Free Money Finance

How to Make Money as a Soccer Referee

I've suggested that one way to make some extra money is to turn our hobbies into incomes (in fact, this is one of my 11 great ways to earn more money). In addition, I've noted that my son and I had become volunteer soccer referees but were thinking of looking into paid games. Well, we did that and completed a season as "professional" referees, so I thought I'd give you all the scoop on how we did this, what we learned, etc. If you're interested in making some extra money as a soccer ref (or any sort of ref for that matter), this post should be right up your alley.

Some Caveats

Before I get started, let me issue a few caveats:

• This is the way it worked for us, and I think it's rather typical. But I can't say for sure since I've been doing this for less than a year. In other words, your mileage may vary.

• This is how it works in Michigan. From what I've heard, it could be different in other states or cities.

• I'll probably get some terms and meanings wrong (I am still learning myself after all.) But I know I have some more experienced soccer refs as readers and I'm hoping they'll correct me and fill in the gaps where needed.

Our Background

Just so everyone is on the same page, let me review how we got started in this venture.

My son and I both like soccer. He's played off and on, I've coached off and on (for his teams) and we watch it on TV (primarily the English Premier League.) We decided that we wanted to be part of the game in our local community, so last spring we took classes to be referees for our local community soccer league. We refereed about 20 games in April/May. Over the course of the season we heard there were games where refs got paid (we didn't know where to find them, just that some existed.) I started doing some research and thus we were on our way to turning our hobby into an income.

If you're looking to become a referee in your area, be ready for a lot of investigative work. There's not one site, one organization, one person or one central point for all the information you'll need. You'll have to network, do online research, and ask a lot of questions. Often, you'll get conflicting answers, and you'll need to separate the fact from fiction. This is what happened to me, and I simply kept at it until I got the answers.

I started by having lunch with a friend of mine who is connected in the local soccer scene. I was his daughter's soccer coach a few years ago, but he's been a soccer coach for many years and knows all the soccer world here. Over lunch, he gave me the basics, some sites to look at, and some people to call. I did all of those and sorted through the details to get enough answers to get started.

Community Versus Club Soccer

Before I go on any longer, I need to describe the difference between what I call community soccer and club soccer (I don't know if these are the proper terms for each of them -- they probably aren't -- but that's what I call them.)

The community soccer in our area is the American Youth Soccer Organization (AYSO). AYSO's mission is "to develop and deliver quality youth soccer programs which promote a fun, family environment based on AYSO's Six Philosophies: Everyone Plays®, Balanced Teams, Open Registration, Positive Coaching, Good Sportsmanship and Player Development." In other words, it's an entry-level league where kids can learn to play soccer without the pressure of trying out for a team (everyone plays, so skill level is not a big concern). It's a fun way to play competitive soccer. The parents and coaches are supposed to be more low key and encouraging (supposed to be -- more on that later.) Teams are organized by age groups (U10 features players under 10 years old, U12 has players under 12 years old, etc.) so they are roughly equal in skill.

Club soccer is competitive soccer. There are tryouts and if the kid is good enough, he makes the team (there are various levels of teams -- select, premier, etc. and even levels within levels to differentiate the kids by skill/ability. BTW, while I say "he", there are the same options for girls, of course.) Once selected, the player gets a whole host of benefits: he gets to practice more often, he gets professional, paid coaching, his parents get to pay several hundred dollars to the club for the season, he gets to experience the sport at a more competitive (and stressful) level, he earns his playing time, and so on. Let's just say these people (players, coaches, parents, etc.) are serious about their soccer.

One thing many assume is that the competitiveness of club soccer makes it rougher on refs since there's much more seriousness around the sport. I considered this as well. After all, did my son and I want to be yelled at by professional coaches and parents paying a ton to see their kids play? No amount of money is worth the verbal abuse we've all likely seen at some games. IN reality, I've actually found the opposite -- there are less issues with the club coaches, players, and parents than with AYSO parents for one simple reason: they understand the rules (for the most part.) AYSO coaches and parents often don't know much at all about the rules of soccer, expect it to be played like basketball (touch a player and they think it's a foul), football (once the ball touches the line, it's out), or some other sport they are familiar with. This often leads to yelling nonsensical things at and towards the refs.

The Types of Soccer Referees

There are basically two types of soccer referees (in a three-man system, which is how we work. I realize there are two-man systems too, but we don't ref that way):

• Center -- This is the guy that is actually on the field, calling most of the shots. His word is law. He's the main referee and the one the other referees report to.

• Assistant Referees (ARs) -- ARs are also called "linesmen" by some, though I don't know if this is a proper term or not. They are the guys on the sidelines ("touch line" more exactly) that wave the flags and call when the ball is out of bounds, what team it goes to, and so on. They are also key to calling offside, but I'm not going to get into that since this piece will really get muddy then. There are two ARs per game -- one on each side of the field.

The Pay

Community soccer (at least AYSO) pays zippo to the refs -- they do it as volunteers to help the community. There is a $1 per game amount that's credited to each ref (both centers and ARs) that he/she can then use to purchase merchandise out of an approved catalog, but we haven't yet had the chance to buy anything as the system is very informal. I'm not sure we'll ever see anything and if we don't, it's no big deal.

Club soccer pays referees. Center refs get more and the pay is increased for both centers and ARs the older the players are. Here are various age groups, what the center ref gets paid, and what each AR gets paid for the club games in our area:

• U8-U10 -- $25 -- $10
• U11-U12 -- $30 -- $15
• U13-U14 -- $35 -- $20
• U15-U16 -- $40 -- $25
• U17-U19 -- $45 -- $30

For those of you looking for a time/cost ratio, you can tell the amount of time in a game by looking at the center ref's pay. That is also the amount, in minutes, in each half of the game. So for a U11 game, the center ref makes $30, so there are 30 minutes in each half (60 minutes for the total game). And unlike other sports most Americans watch, soccer games have a running clock (it doesn't stop for out-of-bounds, fouls, etc.) Granted, some time is usually added on, but when you see a 60-minute game here, it is very close to an hour long (unlike an American football game that has 60 minutes officially but can actually take three hours or more to complete.)

Two other interesting factors are that payments are made IN CASH (not trackable by the IRS for those people who take liberties with their taxes) and before a game (no pay, no game.)

Getting Certified

In order to referee for community games, you need to take classes to 1) learn the rules and how to run a game and 2) certify that you know how to interact with children (appropriate contact, conversation, etc.) These are free to the referees. Upon graduation, you're given a jersey, pants, socks, a whistle, yellow and red cards, a coin (to flip) and you're good to go.

In order to referee club level games, you need to take a US Soccer Federation (USSF) class that certifies you are a valid referee. The lowest rank of these is Level 9 and the highest is Level 1 (which I assume are top professional referees refereeing MLS games and the like.) My son and I went to an all-day, Level 9 class in August. Afterwards, we took the test, passed, and got our badges that certify us as USSF Level 9 refs for one year. The cost of the class was $60 each.

Getting Started

At this point, a new ref would usually buy all his gear -- shirts, shorts, socks, etc. -- but we already had most of our stuff from AYSO. We did buy new, different colored shirts and a few other things, spending $100 total. But we didn't need nearly as much as someone starting from ground zero.

So I took the next step that aspiring refs take -- contacting referee assignors. These are people who assign referees for a team or several teams. By contacting my soccer friend mentioned above as well as doing some web research, I was able to identify three ref assignors in our part of the city that we could potentially work for. Of the three, two didn't really want to work with Level 9 referees (since we're limited to being ARs and can't ref above the U12 age range.) Fortunately, the one ref assignor I did hit it off with was both the closest to our home and assigned for three teams. As such, we were able to get more games and all but one was within a few miles of our house.

The Season

The fall soccer season is September and October in Michigan. We had a commitment the last week of October, so we were up for seven weeks (primarily Saturdays) during the two months. In addition, we decided to referee both AYSO and club games. The former would allow us to serve our community as well as get experience being center refs (AYSO lets both my son and me center games) while the latter would allow us to earn some money while learning the ropes of a new system.

In the end, here are our season game totals:

• 16 AYSO games -- Me 9 as center and 7 as AR, my son 7 as center and 9 as AR

• 19 Club games -- All as ARs for both of us

The Money

Here's how the financials broke down for this season:

• Revenue: For the 19 games I earned $230 and my son earned $235 (we split up one game and his was higher paying)

• Costs: Between the class and the uniforms, supplies, etc., we spent about $110 each (though I paid for most of his stuff)

There were also some miscellaneous costs like gas/travel and a burger here and there, but it wasn't much.

Ok, so we didn't make a windfall this time around (my son did well since I absorbed all the costs), but we had a great time, learned a lot, and set ourselves up for future success. Also remember that the costs are mostly one-time (the shirts) or once a year (the classes) and there are TWO seasons of soccer (spring and fall) in a year. In other words, we have the costs for a full year above but only revenue from half a year.

The Potential

Ok, so what sort of future success can we expect? Let's look at some scenarios.

• Scenario #1 -- Let's assume that we had worked the same number of club games as we actually did (19), but that one of us had been the center ref for each of the games (remember, neither of us were qualified yet to be center refs, but more on that later). I'll assume that person would have earned $25 per game (the lowest amount a center can earn) while the other served as AR and earned the amount I earned. This means one of us would have banked $475 while the other earned $230 for a total of $705 for this season. If we'd do this for both seasons in a year, we'd be looking at $1,410 total per year.

• Scenario #2 -- Let's say we hadn't worked the AYSO games this season and had done club games instead -- both of us serving as ARs. That would have given us 35 games total at a rate of $14.375 per game ($230/16) or $503 total each. This nets out to a total for both of us of $1,006 for a season or $2,012 total per year.

• Scenario #3 -- Let's combine the two above and assume we worked 35 games at the club level -- one as center and the other as AR. This means one of us would have earned $875 while the other netted $503. For the season, we would have earned $1,378 total or $2,756 together for a year.

And there's a lot of potential to earn more. For instance:

• As I said, we were booked (out of town) one weekend. If we had worked it, we could have netted over 10% more games (and thus 10% more pay).

• We didn't work at all on Sundays (only Saturdays -- usually from 8 am until 5 pm or so) since it's our family day. But if we (or someone else) wanted to, we could have added to our number of games BIG TIME and thus our pay as well.

• Since this was our first season, we worked mostly the lower level (and lower paying) games. We could move up in both age and pay as time goes on.

The Future

So, what's next for us? Well, now that we've served one season as Level 9 refs, I'm qualified to take the Level 8 class (which would then allow me to center ref games. BTW, my son is too young to take the class -- he can do so in 2011. Also, this is one advantage of living in Michigan as I believe all other states require you to serve one year between Level 9 and taking the Level 8 class.) I told my son that I would take the class and we'd work next year (both seasons) with me as center and him as AR as many games as we wanted -- and that we'd pool the money and split it (so he could benefit from my higher earnings too.) He thought this was a great deal!

We probably won't realize the amounts in the scenarios above because we probably will keep working some AYSO games to help them out (and to get experience for my son to center ref), we really can't do more games given the amount of time our family is willing to spend on this, and who knows if we can even get enough paid games in the future (do that many really exist for us? I think they do, though I'd have to network with other ref assignors.) But realistically I think we can end up making somewhere in the $1,500 to $2,000 range total per year with expenses of maybe $200 or so. Not bad for a fun activity that gets us some exercise and we both enjoy. And for my son, this is GREAT pay and beats many other jobs he could have.

The Stories

Along the way, we ran into several money-related stories that didn't fit in the above but that I wanted to share with you all. Here goes:

• There were many high school and college kids reffing club soccer games (they were the center refs for the games we were ARs) and they were raking in the cash (I'm sure they weren't claiming this on their taxes, BTW). Sure, they worked all day, both days, every weekend, but they were making great money. Reffing in this manner is something my son could keep doing as he gets older.

• Lots of people ref simply for the money (I assume they like the game too, but the money is their main motivation.) When we took our Level 9 test, they graded the tests right in front of us as we came up to the desk. When one 11-year-old girl passed, she held up her test score and yelled, "Aeropostale, here I come!!" :-)

• On a lunch break between games my son and I went into Wendy's to grab a bite to eat. It was 11:30 am and kinda slow, the people behind the counter saw we were in our ref uniforms, and we struck up a conversation. One asked if we got paid and I told him about the club soccer games and what we made. He said, "Hmmm, that's more than I make." He had a gleam in his eye, so I think I might see him on the field someday soon.

So, what did I miss or get wrong? I'm sure those of you who know soccer refereeing better than I do can find some gaps. If so, please comment below.

Examples of Making Money from Your Hobbies

Turning your hobby into an income is one of my 11 great ways to earn extra money. I've been doing this myself and have a few friends doing the same, so I thought I'd detail those jobs here -- maybe they'll spark some ideas for the rest of you. Here goes:

• My son and I spent Saturdays in September and October making money as soccer referees. I'll be writing a series on how to do this, what we did, what we made, etc. in the future, so stay tuned. I'm sure there's money to be made in refereeing all sorts of sports -- football, basketball, etc.

• A friend off mine is training for the ski patrol at a local slope. He gets a bit of money, discounts on passes for the family, and helps people while doing something he loves.

