Free Money Finance

How Much Does the Average Side Hustler Earn?

Bankrate tells us that the average side hustler earns $8k per year. The details:

Side hustlers make $686 per month, on average. Within a year, it’s possible to earn more than $8,200. Those who work a second job at least once per month earn an average of $836 on a monthly basis.

Most survey respondents (59 percent) say they consider the money they earn from their side job to be disposable income. And 38 percent say they use their extra funds to cover ordinary living expenses.

A few thoughts here:

• $8k extra a year is nothing to sneeze at. If that could be bumped up a bit, it could enable a person to retire in 10 years or less.
• Having a side hustle can make a huge difference in when you can retire. Just run the calculator and see what it works out to with and without a side hustle.
• If you're wondering about starting a side hustle but don't know where to begin, here are some ideas worth considering.

Do you have a side hustle? Why or why not?

A Great Side Hustle Idea

I've been blogging for almost 13 years now and I get the question quite often: "How can I make money blogging?"

So today, I have an answer for that question.

For those of you who want to get started blogging immediately and learn as you go, here's a post on how to set up a blog.

For those of you who want to know the details and learn a bit before you jump in, check out the series of blogging posts starting here.

Blogging has been very good to me over the years and with a bit of time and effort, I believe almost everyone can turn it into a decent side hustle.

If you decide to jump in, best of luck to you on your journey.

Starting a Small Business: From Idea to Reality

The following post is from FMF contributor Brad Richardson.

Do you have a brilliant idea you’ve always wanted to turn into business? Whatever your product or service, transforming it into a reality may be a more straightforward prospect than you think. In this article, we’ll explore the various options that are available (and recommended!), if you’re considering starting a small business:

Do your research

Time spent conducting market will reap dividends in the long run. Find out where your idea might be placed in the market; are there competitors doing exactly what you do, or do you have a unique selling point? If there are already established players in the game, it’s important to differentiate yourself. Whether that a distinctive feature or a lower price point, researching the market will allow you to explore how you will set yourself apart from the pack.

Gather your initial investment

One of the most daunting prospects of pursuing your business idea is securing the finances to get started. But it needn’t be intimidating! If the initial investment is relatively small, consider whether to dip into personal savings, or ask a relative if they would like to help. For larger requirements, it might be necessary to involve an outside investor, or purse crowdfunding. You may also wish to consider a small business loan. Lend Genius helps entrepreneurs to find the best loans to suit their business. Visit their website to learn more.

Create your product

Once you have your initial investment secured, it’s time to turn your business idea into a tangible product, or if you’re offering a service, to narrow down exactly what it is you will be selling. You may need the help of designers and outside manufacturers for this process; shop around and ask to see portfolios before committing. Remember that quality is always better than quantity (or a price that seems too good to be true!).

Find a place to sell it

Nowadays, it’s easier than ever before to sell your idea. You might consider a physical store if you’re selling something that potential customers will need to see in person before purchasing (such as furniture), or going mobile (for example, if you’re a hair stylist or beauty therapist), or your product may be suitable to sell online. Sites such as eBay, Etsy, and Big Cartel make this a straightforward process.

Generate a buzz

Now that you have your product ready and a place to sell it, you’ll need to let people know! Creating free social media accounts is a brilliant first step. With no additional investment, you can begin promoting your business, connecting with customers, and generating a buzz around you. Ask family and friends to share your posts; word of mouth is still a powerful force in generating business.

Take feedback on board

As soon as your first few customers come through, encourage them to share feedback about your product or service, the customer service they received, and their overall experience. Any feedback at this stage is critical to your future performance. If this feedback is good, make sure you keep doing the right things! If your customers offer constructive criticism, be gracious, thank them, and take their opinions on board. Demonstrating the ability to adapt for your customers will keep them coming back.

 

10 Benefits of Becoming a Dog-Sitter

The following is written by Nat Smith a Rover.com community member. Rover is the nation's largest network of 5-star pet sitters and dog walkers.

I've thought for a long time that pet sitting can be an awesome side hustle. After all, you get to play with a dog and people pay you for it!

My daughter made a small fortune when we lived in Michigan pet sitting for neighbors on vacation. I've thought about doing it even though I'm retired because I walk a lot each day -- why not get paid to walk? ;)

Anyway, for those reasons I thought you'd love this post...

Do you love dogs? When you sign up to be a pet sitter with Rover.com, you’ll be able to earn money and have a great time providing love, care, and playtime to pups of all ages. Here are 10 of the top benefits of dog-sitting with Rover:

#10: You’re not sitting in front of a computer screen.

Most of us spend plenty of hours staring at phones, computers, and the TV. It’s the first time in history that humankind has spent so much time staring at bright shiny boxes, and it’s not good for us! Pet-sitting is a wonderful way to break up the monotony…and get back into the real world.

#9: No marketing required.

Rover.com does all the work of marketing your services to local dog owners. Nothing could be easier! Just sign up, create your profile, and get started.

#8: Connect with other dog lovers in your community.

Making new friends—human and canine—is one of the perks of dog-sitting! You’ll often work with the same families over and over.

#7: Get paid to play.

Play is good for you. Experts recommend daily play to stimulate our brains and bodies, but most adults don’t get enough. Play boosts creativity, happiness, and longevity.

#6: Complete flexibility.

You decide exactly when you want to work, who you want to work with, and what services you will offer.

#5: Make a difference.

Pet-sitters help owners and dogs alike. Owners get peace of mind, and pets get devoted, individualized care.

#4: Move more.

The physical and mental health benefits of exercise are well-documented, but getting your recommended steps is far easier when you have a good excuse. Puppy-dog eyes can motivate anyone!

#3: Set your own rates.

Based on your experience and the going rate in your area, you can decide exactly what you want to charge, and adjust your rates anytime. As you gain experience, you’ll get more bookings and be able to raise your rates.

#2: It’s compatible with other forms of work.

You can keep your day job, work from home, go to classes, and do all the other things you usually do. Spending time with the pup in your care won’t distract you from work—quite the reverse! You’ll get a wonderful, refreshing break when you play in the yard or take a walk around the block.

#1: Be your own boss.

You’ll never have to take a client you don’t like, work hours you’ve already committed elsewhere, or report to a manager. Be clear about your parameters at each Meet & Greet, so you can find stays that are compatible with your strengths.

There’s nothing better than taking your career into your own hands, while doing exactly what you love!

Do You Use Cash Rebate or Travel Points Credit Cards?

In the February issue of Kiplinger's Personal Finance magazine they asked their readers how they used their rewards credit cards. The results:

• 62% use cash back cards
• 38% use travel rewards cards

Of those who use cash back cards, here's how they use them:

• 10% on gas
• 4% on groceries
• 86% on other

Some thoughts from me:

• I am with the crowd and prefer cash back cards to travel cards. Why? Because I want the money -- and can then decide if I use it on travel or something else. With points, you're often locked in on using it on specific rewards the card company offers.
• I've earned over $12,000 the past ten years by using cash back credit cards. Not bad.
• To get the most cash back, you need the right mix of cards. I could make more but then I'd need more cards than the five I use now (two of which don't have to be carried).
• So far this year I've earned almost $1,000 in rewards. That's what happens when you pay a college tuition bill with a 2% cash back credit card. :)

What type of cards do you use?

How to Make More Money at Your Job

The following post is from FMF contributor Brad Richardson.

Many people dream of breaking out from the day-to-day job they currently have and becoming their own boss because of the promise of making more money and being in charge of their own lives. You know, a lot of those people end up back in a 9-5 job within 3 years because they didn’t have what it takes to make it as a business owner. Sure, a lot of people start and run successful businesses, but if you aren’t interested in taking a risk you might want to consider how you can make more money in the job you have right now. Here are three ways you can make more money in your current role, without having to get a second job.

Ask Your Boss for a Raise

Yeah, yeah. It sounds so simple. Imagine if you could just walk up to your boss and ask for more money. Well, why can’t you? Get a good pitch together, list some recent accomplishments, talk about how hard you have been working for the company, talk about your loyalty and dedication, and just ask for the raise. It’s best if you have a dollar figure in mind. What’s not best is if you lay a sad story on your boss about how you need to make more money or you’re going to have to file for bankruptcy. Your boss doesn’t want to hear about that.

