Getting Hired (Part 2)

Continuing 5 days on the subject of getting hired.

Let's start with that first job and a story about one of my kids who told me that she couldn't find a job.

She was in high school and we took a drive with a piece of notebook paper and a pen.

I told her to number each line on the paper and then we were going to drive around as she wrote down names of businesses that she would later contact to see if they were hiring.

She felt a sense of accomplishment when she filled up that sheet of paper, then she scowled at me when I told her to turn it over and we were going to do the same on the other side.

When we got home she had over 50 businesses to contact by phone that week so she could see which ones were hiring and she could go apply.

The next afternoon she called me excited because she had some leads of places that were hiring high school students and she was going to apply.

Before the week was over, she had 2 or 3 job offers to choose from.

These were not perfect jobs, they were money jobs, jobs you work to earn money, not necessarily to change the world.

If you are unemployed, are you doing the real work to get a job to earn money?

Simplify

2 of my daughters of quit their jobs in the past month.

You might think that it's not a smart thing to do in our current economy.

Maybe.

But in their case, maybe not.

The first to quit was Rachael. Her employer promoted her from hourly to salary then piled on all kinds of extra work.

Rachael is a hard worker, but she and her fiance felt this was wrong and so she decided to take a break.

Yesterday her fiance became her husband and I don't know how she could have gotten everything ready in the past 30 days if she was working 60+ hours.

Tiffany's early retirement was also a joint decision with her husband. She knew she was going to be a Mom and wanted to start out as a full time Mom.

What about you? Would you work for money if you didn't need to?

From the DLM blog:

Thoreau’s Guide to Living More by Spending Less

Posted: 18 May 2011 03:11 PM PDT

There are lots of reasons for living a more minimalist life. By owning less you reduce your impact on the environment, you spend less, and you live more simply.

For Henry David Thoreau, the reason for spending less boiled down to a simple formula. It’s what I call “the life calculation.” Here’s how Thoreau describes it:

The cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.

Why live more simply? Because the more stuff we buy, the more we end up exchanging our life for the things we own. This is a radical way of thinking about cost. Normally, we think of cost as a measure of dollars and cents. The latest iPhone costs $399. A new Toyota Prius costs around $25,000. A house on the beach in Malibu costs $20,000,000. You get the idea.

Thoreau’s key insight is that the things we buy don’t just cost money, they cost us time, effort, and sacrifice. They cost us our life.

Example. Let’s say you decide to buy a million dollar house. Thoreau would say that the real cost of the house isn’t one million dollars. The real cost is the number of years of work required to pay it off. So if it takes you 40 years of long hours working a job you hate to pay off that house, then it’s real cost is not one million dollars, it’s 40-years of life.

How can we apply Thoreau’s “life calculation” to our daily lives? Here are three steps that might help:

1. What’s Your Work Time Worth?
   The first step in applying the “life calculation” is to calculate the value of your working hours. Let’s say you make $50,000 a year working 40 hours a week. After taxes, you end up actually seeing $35,000 (this will depend on where you live, number of dependents, etc.). Assuming you work 50 weeks a year, the monetary value of each working hour is around $17.


2. The Shift From Dollars to Life.
   Once you’ve nailed down the rough value of each working hour, you can begin shifting away from thinking dollars to thinking life. You do this by calculating the life cost of all those things you wish you could buy. So that new MacBook Pro you wish you had no longer costs $1,800. If each hour of work is worth $17, it now costs 105 hours (almost three weeks) of life. That new house you wish you could buy no longer costs $500,000, it costs 29,411 hours of life (roughly 14 working years of life, and that’s assuming that the house is the only thing you spend your money on).


3. Consider trading things for life.
   Once you’ve calculated these actual life costs, think seriously about the trade-off between things and life. For Thoreau, the trade-off was simple. He always chose life over new things. As he says, “There is no more fatal blunderer than he who consumes the greater part of his life getting his living.” But you may decide that certain things are worth the life sacrifice. This doesn’t mean you’ve failed at spending less and living more. Quite the opposite. It means that you have made a reflective choice to sacrifice a portion of your days and hours for the things you own. You’ve made a conscious choice. The real danger Thoreau points to arises when we lose consciousness of this choice, when we buy without ever considering the amount of life exchanged for our latest purchase.

Of course, many of us work on a fixed schedule. We cannot call in one day and decide that we are going to exchange the next month of earnings for a month spent walking through the woods.

This may be true. But it’s also true that employers are becoming more flexible. I just had lunch with a CEO who told me, “I would be happy to let an employee take a few more weeks off for a cut in pay. But nobody has ever asked for it.”

What do you think about Thoreau’s “life calculation”? Would it help you spend less and live more?

Written on 5/18/2011 by Nate Klemp. Nate earned his PhD at Princeton and is a professor at Pepperdine University. He founded LifeBeyondLogic.com, a website dedicated to exploring philosophy as an art of living. You can follow him on Twitter @LifeBeyondLogic and on Facebook. Download a free copy of his new ebook, Finding Reality: Thoreau’s Lessons for Life in the Digital Age.

Photo Credit: Fred Sheahan

More Money?

Friday is often payday. If your check is smaller than you want it to be, these ideas from the DLM blog can help:

How to Prove that You Are Worthy of a Raise

Posted: 23 Mar 2011 10:33 PM PDT

Getting a raise is one of the quickest ways to improve upon your financial picture.. A few minutes of conversation can lead to a pay increase that you will enjoy year after year.

Most of us think that getting a raise is about asking at the right time or framing the question in a certain way. We worry about coming across as ungrateful or overbearing, and we don't want to run the risk of creating a bad situation and upsetting our boss. However, the truth is that most raises are won long before we ever bring up the question.

The five steps below will help you prove that you are worthy of a raise, so that next time you can ask for one with confidence.

1. Realize that experience does not equal value
   Simply "putting in your time" does not make you worthy of a raise, a promotion, or even a job. Many of us make the mistake of assuming that experience merits higher pay. In reality, higher value merits higher pay.
   
   This is a good thing. It means that there is something you can do to earn more money regardless of your situation or experience. It means that you can take action and "earn" a raise, rather than sitting around "hoping" to get one.
   
   You can start this process by being honest with yourself. How much value do you provide at your job right now? How much responsibility do you hold compared to your peers? Let's say you went to a new job; do you provide more value than the person that would replace you? These questions are not meant to discourage you, but rather to help you realize where you currently stand as an employee in your manager's eyes. It's easier to move up the ladder if you know what rung you are starting on.
   


2. Determine new ways to create value
   Once you have an idea of where you stand, you can begin looking for ways to increase your value. This is a pretty straightforward process. More valuable employees have more responsibility and generate more results. Let's turn back the clock and look at a very wealthy man as an example.
   
   Andrew Carnegie was one of the most successful -- and wealthy -- businessmen in all of history.
   