• Another friend who is an avid cyclist works extra hours at a bicycle shop. He earns a bit of money and big discounts on merchandise simply for talking about bikes and helping customers -- things he loves to do.

• A friend from church whittles basic wooden toys and sells them online. He makes a few hundred dollars a month doing something he'd do anyway.

In addition, a recent Consumerist piece I wrote featured several suggestions by readers of how they've turned hobbies into extra incomes. Some of the ideas listed are:

• Recording demos for local bands
• Residential PC repair
• Become a Notary Public
• Get ordained by the Universal Life Church online for free and marry people

So there are some ideas for those of you wanting to make some extra money. I'm sure many of you are doing this already, so please share your ideas with the rest of us. What are you doing to make money off a hobby (or simply to make some extra money)?

Making Money Off a Hobby

Turning your hobby into an income is one of my 11 great ways to make more money. Kiplinger likes the idea too, saying that in these tough economic times making money off your pastime is a great way to supplement your finances. I agree 100%!!!

I've had success doing this in both writing for magazines as well as starting my own blog (though the income numbers on that post are VERY high), and I'm currently venturing into a new money-making activity: becoming a soccer referee. I hope to write a detailed explanation of what my son and I have done to turn our love for soccer into a side income, but I want to wait until we're actually making money at it. :-) For now, I just wanted to share with you that it's a project we're working on and it appears we'll be earning some (minor at first) cash soon. Ca-ching!

How about you? Anyone out there been thinking of making a bit of extra money from your hobby? What steps are you taking to make it happen?

Make Money As a Career Coach

Smart Money asks if a $1,000 resume can boost your career. What they're getting at is the fact that an ever-growing, expensive array of professional job-hunting services seems to be exploding these days. They'll give you all sorts of advice (for a fee, of course.) The "industry" is now up to $400 million in fees annually -- and showing no sign of declining soon.

On the other hand, maybe this is a money making opportunity for some of us. Just how much can be made? Check this out:

Fees range from just a few dollars for group seminars to $500-an-hour coaching or even—you guessed it—a cut of your salary.

Kinda like "agents" for executives, huh? :-)

Anyway, before I get to my comments, here are a few other facts I found interesting in this Smart Money piece:

• According to career coach Paul Bernard, people should plan for at least a month of searching for every $12,000 to $15,000 they want to earn.

• Some [job seekers] need help rehearsing for the rigorous, multistage interviews now standard in many screenings. Others aren’t sure how to leverage online resources like networking Web site LinkedIn.

• Liz Sumner, the group’s director, recommends that job seekers not just accept the alphabet soup of credentials but also check references and ask for samples of their coach’s work.

• Nothing provokes quite as much angst as creating the perfect résumé—Amazon.com lists over 268,000 titles on the subject—it’s not surprising that a résumé writer is many job seekers’ first hire. When it comes to qualifications, they often tout backgrounds in human resources or recruiting and, of course, those industry certifications. Some focus on senior executives and charge between $800 and $1,500 per résumé, but according to the Directory of Professional Résumé Writers, the majority work with a range of clients, charging an average of $350.

• ExecuNet found that 86 percent of job recruiters said they use search engines to find out more about prospects, while a whopping 44 percent said they’d actually eliminated a candidate based on information they turned up online.

• Like too many CVs, she explains, this [resume] reads like a laundry list of responsibilities rather than a bouquet of specific accomplishments. The document has no “headline” and is woefully short on style—no catchy graphics, shading or boxes setting off the key information. Even the font isn’t right. “Boring,” she says. First, she suggests, we should kick off with a summary of our profession and skills. To play up our accomplishments, we should add the number of “hits” tallied by our online articles, to show measurable results and play up our Web savviness.

• Our presenter is causing eyes to widen as she describes one job seeker who sends Monopoly money with his résumé, along with a cover letter describing how he’d make a company boatloads of the real stuff.

• Role playing. Videotaped practice sessions. Flash cards. All are part of the fun of interview coaching (typical range: $75 to $200 an hour), a key part of many career gurus’ bag of tricks.

• The ideal interview, he says, should be about 80 percent rehearsed responses and 20 percent ad-lib. “You can’t memorize all your lines or you’ll sound like a robot,” says Bernard.

• [How to handle the dreaded-but-popular “tell me about yourself” question]: [The answer] should run about 90 seconds. Start broad, with a quick summary of your professional experience, then drill down to three specific skills, then briefly highlight a few accomplishments.

My take on all of this:

1. If you're skilled, you could make a bundle handing out this sort of advice.

2. If you're not skilled, it may be worth it for you to pay for some of this. After all, if it costs you $1,000 to get a $50,000 a year job you wouldn't have gotten otherwise, it's certainly worth it. Even if it only helps you get hired sooner, it's worth it (if you get hired a month sooner than what you would by yourself, you’ve more than recouped your fees.) Then again, I dish out this sort of advice for free here, so why pay for it? ;-)

3. "Plan at least a month of searching for every $12,000 to $15,000 they want to earn." This means if you earn $50k per year, count on looking four months for a new job. At $100k per year, it's over seven months. I wonder if these stats are based on the past and if the expected times to be hired are longer now given the state of the economy. Then again, these are averages. If you market yourself correctly, you should do much better than average.

4. Rehearse for interviews? Who would have ever thought of that? ;-)

5. Just like you should when you hire any professional, ALWAYS check references. Better yet is getting the inside scoop from someone you know and trust who has used a specific professional.

6. "44 percent said they’d actually eliminated a candidate based on information they turned up online." Yikes! Says a lot about how you need to manage your online "brand."

7. I'm 100% there with the suggestions that your resume needs to be full of quantifiable accomplishments. I'm not so big on creative resumes or over-the-top ways to stand out when applying for a job.

8. "The ideal interview, he says, should be about 80 percent rehearsed responses and 20 percent ad-lib." Yep. I think this is pretty accurate. That said, there's no need to completely ad-lib. You should have at least a general sense of what you'll be saying.

9. Here's my personal take on the "tell me about yourself" question.

The False Lure of Multi-Level Marketing

The following is a guest post from Marotta Wealth Management. I've written on the topic of multi-level marketing a few times, namely with Make Money with Multi-Level Marketing and Maybe Starting a Multi-Level Marketing Business Isn't Such a Bad Idea.

Multi-level marketing (MLM), or network marketing, is a nonsustainable business model because it does not provide a valuable service but simply a product that has been marked up in price.

MLM is based on the faulty premise that as you network with people, all you have to do is find a few individuals who are excited about the idea and want to join the pyramid. You will get paid not only for your own sales but also for sales in your downline, those under you in the pyramid, all the way to the seventh level.

So theoretically, even if you only recruit two people and they only recruit two people, by the time you reach the seventh level, you will have 255 people in your downline supplying you with commissions. Sadly, nothing could be further from the truth.

First of all, only a limited number of people will be attracted to MLM. Think of fishing for recruits to join your downline like offending all of your friends, neighbors and relatives and seeing who can tolerate it. Most people can't take the constant rejection. The few who can stand being rebuffed can only handle it from someone who is not a close friend or family. Building a relational business model with acquaintances and strangers is not possible.

The few who do respond will be more motivated by the money-making opportunity than the product. And when the hose doesn't flow with cash, the average recruit opts out of the scheme after three months.

With half of your people dropping every quarter, you can't build a business. No matter how hard you work, you'll spend all your energy looking for new people and training them. Burnout is pervasive. Although some MLM participants try to automate the process through audio and video pitches, this strategy simply removes the personal touch required to persuade newcomers. Million who have tried are shamefully quiet about their lack of success. It is like trying to fill a bucket with no bottom.

Even if you could draft sufficient numbers of people, you still would not be actually running a business. True businesses add value to people's lives. If you leave the pyramid, it is irrelevant. Everyone still gets the product. Your presence in the pyramid doesn't add any value, either to the company or to those buying from it.

You don't actually take orders, which typically are transacted online. And you don't actually sell a product or services. People are lured into MLM schemes because supposedly they won't be required to sell. They're told they can simply cash the check, which sounds like a very attractive option. Unfortunately, many people inexperienced in business believe that's what business owners do.

Nothing could be further from the truth, however. Real businesses sustain themselves by making a genuine contribution to society. The more real value they can offer, the more people are willing to pay for it. Every successful business owner knows that to stay competitive, you have to be thinking all the time about how to add more value.

Most MLM participants gross very little. In many cases, the money they earn doesn't even cover their own use of the product. It certainly is not enough to compensate them for their time and expenses even at the minimum wage. Many lose substantial amounts by purchasing additional tools that promise to boost sales and numbers of recruits.

Because it requires more of your time and effort, MLM is even less sustainable than buying lottery tickets. The few successes are simply those positioned at the top of the pyramid who collect from the endless recruiting hopefuls churning at the bottom.

True entrepreneurship, in contrast, is decidedly worthwhile. Many people with a high net worth made their money by starting and running a business. Along with the satisfaction of hard work well done, successful business owners enjoy a plethora of financial and tax-planning opportunities as well as the satisfaction of seeing their vision made real.

Hundreds of legitimate business opportunities are available for entrepreneurs who want to build companies that provide real value. But entrepreneurship is for those who feel empowered by hard work, not those trying to escape it. There are ways to find the right business adventure to sustain a lifetime of hard work, but MLM will always be a distraction from a genuine vocational calling.

How to Make a Living as a Super Hero

Ok, indulge me a bit.

Some background: I was a HUGE comic book fan when I was a kid. My dad would take me to the local drugstore and we'd have a cherry Coke and he'd buy me five or six comic books (I think they were 25 cents each then -- maybe 50 cents). I'd then spend the next several hours reading stories about my favorite super heroes. Batman was my favorite (because he didn't really have any special/alien/unbelievable powers thus he was more "realistic" to me than the others), but I also liked Superman, Spiderman, and a few others.

Now wouldn't it be great if I could earn a decent living while "being" a super hero. Turns out I could -- or so it seems -- if I wanted to move to Hollywood.

I recently watched a documentary titled Confessions of a Super Hero. It details the lives of four would-be actors that dress up as super heroes and walk Hollywood Boulevard. Tourists then take pictures with them and tip the heroes for their "services." Here are the economics of the job as well as my general thoughts:

• The Superman character says at one point that he makes $200 to $300 a day and "$595 on a good day." (I believe I'm quoting accurately.) At $250 per day, five days a week, for 50 weeks a year, this would give him and annual income of $62,500. In addition to this, the piece says they do birthday and Christmas parties, so maybe they make additional amounts in other ways.

• The Superman character also claims to have $1 million in Superman collectibles. This seems to be a big stretch if you watch what he has, what the collectibles look like, and the fact that he's not living in our world (see next comment).

• This said, all of these people: 1. live in California, a high cost-of-living state, so $62k doesn't go as far as it does in Indy, 2. appear to be living lower-class lifestyles (evidenced by their homes, clothes, etc.), and 3. are likely either liars or delusional (watch the film and you'll see that especially the Superman and Batman characters aren't totally in reality.) So maybe they really make $20,000 a year and are barely getting by.

• In addition, the Batman character works security "once the summer is over." So maybe it's a summer-time only gig? If so, it's not anywhere near $62k a year.

• Could you do this anywhere else other than Hollywood? Probably not full-time. But maybe you could make a decent side income by doing parties as Batman, Superman, etc. $300 per party for 10 Saturdays a year is $3,000 easy money (IMO.)

So, if you've always wanted to be a super hero, maybe you can be. And make a decent income/side income in the process. :-)

Top Ten Online Marketing Success Tips

Want to make some extra money with your own online business? Here are some great tips to help you get started. The following is excerpted with permission from e-Riches 2.0: Next-Generation Marketing Strategies for Making Millions Online by Scott Fox (AMACOM 2009).

Here's a summary of how Scott Fox recommends that you reorganize your marketing efforts to take advantage of the largest and most cost-effective marketing platform in history: the Internet.

1. Graduate from web site-centric marketing to “distributed engagement.” Market your “product presence” across the web's many sites, platforms, and communities. Engage with customers to create fans of your brand and a sales-enhancing “reputation cloud.”

2. Reprioritize your marketing tactics to support consistent online content publishing on your web site and across the many new platforms available inexpensively online. Today distributed engagement via email, RSS feeds, autoresponders, social networks, and social news sites, allows you to inexpensively nurture your best customers and recruit new ones into your audience. Start collecting e-mail addresses yesterday.

3. Explore social networks and social bookmarking. They can “magically” better connect you to your current customers and introduce you to highly targeted new audiences.

4. Blog if you have something to say that will make you more money. Otherwise be quiet. Spend your time commenting on other people's blogs instead.

5. Learn how the Internet has changed the rules of public relations. Don't chase reporters with press releases; use news leads services to make publicity opportunities come to your email inbox automatically.

6. Give away as much of your product online as you can afford. Share your expertise through article marketing and “freemium” giveaways to attract as many eyeballs as possible.

7. Leverage new online broadcast platforms. Online video, Internet radio and podcasting, and teleseminars offer new promotional “broadcasting” opportunities much less expensively than twentieth century TV and radio ever did.

8. Put the huge reach of search engines and affiliate programs to work promoting your business. Both are cost-effective strategies for reaching new customers.