Ask for More Responsibility

I once worked for a doctor who paid a cleaning company to come in once a week and clean the office and exam rooms. I approached her and asked if she would pay me instead. So once a week I would stay for a few hours after hours and clean the office. It was a decent amount of money and really helped to pad my bank account. If you take on more responsibility, make sure it is clear you want to be compensated for it.

Find a Gap and Fill it

One way to make extra money at your current job is to tap into skills you might not even realize are worth money and offer to act as a consultant to your current employer. You can bill them for the added work you do, and you never have to leave the office to make more money. It’s best if you have a clear contract in place when your employer becomes your client, and there are some risk factors at play here, but if you are serious about it, consult a lawyer and make your contract tight. Instead of paying an outside firm to consult, they can pay you a little more money and get way more in return.

Before you go knocking on doors looking for a part-time job, start with what you know. I once approached my boss and said I was going to look for a part-time job, but thought I would ask if he needed any additional work done around here that he was thinking of hiring someone to do. If you have a multitude of skills or experiences to draw on, like I did, you can land yourself in a better financial situation in no time.

Mobile Moolah: How to Make Money Using Your Mobile Phone

This post is from FMF contributor Peter Shannon.

With the ringing in of a New Year, people are setting their resolutions for 2017 with many focusing their efforts on improving upon their financial outlook. One way in which they can increase their income is to use their mobile phones.

Locket

This app pays you for using your phone’s home screen as an advertising space. Anytime you unlock your phone, an ad will appear. You can opt to interact with the ad or simply continue on to your phone. In both situations you still get paid from Locket depending upon how many times you unlock your phone over the course of a day. Currently only available for use on Android phones, Locket pays out via PayPal.

Receipt Hog

Everyone shops so this particular app can pay your back for doing so. Also, users may be paid to take surveys. Simply download the app and scan in your receipts. The app will provide you with virtual coins that can be converted into cash. Receipt Hog uses this information in its market research. Users can submit as many as 20 receipts each week.

Mobile and Online Casino Sites

Online gaming has long been a fun way to earn some extra cash. Many casinos also have developed mobile versions of their sites to make it easier to play on the go. If you commute to work this can be a great time to earn some money from playing your favorite casino game or trying your hand at poker to pass the time. Take advantage of promotions and bonuses to further stretch your playing dollar.

Be an Uber Driver

Uber is becoming a popular transportation method in need of drivers. After signing up with Uber, you would consent to a background check. Once approved, you can begin receiving ride requests through the Uber app. The best thing about this is you can do it when it fits your schedule. Turn the app on when you’re willing to accept ride requests and turn it off when you aren’t.

Consider one of these options for improving upon your personal financial situation in 2017.

Do You Have Multiple Streams of Income?

Here's an interesting comment from Rich Habits about the wealthy having multiple streams of income:

Multiple streams of income, therefore, are a common denominator in building wealth. If you want to become rich, you must create multiple streams of income. That’s what self-made millionaires do. One stream of income is just not enough, if you want to be rich.

So, do you have multiple streams of income?

When I was working I had (at various times):

• Salary from job
• Part-time job as soccer referee
• Side businesses (this blog and freelance writing)
• P2P lending investments
• Real estate investments
• Dividends
• Interest

Only a few of my multiple streams were significant, but every little bit helps.

Now that I'm retired, a handful of those streams are helping me do quite well despite not having a salary.

How about you? Do you have multiple streams of income?

Boost Your Personal Finances Online

This post is from FMF contributor Peter Shannon.

After all the excitement and celebrations of Christmas and the New Year, January can be a month that leaves many people feeling rather flat. And it’s not just our moods that could do with a lift, it’s or finances too after all the expense of the festive season. So here are five ways that you can give yourself a financial boost online.

Get selling!

Maybe one of your new year resolutions was to de-clutter your life and make it more simple – and, even if it wasn’t, this could be a great plan. So take a look at all the stuff around you, from old furniture to CDs that you don’t need or want any more and get ready to sell, sell, sell. It’s easy to do on eBay or other more local sites like Gumtree and, before you know it, you’ll have less clutter and a healthier bank balance too.

Turn yourself into a You Tube Star

Lots of us like to while away a few minutes every day watching You Tube videos but why not use it to make money too? For example you could become a vlogger and launch your own You Tube channel. If you’ve got interesting things to say and a good handle on using social media then your followers will soon sign up – and the more that you attract, the more you could earn. Alternatively, if you can capture some comedy gold on your phone, you too could also get nearly 16 million views.

Try your luck at online gaming

If you’re in for a bit of fun with a small chance of earning some money, you may want to consider entering the many eSports competitions there are with some pretty big prize money to be won. Alternatively, head for one of the many online casino sites out there and try your luck at everything from mobile roulette to slots. Lots have pretty generous joining bonuses to attract new players and are as easy to play on a mobile phone as they are on a laptop or tablet.

If you have to buy, get cashback too

If you shop online then you could be missing out on a sure-fire way to save. By registering on a cashback site like Quidco you’ll get guaranteed cashback every time you shop. What’s more, they work with every conceivable kind of business from the big supermarkets to fashion retailers and from electrical stores to utility companies so pretty much everything you buy online will earn you a reward.

Become a website tester

UserTesting is a company that pays you $10 for testing out websites on behalf of their clients. You’ll be asked to complete some simple tasks like searching for particular pages while giving a spoken commentary on what you’re doing and how easy you’re finding it and each test lasts between 10 and 20 minutes. You need a PayPal account to take part and the money’s paid in automatically for each test you complete.

Hopefully there’s at least one practical idea for you amongst these five and just a little searching online will give you plenty more. So here’s to a very prosperous 2017 for you, all from the comfort of your own sofa!

What's Your Take on Store Credit Cards?

Bankrate recently shares the pros and cons of store credit cards.

Overall there wasn't much new information there, but it got me to wondering what FMF readers think about store credit cards.

Personally, my credit card strategy does not involve many store credit cards. Here's why:

• I want to carry/have as few cards as possible. As such, the cards I do have need to be flexible (i.e. accepted at a wide variety of locations). Store cards are not flexible since they can only be used in one place (usually).
• I do not shop at many places enough to have a store credit card. If I spent a gazillion dollars at Kohl's, Best Buy, or Sears, maybe I would have their cards. But I don't shop that much so I don't have the cards.
• My two exceptions are Amazon and Costco. I shop a TON at both places. The Amazon card gives me 5% back on all purchases there and is virtual, so I don't need to carry anything. The Costco card is a Visa, so it can be used anywhere and it saves me 4% off on already cheap gas. It also serves as my member card, so I don't have to carry an extra card.

Other than that, I rely on my Fidelity 2% cash back Visa and Chase Freedom Visa (with its 5% quarterly categories) to make all my purchases.

How about you? Do you have/use store credit cards?

Turns Out a Car Wash is Not So Hands-Off

Not too long ago I posted 5 Part-Time Jobs That Are Perfect for Retirees. 

One job listed was "business owner" to which I commented:

I've considered buying a "hands off" business like a car wash or vending machine company (and let my son run it). Not sure if that's in the cards yet.

An FMF reader sent me this email soon thereafter:

We owned a self-service carwash for 14 years (it actually owned us). There is a gross misperception that you just go there and empty the money. Definitely NOT a hands-off business.

We would have to go there 1-2 times daily due to electrical/plumbing/general maintenance issues. If you do not know how to do this yourself you will be out of business very quickly. Repair people are hard to find and charge a fortune!

This does not include the 2 am calls from the police needing us to come there due to crime related activity.

We originally purchased the business just because of the location. That is what has paid off, selling the land. The DOT bought 20% of it for road expansion and paid what we originally paid for the whole thing. We still own the remaining 80% and although it is a small piece of land in and of itself, it is strategically located and we get large corporations contacting us wanting to purchase. Fortunately, we are in a position we do not need to sell, but if the right offer came along we would take it.