   When he was a teenager, Carnegie began working for the Pennsylvania Railroad Company. He did extra projects whenever he could, took on additional responsibilities as soon as he could handle them, and showed enthusiasm for getting results. In reference to his time at the company, Carnegie said:
   
   

   "I could not resist the temptation to plunge in, take responsibility, give train orders, and set matters going."

   
   
   Carnegie made the practice of doing extra work a habit long before he had his own company and built his fortune in the steel industry. As a result, he earned promotion after promotion and raise after raise. He took honor and pride in the work that he did and showed a desire to go beyond the standard expectations.
   
   Do you perform duties outside of your regular department? Do you "plunge in" and "take responsibility" like Carnegie? If not, how can you start doing so?
   
   Make a list of additional projects, committees, and responsibilities you can take on at work. Has there been a project that has just been waiting to be finished, but no one has stepped up to work on yet? Is there an upcoming conference or meeting that you can help plan? In many cases, there will be some obvious tasks that you can help out on right away.
   


3. Ask for suggestions
   Employees that earn raises are often taking initiative. You can start by having a brief conversation with your boss.
   
   Tell your boss that you're looking to take on additional responsibilities and ask him if there are any suggestions for what you can do. If he asks why, tell him that you have career goals and improving your skills and increasing your responsibilities is part of that.
   
   If your boss gives you some suggestions, then you know what you should work on next. In many cases, however, your boss will put off the conversation and tell you that he'll "get back to you."
   
   That's fine. This is where you begin to stand out from the crowd.
   


4. Follow up
   Give your boss about a week and then follow up with him.
   
   This time, however, come with your own list of additional projects and tasks in hand. Show him that you have taken the time to seriously think about how you can create an impact and increase your responsibilities. Very few employees make an active effort like this and your actions will begin the process of setting you apart from your co-workers.
   
   This is an important step because it shows your boss that you are serious about providing additional value to the company.
   
   When you finish this follow up conversation, you should have at least one way that you can make a bigger impact. Join a committee. Take on an extra assignment. Become the go-to guy or gal in your office. There is always something you can do.
   


5. Make sure you have proof
   Take advantage of your increased responsibilities by doing an amazing job. You should make sure that your new project is your best work.
   
   As you finish your new projects -- and as you go about your regular job -- be sure to collect clear proof and evidence of your value. Did a customer give you an over-the-top compliment for the job you did? Get it in writing if you can. Did your co-workers find the presentation you gave to be very beneficial? Save those slides for later reference.
   
   If you can, try to quantify your impact with exact numbers. Did you lead a new training seminar for your peers? How many people attended? How many new skills did they learn? Did you save the company time or money? How much? Using numbers makes it easier for your boss to see your value.
   
   Using proof is the strongest tool in your toolbox. Keep track of what you do so that you can prove why you deserve a higher paycheck. It is much easier to get a raise when you have clear, specific proof of why you should get it.
   
   You earn your raise before you ask for it.
   
   After a few months -- or maybe even a few weeks -- you will have settled into your new responsibilities and you'll have proof of the value you provide. Now that you are armed with these tools, you can confidently ask for a raise. Your additional work will put you ahead of the standard employee and show that your value is worth rewarding.
   
   Yes, it's extra work, but compare the cost of a few months of additional projects to the payoff that you get from earning more year after year. Asking for a raise is something that most employees always want to talk about, but "never get around to it" because they know they haven't proven their worth.

If you are serious about getting a raise, then put in some work beforehand and prove that you are worthy of one.

Written on 3/23/2011 by James Clear. James Clear is the voice behind PassivePanda.com, a site that helps peopleearn more money. For additional salary negotiation tips and strategies, join Passive Panda's Free Newsletter on Earning More

Photo Credit: baslow

One Less Thing to Worry About

Money.

From the DLM Blog:

The 7 Step Guide to Increasing Your Financial Peace

Posted: 07 Nov 2010 06:30 AM PST

Financial peace. Those are two words that don’t typically go together. Money struggles often consume our lives…daily. For example, over 61% of Americans live paycheck to paycheck, meaning one job loss, vehicle meltdown, or sickness could send most people spiraling out of control financially. This doesn’t have to be case though. If you desire to strengthen your financial position and experience calm, then here are 7 tips that will enhance your financial peace.

1. Educate Yourself
   Perhaps not intuitively obvious, but educating yourself can do wonders for increasing your financial peace. Here’s why: many of us have never been taught personal finance. As a result, few of us have a strong basis in it. Some of the financial anxiety that we experience is the consequence of uncertainty and misinformation. If you read even three books on personal finance, you will often understand the mechanics infinitely better than so many people. That’s certainly not because three books is a magic number (although it is a great start!), but rather it’s a reflection of the general disinterest in or even intimidation by the subject. By learning more about personal finance you will:
   
   
   • Decrease your general fear
   • Become more discriminating about what you hear and read
   • Gain more confidence in your ability to handle your family’s finances
   • Become a resource for your family and friends


2. Live on a Budget
   Yes, it’s the dreaded B-word. Budgets are a tremendously powerful tool for achieving financial peace. Your written budget is you telling your money how to behave instead of your money dictating your life. This is critical. So many financial failures are the result of lack of proper prioritization. How else do you explain people who are foreclosed on but wear designer duds? Some people will pay Visa before they pay their electric bills just because Visa has a more aggressive collections division. That’s not in the right order.
   
   Of course, you want to pay everything that you can, but if the resources are tight, you must develop a plan to derive the greatest benefit from your available dollars. Alternatively, some people who have excess funds believe that budgeting is only done to get out of a financial bind. Unfortunately, it really doesn’t matter whether you make $40,000 or $400,000 per year, you can still be broke without a plan. That’s exactly what a budget is: a plan for your money.
   


3. Have an Emergency Fund
   Your emergency fund is a critical component for your financial peace. It essentially puts distance between you and costly life events. For example, you can imagine that having a sudden and unexpected failure in your HVAC can run you several thousand dollars. If you have already allocated funds for an emergency, although the repair will be aggravating, you’ll be able to make it just fine.
   
   Typically, a fully funded emergency fund consists of 3-6 months worth of expenses. Of course, if you know of an imminent emergency, the fund can be increased. This money should be liquid: easily accessible without penalty. This is important because many will borrow on a credit card in an emergency to avoid the penalty of cashing out a c.d. or a selling stock during a down market.
   
   Remember, it’s not an issue of “will an emergency happen?” but rather “when will an emergency occur?” An emergency fund helps you be prepared!


