Make the Right “BIG” Decisions – Earn More Money (pt. 4 of 5)

By Olivia Sandham
 
Last week, we took a look at how renegotiating rates could be a “BIG” decision to improving your financial situation.  This week, we will conclude our discussion on “BIG” decisions by covering the final financial “BIG” and summarizing the lifestyle “BIG” decisions you could make.
 
E A R N   M O R E   M O N E Y
 
If your wallet has been feeling light or you look at your financial accounts at the end of every month and see less than you would like, you may want to consider trying to earn more money.  Here is a compilation of some of the many ways you could earn more money on a regular basis:

• If you are paid hourly, ask your boss how you can earn more hours or overtime or what you can do to earn a raise.
• Find a part-time job or become a temp.
• Rent a spare room in your house.
• Offer your own services such as  dog walking, babysitting, house sitting, running errands for the elderly, cleaning, landscaping, maintenance, carpentry, tutoring, coaching, photo/videography, graphic/web design, and more.
• Sell your own products such as handmade crafts/jewelry, up-cycled garage sale items for resale, and fruits and vegetables from your garden.
• Sell direct sales products such as Avon, Mary Kay, Scentsy, Tupperware, and others.
• Become a blogger, mystery shopper, write product reviews, or complete surveys.
• Get paid to wrap your vehicle in advertisements.
• For more ideas on how to make money, check out this fairly comprehensive article I found while doing some research, titled “52 Ways to Make Extra Money”.

Benefits:  Obviously everyone wants to earn more money so they can have more money to spend right now, so they can worry less about expenses and bills, and have a better current lifestyle.  But many of these particular methods to earning more money also include other underlying benefits, such as:

• You could invest more money toward your savings/investments, which could mean having a better lifestyle during retirement.
• Since you will be working a little more for your money, you may be inclined to make better decisions with how you choose to spend/invest it. (cue music “You work hard for the money, so hard for it honey!”).
• Using your free time wisely to earn more money might keep you from filling your free time by spending it.
• Many of these activities may result in broadening your professional and social network, which could lead to even more opportunities to earn more money.
• Many of the ways to earn more money could be intellectually and emotionally exciting and rewarding, since you could challenge yourself, learn something new, explore your creative side, help others, and more.
• Some of the methods could also increase your level of physical activity and wellness, such as is the case with dog walking, landscaping, etc.

Effort:  Yes, earning more money takes a little more time and energy than some of the other financial “BIG”s explained in this blog series, but depending on how you go about earning the money can determine if the benefit is worth it.

1. First, decide which method(s) of earning more money seem most appealing and get started on a plan for each.  For instance, if you’re going to talk to your boss, set up a meeting and prepare what you are going to say; if you want a part-time job, update your resume; if you’re going to offer products/services, make sure you have all the necessary supplies.
2. Next, implement your plan of action by applying for jobs, notifying others of your available services/products (by using word-of-mouth or online sites like Craigslist, Etsy, Ebay, Fiverr, Facebook), signing up for direct sales programs, mystery shops, surveys, or whatever it takes to get your method actually started.
3. Finally, when it comes time to get out there and “earn that dough”, give it your best effort.  For example, perform better at work than you ever have; impress your boss and co-workers at your new part-time job; be the best dog walker, baby sitter, landscaper, or graphic designer you can be; push yourself to sell more products; explore new and creative ways to earn more money.  When it comes time to actually earning the money, if you (as they say) “hit the ground running”, then you will be well on your way to earning more and more money as time progresses and your endeavors continue to succeed.

Stay tuned for tomorrow’s post which will wrap up our series by summarizing the three lifestyle “BIG” decisions you could make!

Retirement Plan Gone Awry: What Do I Do Now?

By Olivia Sandham 

Type the word “retirement” into any search engine and you’ll be directed toward hundreds of web pages, articles, and videos presenting advice on how to save and invest for your retirement.  But what if you’ve already been retired for several years, you are already collecting Social Security, and after taking a closer look, you begin to realize that you will soon be outliving your retirement fund?  You may have planned ahead by saving and investing for decades pre-retirement, but somehow it simply hasn’t been enough to cover your expenses post-retirement.  Although this can be an overwhelming realization, there are several options available, many of which do not require financial expertise.  With a little motivation and “Thinking Outside the Box”, you can remain financially secure throughout retirement.

Option 1:  Re-enter the workforce.  Although you may not be as energetic as you once were, consider finding simple work for modest pay.  Think Outside the Box:  This job does not have to be a traditional position.  For example, parents are happy to pay for a reliable person to watch their children, and grown children are happy to pay for a reliable person to help tend to aging parents.  If you work in a more traditional position, you might be entitled to free services or discounts which could work in your favor during retirement as well.

Option 2:  Offer your knowledge or skills.  After decades of working you most likely picked up a few tips and tricks along the way, which someone may be seeking.  Advertise with your local newspaper offering your services as an informal mentor or advisor in fields in which you have some expertise.  Think Outside the Box:  If you don’t have money to spend on a newspaper ad, ask your local shopping markets and retailers if you can post a sign or flyer for free.  And of course, spread the word with your family and friends.