I would not recommend a carwash business to anyone!

Yikes!!! Consider it struck off the list!!!

Ok, so let's replace that with, uh, a storage facility business...

Make Money on Your Wedding by Selling Spots in It

Ok, so this post is tongue-in-cheek, but it's too hard not to share the article I'll refer to in a minute.

Recently we've talked about the cost of weddings and how you could save money by having one on a Thursday. Well, forget about SAVING money on a wedding, let's MAKE money on one!!!!

How? By selling the right to be your maid-of-honor, best man, and other slots in your wedding.

I got the idea from this article. The highlights:

A 23-year-old unnamed bride to be claims she was offered a $10,000 payment in return for the coveted maid-of-honor spot at her wedding. In a post on Reddit, the woman said her older sister offered her the bribe if she was chosen as top bridesmaid over the woman's younger sister.

Think with me for a moment. Even if $10k was too much, let's look at the math of charging for slots in this scenario:

• Maid-of-honor: $5k
• Best man: $5k
• Bridesmaids (the closer you stand to the bride the more it would be worth, but we'll list them all the same): 4 slots at $2,500 each = $10k
• Groomsmen (the closer you stand to the groom the more it would be worth, but we'll list them all the same): 4 slots at $2,500 each = $10k

So $30k total. You've now paid for the wedding completely even if you spend a boatload on it -- and the gifts are all extra bounty!

And you haven't even sold spots for walking the bride down the aisle, the flower girl, the ring bearer, and so forth. This thing could be a cash cow!!!!

Yes, I'm joking. Who in their right mind would offer $10k to be a maid-of-honor? That girl must have really hated her younger sister. Yikes!

Anyway, having a wedding is probably not a great way to make money...so just pretend I never brought it up. ;)

30 Ways to Earn Extra Cash

Kiplinger lists 30 ways to earn extra cash.

Some of these are completely weak in my opinion (election officer? search for unclaimed property?), but there are ones I would consider including:

• Coach a youth sports team -- I wouldn't do this for pay (I've done it for free for my son's team), but I would consider going back to being a soccer referee. My son and I gave it up when we moved (having to re-certify in a new state), but I'm pretty sure I could get back in quickly and make $2-$3k per year with games here and there.
• Teach -- I would love to teach at the college level one day -- either in person or online.
• Walk dogs -- You can actually make pretty good money pet sitting. My daughter used to do it when we lived in Michigan and you wouldn't believe what people will pay for someone to check their animals. Plus they get someone to keep an eye on the place, collect the mail, etc.
• Get freelance editorial work -- Many years ago I had a freelance writing business that helped us pay off our mortgage. It was a lot of work for the pay received, but I could go back to doing that if I really needed the money.
• Rent out your home -- We live in a town people visit to vacation. As such, there's always need for places to stay. I have two friends who make small fortunes renting out their houses for a week here and a week there (mostly in the summer). I could do the same.
• Be a blogger -- Uh, I already am. :)

How about you? Do you see any on the list you like? Or perhaps you have other ideas for making money. What are they?

Get 5% Cash Back at Costco with Chase Freedom

Just a note to all of you who carry the Chase Freedom Visa credit card (a key card to use to earn thousands in rewards cash) that beginning today and through the rest of the year, you can earn 5% cash back at Costco. Here are the details:

Chase announced that Chase Freedom® Visa cardholders can earn 5% cash back on wholesale club purchases through the end of the year. Previously, wholesale clubs were a 5% category only in the second quarter, which ends June 30.

This was made possible in part by Costco dumping American Express and changing to Visa, a move that takes place today.

I spend a TON of money at Costco (including much of it at Christmas)! The thought of earning 5% cash back on all my purchases there has me salivating!!!!

How about you? Are you going to cash in on this?

The Easiest Ways to Start Earning More Money Today

The following is a guest post by Kimberly Palmer based on her new book The Economy of You: Discover Your Inner Entrepreneur and Recession-Proof Your Life.

Launching a side-business has never been easier to do. That’s because almost all of the infrastructure you need to get started, from a way of collecting money to reaching out to new customers, already exists. You just need to tap into it.

The first step is to decide just what kind of side-business is right for you. Here are five general options – and the e-commerce websites that match them.

1. Make something.

If you love dabbling in beading, or crocheting, then the handmade world of Etsy is made for you. Etsy entrepreneurs create everything from digital calendars to framed artwork to hand-carved furniture. You pay 20 cents to list your products on the site and then a 3.5 percent transaction fee on each item sold. That means most of the cash generated stays in your pocket, and you get the benefit of a beautifully-designed website, plus built-in customers who are regularly perusing the website for good finds. As an Etsy seller and buyer myself, I’m a full believer in the power of this site to generate solid earnings, not to mention the satisfaction that comes from knowing that people are enjoying your creations.

2. Offer a service.

If career coaching is your thing, or perhaps making silly cartoon voices, then Fiverr.com is for you. You can get started on the site by selling brief services for $5 a pop, and then as you earn positive customer feedback and a solid track record, you can increase your fees, all the way up to $500. The $5 premise sounds quirky, but the site has a lot of loyal customers and sellers. Sellers keep $4 out of every $5 service sold.

3. Stay local.

If the kind of service you like to provide involves an in-person transaction, such as babysitting, lawn care, photography or beauty services, then Craigslist.org could be your haven. While it might earn snickers because of the adult services headlines it’s made in the past, Craigslist is home to many wholesome entrepreneurs who earn good money sharing their skills with the local (paying) community. Rates are totally up to you and most postings are free.

4. Use your tech skills.

Thousands of small businesses and even corporations are looking to hire freelancers to handle their tech work on a regular basis, and many of them increasingly turn to Freelancer.com and similar websites to outsource the work. If you have specific software skills, especially for popular programs like Java or Flash, or you know how to design websites, then you will find many eager clients on these websites. (Freelancer charges a fee, which is typically 10 percent of the total project cost.)

5. Sell your professional skills.

Whatever you do in your day job, chances are it involves a marketable skill. So why not take that skill and use it to pick up extra work on the evenings and weekends to bring home more cash? Elance.com makes this easy to do by connecting you with clients. Some of their most popular categories include IT and programming (like app development), writing and marketing. The site typically charges an 8.75 percent fee on projects.

Given the ease of launching a new side-business through one of these websites, you can start earning more money this weekend. Join the movement!

How to Make More Money

There are probably a bazillion ways to make more money, but today we'll focus on the four best ideas that make you the most money while also being a viable alternative for most people.

Career

For the vast majority of Americans, your career is your most important financial asset. Consider the fact that if you earn an average of $50,000 over the course of a 45-year career that it adds up to $2,250,000. That means your career is a $2.2 million asset! Do you have any other $2.2 million assets? I thought not.

And here's a little secret: you can make your career more valuable! There are a few simple steps you can take to make even more money than you would otherwise. If you had a $2.2 million asset (which you do!) and you could take some easy steps to make it worth even more, wouldn't you? I thought so.

We'll be talking a lot about how to make more out of your career here because it's a key factor in driving your wealth.

Business/Side Business

If you have a successful business, it can be a great source of income. It's no secret that successful small business operators are among some of the wealthiest Americans.

But many small business owners are also bankrupt. It's a high risk, high reward proposition. And maybe you already have a job. So maybe working for yourself full-time is not for you.

If you already have a career/job, you can supplement that with income you earn on the side. A few ideas (the ones with asterisks are the ones I've done):

• Lawn mowing
• Pet sitting
• Freelance writing*
• Web design
• Refereeing*
• Teaching (piano, gun safety, etc.)
• Coaching

The list goes on and on. We'll talk about more money making ideas in the future.

Opportunity Money

What if you could make more money simply by doing something you were already planning on doing? I call this "opportunity money" and it's worth several thousand dollars to me each year.