4. Track Expenses
   Do you know how much you spend on clothes and groceries annually? According to Thomas Stanley (The Millionaire Next Door), most millionaires do. It is important to know where your dollars are going to see if you are sticking to your plan and if not why? It could be that the plan is unreasonable or incomplete and needs to be adjusted. Knowing your expenses can tremendously decrease your stress over money because you know in advance your household operating costs. Running an economically productive house is one of the hallmarks of millionaires. Not only is it hard to assess productivity without tracking your expenses, without looking at your numbers it’s hard to plan for the future. Thomas Stanley said it this way: “most millionaires look to the future. They are very likely to compute the lifetime costs and benefits of various activities that have some potential in saving money. This type of behavior is a high correlate of accumulating wealth…” There’s no need to become obsessive, but do educate yourself with your real numbers. This is one of your best opportunities to grab hold of your household finances.


5. Plan Big Expenses
   Christmas, birthdays, and anniversaries come at the same time every year, so plan for them financially! Big expenses that aren’t a surprise should be planned for, so that your emergency fund and budget can remain intact. It is no fun to still be paying for Christmas into February, yet without a plan it is certainly possible.
   
   According to the National Retail Federation, Americans spend an estimated $832 on average for gifts, food, and decorations each Christmas. That means that it is prudent to anticipate such costs and adjust your household budget accordingly. Planning decreases stress because you focus your energy on solving a problem rather than being caught off guard.
   
   Dr. Steven Covey’s classic discussion of the Time Quadrant is relevant here. He clearly distinguishes between “urgent” and “important” tasks. For optimal performance, you should focus your effort on non-urgent, important tasks. If you value your holidays and celebrations, why not plan for them in advance (while non-urgent) to make sure that they are stress-free successes.


6. Money Ratios
   Managing your money ratios well is among the most important things one can do financially and can substantially contribute to your financial peace. In his book Your Money Ratios: 8 Simple Tools for Financial Security, Chris Farrell discusses eight of the most important money ratios. Here are some that you should consider monitoring.
   
   
   • The Savings Ratio – What percentage of your income do you save? This should at least be 12% and typically increases as we age. (It’s okay if you are not there yet, but it’s something to be working towards). Chris says the savings rate should be 15% by the time you are 45, but I personally think that is too low. It is a great start though!
   
   
   • The Capital to Income Ratio – How productive are you at accumulating wealth? Your capital ratio to income ratio is your: Net worth (not including home equity) / annual income. Prodigious accumulators of wealth typically are worth (excluding homes) at least twelve times their income by age sixty five. If you are closer to 40, then Chris argues you should have 2.4 times your income.
   
   
   • The Debt to Income Ratio – Are you over-leveraged overall? This ratio will tell you. Now ideally, you should be working aggressively towards becoming debt free (discussed later); however, if you want to know where you stand, calculate this ratio.
   
   
   • The Mortgage to Income Ratio – Do you want (or have) too much house for your income? In Will Mortgage Rates Really Drop to 0%?, I discuss two formulas that you can use to gauge where your house falls with respect to fiscal conservatism.
   
   
   • Life Insurance Value- Financial ruin can occur in less than 24 hours. Is your family protected from financial crisis? In 5 ways to protect your cash flow like the rich, I discuss five vital but often overlooked types of insurance that you should seriously consider.
   
   
7. Eliminate Debt
   More than anything, I believe eliminating debt can dramatically enhance your peace. It is so easy to spend your entire life working for the bank. While you are mired in debt, the creditors are getting rich and simultaneously diminishing your chances of achieving financial independence. Your debts are their assets, and every penny spent on interest goes towards making them wealthier. This is why 75% of the 400 richest Americans (Forbes 400) believe that "the best way to build wealth is to become and stay debt-free."
   
   By avoiding and eliminating your debt, you place yourself in an awesome position to build wealth because you are no longer borrowing from tomorrow’s prosperity to finance today. Even if you made the median income in North America, which is $50,000, with no debt and reasonable expenses, you could build some substantial wealth over the long-term. More importantly, because you have no debt, your expenses are significantly lower. Your dollars go a whole lot further when you don’t have to pay Master Card, Discover, GMAC, and Sallie Mae. Quite simply, becoming debt free can revolutionize your finances.

In aggregate, I have outlined 7 ways to tremendously increase your financial peace. Financial peace doesn’t have to be elusive. It’s totally achievable and with some work. Remember, these wise words from Thomas Paine.

Those who expect to reap the blessings of freedom, must undergo the fatigue of supporting it.

Written on 11/7/2010 by Roshawn Watson. Roshawn writes at Watson Inc. on eliminating debt, investing money, and building wealth. Get my free eBook Your Foundation to Wealth by signing up for my email updates (no spam I promise). Get my RSS feed and connect with me on Twitter @roshawnwatson too.

Photo Credit: kevindooley

What Your Teen Wants

... for Christmas:


A recent AMP Insights Holiday Shopping Behavior survey looked at teens between the ages of 13 and 19, and came up with some interesting results regarding what they are buying, where they are buying, and what they would like to receive for Christmas.

Teens have deep pockets:
-- 49% are planning on spending over $150 on gifts for others this holiday season.
-- 20% are planning on spending over $300 on gifts for others this holiday season.

They're planning to give gifts to those closest to them:
-- 86% plan to give gifts to parents.
-- 75% plan to give gifts to siblings.
-- 74% plan to give gifts to friends.
-- 60% pan to give gifts to boyfriends and girlfriends.

Teens treat themselves when shopping for holiday gifts for others. Sixty-five percent say when shopping for gifts for others, they will sometimes shop for themselves if they happen to find something they need or want.

Finding the best deal is the number one priority for teens. Forty-five percent research a gift item to find the best deal before purchasing.

Though Apparel is ranked high on teens' wish lists, the Electronics and Entertainment categories are top choices:
-- 79% hope to receive gifts in the Electronics category.
-- 69% hope to receive gifts in the Entertainment category.
-- 61% hope to receive gifts in the Accessories category.
-- 47% hope to receive gifts in the Apparel category.
-- 46% hope to receive gifts in the Footwear category.
-- 32% hope to receive gifts in the Health and Beauty category.

Within the Electronics and Entertainment categories, teens want items for a fun experience:
-- 85% hope to receive video games.
-- 74% hope to receive movies.
-- 74% hope to receive music.
-- 64% hope to receive an iPod.
-- 59% hope to receive a laptop.

Big retail stores rise to the top for shopping:
-- GameStop, 62%
-- Wal-Mart, 60%
-- Best Buy, 57%
-- Target, 53%
-- Hot Topic, 46%
-- JC Penney, 45%
-- Macy's, 40%
-- Aeropostale, 37%
-- Apple, 37%
-- Hollister, 36%

(Source: The Center for Media Research, 11/30/10)

Money Time

From the DLM Blog:

Important Financial Truths You Should Always Remember

Posted: 18 Sep 2010 08:23 AM PDT

Do you have dreams of an early retirement? Being mortgage free? Being completely debt free?

