAN’T find on eBay, so look around and get some ideas. They provide a great tutorial that shows how to set up an account, take photos, list your item, get paid, and ship to your customers. They also explain their fees which will help you price your items (why not cover your fees). You can sell items you outgrow, don’t want, like to find at garage sales, or even new items that you make.

And many people have turned selling stuff on eBay into a full-time business. Check out this tutorial on building an eBay store. And here are some additional resources from eBay on building and marketing your store:

Even if starting an eBay store is not for you, seeing what other people are doing on eBay can be a great source of ideas.

Freelance Job Boards

One of the best ways to find ideas is to look at how other people are already making money. The flip side of this is to look at what businesses are in need of. We’ve covered this to some degree with Elance and oDesk above. But another great source of ideas come from online freelance job boards. Here are a few of my favorites:

Craigslist

We’ve all heard of Craigslist. We use it to buy used items. But Craigslist offers a lot more than that.

You’ll find people offering a variety of services and what Craigslist calls “gigs.” I spent some time on the DC page of Craislist and found all kinds of interesting side businesses. These side hustles ranged from Apple computer repair to soldering to “Audacity Mentor.”

You may have to spend some time sorting through a lot of garbage, but a site like Craigslist can be a wonderful source of ideas, too.

So I hope the above resources give you some great ideas for your next side hustle. Tomorrow we care going to take it one step further, and give you 75 Great Side Hustle Ideas.

Slate from Chase Review

Rob Berger — Tue, 07 Feb 2012 02:15:48 +0000

Chase has upped the ante if you are in the market for a 0% balance transfer card. Called Slate℠ from Chase, the card offers a broad range of benefits including a 0% APR introductory rate for up to 15 months on both purchases and balance transfers. What sets the card apart, however, is that there is no balance transfer fee. The card also has no annual fee, so this is as close to free money as you can get.

While we maintain a list of balance transfer offers, this deal is as good as it gets.

Slate℠ from Chase Rates and Terms

As with most credit cards today, Chase uses a tiered pricing structure with this card. This means that the interest rate applied to the Slate℠ from Chase depends on the applicant’s credit history and credit score. Chase uses three tiers, called Elite, Premium and Standard pricing.

Chase Blueprint

Blueprint is a feature introduced by Chase to help cardholders better manage their accounts. With Blueprint, you have four different options that may prove very helpful:

Full Pay: With Full Pay, you can select those categories of purchases that you will pay off in full each month. When you pay them off in full each month, you won’t be charged interest on those purchases, even if you have other balances on the card that are not part of Full Pay. Here is Chase’s description of Full Pay:

FULL PAY is a feature that lets you avoid paying interest on everyday purchases. You can select the types of purchases you would like to pay off in full each month. Those purchases will be separated out for you and totaled on your monthly statement. As long as you make your BLUEPRINT Payment by your due date, you will not pay interest on those purchases.

There is no charge for this service, and you can change or cancel your Full Pay categories any time. You can set up a maximum payment for Full Pay, with any overage going into your regular account. And if you can make a Full Pay payment in any given month, your account will still remain in good standing so long as you make the minimum payment due on time and comply with the other terms and conditions of the card. In short, Full Pay is a benefit for cardholders to better manage their money, but there is no obligation to use this Blueprint feature.

Split: The Split feature of Blueprint allows you to set up payment plans for larger purchases. Here’s how Chase describes Split:

SPLIT is a feature that lets you build a custom plan to pay off a large purchase. Simply decide how much you want to pay each month or how fast you want to pay it off. We do the math and set up the plan for you. The plan and your payment progress will appear clearly and separately on your statement.

Split allows you to set up a payment plan based on a set monthly payment or based on the number of months to pay off the balance in full. And Chase has tools that will calculate this information for you online.

Finish It: The Finish It feature is similar to Split It, but it covers the entire card balance. With Finish It, Chase Blueprint will help you devise a plan to pay off the entire balance on the credit card. According to Chase,

FINISH IT is a feature that allows you to build a custom plan to pay down your card balance. Simply decide how much you want to pay each month or how fast you want to pay it off. We do the math and set up the plan for you. The plan and your payment progress will appear clearly and separately on your statement.

Track It: All credit card purchases are automatically categorized. These categories include automotive, dining, drugstores, grocery stores, and so on. Chase puts this feature to good work with Track It. All of your purchases are separate into their respective categories that you can track online. Track It also lets you set a budget for each category. These budget amounts can be changed anytime, and are designed to help you better manage your money.

0% Introductory Rates

Slate℠ from Chase offers a 0% introductory rate for up to 15 months on both purchases and balance transfers. If you have the excellent credit required to obtain this offer, you’ll find both 0% rates to be some of the best available. As noted above, the no fee balance transfer is the longest 0% offer available without paying a transfer fee.

What a Great Home Based Business Looks Like

Rob Berger — Mon, 06 Feb 2012 13:00:38 +0000

Welcome to our week-long series on How to Earn Extra Dough with a Home Based Business. In this first of five articles, we look at some factors you should consider when deciding on your next side-income-earning adventure.

Finding the perfect Side Hustle isn’t easy. In my case, blogging is how I make my extra income from home. But it wasn’t by design.

As I’ve discussed here before, I started a blog fun, not fortune. The income was a byproduct.

But if you are focused on making money, then there are some important factors to consider. While there are always exceptions, here’s a list of the factors that make a side hustle a Great Home Side Hustle.