Here are some examples of opportunity money:

• 401k Match -- You were planning on saving money anyway, right? So save it within your employer's 401k plan and get FREE MONEY! Save at least enough to get the full employer match.
• Rewards Credit Cards -- For example, let's say you're going to buy some furniture for your house. Instead of paying for it in cash, what about signing up for a credit card ($200 or more bonus just for getting one) and earning 2% cash back on that purchase. A much better deal, right?
• High Interest Checking -- Set up an account with a credit union or bank that offers high interest checking.  Right now I make 3% on my checking account (on the first $15,000 deposited) just for having the account and using their debit card 10 times a month.

These amounts add up quickly. For someone who earns $50,000 a year, here's what you could expect from the above:

• A 3% employer match is worth $1,500.
• Two new credit cards (with sign-up bonuses of $200 each) with charges of $15,000 a year at 2% nets $1,100.
• Earning 3% on $15,000 gets an extra $450.

So the person above just made an extra $3,050! That's like getting a 6% salary increase!!!!

Sell Your Old Stuff

Stop for a moment and consider all the stuff you have around the house or taking up space in a storage unit. Do you use any of it? When was the last time you even thought about it?

Instead of letting it take up space, you can make AND possibly save money (if you can cancel the storage space you're renting) by selling it, then use the proceeds to improve your finances. You’ll reduce the clutter in your home and be a little richer. What's not to love about this idea?

As I said above, there are almost an endless number of ways to make more money, and we'll be covering many of them in the future, so stay tuned!

Do You Share Your Salary with Others?

This post talks about how today's younger generation is more open about sharing their salaries with each other. And it got me to thinking how common sharing salaries is.

When I was coming up through the business ranks, sharing salaries was taboo. I'm not sure why (was it none of their business? was it companies not wanting workers to compare? something else?), but it was. Even today, workers of my generation don't openly share their salaries.

I don't share mine, that's for sure. Other than my wife and my parents, no one knows my annual salary (at least that I've told -- our company president and human resources person know, of course, as does my accountant). I don't share with my extended family, close friends, or anyone else.

Would I share my salary with someone else? I think if someone else asked me and they shared their income, I would if I knew them well enough. Otherwise, I wouldn't.

Would I ask someone how much they make? Nope. It just seems rude.

What about you? Do you share your salary with others and if so, who? Why or why not?

How Many Credit Cards Do You Carry?

Money Magazine recently asked its readers how many credit cards they carry. The responses:

• 3% carried none at all.
• 44% carried one or two.
• 37% carried three to five.
• 16% carried more than five.

Here's where I stand on this question:

• I carry four credit cards with me in my money clip/card holder. I also have a debit card from my credit union in the holder.
• I have another five cards that I carry in my briefcase and use infrequently -- many of them on business (hotel card, airline card, etc.)

Money's piece also had a couple interesting credit card facts as follows:

• 28% of cardholders say they frequently carry a balance; 37% say they never do.
• 80% of credit purchases are made using a rewards card.

As you know, I never carry a balance and 100% of my purchases are made using a rewards card. :)

How many cards do you carry? Do you use a rewards card? Which one(s)? And do you ever carry a balance?

Making Money on Hobbies

I've often suggested that a great way to earn some extra money is to turn your hobby into an income. For some of my thoughts on this subject, see these posts:

• Turning a Hobby Into an Income: How I Did It
• An Example of How to Turn a Hobby into an Income
• Turn Your Hobby Into a Nice Second Income

Along the same lines, Dr. Thomas Stanley recently posted on a young man named T.C. who turned his gun collecting hobby into a huge asset. The details:

At that time he already had 12 years of training by his mentor, his grandfather, who was an amateur gun collector.  At the age of 21, T.C. had a nice collection which included early model Colt revolvers and Winchester rifles.  That collection alone in a good market today would be worth more than $2M.  From the start, T.C. enjoyed reading and researching guns, buying and trading guns, and visiting gun shows with his grandfather.  He loved American history which related well to his interest in gun collecting.

Not bad for a "hobby", huh?

Dr. Stanley goes on to note the following:

Ask a national sample of self-made millionaires the following question: In terms of net market value, what is your number one most valuable asset?  About 5% will answer: tangible collectibles (TC).  In other words, these people are collectors of certain types of tangible and/or collectible assets.  These include everything from antique firearms to coins, gems to precious metals, and stamps to artwork. Most, 6 in 10, of these millionaires are part-time collectors who have other full-time occupations. 

If you asked me what my most valuable asset is I would say my career. (Yes, even though I "only" have 15 to 20 working years left -- if I wanted to use them all.) If you wanted a tangible asset, I'd then say my retirement accounts, followed by my real estate holdings and then my taxable investment accounts.

I don't have any collections of value. No coins, precious metals, artwork, stamps or anything more exotic like guns.

That's where I stand -- how about you? Two questions for you today:

• What's your most valuable (non-career) asset?
• Do you have any collections worth anything of value?

Chase Freedom Categories for the Second Quarter

Most readers know that I use the Chase Freedom cash back credit card. IMO it's the best overall booster card out there today and a must-have for those of you with a multi-card strategy.

The Chase Freedom card offers 5% cash back on certain categories each quarter. But you have to register online in advance to get the bonus for the next three months. This post is to remind you to REGISTER NOW.

The 5% bonus categories for April through June are:

• Restaurants - In many cases I use my Amex Blue Cash Preferred card to buy restaurant gift cards and get 6% cash back. But often I don't (takes pre-planning and often a restaurant trip is spontaneous), so the Chase Freedom card will work well in these instances.  
• Movie Theaters - I don't go to theaters much these days, but there are at least a couple movies I want to see in this time frame, so why not get 5% cash back when I go? And maybe it's time to buy a theater gift card?
• Lowe's - LOVE Lowe's. I stack multiple discounts there and save big money (and I've done it twice). My 6% card works here too, but again, it's a bit of a hassle to buy and redeem $4,000 of $50 and $100 gift cards, so the Chase Freedom card could come in handy at my (current) favorite home improvement store.

To get set up so you receive the 5% back for these categories, simply go to the card's activation website here and follow their simple process. It takes about 30 seconds.

Second-Act Career: Work for a Nonprofit Organization

The following excerpt is reprinted with permission from Second-Act Careers: 50+ Ways to Profit from Your Passions During Semi-Retirement by Nancy Collamer, MS, copyright © 2013. Published by Ten Speed Press, an imprint of the Crown Publishing Group.

This book is a great resource for those looking to earn a second income, potentially in a new field, during retirement or early semi-retirement. Today's post is about how to make money by working for a non-profit, something I will consider when I get to semi-retirement.

Having just insisted that you don’t need to work for a nonprofit organization in order to make a difference, I present this option first because it is the one most people think of when they consider doing good works. The nonprofit world is vast and diverse; it includes charities, advocacy groups, foundations, religious institutions, arts groups, universities, hospitals, associations, and unions. According to Independent Sector, a leadership network for the nonprofit and philanthropic communities, nonprofits and foundations play a major role in our economy; they employ 9 percent of the American workforce and account for 5 percent of our gross domestic product.

Whether you want to work for a museum, a charity, or an advocacy group, it is likely you will find the experience of working at a nonprofit somewhat different from your experience in the for-profit sector. On the positive side, nonprofits are generally regarded as nice places to work: kindness, passion, and purpose are more highly valued than in profit-driven companies, work schedules tend be more flexible, and the joy of working for a mission-driven organization is a welcome change for people 
accustomed to putting profits before people. That said, working at a nonprofit is not always an ideal situation. Most organizations still have their share of office politics (people are people, after all), and the realities of working with a limited budget, a volunteer staff, and a dependency on erratic funding sources can prove problematic and stressful.

Consequently, if you think you want to work for a nonprofit, take the time to consider your options before applying for work. Carefully assess your skills, experience, and interests, and then begin to explore ways you can best use your skills in organizations that appeal to you. It can be helpful to first volunteer or serve on a nonprofit board as a way to become familiar with an organization and its culture before committing to a more permanent employment relationship.

To help you gain a better understanding of what your transition into the nonprofit world might involve, I interviewed Barbara Salop, age fifty-eight, a career IBM executive who recently made her own transition into the nonprofit world.