Option 3:  Prioritize your spending.  It’s easier to stay financially viable during retirement if you are paying attention to your expenses.  Look for deals on needed items, lessen finances spent on clothing, entertainment, and travel, and watch out for spending too much on loved ones.  Think Outside the Box:  Some not-so obvious changes in spending patterns that can make a difference during retirement.  These include using liquid forms of payment (cash, check, debit card) rather than racking up interest bills on credit cards, buying generic rather than name brands, and doing any necessary shopping at church/charity stores.  Any of these adjustments can certainly add up in your favor over time.

Option 4:  Turn your assets into cash.  You may own a home, car, valuables, or life insurance policies which could be converted into liquid assets.  Think Outside the Box:  Converting to liquid assets doesn’t always mean the asset has to be sold.  A reverse mortgage may allow you to withdraw equity from your home without having to move.  Also, consider the possibility of renting out a room in your house, or even consider renting your entire house and living with friends or relatives, or in a modest apartment.

Option 5:  Re-invest and re-grow your nest egg.  Once you follow the previous suggestions, you might start to find extra finances available.  Rather than spending or only saving these funds, stay on track with what you have been doing and look into ways to reinvest your small amounts of income.  Just because you are retired does not mean you can’t continue to grow your nest egg.  Think Outside the Box:  Traditional thinking says the older we are, the less risky our investments should be.  However, since you do not have as big of a nest egg as you did years ago, investing with a little more risk tolerance might create more growth.

Option 6:  Get by with a little help from your friends.  It can be tough to ask people for help, since most of us like to feel independent, and having to explain that we fear outliving our savings can seem embarrassing.  However, it is very likely that you have a lot of people in your life that would be happy to help, even for a short period of time.  They can be friends or family.  This is not the time to be stubborn with pride; rather this is the time to be smart and reach out to others.  Think Outside the Box:  Look into retirement resources and services available within your community, such as services provided at your local church or within a nearby retirement community.

Option 7:  Get in touch with an expert.  Expert financial advisors might take a peek into your assets, liabilities, income, and expenses and give you a better picture of what changes you need to make.  Experts may also be able to help you make adjustments in your investments or assets which you may not have otherwise been aware were options for you.  Think Outside the Box:  If you don’t have the funds to seek ongoing expert advice, at the very least try to find a non-profit firm or government agency who would be willing to offer a short analysis for free.  It doesn’t hurt to make a phone call and ask.  And as always, make sure to utilize your network of friends and family to see if they know anyone who might be willing to help.  Good luck!

8 things to consider before retiring

Here's a great article from MSN Money that provides a general checklist of items to review before making the move. These include:

1) Work-retirement tradeoff
2) Longevity and retirement
3) International investments
4) The U.S. dollar
5) Volatility
6) Glide path
7) Higher medical expenses
8) Income spigots

Click here to read the full article.

Make money as an exec for rent

Fortune magazine wrote an interesting piece about how executives can market themselves as experts for rent. Temps aren't what they used to be - it can now be a much more elevated and influential position than in years past.

Read the full article here:

http://money.cnn.com/2010/03/15/news/economy/executives_temps.fortune/index.htm

Relocation for a job isn't always worth it

For many people who are out of work, or fear they soon will be, relocating seems to be the only way out. We ran across an interesting article from Money magazine that discusses the good and bad about relocating - great information for those out there still in the work-force.

http://money.cnn.com/2010/02/03/pf/job_relocation.moneymag/index.htm

Change your ideas about how to earn money

By Robyn Davis Sekula

As I've written before, I'm a regular listener of Dave Ramsey's radio show, and it irks me when he suggests that the male in the household get a second job, or even a third, before he will suggest the woman explore her work opportunities. Women sometimes have more education than their husbands and more earning power - and I really wish folks like Dave would consider that. Don't assume the dude in the house is the only one who can pull in the dough. Plus, having one person do all the earning and one person do all the child care makes for an uneven house, with one person burned out entirely on spending every waking moment with little ones and the other burned out from working allllllll the time.

I'm cheering as I read the story below, which says that more women are working while dads stay home. Our ideas about work are changing, and I say great. With the technology advances in the past decade, you can work full-time or part-time from home, at night, on weekends, or during regular weekdays. You can make your own job, as I have done during the past six years. I've surpassed my husband in terms of income, and I have the most to gain by the risks I've taken. In fact, in our household, I'm the one who is the most comfortable with risk and has the greatest income potential. I'm the more natural entrepreneur. I really didn't know this until I took that leap.

What I want people to do is explore their options a little more. If you're a teacher who is not teaching but you'd like to earn a little money, consider tutoring, which is far more lucrative than substitute teaching. Consider picking up some jobs cleaning homes, if you like to do that, while your kids are in school - and this could apply to a man or woman.

Whenever you hear yourself say, "I can't do that" ask yourself why. You may not have an answer, and if you don't, you're looking at an opportunity.


http://www.cbsnews.com/stories/2010/01/15/national/main6101166.shtml