Milking the Dollar$

If you’re like me, you can never have enough side gigs going.  Unfortunately, that’s what it takes to get by these days.  However, I know I’m not not alone when it comes to searching for side income.

I get asked on a pretty regular basis how I make money on the side.  This has only become more frequent since the market went south.  It seems like everyone needs to make an extra buck.

Today, I was fortunate enough to come across an article featuring 20 different ways to make an extra $100/month.  I was happy to find a lot of variety in the article, especially when considering availability and individual skills.  Maybe you will be inspired!

20 ways to make an extra $100/month

1. Assistant (in an office)
2. Auction seller (think eBay)
3. Catering staff
4. Cleaner (this is actually has a lot of potential)
5. Clinical trial participant
6. Computer whiz (if you got the skills, this would be a great source of alternative income)
7. Convention center worker (always needed in larger locales)
8. Editor
9. Handyman
10. Mystery shopper
11. Paper deliver (you can possibly make way more than $100 doing this on the side)
12. Pizza deliver (another great side job)
13. Plasma seller
14. Pooper scooper (just read the article)
15. Professional shopper
16. Part-time retail
17. Part-time teaching
18. Temping
19. Tutoring
20. Writing

Out of all of these, I only do auction selling on the side.  Annualized, I probably make a about $100/month or more selling on eBay and Craigslist, so I can vouch that it has potential.  The others though could probably be made to work just as well.

Other sources

Here are some of the ways I make extra cash that were not listed in the article.  My most lucrative one is definitely selling on eBay, but I have found a few other areas cash in on.

• Collecting interest: I make about $50-$75/month from interest alone.  My rewards checking account itself pays about $30 of that.  If you don’t have one, look into them because you are just wasting your money in a regular checking account.
• Credit card rewards:  I am about to receive another $100 check from Chase, in addition to a $20 one from Discover.  The sweetest part is that I have never paid either 1 cent in interest or fees.
• Trading stocks:  I make pretty good money doing this on the side.  However, I must warn you: the stock market is not for the faint of heart!  You can loose all your money before you make a single dime .
• Recycling:  If you know where a lot of cans are, you can always make a little pocket change recycling aluminum.
• Blogging:  Yes, I make money doing this!  Not a lot, but hopefully that will change.

The easiest way

All of these can make you extra cash, but the easiest method is not even listed – saving!  It is way easier to save $100 than to make it.  Everywhere you spend money is also a potential area where cutbacks can be made.  Remember, defense is greater than offense!

This marks my first attempt to review some of this week’s posts by my fellow bloggers.  Believe it or not, there are other wonderful sources of financial information on the web!  Enjoy!

Banker, Saver asked the question, “Are you FDIC Insured?”  Having worked in the financial field for several years, the author has found herself surprised by how little her customers knew about federal deposit insurance.  Remember, not all investments are covered by the FDIC. 

My Aussie friend at Debt Loans discussed the pros and cons of debt consolidation vs. bankruptcy.  Both are viable options for those buried in debts.  However, choosing the right option depends on the individual situation.

Olivia at Independent Beginnings finished the final installment in her in “Step-By-Step Guide to Financial Independence.”  To wrap up, she discussed the art of building wealth through wise investments.  If you have the time, you should read all 7 part, because she covers a lot of topics well.

My Life Finance gave an update on his CashCrate earnings.  It looks like he has been able to increase these substantially.  I have always been skeptic of this site and others like, but it appears some people are able to make a little cash on the side utilizing it.  Just remember to set up a separate email account if you want to try something like this because your inbox will be filled up quickly!

Today, Page Plus Cellular unveiled a new unlimited plan on the Verizon network.  For $39.95 per month you get unlimited talking, unlimited texting, and 20 mb of data!

This summer has seen a major price war waged amongst the various cell providers.  This new Page Plus Unlimited Talk n Text Plan has been by far the best deal in unlimited wireless to have emerged from the battle!

Being prepaid, this plan has many advantages over traditional plans, including no taxes/surcharges and no contracts to sign.  If you are paying over $40 per month for cell service and need an unlimited plan, I highly recommend you look into this deal.  I use Page Plus myself and can vouch for their service.

Anyway, I know I’ve said it before, but I’ll say it again: prepaid cell service will save you money!  This weekend I’m working on a post about the various options in prepaid and how to choose the right one. Stay tuned!