From IBM Executive to Nonprofit Consultant

“People think there aren’t many good business people in the nonprofit world, but there are wonderful people—they just have a whole lot less to work with than people in the corporate world.” — Barbara Salop, nonprofit consultant

Barbara Salop, a former client of mine from Riverside, Connecticut, has long been a strong supporter of organizations that benefit people with developmental disabilities. But because she was a full-time working mother of two, the number of hours Barbara was able to devote to volunteer activities was restricted by the demands of work and family. So in 2010, when she was able to retire with full benefits from IBM, Barbara decided to take her executive expertise and apply it to the nonprofit sector. Recognizing that she needed to get some serious nonprofit experience in order to strengthen her credentials and her familiarity with the nonprofit world, Barbara spent eighteen months working as a pro bono consultant for several local nonprofits. She then applied for and was accepted into the Hartford Encore Fellows program, a workforce development program that helps seasoned professionals transition into the nonprofit sector. That program gave her an opportunity to immerse herself in the nonprofit world through classroom training, job shadowing, and a two-month internship experience. It also gave her a chance to get to know people actively working in the sector, as well as build a peer group of other executives who were also actively transitioning into the nonprofit sector. At the time I interviewed Barbara, she was starting her first paid consulting assignment with an organization she had originally worked for as a volunteer. I asked Barbara for her impressions of the nonprofit arena:

What are the most striking differences between life at IBM and the nonprofit world?

B.S: There are lots of similarities, but also plenty of differences. In corporate, it is all about making money, but in nonprofits, the focus is on the mission. Nonprofits sometimes make decisions that seem nonbusiness-like to the rest of us, but they represent tradeoffs that reflect their determination to put the mission before the money. It takes great discipline to make those tough choices, especially when funding is scarce. I have the deepest admiration for that level of commitment to a cause.

Did you notice a difference in the types of people who work for profit versus nonprofit?

B.S: I was very impressed by how happy most of the nonprofit executives seem to be. I don’t mean to make it sound like it is always perfect in a Pollyanna-like way, but there was a real sense of mission, purpose, and fulfillment among the people I met. Even when they were having a tough day, it was clear that they have an underlying sense of happiness about what they are doing. Although I had many good days at IBM, and was proud of what my team accomplished, I rarely experienced that same sense of deep fulfillment from my corporate work.

How did the nonprofits where you volunteered react to you being a “corporate” person?

B.S: That was interesting. On one hand, there seemed to be some trepidation about a corporate person walking into a nonprofit. Their perception is that corporate types are only about the numbers, and we make decisions based on measurements and profits alone. On the other hand, some people are almost awestruck by people from corporate and [practically] treat us like we are from a different planet. I found it to be so important to take the time to listen to what they had to say, learn from them, and respect their expertise.

There are so many ways to volunteer. How did you decide which organizations to approach about volunteering?

B.S: I knew that I wanted to focus on working with organizations that support people with developmental disabilities, so I targeted those types of opportunities. In terms of what you choose to do for them, there are essentially two ways to help. One is to do the easy, hands-on things like stuffing envelopes or serving at a soup kitchen. It is needed work, and they will appreciate your time. But if you are an experienced businessperson, I think you owe it to the nonprofit to find a way to leverage your professional expertise. They are so grateful when you can help them do the things they can’t do or don’t have the time to do, like project management, facilitation, or strategic planning.

After being a long-term volunteer, how did you broach the subject of getting paid for your work?

B.S: I hung around long enough for them to really value my business expertise! When you can get them to see your value proposition and understand the business case for your fees, it is a much easier sell. Even once I was done with projects, I checked in with my volunteer sites to follow up with them about their implementation plans. Over time they realized that it would pay to keep me around. I think it also is helpful to offer your services as an independent contractor instead of expecting the organization to hire you. In this economy, if they have the option of bringing in a variable worker, it makes sense for them to do that. It may cost them a bit more in the short term, but it gives them greater long-term flexibility.

How did you know what to charge?

B.S: Quite honestly, it was difficult to know what to charge. I asked my friends in nonprofits who had previously hired consultants for their suggestions. I was willing to start with a low rate because I knew I still had a lot to learn and I needed to get some more experience in the sector. I suspect that as I continue to contribute and add value, there will be opportunities for me to raise my rates.

What suggestions do you have regarding the nonprofit job search?

B.S: Like any job search, networking is critically important, and I spent a lot of time on that. Sometimes I felt like I was just going for endless cups of coffee, but it paid off in the end. In terms of resources, LinkedIn is an invaluable tool that I used to identify board members and volunteers at organizations that appealed to me.

Do you have any additional thoughts for people considering making a switch to nonprofits?

B.S: Take your time in determining the types of organizations you want to work for. You are going to get paid a lot less than you earned in corporate, so find a sector that really speaks to you. This transition can take longer than you anticipate, but have faith that it will be worth the effort.

Here are five excellent resources to help you make the transition into the nonprofit sector:

1. Encore.org (www.encore.org). If you are over forty and want to get involved in helping to make the world a better place, you owe it to yourself to get familiar with both Civic Ventures and Encore.org. 
Civic Ventures funds a number of initiatives, fellowships, and programs designed to help boomers solve serious social problems (including the fellowship program Barbara attended). The Encore.org 
website, published by Civic Ventures, is the single most comprehensive resource for boomers interested in careers that combine personal meaning, social impact, and continued income. Their outstanding guide to encore careers can be downloaded for free at www.encore.org/files/PDFs/guide/encore_guide.pdf. Marc Freedman, 
the CEO and founder of Civic Ventures, wrote the book Encore: Finding Work That Matters in the Second Half of Life (PublicAffairs, 2008)—it is a compelling read for anyone interested in this subject.

2. Bridgestar (www.bridgestar.org). Bridgestar.org is a site for seasoned executives who want to transition from the for-profit sector into nonprofits. They have an extensive career center and a job board that lists both staff jobs and nonprofit board positions.

3. Idealist (www.idealist.org). Idealist.org is a must-visit for anyone interested in exploring the world of nonprofits. The site features career advice, a job board, and information about events, fellowships, internships, volunteer opportunities, and educational programs in the nonprofit world.

4. The Foundation Center (www.foundationcenter.org). Whether you want to establish a foundation, learn how to write a grant, or secure funds for research, this is the right site for you. The Foundation Center is the leading source of information about philanthropy worldwide, with a site that lists training programs, job openings, and other useful resources.

5. National Council of Nonprofit Associations (www.councilof
nonprofits.org). The National Council of Nonprofit Associations is the network of state and regional nonprofit associations serving more than twenty thousand member organizations. Although this site is geared toward nonprofit administrators, their resources will help educate you about key issues relevant to smaller nonprofit organizations.

Finally, if you want to stay up-to-date on the latest news in the world of philanthropy, a great resource is the Chronicle of Philanthropy (philanthropy.com). It is both in print and online, and it is like the New York Times of the philanthropy world.

Second-Act Career: Pet Care Services

The following excerpt is reprinted with permission from Second-Act Careers: 50+ Ways to Profit from Your Passions During Semi-Retirement by Nancy Collamer, MS, copyright © 2013. Published by Ten Speed Press, an imprint of the Crown Publishing Group.

This book is a great resource for those looking to earn a second income, potentially in a new field, during retirement or early semi-retirement. Today's post is about how to make money with pet care services, a topic I've written about several times. For more information, see Dog Walking, Pet Sitting, and the Money You Can Make, Earn Extra Money as a Pet Sitter, and Make Six-Figures Walking and Watching Pets.