If you're like a lot of people, financial independence is right near the top of your long-term-goals list. I've spent a lot of time over the past few years reading and learning how to achieve my goal of financial independence sooner rather than later. There is a lot of financial advice to be had and everyone seems to have an opinion on where to put your money, how to spend it, and how not to spend it. No matter what I read though, successfully getting ahead financially boils down to a few simple truths.

So whether you're looking to fast track your way to financial independence or are at your wits end when it comes to your personal finances, re-familiarizing yourself with these 7 financial truths may give you a fresh perspective.

1. Nobody cares as much about your money as you do.
   Mindlessly handing your money over to a fund manager, investor or banker is never the best idea. We may feel that because they have the training, experience or fancy job titles that they know what's best for you when it comes to your money. Sometimes they're right but sometimes they aren't. Truth is they just don't care that much about it. Take control, become empowered and while you may not become intimately familiar with the inner workings of the financial system, knowing where your money is and being able to make informed decisions is one of the best things you can do for your financial future.


2. Spend less than you earn.
   This one seems pretty obvious but for a lot of people it's simply not happening. The only way you are going to get out of debt or make advancement on your savings is to spend less than you earn. That's really all it boils down to.


3. Shop around and simplify where it makes sense.
   While there is a strong push to simplify your finances by having everything in one place, sometimes consolidating just doesn't make sense. This ties in with the first point in that you should spend some time getting to know the different products out there. Does one financial institution offer better mortgage rates? Does another financial institute have much lower interest rates for personal loans or lines of credit? Simplify and consolidate but only when it makes sense.


4. You need to pay yourself first.
   This doesn't mean give yourself money to go out and buy a new sweater or jacket or new a computer or phone. What this means is that before anything else (bills, groceries, gas etc...) you put an amount of money away into savings. Initially this may be a very small amount and that's OK; it's something! When you can, increase the amount you're saving to 10%, 15%, 20% or more of your income. By doing this you are consistently making progress on your goals even though there may be something a lot more fun you could do with that money.


5. Budget budget budget.
   Yes it's the dreaded B-word. Budgeting doesn't need to be difficult but it does need to be realistic. A budget that doesn't accurately reflect your spending habits and expenses won't be a useful tool at all to get you closer to realizing your financial goals. A budget will help you to see at a glance where your money is going and where you can possibly reduce spending to improve your financial situation.


6. Wants are not the same as needs.
   In reality there are very few things we really need. For the majority of people, once adequate food, shelter and clothing are provided almost everything else classifies as a want. You may think you need cable TV or a cell phone or a car but there are several people who manage to get by everyday without any of these things. So before you make another purchase ask yourself a few simple questions:
   
   
   
   • Is this a need or a want?
   
   
   • Can I delay this purchase to see if it's really what I want?
   
   
   • Can I get this item cheaper somewhere else? (library, second hand, borrow from a friend).


7. Using cash when you can is best.
   There is something about handing over physical cash that is a tad more painful than handing over a plastic card. If you have $20 to spend on entertainment this week you'll likely think twice about spending $15 on movie rentals Monday evening when you know you've already made plans for Friday. Using credit is a slippery slope. You don't see a running total and $8 here and $20 there doesn't seem like a lot but after 30 days those small purchases can add up to a lot.

As with most things, when it comes to your finances you need to do what works for you. If you try to use a system that you end up fighting every step of the way it won't be effective and you'll simply end up frustrated and annoyed. You can get out of debt and you can speed up your financial goals. Just be realistic, take control and keep everything in perspective.

Written on 9/18/2010 by Sherri Kruger. Sherri writes at Zen Family Habits, a blog celebrating all things family. Sherri also writes on personal development at Serene Journey, a blog dedicated to sharing simple tips to enjoy life

Photo Credit: meddygarnet

Money and Spending

Christmas is two months from today.

I refuse to go into debt to buy presents.

First of all, despite the commercialization of the holiday, it is still about a thankful remembrance of the birth of Jesus, son of Mary, (Step-son? of Joesph); and that's more important than overspending on a bunch of Christmas crap.

Yes, we will exchange gifts, but within our means. I hope you do the same. Here's some help from the DLM Blog:

How To Make Peace with Money

Posted: 16 Oct 2010 07:20 AM PDT

Do you hate thinking about money? Even those that aren't living in financial distress can have an uncomfortable relationship with money. It's common to feel like it's not nice to think about money or that everyone has a good handle on it except for you.

The truth is money is a tool and we all have to decide how we will use it. You will be able to make better decisions about money if you can get to a place where you can think about in a matter of fact way instead of avoiding the subject or making all of your decisions based on feelings or guilt or shame.

Try these 10 steps to make peace with your relationship with money.

1. Tackle your finances head on.
   It's not only practical and smart to know your net worth and liabilities but the more you ignore it, the scarier and more intimidating it will be. Make a list of all your assets and liabilities and take a careful look at where you stand.


2. Keep debt in perspective.
   All things considered, it's better to be out of debt than in debt but there are far worse things in the world than owing money. It is a hole that you can dig yourself out of. And, if it turns out that something like bankruptcy is the only answer, it's still not the end of the world. You can overcome financial problems.


3. Make a plan for your money.
   Most people feel more secure when they have an outline of what is going to happen and financial guidelines to tell them what to do. Writing out a plan that lists your financial goals and the steps you will take to get there is an excellent way to motivate yourself and keep your focus strong.


4. Understand that there is nothing shallow or petty about being concerned about money.
   Giving a healthy amount of your attention to your finances and making your financial health a priority is not a sign that you are less spiritual or evolved. Remember that it's important to take care of yourself if you want to help others.


5. Take a look at your shopping habits.
   Do you shop because you are bored or lonely? Do you buy things to get a high? While the occasional impulse buy or splurge or day out window shopping is not a problem, shopping should not be the cure for everything that ails you. Look for more positive ways to deal with negative emotions such as exercise, meditation or talking to friends.


6. Do what you can to ensure that you're being paid what you are worth.
   This can be a tricky subject as it often seems like compensation has very little to do with how much value a job gives to society, but, within every field there are some that are paid more or less. If you know that you are an asset to your employer or clients there is nothing wrong with asking for a raise, extra benefits or other consideration to reflect your value.


7. Stop waiting for a miracle or hero to save you financially.
   It's fun to daydream about winning the lottery or marrying a wealthy prince or princess and magically seeing our financial problems disappear. Sure, it could happen but you'll save yourself a lot of stress in the meantime by being proactive about fixing your finances.


8. Your self worth does not have to be dependent on your net worth.
   I think we all know this intellectually but it's something most of us have to remind ourselves daily. So many of us come from cultures where those that are wealthy are seen as being more worthy of esteem and those that are poor are looked at as being “less than”. Even comfortable middle class people can fall into the trap of thinking that because they can't afford every luxury they must have done something wrong. Remind yourself of this whenever you find yourself feeling anxious or insecure around those who have significantly more or less wealth than you do.