9. Establish key performance indicator (KPI) metrics to measure your traffic and sales growth. Evaluate your marketing program regularly to ensure you stay effective.

10. Differentiate or die. Use online research tools to identify holes in the market that your company's products and marketing messages can fill profitably.

--------------------------------------------------------

For more money making tips, check out 11 Great Ways to Earn More Money.

Examples of People Who Have Turned Their Hobbies into Incomes

I've listed turning your hobby into an income as one of my top ideas for making more money. And I've even suggested three steps you can take to make money from your hobby. But what I like best are examples of how people turned their hobbies into money making ventures. That's why I had to post on this piece from Yahoo. It details five people who combined their hobby with the web to develop an income-producing business. These include:

• Michael Parayno, a lifelong tinkerer, began building off-the-wall birdhouses in order to get rid of the wood from his decommissioned garden fence. Neighbors took notice, and he began selling the handmade birdhouses right off his front yard. That was over a decade ago. Today, the Berkeley birdhouse guy owns a lucrative business selling hand-crafted birdhouses.

• The Snyder family offers a one-stop shop for vintage pinball restorations and sales. To reach their small but passionate market of pinball wizards, the Snyders operate both a brick-and-mortar store and an Internet storefront.

• Jellyfish have special needs. The gorgeous and ethereal creatures have eluded standard fish tanks, which lack the technology to keep them alive. Until Alex Andon, a laid-off biotechnology worker, developed the means to keep jellyfish alive in captivity. Evidently, there's a market for pet jellyfish: A restaurant was among the first in line for a tank. Price tag: $25,000. Cool factor: priceless. With several charter clients under his belt, Andon is developing his hobby into a business selling desktop jellyfish tanks for a comparatively affordable $249.

• Parents charged with entertaining a roomful of pint-size partygoers will be thrilled to discover Teddy Bears to Go, which hosts teddy bear-stuffing parties for children. Lisa Roby, a single mother of two, started the small business when she lost her advertising job. Her new labor of love suits her just fine: "It's the most wonderful job I've ever done," says Roby. "It's so rewarding."

• Animal lovers have a wealth of opportunities to transform their passion into a business. Linda Callaway found her niche market in owners who have lost pets. Her four coonhounds have a knack for tracking lost pets. And Callaway has discovered a knack -- and the resources -- for turning the dogs' noses into a small business.

It's taking all the willpower I can muster not to comment on the pet detective business. :-)

But seriously, look how varied all of these businesses are. And who would have thought that most (any?) of them would ever become a viable business. But these people took their love for something (building, jellyfish, pinball, etc.) and combined it with technology to make a business. They get to do what they love and make money. Kinda cool, huh?

And even if your specific idea/hobby doesn't turn into a full-time job, that doesn't mean it can't generate some useful extra income does it? An extra few thousand dollars would come in handy for most people, and if it's something you enjoy doing, you're really earning money for having fun, aren't you?

My son is starting to see the value in this concept: $20 per game (not what he's earning now but what he's working toward) as a soccer referee times 25 games per season times two seasons a year (spring and fall) is $1,000. Throw in a few tournaments and he's close to $2,000 earned for doing something he enjoys. Beats flipping burgers at McDonald's by a long, long way.

Make Money by Becoming a Wedding Planner

I've posted on the huge costs of weddings these days ($27k on average according to this Smart Money piece on 10 things your wedding planner won't tell you.) In addition, I've posted on seemingly simple tasks where people can earn a decent amount of money: mowing lawns, walking dogs, becoming a referee and so on. So in this post, I want to connect the ideas -- weddings cost a fortune and you can make some extra money from this fact. How? By becoming a wedding planner!

Here's the good news -- you're qualified for the job! The details according to Smart Money:

Since wedding planning requires no formal training, anyone can hang out a shingle, and a growing number of former brides are doing just that. “Many enjoyed the planning process themselves and have made it their living,” says Claudia Hanlin, founder of consulting boutique The Wedding Library.

And the even better news is -- you can make a good deal of money being a planner:

Planners now offer tiers of service, from full (meaning they manage the entire process from start to finish and charge about 10 to 15 percent of the total wedding budget) to partial (they select the photographer, caterer, and other vendors for an hourly rate of, say, $25) to day-of (they oversee the event as it happens, usually for a flat fee—though there can be a hefty hourly rate tacked on if the wedding runs over time).

Ten to 15% of a $27k wedding is $2,700 to $4,050. $25 per hour isn't bad either. Do a few weddings a year and you have a very nice side income!

Finally, you can add even more to the earnings by picking the right type of weddings to plan:

With an increase in multicultural and interfaith weddings, consultants are cashing in on the opportunity to incorporate more than one tradition into a single event. Just how much are these twofer ceremonies costing couples? They add roughly $10,000 to the total amount, after factoring in additional dresses, tents, and extra cocktail hours, Rohrer says. And that’s just for one-day affairs, never mind those that run two days or longer.

Oh yeah, baby, bring on the "mixed" marriages!

Ok, I've had my fun. It's likely that Smart Money embellished many of their comments to make the piece more interesting -- they usually do in these "10 things" articles. Then again, it's a fact that weddings are expensive, there is relatively little oversight of wedding planners, and you can make a decent wage organizing an event (and you can likely get it down to somewhat of a science -- with forms, details, the same suppliers, etc. -- after awhile). So, why not consider it as a way to supplement your income?

Three Steps to Getting the Most from Your Credit Cards

The following is excerpted with permission from The 1-2-3 Money Plan: The Three Most Important Steps to Saving and Spending Smartby Gregory Karp.

A credit card is like a loaded handgun. It's not the tool that makes it good or bad. It's the user. That's why credit cards, as a payment method, deserve their own section in this book. They can be a convenient and even lucrative form of payment, or they can be disastrous. They are, at once, good and evil.

Maybe the single-biggest advantage to credit cards is being able to use somebody else's money—that of the bank issuing the card. Think about it. When paying with cash, checks, and debit cards, you're putting your money at risk in the transaction. With credit cards, you put the bank's money at risk. You can dispute a charge and the bank has to fight with the vendor. Meanwhile, you don't pay. If a card is stolen, you just report it. Your cash is not vulnerable.

Used well, the credit card is the only form of payment that builds your credit history so you can obtain lower rates on other products such as auto loans and insurance. Credit cards also provide rewards, such as cash, airline miles, or merchandise points. Some offer extended warranties on products purchased with the card and other perks that vary among cards.

At the same time, credit cards carry the biggest downsides of any payment method. Namely, consumers frequently spend more when they charge purchases, as we said previously, and many incur outrageous finance charges that sometimes top 30 percent. Late-payment and over-the-limit fees are also punitive. Those disadvantages, if they apply to you, dwarf any advantages of credit cards.

If you are philosophically opposed to credit cards, I have no problem with that. Don't use them. Just realize you're forgoing some convenience, consumer protections, and rewards that credit cards provide. But if you spend less as a result of using cash only, you could be adequately compensated for your philosophical stand.

Here's how to get the most out of your credit cards.

Credit Cards, 1-2-3

1. Never carry a balance.

2. Know your perks.

3. Maintain your card.

1. Never Carry a Balance

Never is a strong word. But carrying balances on credit cards from month to month is so destructive to your finances that it's worth using strong language.

For those who carry a credit card balance from month to month, credit cards can be downright evil. Interest rates can easily top 20 percent and push toward 30 percent, which is outrageous. You could be in big money trouble if you're paying only the minimum payment each month. It's wildly expensive.

So, paying high interest on credit cards, if you can possibly avoid it, is foolish. If you regularly carry balances, you have already figured that out.

Yet, nearly half of American households carry a balance from month to month, according to the Federal Reserve. You can view this statistic a couple of different ways. First, it's shameful that almost half of American households are borrowing money on their credit cards, with many paying outrageous interest rates. That's even truer if much of the balance includes dinners out, unnecessary electronic gadgets, and other highly optional charges.

The second way to look at the statistic is that half of Americans carry no balance at all. So, if you justify having a balance "because everybody does," it just ain't so.

Also, don't take comfort in reports that say the average balance on credit cards is $10,000. MSN Money columnist Liz Pulliam Weston is the foremost crusader against this so-called fact, which originates from CardWeb.com. It has been reported by the media literally hundreds of times in recent years. CardWeb.com reported that in 2007 outstanding credit card debt was $9,840 per household. Weston points out that the number only includes households that have a credit card, which eliminates from the average all those households with zero balances because they don't have cards. The stat also includes business credit cards, which can have huge balances, especially with business travel. What business credit card balances have to do with household debt, I have no idea. Just as important, it reports the total balance as a snapshot, regardless of how many of those people paid off the balance before incurring finance charges.

The point is, not everybody is carrying credit card balances, and you shouldn't either.

As I alluded to earlier, part of the reason people run balances on credit cards is because credit cards don't seem like real money. Handing over plastic to a cashier doesn't stimulate the same emotional pain as handing over a fistful of twenty-dollar bills. Indeed, studies have shown that consumers spend more with credit cards than cash, which explains the growing presence of card readers at every retail cash register. Retailers want you to overspend.

So, even people who pay off balances every month could be overspending just by virtue of the payment method they're using.

2. Know Your Perks

Despite all those negatives, credit cards have advantages—for "deadbeats." You would think credit card "deadbeats" is a term for people who don't pay their bills. But, in fact, deadbeats are what credit card companies call customers who pay off their balances each month. These customers don't pay the issuer any interest or fees. In essence, they give themselves a free ride by enjoying all the advantages of credit cards and suffering none of the downsides. Don't feel too sorry for credit card companies, though. They still make money from the merchants you buy from.

Being a credit-card deadbeat is a good thing.

One of the advantages of credit cards is they help establish and maintain your credit rating, which translates to real money. You can get less-expensive mortgages and car loans when you have a better credit rating. And you might even get cheaper auto insurance, as some insurers now use credit ratings in determining your premiums.

Another huge benefit is putting the credit card company between the merchant and your cash. That's why it's best to use a credit card for online and mail-order purchases in case a dispute arises.

Cards have many fringe benefits too. Most people overlook these perks. They include purchase protection, extended warranties, merchandise discounts, travel insurance, rental car insurance, price protection, lost luggage help, favorable exchange rates on foreign currencies, and others.

I won't go into details about these offerings because they vary by card. But make a note on your to-do list to investigate all the perks of credit cards you carry in your wallet. You can read about the benefits online at the card-issuer's Web site or call the phone number on the back of your card and ask, "What are my card perks?"

Quick Tip: Merchants can't require a minimum purchase for using a Visa or MasterCard credit card. A provision in their agreements with card companies requires them to accept charges of any amount. Of course, there's not much you can do about a merchant refusing to make a small sale, except report them to the credit card company.

3. Maintain Your Card

Maintaining your card doesn't mean keeping the card free of fingerprints or making sure the signature on the back is legible. It means continually negotiating better terms on your credit card account.

One secret of the credit card industry is this: As bad as card issuers sometimes treat their customers, they hate to lose them.

It's very expensive to acquire new customers. So, threatening to stop using the card—or better yet threatening to transfer your balances to another card—can be effective with customer service representatives on the phone.

The point is you have leverage. And you should use it at least annually to improve the terms of your deal with the bank issuing the card. This remained true, even after the credit crunch that began in 2008.

The first thing to do is ask your card issuer for a better interest rate, even if you don't carry a balance. That's because, for better or worse, credit cards are a short-term source of funds. You never know when you might have to break the cardinal rule of "never carry a balance."

Call the number on the back of the card, and just ask. If you're unsatisfied with the answer, ask for a supervisor. Still not satisfied? Call back in a few weeks and do it again. The better payment history you have, the more likely you'll succeed.

The next thing to do is call back and ask for a higher credit limit. This is a tactic discussed earlier about how to improve your credit score. Be sure to ask, "How much can you raise my limit, without pulling my credit report?" That's because an official inquiry into your credit report could temporarily lower your credit score. You're looking for something for nothing here. The point of raising your limit is to improve your credit score by lowering your ratio of credit used to your credit limit. A secondary reason for raising your limit is to avoid over-the-limit penalty fees, if you're the type of person who nearly maxes out your credit cards.

Quick Tip: Speaking of maxing out, if you're at the video store wondering which blockbuster to rent next, head over to the documentary aisle and check out the 2007 movie, Maxed Out. It's a disturbing and enlightening exposé on how credit card companies prey on the weak in society. In fact, their profits depend on it.

The final thing to ask your credit card company is for fees to be waived, even if it's your fault. If the card company hits you with a $40 late-payment fee or over-the-limit fee, call up and just ask for them to waive it. If you're a good customer and it's your first slip-up, they will almost certainly waive the fee. It's worth a phone call.

I Got My New Schwab Visa

Just a quick note to let you all know I received my 2% Schwab Visa credit card this past weekend. I called to activate the card, then called another number (a pain, why couldn't it be the same number?) to link it to my Schwab brokerage account. Now I'm ready to charge away!

I'll keep you all updated on the card if anything interesting occurs. I'll also periodically comment on how I'm transitioning my other cards (still working on those details.)

I Guess My Chase Freedom Card Isn't Changing (Or Is It)?