People love their pets, sometimes as much as or more than they love their own children! According to the National Pet Owners Survey sponsored by the American Pet Products Association, Americans spent over $50 billion on their beloved pets in 2011. Although much of that money was spent on food and healthcare, there is still plenty being spent on pet pampering and pet care services. If you’re a die-hard pet lover, here are some lifestyle-friendly career choices to explore:

• Doggie daycare. At a time when so many people are working long hours, the demand for doggie daycare services is on the rise. As a daycare provider, you will be responsible for feeding, walking, and playing with the dogs while their owners are busy at work. Whether you choose to run a daycare service out of your home, through a franchise, or at a leased business location, you’ll likely find plenty of customers eager to use your services, although you should be aware that the demand for your services is likely to be greatest during the summer months and peak vacation times, so this could put a crimp in your personal travel plans. For more information about careers in doggie daycare, consult Pet Sitters International at www.petsit.com.


• Dog walking. Dog walking is an easy business to start, a great excuse to get exercise, and a surprisingly lucrative enterprise for people who work in major cities (some New York City–based dog walkers earn in excess of six figures annually, although they are admittedly a rarity). Start-up costs are minimal, and it can be relatively easy to build up a steady stream of clients after you establish yourself as a caring, trustworthy, and reliable provider. Believe it or not, you can even get certified in this line of work by attending the Dog Walking Academy, a four-day intensive training workshop designed to equip you to start your own dog walking business. You can learn more about the Academy and other dog-related business opportunities at www.dogtec.org.


• Pet photography. Pets are an integral part of the family, so it’s no surprise that an increasing number of people are willing to pay for professional portraits of their four-legged friends. And it’s not just dogs and cats who are posing for portraits. Equine photography is a growing subset of the pet photography business, with opportunities to find business at horse shows, race tracks, and equestrian centers. To learn more about business opportunities as a photographer, check out Virtual Photography Studio at virtualphotographystudio.com.


• Pet paraphernalia. From Halloween outfits to gourmet biscuits to eco-friendly bath products, pet owners are eager to indulge their furry friends with special toys and treats. You can sell your goodies at craft shows and local pet stores or on the Internet. If you don’t want to create your own products, consider becoming an independent sales rep for one of the direct sales/home party companies that specialize in pet-related products (check the Direct Selling Association at www.dsa.org for listings).


• Grooming services. Nothing spruces up a pet’s appearance quite like a good shower and shave—so to speak. Pet grooming services can be operated in stores, private homes, salons, and in mobile pet grooming vans. If you are leery about creating a pet grooming business of your own, investigate the options for buying into a pet grooming franchise (for listings, check www.entrepreneur.com).

To learn more about careers and business opportunities in the pet arena, consult these websites:

• The American Society for the Prevention of Cruelty to Animals offers a wealth of information at www.aspca.org/about-us/faq/animal-careers.aspx.


• DogTec.org: This site has a number of excellent articles and training resources for people interested in starting a pet business.

As you can see, the options for turning your passion for animals into profits are many and varied. And if this niche intrigues you, I can think of no better way to demonstrate how you can turn your love of pets into a full-fledged business than to introduce you to Sharon Sakson. I spoke with Sharon right before Thanksgiving 2011 and was delighted to discover that among her many different income streams, she helps coproduce the televised broadcast of the Kennel Club of Philadelphia dog show on Thanksgiving Day, the most viewed dog show of the year. As you’ll soon learn, Sharon has turned her lifelong passion for dogs into a robust and multifaceted income portfolio.

Portrait of a Dog Lover Extraordinaire

“I absolutely love my work. It is the most wonderful thing in the world.” —Sharon Sakson

Many of us love our dogs. But Sharon Sakson doesn’t just love dogs; she has built an impressive career around that passion. As was the case for many of the second-act stories featured in this book, it took a while before Sharon was able to craft a career around her passion. After graduating from college, she settled into the broadcast news world with jobs that included a field production assignment with ABC Nightly News anchor Peter Jennings. Life in the news world was hectic, but even with her packed schedule, Sharon always found a way to spend time with her dogs. In addition to keeping dogs as pets, she worked as a breeder, participated in dog shows, and studied to become an accredited American Kennel Club (AKC) dog show judge.

All went well until the economic downturn of 2008 when Sharon lost her job. At the time, she was just fifty-six years old, and at a point when she was neither financially nor emotionally ready to retire. Fortunately it didn’t take Sharon long to reconfigure her dog-related hobbies into work that generated a full-time income—a multipronged career that takes advantage of her passion in a variety of interesting ways. Although the transition was a difficult one, Sharon says she now finds herself busier and happier then ever.

Today she travels the world as an AKC international dog show judge and has visited numerous countries including Canada, England, France, Italy, Switzerland, Germany, Russia, Finland, and Taiwan. She also works as a breeder of champion whippets and Brussels griffons, and although the income she earns as a breeder is relatively low, it helps to offset the considerable costs of caring for and showing her dogs in competitions. While at those competitions, she is able to network with other judges and handlers, and just as with any other profession, the more people she meets, the more opportunities for judging come her way.

In addition to her breeding and judging activities, Sharon writes about dogs. She is a contributing columnist to Dog News magazine and the author of several books about dogs, including: Paws & Effect: The Healing Power of Dogs (Spiegel & Grau, 2009), Paws to Protect: Dogs Saving Lives and Restoring Hope (Alyson Publications, 2008) and Paws & Reflect: The Special Bond Between Man and Dog (Alyson Publications, 2008). Her books feature heartwarming stories about dogs as healers, rescuers, and faithful companions. But unlike so many other books in this genre, hers are more than just feel-good stories; Sharon includes scientific studies and research to substantiate her claims about the human-like qualities of the featured dogs. Sharon also earns income from speaking engagements and offering private consulting services to help dog owners with their dog-related behavioral issues and questions.

In between juggling her many income-generating activities, Sharon always makes time to relax and enjoy her household full of dogs. At the time we spoke, she was caring for eight dogs and a litter of six puppies, a task that some would consider a full-time job all its own. (Not surprisingly, our interview was interrupted several times by the sound of dogs barking in the background!) She is also involved with Xolos for Chronic Pain Relief, a nonprofit organization that matches Xolo puppies, a unique therapeutic dog breed, with patients suffering from chronic pain conditions. And finally, as if that was not enough to keep her busy, Sharon continues to do television production work on a freelance basis whenever time allows.

Sharon’s Top Three Tips to Profit from Your Pet Passions

1. Familiarize yourself with the American Kennel Club’s offerings. The AKC website www.akc.org, is an outstanding resource for breeders and dog lovers.

2. Be prepared to work hard (and long) to train as an AKC judge. Although dog judging may seem simple to the untrained eye, judges have to meet the exceedingly rigorous standards set by the American Kennel Club. These include a minimum of twelve years’ involvement in the diverse field of dog competitions, breeding of at least five litters of champion dogs, and successful completion of a series of examinations. To learn more, consult www.akc.org.

3. Network. Networking is as important in the dog world as it is in the business world. Sharon’s diverse income streams provide her with opportunities to attend different events where she can continually make new acquaintances, and that, in turn, has helped expand her income potential.

Second-Act Career: Teacher/Trainer

The following excerpt is reprinted with permission from Second-Act Careers: 50+ Ways to Profit from Your Passions During Semi-Retirement by Nancy Collamer, MS, copyright © 2013. Published by Ten Speed Press, an imprint of the Crown Publishing Group.

This book is a great resource for those looking to earn a second income, potentially in a new field, during retirement or early semi-retirement. Today's post is about how to make money teaching, an idea I've listed previously as one of the best ways to earn extra cash.

Are you a natural teacher? Do you enjoy explaining concepts, theories, and the mechanics of how to do things? Would you like to share the wealth of experiences you’ve accumulated with others and pass on your knowledge to future generations?

If the prospect of empowering people with the skills, resources, and expertise needed for success in both their personal and professional lives excites you, then you might want to consider sharing your expertise either as a classroom teacher or a “how-to” trainer who instructs via webinars, workshops, or seminars. For people who are outgoing and enjoy an audience, teaching can be a great way to earn an income. Here are some interesting options to consider:

• Adjunct professor. Adjunct-level professors are hired on a contractual, nontenured basis to teach at universities, community colleges, vocational schools, and colleges. Some institutions require that their adjuncts meet the same degree requirements as their full-time faculty (meaning you may need a doctorate degree to be hired), whereas at other schools a bachelor’s or master’s degree is sufficient. Prior teaching experience is always advantageous, but the combination of an advanced degree plus work experience is often sufficient to make you an attractive teaching candidate, especially if you want to teach at a community college or smaller school. Adjuncts don’t earn a lot (typically anywhere from a few hundred to a few thousand per course), but adding the word “professor” to your resume or bio can be a great way to enhance your reputation, reach, and marketability.