On July 20, 2009, investors in pharmaceutical company Humane Genome Science (HGSI) woke up to a shock when the price of their shares opened about 400% higher than the previous close.  The boost came from the unlikely success for of the experimental drug  Benlysta, which met its goals in a late-stage study in treating Lupus. 

The sudden and unexpected breakout of HGSI generated  a lot of unanticipated wealth for its shareholders.  I heard one story of a guy making $2.5 million that day and another hitting the $1.8 million mark.  Handfuls of individuals proclaimed to have made thousands of dollars from the surge.  Even, I got a piece of the action.

Back in February I purchased 100 shares of HGSI for $2.34/share.  On July 21, 2009, I sold those same shares for $14.23 each, netting $1,164.00 in profits after brokerage fees.  Although the $1,164.00 was not a “life-changing” amount, in my situation, it was definitely a windfall.  Thus, I was inspired to write about how to deal with a windfall.

Below are some of my thoughts on windfalls and how they should be dealt with.  Given that I am a firm believer in building wealth slowly through saving, it may come as no surprise that I don’t advocate going a shopping spree.  However, I do believe in living a little every now and then, so don’t go putting all your winnings in the sock drawer just yet!

Windfall sources

You don’t have to take the risk of buying and selling stocks to receive a windfall.  Accumulated wealth is all around you.  You just have to be lucky enough (or smart enough) to be its recipient.   Just look at these examples:

• Inheritance
• Sale of a home, property, or business
• Settlement of a lawsuit
• Collection of a life insurance policy (heaven forbid!)
• Work bonus
• Winning the lotto!

What constitutes a windfall?

The question above is a bit of a personal one.  One man’s windfall may be another man’s pocket change.  I’m sure many consider my earnings to be meager, but to me, they were very substantial.

I personally place windfalls fall into four different categories: small, medium, large and retirement!

• Small – $100-$1,000
• Medium – $1,000-$10,000
• Large – $10,000-$100,000
• Retirement – >$100,0000

Although I admit they may appear a bit arbitrary, there is a little reasoning behind the values I used.  A windfall under $1,000 is nice, but somewhat commonplace.  Between $1,000-$10,000, there is a bit of excitement, as the cash influx starts to open up opportunities.  Receiving over $10,000 at once, will definitely change your fortunes, allowing you to pay off debt or make a down payment on a house.  Greater than $100,000, you have a life-changing event.  You may not be able to retire as my label implies, but you can definitely think about major career and/or lifestyle changes at that point.

Why you should have a windfall plan

Biggie Smalls once said, “mo’ money, mo’ problems.”  Now, I don’t think this is entirely true.  In fact, unlike popular belief, it is my opinion that money actually solves a lot of problems.  However, Biggie has point.

Even the smallest of windfalls can be emotional events.  Being unprepared for one leads many to seek immediate professional help.  Well at least the smart people do, as the media is full of tales about individuals acquiring a large chunk of change only to be unprepared and uneducated about financial matters.  Purchasing cars and homes, most of them are back to where they were in only a couple of years - their money spent (unwisely) on depreciating assets.

Thus, its crucial to plan ahead now before your ship finally comes sailing in.  Consider the following suggestions:

• Pay taxes:  I will have to pay capital gains taxes on my $1,164.00.  It won’t be too bad given the small amount I made; however, if you receive over $100,000, the IRS is going to be looking for their cut.  Thus, pay the taxes first to avoid major headaches down the road. 
• Pay down debt:  If you have debt, it makes the most financial sense to pay it off after you have paid taxes.  Think of it might as a once in a lifetime opportunity to get yourself out of the hole
• Treat yourself:  You gotta have a little fun in life.  Given the joy and stress new-found wealth will likely give you, I would suggest using a small percentage of it to relax.  However, I would stick to <3% and not to exceed a few thousand total. 
• Take a cooling off period:  After getting over the initial shock, the next thought to go through our minds would likely be what we would spend it all on!   However, resist the temptation and revel in the moment, rather than new toys. 
• Get professional help:  One thing every fat wallet needs is a good accountant.  Do not visit a broker!

Final thoughts

In the end, I left my $1,164.00 in my brokerage account.  I figure another opportunity to reinvest it is always around the corner.  However, if it would have a life-changing amount, things would have been different.

