Debt

You need some extra money, but you don’t know how to get it. You can’t get a raise right now and you can’t work another full-time job. But there are side gigs you can take on to keep your head above water until your financial situation improves. Here I’ll show you five side gigs you can do for extra cash.

How do you know which gig is right for you? Ideally, your side job should be something you enjoy, even a hobby if you can parlay it into a money maker. If you love animals, maybe dog walking can be your side hustle. Like transporting people? Then a limo service could be your thing. A lot of what you choose to do on the side depends on your regular job’s hours, so keep that in mind.

1. Baker: Yes, you have to love to cook and know how to do it well for this one. I have a friend who began an on-the-side bakery business out of her kitchen and has turned it into a lucrative cake baking service which she hopes to eventually become her sole money maker.  

2. Party entertainment: You don’t have to dress up like a clown if you don’t want to, but if you’re outgoing and energetic and can perform simple magic tricks or juggle or sing (bonus if you do all three!), you can hire yourself out for kids’ parties and even corporate events.  

3. Tutor: If you’re exceptionally good in a subject, chances are there’s a kid out there who needs your tutoring. This is generally more true for math and science, but I’ve tutored kids on SAT tests as well. You can even do this online, so it doesn’t require travel.  

4. CPR instructor: You’ll have to take a class and become certified, but once you do, you can market yourself out to hospitals, public pools and YMCAs. Figure out what to charge and this is something you can do strictly in the evenings and on the weekends. 

5. Photographer: If you have a good camera and you know how to use it, you can become a freelance photographer. This is not for you if you only have a point-and-shoot, but if you enjoy photography, you can sell yourself for animal and family portraits. People who live with animals and kids are always looking for someone to take their photos.   

The best part about having a side gig is that if you love it, it could turn into your only gig, potentially your own business. You might be able to leave your full-time job and become your own boss, all from exploring your options of a side hustle. 

File this under Weird News, but it is finance related so there you go: Madonna’s bra and Eric Clapton’s guitar attract investors.

This ties into people who’ve amassed mementos and paraphernalia, especially anything rock-and-roll related. Auctioneers say that “investors are exploring alternative markets as stocks decline, economies stall and banks sack workers.” The companies listed, Marquee Capital Ltd. and Anchorage Capital Partners Ltd., are based in London, but I wouldn’t be surprised to see American investment companies capitalizing on this trend.

Clearly, the next time some rocker tosses his sweaty T-shirt my way, I’ll be sure to fight tooth and nail to nab it. 

Source: Bloomberg.com  

I thought Fannie Mae and Freddie Mac may have had a chance to recover, but the news is looking grim for both mortgage-finance companies. So many people have used Fannie and Freddie to buy homes — nearly half of U.S. home owners — but with the housing market only getting worse, stock shares plummeted, both losing “a quarter of their value.”

If you’re already into budgeting and have drawn up a monthly plan that tallies up regular expenses, good for you. If you’ve also figured in miscellaneous items like entertainment, even better (saving is hard, but you should still be allowed a treat now and then). But are you tallying up everything?

Sometimes, we forget about these expenses that don’t occur every month. They may occur only every few months or once a year. If they regularly recur, however, they need to be figured into the monthly budget. These aren’t “surprise” expenses — you already know about them and not counting them can seriously mess up your finance plan.

Any of these can fall into recurring expenses:

• Termite bonding and inspection for homes
• Beauty salon treatments
• Oil changes for the car/truck
• Buying start-of-school supplies
• Pet checkups/grooming
• Dental visits

There’s plenty more out there that may apply to you individually, but the point is, many of us don’t factor these in to our monthly budgets because they don’t happen every month. Here’s where it can hurt you:

Say you haven’t factored in any of the above expenses. Using what I typically spend on these, here are my figures:

• Termite bonding and inspection for the year: $500
• Hair cut and color: $80; five times a year: $400 
• Oil changes plus tire rotation: $50; four times a year: $200
• School supplies for two kids: $150
• Pet shots once a year: $100
• Pet grooming six times per year $45 each; over a year: $270
• Dental visit: $30 office fee (with insurance coverage); twice a year: $60

That’s $1680 over the course of a year or $140/month. If you’re on a strict budget that leaves no room for errors, $140 is a lot of money. Worse, what if an emergency happens and although you have some savings set aside, you’ve factored this money into that savings instead of factoring it into your monthly budget?

If you really want to know how much you spend every month, it’s important to figure in your recurring expenses. This way, you won’t end up one month wondering why you’re $60 “short.”