• Online instructor. The world of online education is rapidly gaining traction, credibility, and prestige. Although brick-and-mortar universities tend to use their in-house faculty for online assignments, online institutions hire outside applicants who offer strong subject-related work experience. A master’s degree can make you more marketable, but schools will consider applicants who hold a bachelor’s degree along with relevant work experience. To find an online teaching position, apply directly to the online institution, or search on one of the many online job boards—for example, Simplyhired.com, Indeed.com, or the jobs listed on the Chronicle of Higher Education site (chronicle.com), using keywords such as “online teacher” or “virtual instructor.”


• Corporate trainer. Few companies still maintain in-house training departments, and as a result, many have increased their use of outside vendors to train their employees on topics ranging from sales to business etiquette to leadership. To learn more about these opportunities, and to find vendors who might be interested in contracting with you as a freelance trainer, consult the website of the American Society for Training and Development (www.astd.org).


• Adult education instructor. Continuing education programs are always in need of new programs, workshops, and classes to fill their catalogs. Although most programs will pay only a small stipend for your services, teaching in one of these programs is an easy and cost-effective way to market and advertise your services. In addition to teaching opportunities at local community colleges, vocational programs, or town continuing education programs, you can teach at privately run adult education programs such as the Learning Annex (www.learningannex.com) or the Gotham Writers’ Workshop (www.writingclasses.com).


• Online trainer. Thousands of entrepreneurs are generating significant income by creating their own brand of online training programs, formatted as videos, webinars, and multisession “universities.” Although many online courses focus on teaching business development and internet marketing, the possibilities for packaging your expertise into your own program to deliver a virtual learning experience are limited only by your imagination. And once you develop a course, you can sell it in multiple formats (downloadable manual, video, podcast, and so on) for as long as the information remains relevant and timely. You can learn more about this option in the next chapter.


• School owner-director. As a child, I attended a ballet school taught by one of the neighborhood moms in the attic of her home. It was a simple studio that catered to the needs of the local tutu-lovers while providing a steady income stream for my neighbor while she stayed home to raise her children. This spirit of homegrown entrepreneurship is still alive and well, in the form of home-based cooking schools, language programs for toddlers, and acting classes. Of course, before opening any school in your home, be sure to check with your town and state government for applicable zoning and licensing requirements, especially since your neighbors might protest if your business increases traffic in the neighborhood.


• One-to-one tutor. The demand for tutors is always strong, especially for people who can help children improve their grades, study habits, and SAT scores (tutors in affluent neighborhoods can command upward of $150 per hour for their services). If you’d prefer working with adults, consider offering your expertise as a computer and technology tutor. Although most tutors run their own businesses, you can opt to work for one of the big tutoring services, such as Kaplan or Kumon, if you don’t want to go it alone.


• Private teacher. Would you like to teach people on a one-to-one basis or in a small group setting? The opportunities to profit as a private instructor are limited only by your imagination—people will gladly pay for personalized instruction in any number of interest areas, including yoga, painting, video-editing, and photography.

To learn more about teaching jobs and the training field, consult:

• Chronicle of Higher Education (chronicle.com). An online resource for jobs and information related to colleges and universities.


• American Society for Training and Development (www.astd.org). The professional organization for people involved in corporate and business-related training and development. Their website is an excellent resource for people interested in all aspects of the training world.


• HigherEdJobs (www.higheredjobs.com). Lists openings in academia.

Chase Freedom Categories for the First Quarter

Most readers know that I use the Chase Freedom cash back credit card. IMO it's the best overall booster card out there today and a must-have for those of you with a multi-card strategy.

The Chase Freedom card offers 5% cash back on certain categories each quarter. But you have to register online in advance to get the bonus for the next three months. This post is to remind you to REGISTER NOW.

The 5% bonus categories for January through March are:

• Gas stations - YES!!!! I LOVE it when they have gas stations as a bonus category because, as you might imagine, gas is one thing I buy regularly.


• Drugstores - I don't buy a ton from drugstores, but my Walgreen's has a TON of gift cards that I can buy and get 5% cash back.


• Starbucks stores - I don't drink much "dessert coffee", and when I do it's usually from McDonald's. It's just as good and is less expensive than that at Starbucks.

I should be able to hit $1,500 spent on these categories with no problem. That's an easy $75 bucks back!

To get set up so you receive the 5% back for these categories, simply go to the card's activation website here and follow their simple process. It takes about 30 seconds.

Free Money from American Express

Just a quick note to let you all know that registration is now open for American Express's annual Small Business Saturday. Here's my quick summary of the event:

1. You register your American Express card at the Small Business Saturday site.

2. On Saturday, November 24, you shop with that card at a small business that accepts American Express cards. (You can find qualifying places at their site.)

3. American Express gives you a $25 statement credit on the card you used.

There are a few more rules, but those are the basics.

Registration is limited, so get there asap if you want your credit.

BTW, it looks like the rules state that you can get the $25 credit PER CARD. That means if you have multiple Amex cards, you can get multiple credits. I signed up under all five of my cards.

American Express Blue Cash Preferred Card Changing Its Terms

Readers of FMF know that I like and use the American Express Blue Cash Preferred card. It was even on my list of the best cash back credit cards for some time. The key reasons:

• It pays 6% cash back on grocery store purchases.


• You can use it to buy gift cards at grocery stores and get 6% cash back on all sorts of purchases -- restaurants, home improvement stores, etc.


• There is no limit to these rewards. In other words, if you rack up $15,000 in charges at 6% on this card in a year, you would get back $900. Sweet!

The one downside of the card is that it has a $75 annual fee. There is a similar card from Amex with no annual fee but the grocery cash back is only 3%.

However, things are a'changing.

I have heard from several people that this card will begin capping annual rewards starting next year (I don't recall seeing this message in my statement, but perhaps I overlooked it.) Here's a comment left on one of my posts recently:

Just received a notice on the Amex preferred. The 6% at grocery will be capped to first $6000. It still comes out ahead even with the annual fees, if you purchase gift cards. I do lot of driving, and pick up gas gift cards from the local grocery, giving me 6% discount on my gas. The change will be effective next renewal after Jan 2013.

And another:

Did you see that Amex is capping the 6% supermarket rewards on Blue Cash Preferred to the first $6,000 of eligible purchases and then 1% - likely as an attempt at shutting down the gift card loophole. This is from the October statements. Change is effective January 15, 2013. A pity. Still obviously attractive but I would imagine most families of 3-4 exceed $500 in groceries a month even without the gift cards.

I even had a reader email me a screenshot of the notice. So it appears it's both true and widespread.

Too bad. The gravy train was good while it lasted.

The question now is whether or not the card is still a good deal. I think in most cases, the qualified answer is "yes."

While you can't earn $900 on $15k in charges any longer, you can earn 6% cash back on $6,000 in charges. Even after you take out the $75 annual fee, your net cash back on $6k of charges is 4.75% which is still quite good.

We spend about $5,000 a year on groceries, so with $1k extra in gift card purchases we will keep the card and get the full $360.

Of course if you're a one card (or couple cards) sort of user, this card may or may not make the cut depending on how much you charge, where you charge, what you charge, and so on.

What about you? Do you have the card? If so, will you keep it with the new terms?

I Hit the Limit with American Express and Chase

Who knew there was a limit on how many credit cards you could have from one issuer? I didn't -- until I found this out from two different companies recently within the space of a couple days. Here's the story.

After I posted on my most recent credit card moves, I made three other changes:

• I applied for an American Express Hilton Hhonors card for two reasons:

1. They had 40k bonus points available (FYI, you can purchase 10k points at $0.01 per point, so 40k points equals $400 in this case). We will be taking another cruise early next year (oh yeah -- stay tuned for the details) and I needed the points to try and hold down expenses.