9. Stop being so judgmental.
   Sure, there are plenty of dumb decisions made about money every day but there isn't any value in pointing fingers or getting up on a high horse about other people's poor decisions. You absolutely can and should learn from the mistakes and experiences of others but using it as an opportunity to feel superior is only going to increase your anxious feelings about money. If you can be kind and understanding towards others when they make mistakes, you'll be better able to look at your own mistakes in a productive way.


10. Do some digging and find out what you fear about money/material possessions and confront it head on.
    It can be helpful to talk through these feelings with a trusted friend or family member. Things nearly always seem less intimidating when you get the courage to talk about them. Perhaps you fear thinking about your retirement because you feel stupid that you don't know what all the terms mean. Or perhaps you overspend on restaurants and entertainment because you are afraid your friends will abandon you if you can't keep up. Whatever your fear there is almost certainly a solution if you face it and get some help to figure out how to make it better.
    

Don't feel like there is something wrong with you if you find it difficult to think about money in a productive way. Just know that by taking the steps to make peace with your relationship with money you'll be able to focus more on the things you love because you'll know longer be burdened by the anxiety and stress that comes with money problems.

Written on 10/16/2010 by Tracy O'Connor. Tracy is a staff writer for MoneyNing , a personal finance blog dedicated to helping readers get the most out of their money.

Photo Credit: enough_42

7 from 7 that = $7,000,000,000

from the DLM Blog:

7 Amazing Lessons from 7 Distinguished Billionaires

Posted: 16 Mar 2010 11:51 AM PDT

They say that a million dollars in $100 bills is 43 inches high, but a billion dollars in $100 bills is almost three times the height of the Empire State building. A million dollars in $100 bills would weigh 22 pounds, but a billion dollars would weigh 11 tons.

Suffice it to say that the accumulation and maintenance of a billion dollars requires much wisdom. Today I want to look at seven amazing lessons from seven of the world’s most famous billionaires. These billionaires range from Bill Gates to Mark Cuban and each of these individuals have accomplished amazing things.

There are many things that we can learn from them so enough with the monologue; here we go!

7 Amazing Lessons from 7 Distinguished Billionaires

1. Look for Opportunities
   
   

   “It's through curiosity and looking at opportunities in new ways that we've always mapped our path at Dell. There's always an opportunity to make a difference.” – Michael Dell, Founder, CEO, and Chairman of Dell Inc.
   

   
   If you never look for an opportunity, you will never find one. The Wright Brothers were looking to see if it was possible for man to fly, they didn’t stumble upon it, they were looking for it. What are you looking for? The Scripture says seek and ye shall find, knock and the door will be open to you.


2. Believe in Yourself
   
   

   “I always knew I was destined for greatness.” – Oprah, Media Mogul

   
   As the famous poem goes, “If you think you’re outclassed, you are, you have to think high to rise, you must be sure of yourself, before you can ever win a prize.” You must believe in “you” before anybody else will. Oprah believed that she would be a success, and she is. What do you believe about yourself, whatever it is, that’s what you will become.


3. Create an Atmosphere of Success
   
   

   “It's better to hang out with people better than you. Pick out associates whose behavior is better than yours and you'll drift in that direction.” – Warren Buffet, Investor
   

   
   You can’t soar with the eagles, if you spend your time hanging with the chickens. Find people who are going where you want to go, and “conspire to aspire before you expire.” Atmosphere is critical, diligently guard who enters your inner-circle. Your friends are a prophecy of your future.


4. Empower Others
   
   

   “As we look ahead into the next century, leaders will be those who empower others.” – Bill Gates, Co-founder and Former CEO of Microsoft, currently the 2nd richest man in the world behind Carlos Slim.
   

   
   Who are you empowering, who are you helping, who needs you. You can’t go forward without helping others go forward. Instead of being concerned about how you’re going to get ahead, find a way to help others get ahead, and you will get ahead in the process. Empower others and you will empower yourself.


5. Focus
   
   

   “In the end, you're measured not by how much you undertake but by what you finally accomplish.” – Donald Trump, Real Estate Investor/Developer, TV Personality
   

   
   Don’t be a “jack of all trades” and master of none. Don’t bite-off more than you can chew. Decide what you want to accomplish in your life, and spend your time accomplishing it. Work hard, take breaks, and in the end, if your focus is single, you will have accomplished it.


6. Learn From Your Mistakes
   
   

   “I'm the type that thinks if you don't learn from history, you're doomed to repeat it.” – Mark Cuban, Internet Entrepreneur and NBA Team Owner
   

   
   It sounds simple, but many people live a life of repeating the same mistakes over and over again.
   
   The “cow in the ditch” example below gives us a pattern for how we should deal with our mistakes.
   
   Here are the three steps you should follow whenever a "cow ends up in your ditch:"
   
   Step 1: Get Cow Out of Ditch
   Step 2: Find Out How Cow Got in Ditch
   Step 3: Make Sure Cow Does Not Get in Ditch Again
   
   Using these three simple steps, you can solve many of life’s problems (from debt to relationship issues).


7. Only Go Forward
   
   

   “We will go forward, ... We will never go back.” – Michael Bloomberg, current New York City Mayor and Founder of Bloomberg LP
   

   
   You can’t make much progress forward if you keep on taking steps backwards.
   
   Make a decision to go forward, never settle, never stagnate, life is about growth, it’s about development. You are supposed to grow, you’re supposed to become all that you are capable of becoming, so go forward and never look back!

Thank you for reading and be sure to pass this article along!

Additional Details on the Image Used: Bruce Schneier, Mark Cuban and Cory Doctorow. Mark is the only billionaire although I am sure the others are working in it. Bruce and Cory were recipients, along with Yochai Benkler, at the EFF Pioneer Awards.

Written on 3/16/2010 by Mr. Self Development who is a motivational author that offers a practical guide to success and wealth; support him by visiting his blog at mrselfdevelopment.com. .

Photo Credit: eschipul

The Splurges

This morning I was sitting in the FireFly Coffee shop a couple miles from my home, like I do most Sunday mornings, reviewing email, writing blog posts and talking to friends.

I could get my coffee from McDonalds for less, I could brew it at home for even less than Mickey D's.

But I don't.

It's not about the coffee.

Most days I don't drink the stuff.

My weekday routine involves a Diet Mt. Dew for my caffeine fix in the morning.

It's about the atmosphere, the experience and I will splurge to do this.

Some Splurges don't cost much.

Ever buy your girl a dozen roses, just 'cause?

I'm doing that today and with the deals at the stores these days, you can get them for under $15.
And my wife, being the thrifty person that she is prefers that I pay that amount compared to the $40 or more that a florist would charge.

But that dozen roses is a splurge, no matter how little you pay, because a splurge is not just spending money, but the emotions connected with it.

