Black Widow
02-05-2009, 04:27 PM
You've cut your spending, and you're still coming up short. Try these tips to bring in more cash.
By Kiplinger's Personal Finance Magazine
With credit drying up and the economy taking a dive, more Americans are leaning on their savings to make ends meet -- even after slashing their spending -- according to a survey by Country Financial, a group of insurance and financial-services companies.
And the Americans who are relying the most heavily on their savings are young adults, with 58% of them tapping their reserves.
This news is disconcerting because, let's face it, most Americans -- especially those of us just starting out -- don't have much savings in the first place. And tapping accounts such as 401(k)s and IRAs can have expensive consequences, from early-withdrawal penalties to diminished compounding returns (see "Don't borrow trouble").
So what's a strapped person to do? First, if you haven't yet looked at ways to cut your spending, check out our bevy of ideas in "91 ways to save on almost everything." (Also, see "How to build your first budget.") Then, if you're still coming up short, before you raid your safety net of savings, consider adding to your income with these eight ideas:
1. Sell your junk
One man's trash is another man's treasure. And the Web makes it a cinch to hold a virtual garage sale. For instance, make a few hundred bucks by selling old textbooks on Amazon.com.
Craigslist and eBay are other great sources for hawking your wares online, from old furniture and fitness equipment to collectibles and clothing. And with gold prices hovering near record highs, you could even sell your old jewelry.
You can also find buyers for your old tech gear to reuse or recycle. For instance, CellforCash.com pays up to $100 for used cell phones, depending on the model. And Hewlett-Packard offers a trade-in program that lets you swap your old computers and other tech gear for money, even if they're not made by HP. Before selling a computer or another gadget with sensitive personal information on it, wipe the memory clean. See Kiplinger's "What to do with your high-tech has-beens" for more info.
2. Get a job
This may mean getting a second job, or it may mean getting a first job to hold you over until the job market recovers and you can land your dream position.
Retail, restaurant and customer-service jobs are prime targets. You can also search for part-time or short-term gigs on Craigslist for smaller income boosts. For instance, we found odd jobs such as stuffing envelopes for two days and helping out part time at a kennel during the holidays. (For more, see "Need an odd job? Give blood, watch porn" and "20 ways to make $100 more a month.")
And if you're unemployed because you're waiting for the right opportunity, you can bide your time and still bring home a paycheck with a full- or part-time "steppingstone" job with an employer that offers good benefits.
3. Sell your skills
You may have a skill that someone else is willing to pay for. For instance, can you teach music, art or sewing? How about arranging a regular dog-walking or baby-sitting gig with a neighbor or family member?
If you're academically minded, you could tutor students. You could also tutor if you know another language, or you could find a flexible translator position. Ask yourself what you do well and get creative.
4. Rethink your rent
If you're living alone, getting a roommate could boost your income (and cut some expenses in half). You might consider renting out other spaces, too, such as your garage for storage or your parking space for commuters, if you live close to public transportation.
Another option to consider is apartment management. In exchange for maintaining an apartment building and dealing with residents, you could get discounted or free rent. You can usually find apartment-management opportunities among job listings.
5. Claim unclaimed assets
States are sitting on billions of dollars in unclaimed assets, including lost bank accounts, misplaced bonds and securities, dividend checks, uncollected utility deposits and unclaimed life insurance benefits, according to the National Association of Property Administrators. Check MissingMoney.com, a free site, to see whether any of the money belongs to you.
To cast a wider net, go to UnclaimedAssets.com to learn where to look for billions of dollars' worth of unclaimed assets held by the federal government, including Social Security checks, tax refunds and pensions.
6. Adjust your tax withholding
If you received a tax refund last year and your financial situation hasn't changed much, too much tax is being withheld from your paycheck. Try our easy-to-use calculator to figure the correct number of allowances you can claim to boost your take-home pay. All you need to do is file a new Form W-4 (.pdf file) with your employer.
You may also want to readjust your withholding allowances if you got married, had a child or bought a home in the past year.
7. Get paid for stuff you do anyway
You have to buy things -- groceries, gas, medicine and the like -- so why not buy them with a rebate credit card to get cash back in your pocket? (See "The 15 most rewarding credit cards.") Just make sure you pay off your balance each month so you don't accrue interest charges.
You should also make sure you're getting as much out of your savings as you can. Don't park your cash in a traditional bank account earning pennies in interest. Instead, go with a high-yield online bank account. Most are paying in the 2% range nowadays.
Plus, if you travel often for work, consider using your own credit card to purchase flights and submitting the expenses for reimbursement (if your employer can pay you back within 30 days so you won't have to pay interest). That way you can get more credit card rebate points on top of free frequent-flier miles for your own use.
8. Hit up Mom and Dad
Moving back home (if your parents are willing to take you in) for a short period is another way to put more money in your pocket to get through a tight spot. But what about asking Mom and Dad or a close friend to spot you some cash outright?
You can boost your odds of getting the assistance you seek if you approach it like a business transaction. When you ask for the money, the next thing out of your mouth should be, "and here's how I'm going to pay it back." You could even offer to pay interest and set it up as a publicly administered loan though Virgin Money.
It also helps if this pitch is a rare instance -- say, to get you through a job loss, divorce, health crisis or other short-term money crunch. If you're constantly hitting up friends and family for money, you need to address the underlying cash-flow problem and fix it, or you may find yourself broke and friendless.
If your friends or family say no, respect their decisions. Lending money may simply be outside their comfort levels. It doesn't mean they love you any less; it may just mean they don't want to risk straining your relationship.
This article was reported and written by Erin Burt for Kiplinger's Personal Finance Magazine.