After all the talk about what is and isn't happening to the Chase Freedom credit card's rewards structure, it appears that nothing is changing for me. I received my $250 rewards check last night ($200 in rewards earned plus the $50 bonus) and the letter with is said the following:

Remember, with Chase Freedom for checking customers, you earn 3% cash back automatically in the top 5 Everyday categories where you spend the most each month. There are 15 categories in all! Your spending habits may change from month to month -- the triple rewards you earn for them will stay the same. You also earn 1% cash back for every $1 in purchases you make everywhere else. Just continue to use your Chase Freedom credit card for all your purchases, and you'll be on your way to another great reward!

A few comments:

1. I do have a Chase checking account and because I've linked it to my credit card, I get 3% on five categories versus the standard three categories for non-Chase customers.

2. No mention of any term or reward changes. Is this because I'm a Chase banking customer? Or maybe it's because of some other reason? Others have had changes, why not me?

3. But are there really no changes? This WSJ piece seems to indicate there will be changes for all Freedom cardholders in the future.

4. I'm still going to switch to the Schwab 2% card (my application has been sent in) since I sometime bump up against Chase's $12 max cash bonus rewards when using the Freedom card as my main one.

5. I'm still working on how to manage the transition between the Chase Freedom, Amex Blue Cash, and Schwab cards so I maximize my rewards this year.

6. I want to minimize the cards I carry with me. Currently I have a money clip that allows four cards to be carried on the back. I now have: my driver's license, the Blue Cash card, my Costco membership card, and the Chase Freedom card. I'm thinking of moving to the following: my driver's license, the Amex card that combines with my Costco membership card, the Chase Freedom card, and the Schwab card. But the final decision is yet to be made.

Eight Bad Ideas that Made a Ton of Money

Here's a list of eight "bad" ideas that made a ton of money for their founders:

• Selling property on the moon
• Fake wishbones
• The Million Dollar Homepage
• Pet Rock
• Garbage Pail Kids
• Prairie Tumbleweed Farm
• Mood Ring
• Chia Pets

Ok, so these might be "bad" in the sense that they don't add much value to society, can be in poor taste, and are sometimes a clear rip-off, but if they made a ton of money (which means both the buyers and sellers won -- that's what makes a transaction in our economy), who's to say they're really "bad"?

I remember several of these. I had a pet rock, but instead of paying for one, I simply went outside, picked up a rock, and made it my "pet." Ha, I was cheap even as a kid! One good thing: that rock was much less costly than most pets. :-)

I have a lot of bad business ideas. I wonder if the next one will be today's fake wishbone or property on the moon.

Update on My Chase Freedom Credit Card

I received my Chase Freedom Visa bill last night and I did NOT receive the notice that others are getting about the reduction in benefits. Maybe I missed it last time or maybe Chase is dividing their customers into groups -- some getting reduced benefits and others not (I am a Chase checking customer and one hypothesis is that you're exempt from the changes if you have a Chase Checking account.) Anyway, I'll let you know if something changes on this front.

However, there was some other interesting information on my statement. As I told you, I was doing all I could to charge in May so I'd hit my $200 rewards level in case the bonus $50 went away as some said it would. I not only hit $200, I blew past it. But in doing so, I topped out on the 3% rewards level, which is $12 in total cash back per cycle. Here's a look at the numbers:

• Total charges: $2,594.42
• Rewards earned on purchases: $25.74
• Bonus earnings on top purchase categories: $12.00
• Total rewards: $37.74
• Percent cash back: 1.45%

A few thoughts/comments:

• To note, Chase gives 1% back on every purchase, then an additional 2% (for a total of 3%) on top purchase categories. My top categories were internet connection (ISP), drug stores, gas stations, grocery stores, and telecommunications.

• Not sure how much extra I would have earned if the $12 limit had not been there (I didn't want to add up line by line), but obviously it would have been more.

• If I would have had the Schwab 2% card, I would have earned $51.89 this period -- without having to play games/make a special effort to maximize my rewards.

• Remember, a key part of the Chase card is that I get a $50 bonus if I wait until I get $200 in cash back before I redeem my rewards. This extra $50 is what makes the Chase card competitive with other options.

• I will redeem my $200 (plus $50) tonight just to make sure I don't get kicked out of the program and lose it.

• If I stay in the current Chase program, I'll likely move to Schwab as my main card (and the only card for my wife) and MAYBE use the Chase card for only 3% category purchases. I HATE carrying more than two cards and having the Schwab card as a main one and an Amex for shopping at Costco are my two. Maybe I'll ditch the Amex card.

Anyone get a notice from Chase since my last posting? Anyone using the Schwab card? Thoughts on it?

Does Anyone Use the Discover Card?

Now that the American Express Blue Cash card is changing its terms and the Chase Freedom card appears to be doing the same, I'm on the hunt for a new cashback credit card. I think I'll land on the Schwab card, but I have a couple questions for all of you before I take the plunge:

Does anyone use the Discover card? If so, does it deliver a good amount of cash back?

I never hear the Discover card mentioned among the best cash back credit cards, so I'm assuming that it's average or maybe even a bit better. Besides, doesn't the Discover card take the main negative of American Express (not accepted in as many places as Visa and MasterCard) and put it on steroids? It seems to me that many of the places I shop don't accept the Discover card.

Any Discover lovers/users out there? If so, I'd love to hear your thoughts on the value of this card.

What I'm Doing Now with My Credit Cards

Since the credit card companies are making all sorts of negative changes to credit card rewards programs and, in particular, my two favorite cards appear to be casualties in this effort (Chase Freedom and American Express Blue Cash), I'm going to have to make a few changes. Here is what I'm currently doing/thinking regarding credit cards (BTW, I'm still holding to the principle that I want to carry one main credit card -- not five or ten to maximize rewards):

1. I think it's all over for the Chase Freedom card. If they are going to both rotate the categories that get the bonus amounts (I only spend anything of consequence in three or four of their 15 categories anyway) AND eliminate the bonus $50 when you redeem $200 in rewards, they're history in my book. Lucky for me, I'm close to $200 and should hit that level this month or in June for sure, just in time to redeem by $200, get the $50 bonus, and then stop using the card. As you might expect, I'm charging all I can on the card this month to try and hit the $200. The change away from this card will be a hassle because I have several auto-pay bills set up on it, but that's the way the cookie crumbles sometimes.

For those of you in the same boat, here's a way you can rack up charges without them costing you anything:

• Buy US gold dollars under the free shipping program. $500 (or more) gets you $500 (or more) in cash plus counts as rewards for your card.

• Buy gift cards for grocery stores. Let's face it, we all eat. So what about buying a $500 gift card from your favorite gorcery store? It will count as a food purchase so you'll earn 3%, plus you can spend the $500 in later months as you do your regular grocery shopping. For that matter, you could buy your entire year's food purchases in gift cards now to get you the rewards you need.

• Buy other gift cards at grocery stores. Our grocery store sells gift cards for Logan's restaurants, Home Depot, and a variety of other places I shop. By buying gift cards at the grocery store for things I'd already buy, I get the 3% grocery store reward level. Granted, I then have to manage a bunch of gift cards, but we're in a tough spot here -- racing against time.

2. I've applied for a Schwab card. A straight 2% back these days looks like a fortune. They were already close to the top in my recent rankings of the best cash back credit cards, and now they're the leader by far.

3. If Schwab should pull back on their rewards (which they've said they aren't going to do), I'll probably go back to the American Express Blue Cash card. They were tops in my ranking and while they've cut back a bit, it isn't that much.

4. If the whole thing implodes and credit card rewards go bye-bye, it won't be the end of the world. Sure, a few hundred dollars a year in free money is nice, but if it all goes away, I'll live.

How about you? Are you doing anything different with your credit cards given the changes companies are making?

Dog Walking, Pet Sitting, and the Money You Can Make

I recently posted a piece on how to make six figures walking and watching pets. During the conversation that followed, I ran into J.D. Antell, author of The Dog Walker's Startup Guide. I asked J.D. to write a guest post on the subject of making money on pets, and he's obliged with the following.

First, I’d like to create a distinction between a pet sitting service and dog walking service. The two have been used interchangeably for far too long and there are major differences between the two you should be aware of. When I started out back in 2001 I offered both pet sitting and dog walking services. Over the course of the seven years I was in business I recognized that dog walking offered the biggest return on investment (ROI). That's when I decided to exclusively offer only dog walking services.

Pet sitting, as it’s known, really began to take hold back in the late 80s and early 90s. Why then? Americans simply started caring more about their pets and decided that leaving ol’ Rex in a kennel for a week or more just wasn’t fair or humane. During that time some entrepreneurial pet lovers decided there was a market for “pet sitting services” and created businesses that served that need, and pet owners began to respond! Slowly at first, but in larger numbers as the concept became known. Thus the pet sitting industry was born. Before you decide to start your own pet sitting business consider some of the key differences between the two.

Dog walking, differs considerably from a traditional pet sitting business and offers a very real solution for those who need a more flexible schedule. Pet sitting is about pet visits: feeding the cat, bird, dog, or fish, making sure they have fresh water, making sure the owners house is still standing, watering plants, taking in mail, taking the dog out for a potty break or a walk and some companionship. Pet sitters take care of many different types of animals from domestic “pets” to live-stock. But here is the clincher: the hours are pretty much 3 to 4 blocks of time in each day: early morning, noon, late afternoon, and an evening tuck-in. Pet sitters work very hard and need to be out most of the day with brief 1-2 hour blocks of down-time.

In contrast, a dog walker’s job, focus, and service is very different and the hours are much more conducive to stay-at-home parents, students, and retired persons. Dog walking is a more zen-like business model, provides a steady predictable income, and your customer base is much, much larger.

How Pet Sitting Services Came to Be

Our world has experienced changes to its neighborhoods and subsequently its municipal laws; and it’s not just us humans who have felt the impact of urban sprawl. In most communities it’s now against the law to let your dog roam free or be left out in a yard all day. This was what people used to do with their pets when they went to work all day; and what we’ve seen is a growing number of commuters needing to hire dog walkers to take their dogs out during the day.

I heard somewhere that commute times have increased something like 200-300% in the last 20 years—plus there are far more dual earner households with nobody at home to take care of the dog. Unfortunately, dogs’ bladders haven’t kept pace! It’s now practically impossible to own a dog and go to work unless you hire a dog walker, which is why it’s such a hot business to get into.

A dog walker can walk about 4 dogs in two hours (and more if you offer group walks or outings) at $15 per dog that’s $60+ for a couple of hours work. Most stay-at-home parents can squeeze in at least 4 hours of work per day so let’s just make that an even $120. So for a part-time job you can earn $600 or more per week! That’s some serious supplemental income. Need a full-time income? Well, just do the math!

So the long and short of it is: if you are looking for a relaxed and flexible business with practically unlimited income potential then dog walking might be your answer. Combine that with a great way to get exercise and stay healthy-- not to mention working with the best stress relievers on the planet, and you've got a recipe for success!

Interview with Schwab about Their 2% Cash Back Credit Card

With both the American Express Blue Cash and the Chase Freedom credit cards lowering their cash back rewards recently, I'm of the impression that the relatively new Schwab Visa cash back card is the new king of the hill (FYI, it wasn't far back before in my analysis, but since the others have cut back and Schwab hasn't, it's the best cash back card now IMO.) I have a contact at Schwab's PR firm, and she set me up for an email interview with Schwab Product Manager Marjorie Scott who answered the following questions for me. As you can see from my first question, I wanted to be sure they weren't going to change like the others. Here are my questions and Marjorie's responses:

Are there any planned changes to the Schwab Visa that would reduce the current level of rewards?

There are no plans to change the Schwab Bank Invest First Visa credit card rewards program. With the Schwab Bank Invest First card, you get unlimited 2% cash back on all purchases automatically deposited monthly into a Schwab One brokerage account. And there are no cash back limits, merchant categories, or minimum purchase amount to receive the cash back.

What are the criteria for getting a Schwab card? Do you have to open a brokerage account or will some other account do?

The cash rewards is deposited into a “Schwab One brokerage account” monthly, so in order to get the 2% cash back the cardholder does have to have a Schwab One account and it needs to be linked to their credit card. Only a Schwab One brokerage account is eligible to receive the cash back.

Do you have to fund the brokerage account with $1,000 or is this waived if you apply for a card too?

Yes, the minimum $1,000 requirement to fund the Schwab One brokerage account is waived when it is opened with the Invest First card.  Also, the Schwab One brokerage account has no monthly service fees, low-cost trading, plus 24/7 online and customer support.

How does this work since it appears the forms to apply for both a card and an account are separate and are sent to separate places?

When you apply online or over the phone for both a card and a brokerage account, the Schwab One account is automatically linked to the credit card account. However, paper applications are processed by two separate areas. Once the client receives their Schwab One account number, they can call us or go online to link the account to the card. This will meet the criteria and waive the minimum balance requirement for the Schwab One account.

Anything else you’d like to add about the card?

The Schwab Bank Invest First card has no annual fee or foreign exchange transaction fees. Simply put, with the Invest First card our clients get the most from their credit card by helping them save as they spend with 2% cash back on everyday purchases like gas, groceries, etc.