The DLM blog wrote about this too:

The Tiny Things That Make Us Happy (and Convince Us to Buy)

My wife and I live in a modest two room apartment. We drive a used car, don’t eat out a lot, and we have a solid budget that we (usually) stick to.

Yet there are still a few things that we splurge on. For example, instead of buying regular plastic carton milk, I like to buy the locally-made organic milk that comes in a glass bottle. This typically runs $1.50-$2 more than the traditional plastic carton version, but I buy it anyway.

Why? Who knows! I know I love it, and even though I’ll maybe have a glass a day and maybe some in my cereal, it’s not a critical part of my life. I could easily go without the ritzy milk.

But I don’t. For whatever reason, this small, insignificant part of my life seems better when I have milk that comes in a glass container. The aesthetics of pouring milk from a glass container as opposed to a plastic carton are quite different.

When I’m creating, there are some things that have to be exact, and some that don’t. I’ll carefully consider the perfect pen and notebook, but I could care less about the location of where I’m creating. I’m really particular about the time of day that I write or create, but hardly ever give a second thought to what I wear.

Sometimes the things that I think mean a great deal never amount to much. Oftentimes it’s the smallest things in life that make me the happiest. The sound of my newborn nieces and nephews sleeping (my sister recently had triplets!),

Does this make sense? Not at first glance.

Think about it this way: if you were going to create something incredible, sometimes the small things make all the difference in the world.

Smart companies like Apple understand this, and even market their products to highlight these tiny things. Take, for example, the redesigned aluminum body on the new Macbooks.

Sure, Apple’s marketing made sure to showcase “nuts and bolts” improvements on the hardware: the new graphics card, the new processor, and longer battery time. Yet they also have a page dedicated (with a video!) to the new process they use to create the aluminum chassis for the laptops. The page highlights the length Apple goes for the small improvements.

Why go to all the trouble to highlight small improvements?

These small, insignificant “features” make people feel a certain way. And emotions are what drive sales, not facts. Tiny, almost unmeasurable details can play more heavily into our thought processes and decision-making than we give them credit.

We are irrational people, after all. Or, at least I am ;)

***

It’s interesting to learn what small things really matter to me (like shmancy milk), and what bigger things don’t (like owning a house or a new car with all four hubcaps).

Anyway, this is what rolls through my head during a Saturday morning. What do you think? Why do the small things seem to matter so much? All I know is that they do.

Photo by athena

Money & Debt

from Seth Godin:

Consumer debt is not your friend

Here's a simple MBA lesson: borrow money to buy things that go up in value. Borrow money if it improves your productivity and makes you more money. Leverage multiplies the power of your business because with leverage, every dollar you make in profit is multiplied.

That's very different from the consumer version of this lesson: borrow money to buy things that go down in value. This is wrongheaded, short-term and irrational.

A few decades ago, mass marketers had a problem: American consumers had bought all they could buy. It was hard to grow because dispensable income was spoken for. The only way to grow was to steal market share, and that's difficult. Enter consumer debt.

Why fight for a bigger piece of pie when you can make the whole pie bigger, the marketers think. Charge it, they say. Put it on your card. Pay now, why not, it's like it's free, because you don't have to repay it until later. Why buy a Honda for cash when you can buy a Lexus with credit?

One argument is income shifting: you're going to make a lot of money later, so borrow now so you can have a nicer car, etc. Then, when money is worth less to you, you can pay it back. This idea is actually reasonably new--fifty years or so--and it's not borne out by what actually happens. Debt creates stress, stress creates behaviors that don't lead to happiness...

The other argument is that it's been around so long, it's like a trusted friend. Debt seems like fun for a long time, until it's not. And everyone does it. We've been sold very hard on acquisition = happiness, and consumer debt is the engine that permits this. Until it doesn't.

The thing is, debt has become a marketed product in and of itself. It's not a free service or a convenience, it's a massive industry. And that industry works with all the other players in the system to grow, because (at least for now) when they grow, other marketers benefit as well. As soon as you get into serious consumer debt, you work for them, not for you.

It's simple: when the utility of what you want (however you measure it) is less than the cost of the debt, don't buy it.

Go read Dave Ramsey's post: The truth about debt.

Dave has spent his career teaching people a lesson that many marketers are afraid of: debt is expensive, it compounds, it punishes you. Stuff now is rarely better than stuff later, because stuff now costs you forever if you go into debt to purchase it. He's persistent and persuasive.

It takes discipline to forego pleasure now to avoid a lifetime of pain and fees. Many people, especially when confronted with a blizzard of debt marketing, can't resist.

Resist. Smart people work at keeping their monthly consumer debt burden to zero. Borrow only for things that go up in value. Easy to say, hard to do. Worth it.

How to Avoid an Audit

Tips from the DLM Blog:

Avoid the Audit: Six Red Flags That'll Put You in Tax Purgatory

Posted: 19 Mar 2010 03:13 AM PDT

Around February, my commute home starts to give me a knot in my stomach. That’s because my bus passes a tax-preparation shop where, as tax season draws nearer, a woman stands outside wearing a Lady Liberty costume and holding a sign that promotes the shop’s services. Oh, great, I think, it’s time to dance with the IRS again.

I don’t know why, but the idea of doing taxes terrifies me. All those forms requiring detailed numbers and asking questions I don’t quite understand—there’s so much room for error! The consequences of messing up are even more intimidating. I’ve never been audited by the IRS (knock on wood), but I can imagine it’s a nerve-wracking process. However, even crossing all my Ts and double-checking my math doesn’t guarantee an audit-free year. As a tax novice, I decided to read up on the matter, and now that I’ve done some homework, it’s clear that a few factors make the IRS more likely to pay extra attention to your tax papers.

1. Making Too Many Errors
   According to Jeff Schnepper, a writer for MSN Money, one of the most common reasons tax forms get scrutinized is that they’re riddled with math errors, incorrect spelling, typos, and so forth. The first line of defense against an audit is not giving the IRS a reason to look twice. Remember that the IRS receives financial records from your bank and anyone you’ve earned a paycheck from, so make sure that you’re providing that same information—numbers that don’t match up are suspicious.


2. Being Self-Employed
   Sorry, owners of small businesses and freelancers—the IRS tends to look closely at your information. First, it needs proof that you’re running a for-profit operation, not a hobby. Second, it wants to make sure that you’re reporting income accurately and that the small-business deductions you take are accurate and fair (i.e., not claiming personal expenses as business write-offs). Also, if your company’s taken a significant financial hit, that sets off a mini-alarm for the IRS, since it’s possible that you’ve been misrepresenting figures. Sandra Block, a writer for USA Today who covered this topic in 2000, recommends providing an explanation, along with tax papers, to avoid raising any red flags.