Source. (http://articles.moneycentral.msn.com/CollegeAndFamily/MoneyInYour20s/8-ways-to-boost-your-income.aspx?page=1)
By Kiplinger's Personal Finance Magazine
With credit drying up and the economy taking a dive, more Americans are leaning on their savings to make ends meet -- even after slashing their spending -- according to a survey by Country Financial, a group of insurance and financial-services companies.
And the Americans who are relying the most heavily on their savings are young adults, with 58% of them tapping their reserves.
This news is disconcerting because, let's face it, most Americans -- especially those of us just starting out -- don't have much savings in the first place. And tapping accounts such as 401(k)s and IRAs can have expensive consequences, from early-withdrawal penalties to diminished compounding returns (see "Don't borrow trouble").
So what's a strapped person to do? First, if you haven't yet looked at ways to cut your spending, check out our bevy of ideas in "91 ways to save on almost everything." (Also, see "How to build your first budget.") Then, if you're still coming up short, before you raid your safety net of savings, consider adding to your income with these eight ideas:
1. Sell your junk
One man's trash is another man's treasure. And the Web makes it a cinch to hold a virtual garage sale. For instance, make a few hundred bucks by selling old textbooks on Amazon.com.
Craigslist and eBay are other great sources for hawking your wares online, from old furniture and fitness equipment to collectibles and clothing. And with gold prices hovering near record highs, you could even sell your old jewelry.
You can also find buyers for your old tech gear to reuse or recycle. For instance, CellforCash.com pays up to $100 for used cell phones, depending on the model. And Hewlett-Packard offers a trade-in program that lets you swap your old computers and other tech gear for money, even if they're not made by HP. Before selling a computer or another gadget with sensitive personal information on it, wipe the memory clean. See Kiplinger's "What to do with your high-tech has-beens" for more info.
2. Get a job
This may mean getting a second job, or it may mean getting a first job to hold you over until the job market recovers and you can land your dream position.
Retail, restaurant and customer-service jobs are prime targets. You can also search for part-time or short-term gigs on Craigslist for smaller income boosts. For instance, we found odd jobs such as stuffing envelopes for two days and helping out part time at a kennel during the holidays. (For more, see "Need an odd job? Give blood, watch porn" and "20 ways to make $100 more a month.")
And if you're unemployed because you're waiting for the right opportunity, you can bide your time and still bring home a paycheck with a full- or part-time "steppingstone" job with an employer that offers good benefits.
3. Sell your skills
You may have a skill that someone else is willing to pay for. For instance, can you teach music, art or sewing? How about arranging a regular dog-walking or baby-sitting gig with a neighbor or family member?
If you're academically minded, you could tutor students. You could also tutor if you know another language, or you could find a flexible translator position. Ask yourself what you do well and get creative.
4. Rethink your rent
If you're living alone, getting a roommate could boost your income (and cut some expenses in half). You might consider renting out other spaces, too, such as your garage for storage or your parking space for commuters, if you live close to public transportation.
Another option to consider is apartment management. In exchange for maintaining an apartment building and dealing with residents, you could get discounted or free rent. You can usually find apartment-management opportunities among job listings.
5. Claim unclaimed assets
States are sitting on billions of dollars in unclaimed assets, including lost bank accounts, misplaced bonds and securities, dividend checks, uncollected utility deposits and unclaimed life insurance benefits, according to the National Association of Property Administrators. Check MissingMoney.com, a free site, to see whether any of the money belongs to you.
To cast a wider net, go to UnclaimedAssets.com to learn where to look for billions of dollars' worth of unclaimed assets held by the federal government, including Social Security checks, tax refunds and pensions.
6. Adjust your tax withholding
If you received a tax refund last year and your financial situation hasn't changed much, too much tax is being withheld from your paycheck. Try our easy-to-use calculator to figure the correct number of allowances you can claim to boost your take-home pay. All you need to do is file a new Form W-4 (.pdf file) with your employer.
You may also want to readjust your withholding allowances if you got married, had a child or bought a home in the past year.
7. Get paid for stuff you do anyway
You have to buy things -- groceries, gas, medicine and the like -- so why not buy them with a rebate credit card to get cash back in your pocket? (See "The 15 most rewarding credit cards.") Just make sure you pay off your balance each month so you don't accrue interest charges.
You should also make sure you're getting as much out of your savings as you can. Don't park your cash in a traditional bank account earning pennies in interest. Instead, go with a high-yield online bank account. Most are paying in the 2% range nowadays.
Plus, if you travel often for work, consider using your own credit card to purchase flights and submitting the expenses for reimbursement (if your employer can pay you back within 30 days so you won't have to pay interest). That way you can get more credit card rebate points on top of free frequent-flier miles for your own use.
8. Hit up Mom and Dad
Moving back home (if your parents are willing to take you in) for a short period is another way to put more money in your pocket to get through a tight spot. But what about asking Mom and Dad or a close friend to spot you some cash outright?
You can boost your odds of getting the assistance you seek if you approach it like a business transaction. When you ask for the money, the next thing out of your mouth should be, "and here's how I'm going to pay it back." You could even offer to pay interest and set it up as a publicly administered loan though Virgin Money.
It also helps if this pitch is a rare instance -- say, to get you through a job loss, divorce, health crisis or other short-term money crunch. If you're constantly hitting up friends and family for money, you need to address the underlying cash-flow problem and fix it, or you may find yourself broke and friendless.
If your friends or family say no, respect their decisions. Lending money may simply be outside their comfort levels. It doesn't mean they love you any less; it may just mean they don't want to risk straining your relationship.
This article was reported and written by Erin Burt for Kiplinger's Personal Finance Magazine.
Source. (http://articles.moneycentral.msn.com/CollegeAndFamily/MoneyInYour20s/8-ways-to-boost-your-income.aspx?page=1)