In case you didn’t already know this due to all of the foreign cars on the roads, U.S. car buyers “are growing less satisfied with their purchases from domestic automakers.”

Lexus, BMW, Toyota and Honda lead the pack in a customer satisfaction survey — no American makers in sight.

At some point and time, I think we’ve all spent money on something and thought later that it was a stupid way to spend it. But what about all the money we waste without thinking about it? We don’t even get to regret it because it’s almost like it unconsciously floats out of our accounts. Are you wasting money in any of these 3 dumb ways?

1. Unnecessary bank fees: In my next life, I’d love to come back as a bank. Goodness knows, I’d be rich just from collecting fees from my customers. These fees can come from:

• Writing more checks than you’re “allowed” that month
• Using ATMs outside of your bank’s network
• Not maintaining a minimum balance
• Arbitrary maintenance

I’m sorry, but I think it’s crazy to have an account at any bank that charges you fees for these things! Because all banks do not do this. There actually exist some banks who don’t nickel and dime you and trust that you’re adult enough to write the number of checks you want to each month. Loyalty is one thing, but handing over money when you don’t have to is reason enough to break up. 

2. Credit card fees: If you’re with a credit card company who charges you an annual fee, ask yourself why. Why? When there are other companies practically jumping up and down to lure you in give you a card with no annual fee? I know that a lot of secured credit cards come that way; if you’ve had credit trouble in the past and this is one way you’re trying to rebuild your rating, you may only be able to get a secured card. Do your homework and find a card with a low fee, but that also comes from a reputable institution, such as a Top 10 credit card issuer. And above all, don’t make late payments. That’s usually $30-$40 you’re handing over, even if you’re a day late.

3. Avoiding coupons: Some businesses are actually trying to help you save money these days, so why would you avoid them? It may take a little more time to take advantage of coupons, but it’s worth it. In the Sunday newspaper, in your mailbox, online – coupons are readily available. If you still don’t want to take the time to cut them or print them out, at least sign up for a grocery store card. They’re almost always free, you can get a keytag version to clip onto your keychain instead of digging it out of your wallet and the store sends you flyers to alert you to upcoming specials.   

No one said saving money was easy; sometimes you really have to research and do the legwork to figure out how to do it. But keeping your hard-earned money instead of wasting it in one of these three ways should be way more satisfying than being “convenienced” out of it. 

With the economy being what it currently is, many people are thinking about (or already are) tapping into savings, in some form or another. Whether it’s your regular savings account or your 401(k) plan, money is money when you’re strapped. It can be extremely tempting to dip into your 401(k), but here’s why you should resist if at all possible.

Times are tough now, but imagine how tough they’ll be if you get to retirement age and you have no savings. Basically, that’s what your 401(k) plan is — retirement money. In addition to what you put into your 401(k) account, many companies will match at least a portion of your money, so it’s almost like getting “free money” placed into your savings. You choose the percentage up to a certain amount and where you want to invest your money.

If you’re younger than 59 1/2, there are severe penalties for withdrawing money from this account if you’re still with the same employer, mainly a high tax percentage and having to pay state and federal taxes on the amount you withdraw.    

If you want to get the most out of your 401(k) plan, you should:

• Start as early as possible. The sooner you start, the more money you can accumulate and you won’t have to  play “catch up” later to secure that nest egg
• Contribute the maximum amount. Because this money is taken directly from your paycheck before you get it, get into the mindset that it’s not even there. Even giving the highest percentage your company allows won’t be missed if you accept that the money isn’t there for you to spend.   
• Invest wisely. You’ll likely be able to choose where to invest your funds. Instead of wearing a blindfold and playing “eenie meenie miney mo” before picking whatever your finger lands on, get some information on investing so that you make smart choices. The better you invest, the more you can earn.

If you absolutely have to get some money somehow and your 401(k) plan is the only way you know how, look into borrowing from the plan instead of withdrawing. In some cases, borrowing isn’t as penalty-laden as withdrawing, but you’ll have a time limit to repay the loan before it shows that you’ve defaulted on it.

Bottom line: Make your 401(k) work for you by always adding, not deducting.

Patrick Ewing of the New York Knicks once said “We make a lot of money, but we spend a lot of money too.” Very nicely put, Pat. I’m shocked you didn’t become a financial advisor instead of an NBA star. But Ewing isn’t the only celebrity who has difficulties understanding finances. Here is a list of 5 celebrities you would never want in charge of your spending decisions.