-------------------------------------

So there you have it, straight from the source. Thought you all would like to know.

I realize that Fidelity also has a 2% cash back card, but unless I'm wrong, that goes into an IRA. I don't have an IRA with Fidelity and don't want one. I'd prefer to have my cash back in cash back to me, not locked into an account for 20 years. As such, I'm listing the Schwab card as tops in my book.

How to Earn Some Extra Cash

Yahoo recently listed the following tips for getting some extra cash as follows:

• Sell Your Stuff Online
• Be a Shopping Spy
• Operate a Call Center From Your Home
• Tutor Students
• Join a Street Team
• Walk the Dogs
• Be a Babysitter
• Write for the Web
• Make Your Hobbies Pay Off
• Sell Your Unwanted Gold Jewelry
• Adjust Your Tax Withholding

Hmmm, this list looks rather familiar, doesn't it? :-)

I've covered most of these tips previously, but there are some that deserve another plug. Here they are:

• Make a Good Side Income by Mowing Lawns - I'm amazed at what people can make by mowing yards. Guess I shouldn't be after seeing what most people pay to have their yards kept.

• Make Six-Figures Walking and Watching Pets - Another amazing way to earn money IMO. When I get close to retirement, I think I'll start mowing lawns, walking dogs, and refereeing games on the weekend. I should be able to make a GREAT retirement salary doing these things alone.

• How to Become a Mystery Shopper - In case you're wondering about details on  this money-making idea.

• Three Steps to Making Money Off Your Hobby - Maybe a way to love your work?

Is the Chase Freedom Card Cutting Benefits too?

I recently talked about how the American Express Blue Cash card is cutting its benefits and, as a result, how I'm going to change my main credit card. I had planned to change to the Chase Freedom card, but a reader left this comment:

You may want to reconsider your decision - I just got a letter from Chase about changes to my Freedom card rewards. As of June 30 on my card, no more 3% on the top everyday categories each month; they are changing to a rotating category selection like Discover. They are also discontinuing the $50 bonus when redeeming $200 in rewards.

So basically you will be getting a straight 1% rewards on purchases, with bonus rewards on whatever the current category is. I assume this is going to be rolled out to everyone sooner or later; I have a Visa Signature card and mine takes effect June 30.

Then, I had another reader leave the following comment on another post:

Chase Freedom is dropping (or changing) its 3% rewards for current customers. I got a letter in the mail today.

The letter reads: "The triple cash back rewards you earn on Everyday spending categories will no longer be available. However, there will be opportunities to earn 3% cash back in new spending categories throughout the year."

I'm not sure exactly what they have in mind, but I may be shopping for a new card. The 2% from Schwab is looking better.

I've had a few other emails on the issue as well including these photos from a reader. They clearly show that changes are coming.

I CALLED Chase last night (I have a card myself), told them what I had been hearing, and asked if these changes were true. The young lady on the other end seemed unsure of herself, so I'm not sure she really knew if there were changes or not. But she looked through her computer records, then also asked her supervisor. Neither of them had heard of any changes with the Chase Freedom card. I asked if maybe the changes were for just some cardholders and she said that when Chase makes changes they usually impact everyone holding that specific card. Hmmmmm.

I'll receive my next statement at the end of May, so I'll certainly be on the lookout for any extra information from them.

Anyone else heard anything about this? True or not true? If true, it looks like I may need to get the Schwab card.

I'm Changing My Main Credit Card

As many of you know, I've used the American Express Blue Cash credit card as my main card for several years. It's earned me a good bit of extra income and I've labeled it as the best cash back credit card. I've even recommended it to many people. Well, the king is dead and I'm moving on.

I was tipped off by a reader's comment, did a little searching and then ran into this page. I hadn't seen this in my statements (did they even tell me?), but I assume it's true (I couldn't find anything on their site.) The detail that hit me hard was this one:

After the first $6,500 of purchases made annually on the Card, the rebate is changing from 1.5% to 1.25% for all Eligible Purchases (except for those at supermarkets, drug stores and automobile gasoline stations, which will continue to earn a 5% rebate as described below).

So, they're taking down the phase 2 rebate for "all other" purchases from 1.5% to 1.25%. And since the Blue Cash card barely won the competition for the best cash back credit card when the rebate was 1.5% (and then only won on a few tie-breakers), it's now no longer the champion IMO. I'll be moving all my charges to the Chase Freedom card asap and only using the American Express card at Costco. It's a shame, but is a sign of the times -- card issuers are getting tougher and tougher on rewards.

Unfortunately, this will put a kink on my earnings for 2009 as I already have a good amount charged on the American Express card. I'll probably use it for gas, groceries, and at drugstores through the end of the year since I'll earn 5% on those. Then in 2010, I'll switch totally to the Chase Freedom card.

Just wanted the rest of you to know what's going on with me and make sure you were aware of the change.

Make a Good Side Income by Mowing Lawns

I recently railed against what some people pay for lawn care, but a comment on that post has me rethinking my position on it. Instead of seeing lawn work as an expense, I should be seeing the extra income opportunity. Check out this comment from a reader:

I charged $1/minute for mowing, trimming, or basically anything to do with the yard. Oh and I used their supplies.

My average yard was 30 minutes of mowing, mowed twice a week for about 5 months (5 months*4.3 wks/mo*2 mows/wk* $30/mow=$1,290) plus gas and everything else I'm sure ran them at least $1,500 a summer.

I had 10 to 12 house per summer from age 12-16. Conservative estimate I made $1,000/house/summer * 10 houses * 5 summers = $50k just from mowing.

Not bad for a 12 to 16 year old -- $60 per hour. In fact, not bad for any of us looking for a bit of extra pocket money, though I wonder if the economy will take its toll on lawn mowers this summer.

Anyway, add this idea to my February money making list, my overall money making list and my 11 suggestions for making more money. Among all of these, surely there are some ideas suitable to anyone who would like to earn a bit more.

How to Make Money by Becoming a Referee

Update (4-29-09): There are some really good, insightful, and valuable comments below, so be sure to read them. If you're interested in making a decent side income as a soccer referee, you'll want to follow this advice.

My son and I love soccer (as you might have put together from some of my past posts.) We watch it on TV (English soccer mostly -- watched online primarily at ESPN360.com for free), play it on TV (FIFA 2009), play it in our yard often (him more than me), and read about it (both online and in magazines/catalogs.) He used to play for a team as well, and may again in the future, but for now we've decided to focus on basketball (which is a six-month season anyway.) Besides, he's at the youngest age to be in his new "group", so next year (when he'll probably play again) he'll have a better shot at playing a lot.

Anyway, we decided that this spring we would become volunteer soccer referees for our local AYSO chapter. Doing so would not only allow us to be part of a sport we love, but also help teach my son some good traits such as leadership, management, volunteerism, personal responsibility, etc. We took classes over two nights and passed the tests and are now certified AYSO soccer refs. Right now we're just doing the younger age groups, but we'll be moving up soon I suspect as we need more of a challenge at least now and then.

I never thought of being a soccer ref as a way to earn some extra money, but my wife was telling a friend in a nearby town about us being certified. The friend noted that in their league the refs get $14 per game. Not a fortune by any means, but for my son specifically, this could be a decent way to earn some extra money as he gets older and more skilled.

I know we pay the basketball refs pretty well ($25 a game, I believe), so they don't do too badly either.

I'm interested in hearing from those of you out there who are making some extra income from being a referee. How much do you make? How much training did you need? Or maybe there are people out there who have friends that make extra money being a ref. If so, got any details to share with the rest of us?

Five Ways to Use Credit Cards Wisely

The Wall Street Journal lists five ways to use credit cards wisely including:

Here are five instances when it's wise to use plastic:

1. Making larger purchases or ordering online. "If you use a credit card, you have far more leverage to return the product than you would have if you used cash."

2. When traveling. Ms. Sandberg says credit is "safer than carrying all that currency around with you," adding that credit cards also are "essential" for travel if you're going to get a hotel room or rent a car.

3. When buying necessities. Plastic also can be helpful in emergency situations, such as a health-care crisis, says Tim Wesling, president of a personal financial planning firm in Alexandria, Va.

4. When using a budget. Statements from credit cards can help with budgeting, experts say. Consumers can put together a monthly budget based on their spending in the prior year.

5. When building up reward points. Using a card that earns reward points that you can redeem for merchandise, travel or something else puts extra money in your pocket -- especially if you pay off your bills each month.

Here's my take on the entire issue:

1. Personally, I love using credit cards and have done so for almost 20 years. During that time I have never paid one penny in interest or fees because I pay it off every month. If you can do this, you're a candidate for using a credit card. If you can't, you need to limit or eliminate credit cards from your life.

2. I only use a credit card for spending that's in my budget. If it's not in my budget, I don't buy it -- with a credit card or otherwise. Again, this is a rule people should follow if they want to use a credit card.

3. I use cash back credit cards and have made good amount of extra income from them. I think they have advantages over points-based credit cards, but I realize that what the actual "best" rewards card is for any one person is highly dependent on how the person uses the card, what he charges on, how much he charges, and what he values in a reward.

4. I try to charge EVERYTHING on my card -- to get as high of a reward as possible. I'm up to almost $3,000 in cash back over the past four years. Not bad, huh?

5. I've seen the studies that say the average person will spend more with a credit card than without one. I believe that is probably the case. Then again, the average person has fairly poor financial management skills. I don't think that I (or many other people who have a good control of their finances and any sense of self-control) spend any more money simply because I use a credit card.

Four Ways to Earn Some Extra Cash

In their annual "What People Earn" issue from a couple weeks ago, People Magazine listed four ways to earn extra cash as follows:

• Product demonstrator
• Delivery person
• Hotel desk clerk
• Bank teller

Ok, so it's not the most exciting list you'll ever see, but these jobs have three things going for them if you need some extra money: they are/can be part-time jobs, they have flexible schedules, and they pay $8 to $12 an hour. Sure, these jobs aren't going to make you rich -- but if you need a few extra bucks here and there, they can certainly help.

One funny related side note: check out my post titled Can You Pay for a Costco Membership by Eating Free Samples? Scroll to the end to the comments made by Betty, a Costco product demonstrator. I think she has some real anger management issues going on! ;-)

Make Six-Figures Walking and Watching Pets

When I suggested that you make money on pets as part of my 20 ways to make more money, little did I know how much a person could make by simply walking dogs and sitting for pets.

Just how much can you make, you ask? Well check out this person from Parade Magazine's recent "What People Earn" issue. Here's her profile:

Tammy Roussin, 37
Pet sitter/dog walker
St. Louis, Mo.
$100,000

This entry REALLY caught my attention when I saw it in the magazine. I thought someone could make maybe $30k a year or so doing this. Who knew you could actually make six figures?

A few more thoughts:

1. Tammy's only 37 years old. Not a bad income for someone that age.

2. $100k in St. Louis is like $300k in New York, isn't it?

3. I thought that maybe she owned a pet sitting/dog walking business. I couldn't imagine that she made that much on her own simply sitting for/walking pets. So I went Googling and found this website. She does own a business, but she's one of only three employees, so it's not far from a one-person operation.

4. At $50 for an overnight stay to $16-$18 for a dog walk/cat visit, having a pet can be very expensive. Don't say I didn't warn you. ;-)

Maybe Starting a Multi-Level Marketing Business Isn't Such a Bad Idea

As part of my February list of how to make more money, I suggested that people might want to consider multi-level marketing as a way to add some extra income to their household. Two of the companies I used as examples were Mary Kay and Avon. The response was mixed: some thought it was an ok idea while others hated the thought of any sort of multi-level marketing business.

Well I was recently emailed a note from my cousin who happens to be a Mary Kay sale person. She sent me to this article from ABC News that details a bit about the organization. Here are some of the highlights related to the money making:

At the Mary Kay Cosmetics Career Conference last month, thousands of veteran cosmetic sellers and hopefuls were banking on the so-called "lipstick indicator," the idea that times may be tough, but women still buy skin care products and makeup. Just ask the nearly 2 million (and counting) independent sales consultants for Mary Kay, some of whom have already made fortunes.

"Have you heard anybody say I'm going to cut back on my mascara? Have you heard anybody say I'm going to use my moisturizer every other day?" she asked the crowd.

In fact, a growing number of Mary Kay saleswomen are finding that marketing lipstick, moisturizer and mascara can be the key to making ends meet in a tough economy.

"For me personally, last year I made three times what I made working on a full-time job," said Courtney Armstrong, 34, who started with Mary Kay eight years ago and works 35 to 40 hours a week, in addition to raising three children under 6 years old.

For some saleswomen, the question is how to get started in a new, full-time, lucrative career. Others are looking to work from home and bring in a little extra money each week to make up for lost family income.

Although selling Mary Kay products can be lucrative, most of the sales consultants earn about $100 a week.

"You know, we have women who, like Courtney, started the business to earn $50 a week, and we probably have a lot of women in the business who are earning $50 a week. Then there are two of the national sales directors who, in recent years, have earned more than $1 million in commissions in a single year. So the range is broad and there's everything you can imagine in between."

The article has a video with it that's fairly interesting. Check it out if you get the chance.