Requires Little Money to get Started

When considering a side hustle, a big factor is your initial investment. First, assess how much money you absolutely must have to get started. This isn’t the “nice to have” type of expense. Rather, we’re talking about costs that you simply cannot avoid if you want to pursue a specific side business.

Some opportunities may cost a lot, some not much at all. If you want to work on cars as a side job, you’ll need tools. Of course, if you are into cars, you may already have the tools.

In my case, I had to pay for website hosting when I started the Dough Roller. Total cost–about $10 a month. Today I use Hosting Sesame for many of my sites, and the cost is even less. I also had to register the domain, www.doughroller.net. Total cost–$10 a year. And that was all I absolutely had to spend. That’s one of the reasons that so many great side hustles come from online businesses. The internet has created a growing market for bloggers, writers, web designers and others that can provide assistance for bloggers.

Second, don’t get pulled into something that promises you BIG money if you purchase their “special program.” I see these scams about making money online all the time. There are certainly things to learn about any business, and some eBooks and other programs can help. I recently signed up for Corbett Barr’s How to Start a Blog that Matters. Yes, I’ve been blogging for nearly five years, and much of the content of the program is not new to me. But you can always learn something.

But here’s the key. Don’t go into debt. We just spent a week with articles to help folks get out of credit card debt. The last thing you want is to go into debt chasing a dream. Besides, funding your side hustle without debt will make you work harder and appreciate and use what you already have.

A low initial investment is what makes a home based business so appealing. You don’t have the cost of setting up a physical building or, in many cases, hiring employees. So do everything you can to keep costs to a minimum.

Use the Skills You Have

With the right skills, you could provide sewing and alterations, teach music lessons, offer tutoring services, provide tax services, groom animals, do minor home repairs (keep it small and let people know if you are not licensed and bonded), offer computer repair services, or design webpages and contract for graphic design services. Painting is a good one and can be done on weekends. These are just a few services that require little investment and take advantage of the skills you have already developed.

Services requiring no skills, just willingness, include things like dog sitting (your home or theirs), dog walking, dog cleanup (think seriously about that one), child care – weekends only, cutting grass, yard cleanup and hauling junk away (truck necessary of course) and selling items on Ebay. You probably know someone who could teach you. Hey, there’s another one – teaching others to sell on Ebay. How about driving people to appointments or offering assistance for someone who is homebound. You could even do personal shopping – anything from groceries to executive gift buying.

One final thought on skills. Remember above we talked about not going into debt. One of the advantages of a low cost side hustle is that if there are skills to learn, you can take your time learning them. When I started this blog, I had some of the skills needed. I already knew a lot about finance and investing. But I was also missing some important skills. For example, I had no idea how to start a blog. But because I didn’t have to worry about paying back debt (remember, it costs virtually nothing to start a blog), I could take my time and day by day learn how to build a website.

Allows You Work on Your Schedule

With some sacrifice you can mold your side hustle to fit your current employment situation. If you don’t already have high demand on your after-work time, you have more options concerning what will work for you. This allows you to make your schedule fit the needs of your clients.

However, if you have a full-time job, a family, and maybe some community involvement, you will be limited in what you can do. This is where sacrifice comes in, but you’ll find the time if it’s a priority. You can keep things simple initially and work into a heavier schedule as you are able.

In my case, I blogged from 5 am to 7 am (I’m typing this sentence at 6:22 am), on the train to work, during lunch, and late at night after the kids went to bed. Nobody said a side hustle would be easy.

Something You Enjoy Doing

Enjoying what you do is always a bonus. How many people do you know that love their work? Seeking a great side hustle means you can pick and choose a little. You could consider a spinoff from your current career (if it’s fulfilling) or consider something you are enthusiastic about. Do you love to rock climb? You could teach others . Do you love animals? Do you enjoy providing care for people in need? How about working with your hands or working outside. Organizing? These can be indicators of the type of side hustle you’ll enjoy.

But transforming a hobby into full-time work can be tricky. Sometimes we don’t think objectively about things we love. And what is fun as a hobby can be a real bore as a business. That being said, enjoying what you do is a critical success factor in most side hustles.

There’s A Market For The Product or Service

With any business it’s important to understand the demand for your product or service and the competition. The best example I can give is in the online world. Picking the topic for a blog or website is one of the most important steps in creating a successful business. You can enter a competitive niche and succeed, but it will be much harder.

I’ve created blogs around topics that have little competition and within 6 months have been earning four figures a month from the site. I don’t want this to sound easy, it’s not. I’ve had a lot of failures, too. But the point is that a great side hustle will have plenty of demand and moderate to no competition.

Ideally Can Generate Full-Time Income

So you have planned for a great side hustle and you have based your decision on something for which you have a passion, interest, skill, or timely opportunity. That’s a great start. The other great thing about a side hustle is that you can gain experience, clients, and income at a rate that is manageable with your current schedule.

But things change. You may be frustrated in your current career. Perhaps you would love the freedom to work from home and supervise the kids. Or you may have lost your full-time job.

Wouldn’t it be great if you could turn your side hustle into a full-time career? The potential for full-time employment from a side hustle is certainly there. And it’s a factor to consider when deciding on your side business. As an example, check out Crystal’s motivating story of success.

So now what? These factors for a great side hustle may be all fine and well, but how do you actually come up with a great idea? Tomorrow we start to answer that very question when we look at resources to help you find the perfect side hustle home business.