1. Mike Tyson- Between going to prison, biting off Evander Holyfield’s ear, and threatening to eat Lennox Lewis’ children, Mike Tyson was a busy man. Yet, somehow he still found the time to burn through a reported $300 million he earned during his boxing career. Sound impossible? Well it’s true. Tyson’s lavish lifestyle cost him $400,000 a month. His divorce trial cost him $9 million in legal fees by itself. By the time all was said and done, Iron Mike was looking in the face of a $27 million debt. At last check, Tyson was doing a tour around the country sparring with no name hacks for a few bucks a night. How long will it be until we see Tyson on Celebrity Circus trying to dig himself out of this hole

2. M.C. Hammer- If only Hammer had set some money aside and told himself “Can’t touch this” he wouldn’t be here on our list of celebrities who lost it all. Rolling with his 40 person entourage took its toll on Hammer’s wallet. With a $500,000 a month payroll and a lavish lifestyle, it didn’t take long for the rap star to burn through well over $30 million. Where’s a financial adviser when you need him?

3. Wacko Jacko- One expert described Michael Jackson as someone with “a billionaire spending habit for only a millionaire’s spending budget”. In other words, Jacko did what most Americans do daily- he spent more money than he had. He just did it on a much grander scale than any of us ever could imagine. I guess that one plastic surgery he had really cost him quite a bit (is the sarcasm coming across?)

4. Ed McMahon- Who said blowing money was a young man’s game? Don’t tell Ed McMahon that. Johnny Carson’s longtime sidekick recently defaulted on his $4.8 million home loan. At last check, he was past due on nearly $700,000. For someone who’s made millions of dollars during his career, you would think this debt could be paid off in no time. But this is what happens when you spend money like a drunken sailor. McMahon didn’t keep track of how much money was going out, and next thing he knew, he was broke.

5. Evander Holyfield- Holyfield is the 2^nd boxer to make this list. Maybe when Mike Tyson bit his ear off, Holyfield lost all his knowledge about managing his finances. According to the Associated Press, the boxer, who made over $200 million during his illustrious career, can no longer afford to pay child support for one of his 10 children. As a result, his ridiculously huge house is going to auction. Take one look at this thing, and you’ll start to understand Holyfield’s spending habits. The 54,000 square foot home had 107 rooms and 17 bathrooms. This thing is bigger than most Holiday Inn’s. Maybe, if Holyfield is lucky, he can talk the new owner into renting out one of those 107 rooms to him.

No matter how diligent you are about recycling, there are people out there who aren’t as diligent. When you consider the number of plastic water bottles that are thrown away and carried to landfills day after day (to survive like cockroaches survived the Ice Age, never to die), you might want to get your water out of something other than the long-living plastic bottle.

Reportedly, American landfills receive about 38 billion water bottles each year! Not only that, but the production of one billion bottles requires over 24 million gallons of oil (no wonder we’re in an energy crisis). I know sometimes people think “what can I, one person, do to make a difference?” and it seems as if you can’t make an impact on such staggering numbers, but just like pennies, every little bit of effort adds up.

Here’s an example of how you can save money and the environment, too:

1. Cost of 24-count 1/2 liter bottles at Costco: $6.97

If you drink water like you should for the health benefits, this case can last you about six days, maybe less if you’re very active and take in more than the suggested eight cups per day.

Cost per month - $34.85

Total cost per year - $418.20   

2. Consider a reusable bottle like Brita’s FilterForGood.

You can pick up one of these bottles for around $11.00 and it’ll last indefinitely. For people who don’t like to drink tap water, you can buy filtration systems, either in pitcher form or faucet mount form. This will cost around $26.00-$40.00. Filters need to be replaced about every two to four months at a cost of $9.00-$25.00 per replacement.

Let’s add this up over the course of a year:

Cost of reusable bottle - $11.00

Filtration system - $26.00-$40.00

Replacement filters - $54.00-$75.00

Total cost per year: $91.00-$126.00    

As you can see, you can save nearly $300 or more over the course of a year by ditching those individual disposable bottles and opting for reusable. Yes, there will be additional water on your utility bill for the amount you use to fill your bottle daily, but chances are good that it’s less than $300 per year.

Save money: check

Save the environment: check

Stay healthy: check

Put the money you save into an interest-bearing savings account and get even more out of your environmentalism. I think that’s reason enough to look into reusable bottles, don’t you?