Ok, so you're probably not going to get rich doing this (though you could), but an extra $50 to $100 a week isn't bad -- a few thousand dollars over the course of a year. Of course there's the time commitment to take into account. $100 a week for five hours of work is much better than $100 a week for 20 hours of work. :-)

The article also linked to an older piece on Avon. One of the interesting comments here:

The economic downturn has boosted the number of Avon ladies, and although people's budgets are tight, Avon CEO Andrea Jung says the company hasn't taken a hit.

I've heard this quoted before -- that when the economy goes down people looks for ways to make extra money and companies like Mary Kay, Avon, Amway, etc. sign up massive amounts of people.

Anyone out there taken up a multi-level marketing business recently? Or maybe started another business of some sort to make extra money?

How to Become a Mystery Shopper

In my list of 20 ways to make more money, I suggested that you could earn some extra cash by becoming a mystery shopper. Then a couple weeks later, I ran into the Bargain Babe's interview with a real-life mystery shopper who told how to get started doing this:

All at one time sign up for 10 mystery shopping agencies because you never know which ones will have shops in your area. The more you sign up, the more shops are going to come your way. Start small, do a $10 or $15 assignment to start off with. If you don’t follow their directions they’re not going to pay you. So if you’re not a detail-oriented person or follow directions well, mystery shopping may not be for you.

So basically sign up with as many companies as you can, take the basic assignments, and work your way up the ladder. Sounds a lot like the process for earning money as a writer.

The money for mystery shopping can be pretty good too. The person interviewed said she easily made $300 a month for about 6 hours of work. $50 per hour isn't bad at all for a side/extra income, huh?

Trying to Earn More Money? Stop Wasting Your Time

This is a guest post by Ramit Sethi of iwillteachyoutoberich.com. His book, "I Will Teach You To Be Rich," comes out next week on March 23rd.

One of the problems with starting a new business is that you have an infinite number of choices for ways to start earning money. For the last few weeks, I've been working with someone named "Nicole," a freelance writer who offered to help me interview some of my readers and collect money stories for my blog. She offered to work for me in exchange for advice on building her freelance business. Last week, we had our first "advice" call, and it was fascinating. She asked:

• How come I'm not earning enough money?
• How do I get paying clients that stick with me?
• Time management: "I'm not very focused or targeted in my self-promotion...what should I do?"

Our conversation was a great example of the troubles that many entrepreneurs face when starting their businesses, so I thought I'd share some simple techniques that Nicole and I came up with to focus her on earning more money.

Nicole's problem

First, the back story: Nicole had emailed me a few weeks earlier, offering to do research and freelance writing for me in exchange for advice and possibly paid work. I skeptically checked out her site (because most people who say they're writers actually write like 3 year-olds), but I was immediately impressed: She'd published articles in multiple magazines, and on her blog, she wrote about looking for more freelance work.

She has done a great job doing research for me, but for her own business, she hasn't made much progress. On our call, I asked her a few questions:

• What's your goal? Her first answers were wishy-washy: "I want to have a consistent client base" and "I want to write interesting articles," which are totally pointless and non-measurable goals. After I pressed her, she got specific: "I want at least two clients paying me $500 each month by June." Perfect. 

• What are you doing to hit that goal -- where do you spend your time? This is where it got really interesting. She was doing the following: Updating her blog, adding content to her web site, attending networking events, working with me (and a couple other people), and reading blogs to learn about the business.

Stop wasting time!

Immediately I could tell that at least 60% of her time was being completely wasted. "In my experience," I told her, "freelancers try to do 50 things, and they end up doing a 5% job on each of them." She paused. "That's exactly what I've been doing." It's much better to pick the 1-2 most important tactics and focus on them. Let's examine each of these in turn:

• Updating her blog: Why? What's the point? How does this help her get to her goals when her blog has less than 1,000 readers/month? Has she ever gotten a client from her blog? No? Skip it.

• Adding content to her web site: Nobody cares. Her website is already great: When I got her email, I clicked over, read 2 articles for 30 seconds, and decided she was a great writer. Adding more content is overkill. Once it's good enough, move on.

• Attending networking events: These make me want to kill myself. "Networking events" are popular with entrepreneurs (especially non-tech entrepreneurs who aren't afraid of meeting people in person), but you have to think about the odds: You spend 5 hours (travel time, scheduling, attendance, etc) to meet -- what? -- 15 people? You give them your business card, you'll get in touch with maybe 2, and probably neither of them will end up being a paid client. Tough to hear, but true, and Nicole agreed that her last few "networking" events had not gone well. Imagine how many well-targeted emails you could send in 5 hours.

• Working with me and other people who can either (1) pay her directly or (2) introduce her to people who will pay her: Nicole said this was her best channel for reaching paying clients. I agree. Find the best clients, impress them, and get them to pay. Then get referrals. That's a business.

• Reading blogs: Sure, maybe for fun, but how does this directly contribute to getting two paying clients?

It sounds ruthless, but in the first few months of a venture -- especially freelancing where you have to work to eat -- it's critically important to figure out a way to earn a sustainable amount of money. That's why reading blogs is a "nice to have," but it doesn't help her achieve her goal.

She needed to do an 80/20 analysis to understand that 80% of her results came from 20% of her time, so by eliminating the unnecessary work, she could actually do a much better job.

I advised her to find a few bloggers in verticals she knows about, like personal finance and fitness, and reach out to them. The popular ones are swamped but have huge needs that she can solve using her writing skills. By offering them free help for a set amount of time, she could prove that she's good and discuss a paid engagement -- all at no risk to the bloggers.

Her one goal would be to open the funnel to get as many paying clients in the front door as possible, then knock their socks off with her skills. That's it.

People don't like to hear this

This isn't a popular position. Many of my friends have started small businesses and they spend their first few months buying business cards, getting an office, and doing things that are designed to contribute to their business but are really just huge wastes of time. This post on the 37 Signals blog describes it perfectly:

“But I was told I need to have a ____ to start a business.” Fill in the blank with a board of advisors, business plan, or some other obstruction between you and the thing you want to build. Have you noticed how all these commonly held notions about things you “have” to do are just excuses in disguise? They’re a reason for not doing something. […]

Next time you hear that “you need this” or “you need that” to get your business off the ground, question it. Ask yourself: “Is this really necessary or can I get by without it for now?”

And then, in my favorite quote of the post, a commenter named Jacob replies:

"It’s surprising how many of these people, once their excuses are removed, are suddenly no longer interested in starting a business."

Exactly. The point of Nicole's business isn't to attend events, or read blog posts. In her own words, it's to have two sustainable, consistent clients paying her $500 per month, each.

To get there, she picked a crisp goal. She eliminated all the possible things she could do -- "Should I get business cards? An office? Read blogs? Attend events? Update my blog and website?" -- and just decided to focus on the tactics that would take her directly to her goal. That's the importance of reducing choices and focusing on the things that matter.

How this relates to personal finance

Nicole's paralysis is very similar to how we manage our personal finances. We get overwhelmed by the number of choices -- "Should I invest? What's my asset allocation? 401(k) match or pay off debt? How do I save money on eating out?" -- that we just do nothing. It's much better to build an automatic personal-finance infrastructure that takes each dollar you make and automatically routes it to the right place.

That way, you only have to focus on one thing: Earning more money to funnel it into the front end of your system. I describe this in my book, especially chapter 5 on automating your finances.

The importance of reducing choices, doing an 80/20 analysis, and focusing on the things that matter applies to all of us -- whether we're managing our own finances or running a new business.

Ramit Sethi is the founder of iwillteachyoutoberich.com. His book, "I Will Teach You To Be Rich," will be published next week -- and it includes a detailed chapter on automating your finances.

The Best Cash Back Credit Card

I've written plenty about how I use cash back credit cards. They've earned me a good deal of extra money through the years and I've worked hard at maximizing their return. IMO, they are an easy way to earn money for doing something I'd already do (buy stuff.) And I recommend them to others because I think a cash back card will deliver higher rewards than a points-based card (not to mention a lot more flexibility in how the reward is spent) for most people.

In the past few years, I've made over $2,000 (almost closer to $3k) using them. For those interested, here's a summary of what I've earned the past four years:

• 2005 earnings

• 2006 earnings 

• 2007 earnings 

• 2008 earnings

Of course you have to follow the "rules" to make having a cash back card work for you. What are these? Don't buy more than what you'd buy otherwise, pay off your card every month, and so on. But I'm going to assume that you're more advanced than that, and thus I'll move right on to the meat of this post.

And the meat is this: I want to determine the single-best cash back credit card. I've decided that I don't want to carry a ba-zillion cards just to eek out a bit more of a reward. I know I can earn 3% cash back if I want to carry 10 cards, but there's a "hassle factor" I don't want to deal with. In addition, it's one thing if I'm going to do the charging all by myself, but my wife charges too. And she is NOT up for using several cards (and remembering which one to use at what store.) In fact, she wants to use ONE card, and that's it. Therefore, I need to know which is the one best cash back credit card. And I thought you might like to know as well.

In my quest, I considered three candidates for the title of "the best":

• Chase Freedom Visa

• Blue Cash® from American Express

• The Schwab Bank Invest First™ Visa Signature®

The first two are on almost every list I've ever seen of the best cash back credit cards and the third represents any of the (few) cards that give a straight 2% back from the first dollar charged (an easy way to earn a decent reward -- especially since so many cards only pay 1% total).

So that we're all on the same page, let's start with what each card has to offer. They are as follows:

Chase Freedom

• 3% cash back for every $1 top 3 spend categories (out of a pre-defined set of 15 categories)

• 1% cash back for every $1 for all other purchases.

• If you wait until you get to $200 in rewards before you redeem, Chase kicks in an extra $50 bonus.

• Note: These terms are only available for current Chase Freedom customers as it seems new customers get a much-reduced level of rewards.

Blue Cash® from American Express

• For total annual purchases of $0 to $6,500, this card pays 1% back on "everyday" purchases and 0.5% back on all other purchases.

• For total annual purchases of $6,500.01 to $50,000, this card pays 5% back on "everyday" purchases and 1.5% back on all other purchases.

• Everyday purchases are purchases made at U.S. supermarkets, gas stations and drug stores that are not departments of superstores or warehouse clubs.

Schwab Bank Invest First™ Visa Signature®

• Unlimited 2% cash back on purchases

• No minimum monthly purchase amount

• And no annual fee or foreign exchange transaction fees

• You have to have a Schwab brokerage account (where the cash rewards are deposited) but you only need $1,000

So, which one of these is the best card? I'm going to cut to the chase and tell you up front: it depends. Yep, there is no actual one best card for every single person, but the best card for you depends on the following factors:

• How much you charge in a year
• What categories you charge in
• How much per category is charged
• When you charge
• Other issues (that can make a difference if it's close)

There are a few other considerations (which I'll note later), but these are the main ones. That said, I think that one of these three cards represents the best cash back credit card choice for 99.9% of the population. With that said, I'm going to do a few things in this post:

• Show you my charges for 2008 and in an effort to determine the best card for me
• List a few extra considerations that might make one card better than another
• Give some general guidelines on which card is best for what kind of person/charger

The Best Card for Me

I started the process of finding the best credit card for me by looking at what I spent last year in various categories (note: this is spending for the calendar year 2008, which is different than the spending for the 12-months under my Blue Cash® from American Express card agreement. Just wanted to point that out in case someone saw a disconnect between the numbers here and those in another post.) I'm also assuming that my charges in the future will be similar to my charges in the past (in this case 2008.) Here's how my spending broke down for 2008:

• Total charges: $24,090
• Eating Out (not fast food): $1,956
• Food: $6,086
• Gas: $2,695
• Internet/phone: $840
• Drugstores: $324

All other major rewards categories have even less charges for the year. Note: I do not pay for my utilities via credit card as last time I checked they charged a fee for this. I need to re-look into whether or not they've dropped these charges.

Given these, what does each card earn? The results:

• Chase Freedom -- $533.32 (includes two $50 bonuses) for a 2.21% return

• Blue Cash® from American Express -- $541.32 for a 2.25% return

• Schwab Bank Invest First™ Visa Signature® credit card -- $481.80 for a 2.00% return

I was surprised in a couple ways:

1. The difference between the Chase and Amex cards are virtually zero. Very close competition. I thought Amex would kill Chase.

2. The Schwab card was so far behind. I thought it would be the winner. But looking at my charges, this wasn't the case.

So it appears that either the Amex or Chase card is the best option for me when looked at on a strictly financial basis and without additional considerations. But some of these additional considerations can make a big difference in total return, not to mention convenience, so they need to be evaluated before a final determination can be made.

Other Considerations

The other considerations that may make one of these cards better or worse than the others include:

• If you have a checking account at Chase, you can tie your card to your account (the bank does it -- doesn't mean you pay for the card from the account, just links them together), you get 3% back on FIVE categories instead of three. If you spend a lot in those two extra categories, it could make this card much better for you.

• The Amex card isn't accepted everywhere. For instance, we have a local grocery store that only takes Visa or MasterCard.

• That said, Costco only takes Amex. So if you shop there and want to pay with a card, Amex is the only option.