3. Not Fitting the Mold
   The IRS uses a computer program called the Unreported Income Discrimination Function System to compare each person’s tax deductions and credits against what the IRS has determined is average for certain income brackets. If your DIF score is considerably different from that of others in your category—as in, you earn $60,000 a year but reported a $40,000 charitable deduction—that’s a big IRS red flag, as CNNMoney.com staff writer Christian Zappone described in 2007. The program’s main purpose is to scout out individuals who’re most likely to owe more money after further analysis.


4. Earning Six Figures or More
   Back in the day, a common complaint come tax season was that the rich were somewhat protected from audits. But these days, the IRS is more concerned with lowering the country’s astounding tax gap (the difference between taxes owed and taxes paid). “If you’re a millionaire, you’re a lot more likely to hear from the IRS than taxpayers in any other income bracket,” IRS spokesman Terry Lemons told the Wall Street Journal in 2009.


5. Claiming Home Office and Job Expense Deductions
   The problem with both of these deductions is that too many people claim them for inappropriate reasons. A home office isn’t just a room that you happen to work in once in a while. And when it comes to job expenses, there’d better be a good reason why your bosses didn’t reimburse you in the first place, so it’s an iffy deduction right off the bat. There are detailed rules for deductions, so unless you want a tax tangle in the future, don’t claim anything unless you know it’s right.


6. Making Enemies
   The IRS’s computer program triggers many audits, but some come courtesy of tipsters—including individuals, media sources, and public records—reporting potentially faulty tax returns. “The Examination Process,” an explanation of auditing on the IRS’s Web site, lists “information from compliance projects that indicates a return may have incorrect amounts” as one of the reasons for extra examination.

One Potential Solution: Protecting Yourself with Paperwork
Luckily, there are steps you can take to protect yourself if you fall into one of these categories. The best means of self-defense is a thorough record that backs up your claims. Keep receipts, bank statements, and all pertinent paperwork that proves that what you put on your tax forms is true. The book What the IRS Doesn't Want You to Know details how long you should hold on to these records.

• Businesses should keep receipts and bills for purchases for four years, accounting books and bank statements for six, and tax returns for ten.
  


• For personal items, hang on to receipts and bills for four years, bank statements for six, and tax returns forever.
  

The IRS has up to three years after you’ve filed to audit, so keep that in mind when spring cleaning your office. It may feel silly to save a receipt from two years ago, but if it relates to a suspicious deduction you’ve claimed, it’ll come in handy if the IRS comes knocking.

Information is power when it comes to protecting yourself from an audit. If you recognize that there are factors that set you apart from the average taxpayer, send in tax forms with an explanation of the situation, via either a note or paperwork that serves as evidence. However, there’s such a thing as giving away too much information that the IRS didn’t ask for, and that can slow down return processing. If you feel that your tax information could lead to an audit, take your return directly to a tax-preparation professional’s office before you fill out any forms on your own. You may think dealing with a professional is too much of a hassle, but it’s a far friendlier alternative than a stand-off with an IRS auditor.

Written on 3/19/2010 by DivineCaroline. DivineCaroline a place where people come together to learn from experts in the fields of health, spending, and parenting. Come discover, read, learn, laugh, and connect at DivineCaroline.com.

Photo Credit: alancleaver_2000

Making Money Online

There are way too many scams out there.

But there are some good ideas too from the DLM Blog:

Five Ways to Get Started Making Money Online – With Insider Tips

Posted: 17 Jan 2010 09:53 AM PST

Are you as sick as I am of blogs, ebooks and gurus all promising to teach you how to "make money online"? In many cases, they're people flogging a product that they swear any idiot could use to make a fortune … overnight … on the beach … in just two hours a day…

Let's get real about this. Making money online, just like making money offline, takes real work. However much you might wish you could just press a button and get a steady income stream going, that's not how it works. Scams, pyramid schemes, dodgy traders and fly-by-night sites abound: none of these are going to get you closer to paying off your debts or quitting your day job.

However, it is perfectly possible for you to make money online. I'm going to outline five straightforward, no-nonsense, spam-and-scam-free ways to do so. I've had experience – i.e. dollars coming in – with each of these areas, and I'll share some of my best tips.

(Hint: I'm also linking to some useful sources, so you may want to bookmark this post for handy referral.)

In almost all cases, you'll want to get set up with PayPal so that you can get paid.

1. Freelancing
   First up, freelancing. This is how I got started with my business, Aliventures. Freelancing means selling a particular service, getting paid by clients either by the hour or by the project.
   
   You can do all sorts of things as a freelancer, but some of the most common freelancing areas online are:
   
   
   
   • Writing: including copywriting, blogging, newsletters, ebooks, articles
     
   • Designing: including illustration, graphic design, logo design
     
   • Programming: including web coding, custom software
     
   • Administration: including accounts, personal assistants
   
   To get started with freelancing, pick a particular skill that you have, and put together an online portfolio showcasing your work. Tell your family, friends, and Twitter followers that you're looking for clients.
   
   Freelancing is becoming much more common as people look for flexible patterns of working (and multiple clients to provide job security) – so there’s a lot of advice, support and help around, often including grants and loans when you’re getting started. Your local Chamber of Commerce – or a similar organization – may be a good source of advice.
   
   Insider Tips:
   • Specialize. It might seem counter-intuitive, but it's better to concentrate on one area than try to cover all the bases. For example, writers might choose to specialize in copywriting (and ignore blogging, editing and so on).
   
   
   • Approach potential clients directly. Most of the freelance blogging jobs that I have weren't from applying for advertised jobs – they came through making contact with editors. You wouldn't be reading this blog post if I hadn't sent Jay (DLM's editor) a guest post ( and several hopeful emails) back in 2008!
   
   
   Resources:
   Freelance Switch and Freelance Folder are both blogs aimed at freelancers, and well worth subscribing to by RSS.
   
   Skellie's post 30 Days to Become a Freelancer is a great step-by-step plan for new freelancers.
   
   On Dumb Little Man, there's some freelance-related advice in:
   
   • An Entrepreneur's Guide to Setting Service Rates
   • 8 Important Money Saving Tips for Web Workers
   • 10 Great Ways to Jump-Start Your Creativity


2. Selling electronic products
   Freelancers sell a service. Even when that service results in a product, like a logo, a website or an ebook, it's custom-made at the request of a particular client. That works well for some people, but what if you want to make money without having to work by the hour or by the project?
   
   A tried-and-tested way of making money online is to sell electronic, usually downloadable, products. I'm sure you've come across a few sites selling ebooks – if you have a particular area of expertise, you can write an ebook (which doesn’t need to be anything like as long as a paper book), and you’ll find buyers. Time-sensitive information does particularly well in ebook format.
   
   There are also plenty of options if you're not a writer. You can pay someone to write an ebook for you: then you can market and sell it. Alternatively, you can sell audio or video files, graphical content, software.
   
   Insider tips:
   • Start with something small, like a $5 or $10 product; the learning curve is usually steep.
   