My plan for any windfall over $100,000 starts with paying taxes.  After taxes I plan on treating myself first and then immediately putting 85% into long-term savings.  The remaining 12-13% will go into a liquid account waiting for me to “cool off.”  After I have settled down, who knows?  All I really know for sure is that I won’t go and blow it!

I just received another code for a free Redbox rental that I thought I’d pass along: 27HZ4KT.

It expires tonight at midnight CST, so use it soon!

There seems to be a common misconception that only those with high-paying jobs can get rich.  It may be true that a  high income can get you to where you want to be financially much quicker.  However, that’s only because when you make more money, you have more potential to save.  The thing to remember (as I have stated before) is that income does not equal wealth, and even those of us with the most meager of means can retire comfortably.

The Millionaire Next Door (an essential read for those interested in personal finance) blew the whole notion of the rich “living large” clear out of the water.  In their research, the authors found that most millionaires did not live in McMansions and drive fancy cars.  In fact, they found that most were hard to recognize, as they usually lived in modest homes, held average jobs, and drove their vehicles till they died.  On the other hand, those in the high-income brackets with corresponding lifestyles had far less accumulated wealth as a factor of their incomes.  As one profiled rancher from the book put it, these people are “all hat, no cattle.”

However, all this talk about the poor getting rich probably doesn’t mean much to you without real-life examples.  Thus, I introduce you to Mr. Earl Crawley. 

Mr. Crawley’s story

Earl Crawley is a perfect example of a person who “gets it.”  Working as a parking attendant, he was able to accumulate a significant amount of wealth over his working life.

Crawley’s rags-to-riches story first began when he was young.  As a child, he was given the financial lessons that most of us where never fortunate enough to have received:

My mother taught me how to budget, which made me appreciate how a little money can grow.

Over the course of his career as a parking attendant, Mr. Crawley utilized many of the strategies commonly used by the poor to get rich.  His multifaceted approach, allowed for him close the income gap with his “better off” peers.  So how did he do it?

• He took advantage of what he was taught:  As I noted above, Crawley’s mother had the foresight to teach her son about money at an early age.  Quality financial education is often overlooked, but could possibly be the most important thing you teach your children.  Thus, teach them how to succeed financially now, and  they will thank you later. 
• He lived frugally:  You can cut back on almost everyone without too much pain.  Crawley, himself, lists simple living as his main overall strategy:

 I did it with good old-fashioned nickels and dimes.

• He generated multiple income streams and saved his earnings:  Crawley states that he maintained odd jobs from which he saved as much as he could.  I cannot recommend enough having a second income source dedicated to long-term savings.  In fact, 100% of the profits I generate from my various “side hustles” go straight to saving. 
• He invested wisely:  Although he didn’t have much formal education, Crawley was smart enough to ask experts about financial advice.  He remarks that he was never afraid to ask questions to the brokers, financial advisers, or even customers he came into contact with everyday.  The information he gleaned allowed him to make informative stock picks which paid off well.

By following these steps Earl Crawley’s hard work paid off in the tune of a $500,000 portfolio.  That’s right, a parking attendant earning minimum wage increased his net worth to a half million dollars!

Like any financially savvy individual, however, he hasn’t stopped yet.  In fact, he has started his own investment club and continues to research stocks. 

Overall,  it appears the sky is the limit for this saver!  Hopefully, his story made you realize that you too can become wealthy, no matter which career path you have chosen.

This month I asked readers whether or not they would be participating in Cash for Clunkers.  With only a few votes cast, it appears this program was not too popular amongst the participants.  Out of 8 total votes, only 2 of you voted “maybe” while the rest said “no.”‘

For August, I want to know more about your saving habits.  In particular, I’d like you to tell me how much of your gross income you save. 

Anyway, please take the time to participate in this new poll.  Have a great weekend!

 Tanga is offering a yearly subscription to Muscle & Fitness Magazine for only $1.97/year!  All you have to do is use the code “6d38″ at checkout to lock in this rate.

 Now, I normally don’t advocate subscribing to magazines.  In fact, I recommend reading all that you can for free at your local library.  However, if you read this or other fitness magazines, $1.97/year is not much and will save you a lot of trip back and forth. 

Anyway, I just thought I’d pass this smoking deal on!  Have a great day!