• The Schwab card allows you to get your money back immediately, while the Amex card is an annual credit and Chase makes you wait until you get to $200 in rewards (so you can get the bonus $50.)

• If you can front-weight your charging and get to $6,500 quickly in the year, the Amex card will do better than if it takes awhile to get to $6,500. Some ideas for boosting your charging early: buy money, give to charity, and/or buy something big on the card early on.

• You can make the Chase and Amex cards more effective by turning some charges that typically get the lower levels of rebates into charges that get the higher levels of rebates by buying gift cards at grocery stores. This works especially well with the Amex card at the second level of rebates since you get 5% back on grocery purchases.

• If you don't currently have a Chase Freedom card, eliminate it from your consideration since they only give 1% back to new cardholders. And even if you have one currently, should you be concerned that they'll eventually lower benefits for current cardholders? It's an issue to consider.

I'm sure there are a few more tips out there. Let me know if you have a good one.

Personally, I don't need the money immediately and I can take advantage of some of the additional benefits with both the Chase and Amex cards. So in the end, these two remain basically the same for me, they'll deliver very similar rewards. But I'm nervous about putting all my eggs in the Chase basket -- what if they pull back on rewards for current cardholders like they've done for new ones? For now, I'm planning on going with the Chase card as my top card until I get to $200 in rewards, then cash it in and switch to the Blue Cash® from American Express card from now on.

Guidelines -- What Works Best for Others?

As I've said, which card is the best cash back credit card for you depends on your actual spending patterns. But here are the types of people most likely to do the best with each card:

• Chase Freedom -- Much of your spending is concentrated in a few of Chase's 15 bonus (3%) categories (again, assuming you already have one of these cards and can get the 3%.)

• Blue Cash® from American Express -- You charge a lot each year (at least $15k, but more is better) and most of the charges are in the gas, grocery, and drugstore categories and occur later in the year (once you've gotten to the level-two rewards.)

• Schwab Bank Invest First™ Visa Signature® -- Most of your spending is not in any of the Chase or Amex Blue bonus categories and/or you want the simplicity of knowing you're getting a certain percentage back no matter what you charge or where.

It's been a long post and we've covered a lot of territory. Even re-reading it a few times, I think I've probably left out at least a couple key points. I'd appreciate your thoughts and comments to help out where I may have missed the mark.

20 Ways to Make More Money

During February I shared a money making tip every weekday (who couldn't use a bit more money, huh?) There were so many ideas that you probably missed afew, so here's the entire list in one spot. Not every idea will work for everyone, but surely there are a few fow every reader in here. That said, here are 20 ways we all can at least consider making more money:

• Attend Focus Groups

• Attend Focus Groups, Real-Life Example

• Become a Mystery Shopper

• Buy Money

• Collect Coins

• Connect

• Develop and Sell a Product

• Fill Out Surveys

• Find Things

• Get a Part-Time Job

• Grow Stuff

• House Sit

• Make Money on Pets

• Make Things

• Provide Services

• Start a Multi-Level Marketing Business

• Turn Your Pennies into Gift Cards

• Use Your Personal Finance Skills

• Write a Blog

• Work at Home

And if you want more ideas on how to make more money (and save some money too), check out my post with a huge list of how to make money and save money.

MSN Money Names Best Cash Back Cards

MSN has a piece on making the most of your credit cards and in it names the best cash back credit cards. Their list gives the title of "best" cash back credit card to the Blue Cash® from American Express card, thought they admit the following:

Given normal spending patterns, you'd probably have to charge $2,500 a month before the card made more financial sense than its fellow top picks. But for big card users, that could happen.

Actually, I think the breakeven could be much lower than that as long as a good portion is spent on gas, groceries, and drugstores -- the places you earn 5% back once you reach the second tier.

The other cards they list as honorable mentions include:

• Discover More Card
• Chase Freedom Credit Card
• Discover Open Road Card

I currently carry both the Blue Cash® from American Express and Chase Freedom cards, but I'm in the midst of an analysis to determine "the best" one for me. I'll be posting that analysis sometime in the next three years. ;-) (Hopefully it will be a lot sooner than that, but I've been saying it for so long, who knows?)

American Express Pays Me Over $400

Just wanted to share with you all that I recently received the annual reward from my Blue Cash® from American Express card. Here is how the numbers work out:

• Gas, Grocery, & Drugstore charges -- $5,530.99
• Everywhere else charges -- $15,288.88
• Total charges -- $20,819.87

• Gas, Grocery, & Drugstore cash rebate -- $237.66
• Everywhere else cash rebate -- $174.06
• Total cash rebate -- $411.72

• Gas, Grocery, & Drugstore rebate percentage -- 4.30%
• Everywhere else rebate percentage -- 1.14%
• Total cash rebate percentage -- 1.98%

A few comments on this from me:

1. The total amount is not as high as it has been in past years because I've also been using a Chase Freedom card in a hybrid strategy that returned me a few hundred dollars itself.

2. My percentage rebate could have been maximized (and been over 2%) if I hadn't split charges between the two cards.

3. I am still working in my comparison between the three cash back cards I think are best: Blue Cash® from American Express, Chase Freedom, and Schwab 2% Visa. I hope to get to this soon.

4. Hey, $412 for not doing anything different than I normally do. I'll take it!

Chase Freedom Lowers Rewards for New Cardholders

I found this in the March issue of Money Magazine. It listed reward credit cards that had been cutting back on their rewards and low and behold, I spied the Chase Freedom card on the list. Here's what Money listed as the changes:

• Then (old rewards): Earn one point for every dollar spent, three points for every dollar spent in the top three of 15 spending categories.

• Now (new rewards): Get one point for every dollar spent.

In the notes section it says "Chase Freedom card rules apply to new customers only." Whew! For a second, I thought my rewards were down the tube (FYI, I use the cash back option on this card -- not the points program.)

I went online, searched for "Chase Freedom", and it does appear that this is a change for them. Though there are a few extra ways to earn more points (or cash), I'd lump those into the "jumping through hoops" category -- certainly not something I'd recommend anyone do.

This changes everything for people looking to determine the best cash back credit card. Glad I'll be focusing on the Blue Cash® from American Express card.

12 Ways to Thrive in This Economy

This is a guest post from J.D. Roth, who writes about smart personal finance at Get Rich Slowly.

The economy is down the tubes and things are looking bleak. The mood in the U.S. hasn't seemed this gloomy since the early 1980s. Three of my friends have been laid off recently, and several more fear for their jobs. Just yesterday my wife learned that her workplace will see layoffs, and she's worried.

Lately, conversations seem to revolve around three themes: controlling career, managing money, and selling stuff. People are getting serious about financial responsibility — but is it too late? I don't think so. Here are some effective ways to deal with each of these concerns.

Control Your Career

Your career is your greatest asset. Do what you can to protect it. If you don't have a job, you don't have income, and without income, you're fighting a losing battle. My friends — both employed and unemployed — offer the following suggestions:

• Ask for a raise (even in this economy). Good work deserves good pay. Obviously, you're not going to get very far if your company is hemorrhaging money. Timing is important. But if you're overperforming, if you're doing the work that nobody else wants to do, then it's fair to ask for more compensation. (Here's some great advice about how to demonstrate that you deserver a raise.)

• Take a second job. One of my readers recently wrote to tell me that she's thinking of taking a second job in order to increase her cash flow. She's worried about the ethics of the situation considering the economy. I don't think it's an issue. If she's qualified and the employer wants to hire her, that's great. Working a second job is a fantastic way to boost your income, allowing you to pay off debt, build savings, or meet other financial goals.

• Network. Networking gets a bad rap, and that's unfortunate. Sure, nobody likes the insincere gladhand. But legitimate networking — building business contacts for mutual benefit — can be a godsend, especially when things get rough. Don't network for the sake of networking, but absolutely strengthen the bonds you have. Just in case.

• Pursue personal development. Make yourself indispensable. Read books about your field. Take community college courses in the evenings and on weekends. Master skills that will help you further your career objectives, both now and in the (theoretically) rosy future.

Manage Your Money

When your finances are pinched, cash flow is important. If your expenses total more than you bring in every month, you simply fall further behind. But if you can find ways to free up even a little cash, it can make a huge difference to your peace of mind — and your ability to stay afloat. Here are four smart ways to manage your money during a crisis:

• Reduce recurring monthly expenses. When times are good, it's easy to make monthly commitments: deluxe cable television packages, magazine subscriptions, elaborate cell phone plans. One of the quickest ways to free up cash flow is to trim these recurring expenses. You don't necessarily have to cut them completely, but drop the level of service. (I cut from deluxe cable to basic cable, for example.)

• Get out of debt. Debt looms large, especially during a recession. It's important to focus on eliminating as much as possible, especially if you anticipate rough spots in the future. I realize that the debt snowball isn't the best mathematical choice, but if you can bump off even a couple of your smaller obligations, you an free up enough cash flow to make a difference if something bad does happen.

• Increase emergency savings. I'm shocked by how many of my friends have no emergency savings. An emergency fund can be a life-saver, especially if your job is in danger. But don't just stick your money in an account with an interest rate near zero. Many credit unions and small banks offer rewards checking accounts with rates as high as 6% — if you meet certain conditions. Otherwise, an online high-yield savings account is a great choice. Put your money to work, and hope you never need it.

• Choose the right asset allocation. I am shocked by how many people I know — many of whom should have known better — had their entire retirement savings in stock. And I'm even more shocked by how many are now moving entirely to cash. Choose an asset allocation that is appropriate for your age and circumstances, and rebalance your accounts regularly.

Sell Your Stuff

What happens if you find yourself overextended, with too much stuff and not enough money? It's time to sell some of the things you own. This is a last-ditch effort of course, but sometimes it's necessary. When I was digging my way out of $35,000 in debt, I was able to generate thousands of dollars by selling the stupid stuff I'd bought on credit.

• eBay. If you decide to sell your things, your first stop should be eBay. You can't sell everything here, but you can sell your best items, the ones that offer the largest potential return. Using eBay can generate some big cash quickly. (Here are my tips for profitable eBay auctions.)

• Amazon Marketplace. For smaller things, like books and DVDs, the Amazon Marketplace is a good outlet. I've had several readers report good results purging the stuff they no longer use. This can be a hassle at first, but once you develop a system, it's not that bad.

• Craigslist. For larger items, you'll need to use Craigslist or something similar. Craigslist allows you to connect directly with local residents interested in buying your stuff (or hiring your services). My wife and I have used Craigslist extensively to buy and sell. It's a great way to turn your junk into cash. (Here's my list of Craigslist tips.)

• Garage sales. The first three methods can yield huge results for minimal effort. Yard sales are a little different, but they have their place. We've been able to generate several hundred dollars a year by following some simple garage sale tips.

Final words

This recession is scary. Things look bleak. But if you're willing to act, you can take steps to protect yourself. There's no guarantee that you won't suffer financial hardship, of course, but remember: the best defense is a good offense. If you'd like more ideas, check out the Free Money Finance guide on how to make money and save money.

Read more from J.D. at Get Rich Slowly, or follow him on Twitter.

Reminder from a Reader: Getting the Most from Your Chase Freedom Card

Here's an email I recently received from a reader:

Thanks to you, we've had a great year with cash back rewards on the Amex Blue/Chase Freedom combo strategy.  But, when claiming some rewards from Chase Freedom, I almost made a rookie mistake! 

I had not been redeeming the rewards over the past year as we wanted to see how much it would be.  I was about to click on having several $100 credits on our Chase statement, for $100 each, when I belatedly noticed the fact that you can get a $250 check for only $200.  Basically, you get a bonus $50.  I had completely forgotten about that, although you mention it in one of your posts and they also have it on the website.  Here's the wording:  "Save up $200 in rewards and redeem for a $250 check – that’s a $50 bonus!"

I almost missed out on the bonus $50.  That's a 25% return.

So, for all your readers out there who are following the same strategy, make sure you wait until you have at least $200 in rewards and then you can get a $250 check.

Good reminder for us all. If you use the Chase Freedom card, let your rewards build up to the $200 level, then redeem them. Chase will kick in an extra $50 at that point, so you get $250. Redeem them at $199, and all you get is $199. ;-)

Make Money by Getting a Part-Time Job

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by getting a part-time job.

Ha! You all LOVE this idea, don't you? ;-)

Seriously, if things are really tight, a part-time job, even one that's held for a few months or so, can really help to lessen the financial pressure. And luckily for us, Yahoo has a list of ten great part-time jobs that also include benefits. They are:

• Package handler. Median wage: $11 to $12 per hour.
• Barista. Median wage: $8.45 per hour.
• Test prep tutor. Median wage: $12.22 per hour.
• Customer service representative. Median wage: $11.16 per hour.
• Computer software test/quality assurance analyst. Median wage: $18.84 per hour.
• Sales clerk/cashier. Median wage: $8.16 per hour.
• Bus driver. Median wage: $12.80 per hour.
• Medical assistant. Median wage: $11.26 per hour.
• Domestic worker. Median wage: $13 to $17 per hour.
• Temporary office assistant. Median wage: $10.50 per hour.

Ok, so you're probably not going to get rich doing any of these and you probably won't like working a total of 60 hours a week (your regular job plus a part-time one) for very long, but for those of you looking for some additional income for a short period of time, many of these look like solid ideas.