   
   • Either build up an online audience of your own (via a blog or e-newsletter), or partner up with people who have a big audience – offer them commission as an affiliate for your product.
   Resources:
   
   • Create Ebooks That Sell – article on Copyblogger
   • The Comprehensive Paint-by-Numbers Guide to Writing and Publishing Your Ebook – article on ProBlogger that’s pretty much described by the title!
   Sites where you can sell (and indeed buy!) electronic products include:
   
   • e-junkie – mainly used for ebooks
   • iStockphoto and fotolia – for graphics and illustrations
   • Theme Forest – for website and blog themes
   • Envato Marketplaces – other sites from the makers of Theme Forest


3. Selling physical products
   If virtual products don't interest you, how about selling physical ones? You may well have done this already if you've ever offloaded some second-hand books on Amazon.com, or if you've gotten rid of those wrong-size-wrong-color clothes on eBay.
   
   You don’t necessarily have to have a large amount of storage space to sell physical products, and you don’t need to spend hours standing in line at your local post office; you can use drop-shipping to outsource warehousing and shipping.
   
   Many small businesses are run entirely on ebay, often buying stock in job lots (at discount warehouses, for instance) and splitting it up for sale, thus turning a profit per item.
   
   Artists and crafters can sell handmade products on sites like etsy, where customers are often willing to pay a premium price for uniqueness and quality.
   
   If you have a site or concept which you could produce merchandise for (online comics often do well with this, and humor blogs), try CafePress.
   
   Insider tips:
   • Take the time to get a great photo of what you’re selling. Make the photo as large as possible too. (Many new ebay sellers make the mistake of not using good photos.)
   
   
   • Use testimonials, especially if you’re selling items which customers would normally want to examine and touch before buying – such as clothes or craft materials.
   
   
   • Stick with one site – at least to begin with – so that you can build up feedback from buyers: I found that selling on ebay and Amazon was much easier once I had a good rating.
   Resources:
   • Timothy Ferriss’s book The 4-Hour Workweek: Escape 9-5, Live Anywhere.
   • News article “Doc makes more money selling clothes on eBay” – which gives an encouraging indication of what’s possible, just working part-time!
   • Starting an eBay business – article from startupnation


4. Owning websites
   If you own a website, you’ve got a potentially money-making asset. You can run adverts on the site. A good place to start is Google Adsense. Once your site starts getting a reasonable level of traffic and/or a reasonable Google rank, you can sell advertising directly. (Warning: Google sometimes penalizes sites which sell text links.)
   
   For an example of Adsense and private ad sales in action, see my site www.theofficediet.com. You’ll notice that:
   
   
   
   • There is a 125x125 banner, as well as a number of links under the headings “Adverts”. These are private ad sales.
   
   
   • I’m also running Google Adsense
     
   
   I don’t make a living from this site by any means, but I do make several hundred dollars each month from advertising.
   
   Another method is simply to sell the site, which is often known as “flipping” it. If you have a site that makes regular income (such as through advertising or affiliate sales), then there’ll be interested buyers. A good rule of thumb is that you can sell a site for around 12-18 times the monthly income. You may be able to sell a site which has strong potential – perhaps a good domain name and some high-quality content – even if it isn’t yet generating income.
   
   You can sell sites – and even great domain names (which should cost under $10 to register) – on the SitePoint marketplace.
   
   Insider tips:
   • Once you have a large site that’s easily found on Google, advertisers will often come to you. Be prepared for this: decide what you charge for different types of ads, and have a simple means of accepting payment.
   
   
   • You may have to decide between advertising income and maintaining the quality of your website. I run text ads and Adsense on www.theofficediet.com because I’m not too attached to that site – I’m much pickier about the ads on my “home” site, www.aliventures.com!
   Resources:
   
   • My Adsense Tips on the Official Adsense Blog – videos from Darren Rowse (aka Problogger)
   • ProBlogger: Secrets for Blogging Your Way to a Six-Figure Income – by Darren Rowse and Chris Garrett has good information about advertising and about flipping blogs.
   • Find an Undervalued Asset. Fix It Up. Flip It. (Now It’s Web Sites, Not Houses) – article from the New York Times which is a good introduction to the area – and financial possibilities – of flipping websites.


5. Selling other people’s products
   Lastly, perhaps you don’t have anything of your own to sell – and you don’t want to create anything. How about selling other people’s products? This is a great way to let others do the hard work while you reap the rewards!
   
   Like the other four methods, though, this isn’t without work on your part. Affiliate marketing (acting as an affiliate for someone else’s product, and earning commission on sales which you refer) requires you to have two things:
   1. An audience
      
   2. Trust
      
   If you have a blog, e-newsletter or Twitter following, that’s your audience. Establishing trust takes time, though. Some good ways to do it include:
   
   • Provide high quality content (blog posts, emails or Tweets)
     
   • Be honest, personable and real – we trust people who we can see as friends
     
   • Don’t give an overblown review just for sales: mention any bad points about the product too
     
   • Own every product and use every service that you review as an affiliate
     
   Note that the FTC has brought out new guidelines, which many bloggers have interpreted to mean that affiliates do need to declare their connection. This is often to your advantage anyway, as it can show that you’re trustworthy and honest. (See Affiliates – New FTC Rules and $11,000 Fines for Non-Disclosure for more information.)
   
   When looking for products to promote, start with things you already own. You can promote anything sold on Amazon as an affiliate (though the commission isn’t great) and you’d be surprised how many sites and companies have affiliate programs. You can also review a post from Dumb Little Man that lists over 40 ways to make money online.
   
   Insider tips:
   
   • Think about what you like in a review – and provide that! I put the price up front in all my reviews, for instance, as I hate not knowing the price of a product till I’ve read a ton of text about it.
   
   
   • Give a personal story about your experience with the product or service. If you say in the review that your webhost has great customer service, give a concrete example.
   
   
   • Many ebook authors (and sellers of other downloadable products) will let you have a review copy if you have a reasonable-sized blog or newsletter, so you can sometimes get free products this way!
   Resources:
   
   • What Is Affiliate Marketing? and 10 Tips for Using Affiliate Programs On Your Blog – great introductions to this topic, on ProBlogger
   • How to Suck at Affiliate Marketing – what not to do, from IttyBiz
   • Cloud Living review – where I discuss Glen Allsopp’s comprehensive and beginner-friendly ebook about affiliate mini-sites and blogging.

Any one of the above methods could make you a full-time living online – or could provide you with a great source of side income. Which appeal to you? What skills or resources do you already have that you could leverage? And do you have any other methods to add to the list? Let us know your thoughts in the comments!

Written on 1/17/2010 by Ali Hale. Ali is a professional writer and blogger, and a part-time postgraduate student of creative writing. If you need a hand with any sort of written project, drop her a line (ali@aliventures.com) or check out her website at Aliventures.

Photo Credit: Dave McLear