Make Money by Growing Stuff

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by growing stuff.

What kind of stuff can you grow to make money (that's legal, mind you)? Here are a few ideas:

• Vegetables. You can not only start a garden to save yourself some money on food costs, but can sell your surplus to friends or at a farmer's market. (Or you can trade your veggies for another product/service to save yourself money.)

• Fruits. These take a bit longer to get going, but once fruit trees are established, they can provide a tremendous amount of fruit that can be sold. Our neighbor has two cherry trees that aren't even tended that well that produce tons of fruit each year.

• Flowers. You can sell those roses as well as save yourself some money by growing them.

• Plants. It's fairly easy to divide many common plants. Buy some, grow them, divide them, and sell a portion of what you've been able to divide.

And while these aren't "growing" ideas, here are some related "down-on-the-farm" money makers (and money savers):

• Raise chickens. And sell their eggs.

• Become a beekeeper. And sell honey. Friends of ours do this and make a nice side income.

So, any other ideas for growing stuff (or anything related) to make money?

Make Money on Focus Groups, Real-Life Example

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money on focus groups.

Yeah, I already shared this idea earlier in the month, but I wanted to highlight it again because of the success one reader had with it. Here's the comment she left on that post:

Last week I started browsing through craigslist. Already got two call backs in my city. $75 each for 45 minutes Thanks! I was always under the impression they were impossible to find. And once you go to one you tend to stay in the database.

$150 for an hour and a half of "work". Even with commuting time added in, that's a pretty god source of extra income. If you did one every week, that adds up to almost $4k a year. Not bad at all!

Off to Craigslist, everyone!!!!!!

Make Money by Collecting Coins

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by collecting coins.

There are several ways -- though none of them particularly "good" ways -- to make money by collecting coins. Some ideas:

1. Look for coins with "mistakes." These regularly sell for above face value, sometimes waaaaay above face value.

2. Focus on one set of coins and take specific steps that could earn you some extra cash.

3. Do it the long, old-fashioned way: learn, study, collect, and sell coins over time.

This idea falls into my suggestion of making money from your hobby. I think you have to love collecting coins first, then if you can make a bit of money at it you're very, very happy. But even if you don't, you'll still enjoy the hobby.

Anyone out there collect coins for profit? If so, please share your stories with us!

Make Money by Buying Money

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by buying money.

I first talked about this idea a few months ago. Basically, it goes like this:

• Order $250 or $500 in presidential dollar coins.
• Pay with your cash rewards credit card.
• Deposit the money at your bank (or use it yourself).
• Pay your credit card bill with the money at your bank.
• Get your cashback from your credit card.

The US Mint has free shipping on these items, so there's no extra expense involved. If you buy $250 in coins, you get $250 in coins. No shipping, no handling, no added cost.

I started doing this late last year and so far have purchased $2,750 in gold, $1 presidential coins. I paid for them all with my Blue Cash® from American Express card which, at that point, was at the 1.5% earning level for "all other" purchases. So I made an extra $41.25 for doing not much at all (ordering coins from a website.) Easy money, huh?

Another way to use these coins is to help you quickly get to the $6,500 tier 2 level of rewards for the Blue Cash® from American Express card. After all, the faster you get there, the more you can earn with it.

Now, the only issue is what to do with the coins. I haven't cashed any at the bank, but I may do so. It seems like it would be easy to do since they come pre-wrapped in $25 rolls. Instead, I've used my coins in a variety of ways so far (and coming up with more ideas every day.) That said, I don't think I'll be able to use them all as fast as I need to, so I am likely off to the bank soon to deposit a bunch.

Make Money by Connecting

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by connecting.

This unusual idea comes from marketing guru Seth Godin who suggests that people can make money by connecting others. Some examples:

• Connect advertisers to people who want to be advertised to.
• Connect job hunters with jobs.
• Connect information seekers with information.
• Connect teams to each other.
• Connect those seeking similar.
• Connect to partners and those that can leverage your work.
• Connect people who are proximate geographically.
• Connect organizations spending money with ways to save money.
• Connect like-minded people into a movement.
• Connect people buying with people who are selling.

He goes on to list some pretty good examples. Here's the one for "connecting job hunters with jobs"

My friend Tara has made hundreds of thousands of dollars (in good years) working as an executive recruiter. But what did she actually do all day? She stayed connected with a cadre of people. She kept track of the all stars. She connected with the right people, invested time in them that her clients never thought  was worth it. So, when it was time to hire, it was easier for them to call Tara than it was for them to start from scratch. The best time to start a gig like this is right now, when no one in particular wants to connect with and help out the superstars. Later, when the economy bounces back, your position is extremely valuable.

So now, the only question is: "What two groups could you potentially connect in order to earn some extra money?"

Make Money by Blogging

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by blogging.

I've talked about this idea a bit before, but I wanted to add some specifics today.

For those of you who don't know, top bloggers can make a good deal of money. And even if you're not a top blogger, you can make a decent income according to Steve Pavlina:

At the very least, a high five-figure annual income is certainly an attainable goal for an individual working full-time from home.  I’m making a healthy income from StevePavlina.com, and the site is only 19 months old… barely a toddler.  If you have a day job, it will take longer to generate a livable income, but it can still be done part-time if you’re willing to devote a lot of your spare time to it.

There are, in fact, a whole lot of ways to make money from blogging. But the big question is "How do I do it?" I've got an old series of how I did it and while it was written quite a long time ago, it's still valid. Check it out for some good insights.

Here's what I'd suggest today if you want to make some side income through blogging:

1. Pick a topic you like, can write about forever, and that people are interested in. Oh yeah, it helps if you're knowledgeable about it as well. ;-)

2. Try various ways of making money (some ideas detailed in the link above -- more suggestions here too.)

3. Keep at it for quite some time (at least a couple of years.)

You probably won't get rich doing this, but I think you can earn a nice ($10k+ per year) extra income if you do all of these steps well.

Make Money by House Sitting

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by house sitting.

This one could be a double whammy for you. If you can find the right house sitting job, you could not only make some extra money, but you could save on rent or mortgage payments (assuming you haven't yet bought a house) too. This idea works especially well for students or others with flexible schedules/living arrangements.

In this money making example, you move into someone's house (or check it frequently) while they are on vacation, gone for the winter, etc. Tasks can include getting the mail, feeding/walking the pets, cleaning the house, watering plants, etc.

But how do you find these jobs? This piece suggests using flyers and classifieds in your local papers. You could also network with friends and family to find opportunities as well as go door-to-door in your area offering your services.

One last piece of advice: whatever you do, make sure you negotiate a fair arrangement. Otherwise this extra money maker could be a real drag both personally and on your wallet.

Anyone ever made any money this way? If so, please share your thoughts on this suggestion.

Make Money with Multi-Level Marketing

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money in multi-level marketing.

Ha! I know many of you are bursting at the seams just reading that statement. Please read on before you tell me what an idiot I am. (If you read it and still think I'm an idiot, it's fine to say so then.)

I live in the home of Amway Corporation, so I'm no stranger to multi-level marketing (I've been invited to my share of lunches to discuss a "business opportunity.") In addition, I've tried multi-level marketing in the past so I have experience in this area. The effort was not a success for me (there were reasons for this -- more of my thoughts later), but that doesn't mean the system is flawed and that you can't make a good amount of side income with multi-level marketing.

First, let's start with a definition of multi-level marketing. Here's how Wikipedia defines it:

Multi-level marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.

Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the parent company and are awarded a commission based upon the volume of product sold through each of their independent businesses (organizations).

Wikipedia also has a list of multi-level marketing companies. Some of the best-known/biggest are Avon, Amway, and Mary Kay.

Ok, now here's what got me started on this idea. I heard a piece on NPR that said the bad economy has people flocking to multi-level marketing companies in search of an extra source of income. I've heard this fact -- that network marketing companies do better in a down economy -- stated again and again as Amway sales results are frequently covered on our local news.

So is this a viable idea for making extra money? I think it can be if you follow a few rules:

1. Pick a company whose products you really like/use. This will make selling them much, much easier.

2. Pick a company that has products that are technologically better and/or at a fair price versus alternatives. Too often multi-level marketing companies offer products that are worse than alternatives or maybe the same as others, but way over-priced compared to them.

3. Don't spend a ton of money upfront on your business (like in advertising, etc.) Simply share the fact that you are representing the products with friends, family, etc. If they buy, great. If they don't, you're not out a big amount of cash. (BTW, you can do other low-cost marketing like having parties at your home.)

4. Don't be too pushy. Do you really want to succeed at making more money simply to lost all your friends and family relationships?

5. You need to be a "people person" and a "go getter" to make it in multi-level marketing. If you're an introvert and don't have a lot of drive, you're doomed to failure with this business model.

6. Consumable products (make-up, detergent, food, etc.) work better in this business since people consume them and then need to buy more.

I'm sure many of you can think of some more. Feel free to add them to the comments below.

Finally, I can't finish this post without at least including one piece on the potential negatives of multi-level marketing (thought the Wikipedia article above also mentions some cons.) The biggest problem: most people don't make money in multi-level marketing.

FYI, I also found a multi-level marketing blog in case any of you want to explore this topic a bit more.

Make Money by Working at Home

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by working at home.

Yahoo provides some suggestions on this tip -- listing ten companies hiring for work from home as follows:

1. Alpine Access - Customer care professional
2. HireMyMom.com - Virtual assistant, professional blogger
3. Sylvan Online - On-line certified teacher
4. National Shopping Service - Mystery shopper/researcher
5. oDesk - Various professionals
6. Working Solutions - Transcriptionist, customer service representative
7. Language Lab - Teacher, actor, customer service representative
8. 1-800-FLOWERS - Customer service representative
9. Aetna - Account manager, negotiator, customer service representative, nurse and more
10. Elance - Legal, Web design, engineering, admin, marketing or writing professional

I think work-at-home work is going to become a bigger and bigger area of opportunity as companies try to attract and retain top workers while also limiting costs (like the need for a huge office building.) We're only seeing the tip of the iceberg now, IMO.

Make Money by Providing Services

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by providing services.

This money making idea is from The Simple Dollar. One example of how it works:

There’s an individual on our block who loves cold weather. He loves bundling himself up, heading out in the cold, and moving snow around - can you even imagine someone who sings when running their snowblower? This guy has realized that most people don’t want to do this and thus he’ll go around and blow off other people’s driveways and sidewalks for $5 or $10 (or whatever) in cash. After a nice snowstorm, he can easily make $100 in profit just by handling the houses near him - it takes him a couple of hours and he really enjoys it.

Are there any tasks that you really enjoy that others find mundane, like mowing or fixing computers?

This fits nicely into two themes I've discussed before -- that you can make money (and lots of it) doing things no one else wants to do and there's money to be made in snow removal (as well as other services.) Surely there's something almost all of us can do (mow lawns, deliver papers, wash cars, etc.) that can earn us a few bucks. What's that service for you? 

Make Money by Developing and Selling a Product

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by developing and selling a product.

This money making idea is from MSN Money. The details:

Develop and sell a product. I have good friends who have designed a children's game and are in the process of producing and marketing it. It's a lot of work, but they are passionate about the work, and the potential payoff is huge.

Of course, you could also find an existing product and sell it -- through eBay, door-to-door, or through a variety of other channels. The key is developing/finding a great product that people want or need.

Anyone working on this? If so, can you share with us what you've done/are doing?

Make Money by Filling Out Surveys

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by filling out surveys.

This tip comes from The Bargainist who says:

Some people say this is a great way to earn some extra income or even gift cards to places you probably shop. A couple to check out are Your2Cents.com or MySurvey.com. If you find yourself wasting time on the Internet, why not get paid for it?

It sounds almost too good to be true -- making money for simply giving your opinion (then again, I guess it's similar to the focus group suggestion we had the other day -- it's just that this one is online.)

Seems like you could make a bit of spare change doing this, but could you really earn a decent supplemental income? According to ABC News, you can:

You can't expect to earn a full salary from taking online surveys, but it is possible to earn $50 to $100 a month in cash and free products if you take several short surveys, according to experienced online survey site members. The key is to sign up with several survey sites (which are all free to join) to increase your chances of being selected for the surveys.

Anyone done this with any sort of success?

Make Money by Making Things

The month of February I'll be offering a money-making tip every weekday. Here's the one for today:

Make money by making things.

Here are some examples of how people have made extra money by making things:

• Selling Pewter Figurines -- Smaller pieces can be bought for about 20 cents each. My wife puts these on rocks, shells (the mermaids) and glass gems with E-6000 glue. We sell them for 2 to 10 dollars at craft shows and flea markets.

• Walking Sticks -- Find a friend who wants his property cleared of the weedy young poplar trees. Bring a saw and knife. I can make about forty walking sticks in a day with the easy woods, like poplar, for example. I've sold them for up to $22 and wholesaled them for as little as $4.

• PVC Bow And Arrows -- I know a man who sells these for $6 at pow-wows and flea markets.

I've been trying to get my wife to mass produce her corn heating bags for sale at flea markets, but so far she is not motivated in the least to do so.

How about any of you? Do you have suggestions for how to make extra money by making things?