2. Hilton hotels (Hampton Inn, Hilton Garden Inn, and Doubletree) are my company's choice of hotel when we travel, so I already have a lot of points with them. The Amex card gives me 6 points per dollar spent at Hilton hotels, which will be helpful in getting another 40k points (to have TWO free nights at a hotel I'm looking at.) FYI, we stay at Hampton Inns when we travel as a family too because we've found them to be clean, affordable, and have a good breakfast that gets us going and saves money in and of itself.

• I applied for an additional Ink Cash Business Card. This one was purely a bonus play -- I was looking for another easy $250. Plus I kinda wanted to see if they would issue me another one so quickly after I got my first one (I filed for it under a different "business".)

• I got a Fidelity cash account and hooked it to my 2% cash back Fidelity American Express card. I should be seeing cash rolling in quickly.

A few days after I applied for the Amex card, they called me. It appears they have a limit on how many "lending cards" you can have with them. But the lady was very nice and suggested a couple cards that appeared to be inactive. She asked if I wanted to cancel either of them to make room for the new one. One of the cards I actually use on special occasions, but the second was a pure hold-over from a long time ago. I canceled it and then the Hilton card was approved.

Within a few days I received the card, used it on the trip, and received the 40k miles credited to my account immediately. Sweet! I'm now only a few thousand points away from 80k (two nights' free).

The Chase experience was similar but different. Similar in that they also contacted me, but different in that it was in the form of a letter. The letter basically said I was rejected because I had too many credit cards with them already. I'm sure I could have found some inactive ones to cancel, but since Chase wasn't as easy to work with as American Express, I figured it wasn't worth the effort.

So I focused on the Ink card I had. I set up my cable and internet to auto-pay with it (5% cash back), bought something at Staples with the card (5% cash back), and gave a donation to my church (which got me the second part of their $250 bonus.) Ch-ching!

I still have a couple credit card moves to make in the next few weeks:

• I will cancel the Citi card I wrote about last time. It's never going to be something I'll want to use again since it's now just a 1% cash back card.


• I need to look through the various inactive cards I have and cancel some of them. I'll especially look at the Chase ones since I may want a new card from them.

Anyway, I was surprised that both American Express and Chase had a limit on how many cards they would issue one person. I was sure that credit limit would be a constraining factor, but not number of cards. Has anyone else ever encountered this issue?

My Recent Credit Card Moves

Since I shared my latest credit card strategy last fall, I've given a couple updates (like how much I earned in 2011 and the fact that I lost $280 in rewards by not paying attention), but I haven't posted any details about what I'm doing on a daily basis to get the most cash back I can. Since I've recently made several moves, I thought now would be a great time to give you an update. Here's what's happening:

• I redeemed $100 of cash back rewards I had due on my Citi Dividend card. The card was a special offer I received in the mail. It was a 1% card which had a bonus 1% for the first year (making it a 2% cash back card.) It's also the card I hit the limit on and lost $280. Any way, they only redeem rewards in increments of $50, so I took $100 out and have $7.27 left. If I close the account, I lose the $7.27, but I can't use the card (since I've hit the ceiling this year) until October at which time it's only a 1% card. So I'll likely just close it (once I get my $100), lose the $7, and be done with the hassle.


• I canceled my Chase Sapphire Preferred card (I had my outstanding rewards transferred to my Chase Freedom card). I used it to get $625 in free travel (which saved me a ton on my cruise) as well as save on foreign transaction fees while on the cruise, but it was coming up for renewal and they have a $95 annual fee (it was waived in year 1, so I didn't pay anything). Since I don't use it as an on-going card, what's the use of keeping it around? I may re-apply for a new Chase Sapphire Preferred card later this year since they are offering $500 in bonuses for travel and we're looking at going back to the Caribbean. 


• I got a Fidelity American Express card that gives me 2% cash back on every purchase if I put it into a Fidelity account. I don't have a Fidelity account now, so I need to get one. I have the alternative of redeeming its rewards through Amex's points system, but the rep on the phone told me this equates to only 0.5% rewards, so I'm not interested in that option. I am using this card as my main card when I can't get bigger bonuses.


• The Blue Cash Preferred remains a top card for me since it gives 6% cash back on supermarket purchases. And we make a lot of purchases at our grocery store. For instance: 1) we spend roughly $5,000 on grocery food purchases each year, 2) we buy gift cards at the grocery store for restaurants, home repair stores, the Nike outlet, and the like, and 3) our "grocery store" is a Meijer -- which is basically a Walmart Super Center (so it has all sorts of general merchandise -- even things like discounted amusement park tickets which we recently purchased there). So we probably spend $7,500 or so per year at the grocery store. At 6% cash back, that's $450 per year. So even with a $75 annual fee, it kills a 3% cash back card ($225) with no annual fee. Plus they gave me $150 in bonus cash at the get-go (which they still offer BTW), so it's like getting the card for two years free anyway. I will certainly be renewing it when the time comes.


• The Chase Freedom card is still going strong for me as well. This quarter I'm rocking the 5% cash back on gas and restaurants (when I don't have a gift card I bought at the grocery store) and next quarter I'll get 5% on airline and hotel purchases for both work and vacation. Because they have such good bonuses in highly used categories (plus they give a $100 cash bonus for signing up), this card remains at the top of my list of the best cash back credit cards. One other note that makes this card especially good for me: I get even more cash back because I'm a Chase banking customer. If you're a Chase customer as well, this card is a no-brainer for you.


• I still use my Costco Amex for all Costco purchases as well as gas purchases when 1) I don't have a gift card and 2) the Chase Freedom card doesn’t have its bonus on gas.


• I use my Delta American Express occasionally -- whenever I fly. It's saved me $100 in baggage fees so far this year, so it's doing its job.


• I applied for and got an Ink Cash card (also from Chase). Not only does it offer a $250 bonus, but it gives 5% cash back on cable, internet service, phone, and office supplies. That rate will net me $50 alone from my Comcast bill. Add in the other costs and it will easily be a $100 per year earner that I don't have to do anything with other than set up the automatic payments.

Well, that's where I stand as of now. I'll let you know if things change significantly.

BTW, each time I write a piece like this someone asks about the impact of opening and closing cards on your credit score (FYI, mine was 798 last time I checked.) The bottom line: neither has much of an impact. For specifics you can read How Getting a New Credit Card Impacts Your Credit Score and How Much Closing a Credit Card Impacts Your Credit Score.

"Stuff" All Over the Place

Moneyland details a new study that basically says Americans have a bunch of "stuff" cramming their homes (FYI, this doesn't include items they have in storage units either -- which we know is significant, $17 billion a year in fees for those of you who are interested.) But at least it's making these people happy, right? Wrong! Check out this quote:

We’ve all heard about how money and possessions can’t buy happiness. The UCLA researchers say accumulating bigger piles of stuff may in fact decrease happiness and increase stress. Moms frequently used phrases such as “mess,” “not fun” and “very chaotic” to describe their homes, where toys, clothes, trinkets and food overflowed into garages, closets and attics. “It’s difficult to find time to sort, organize and manage these possessions,” said Graesch. “Thus, our excess becomes a visible sign of unaccomplished work that constantly challenges our deeply engrained notions of tidy homes and elicits substantial stress.”

Essentially, we’re paying good money to clutter our homes, raise our stress levels and increase our frustration.

I have several thoughts on this issue:

• After several years writing this blog it's clear to me that the average American has little to no self-control when it comes to buying/spending. On average (not everyone, mind you), we buy, buy, buy and accumulate stuff, stuff, stuff. Most of it we don't need and much of it we don't really want. Is it any surprise that after 40 years of living this way we find it hard to retire on time and with enough money?


• It costs money to have stuff too. I remember one of our kids' favorite radio shows years ago had a program whose message was "the more you have, the more you have to have to take care of the things you have." How true! If you have a car, think of the things you have to have, do, and spend on to keep it running. Now imagine two cars. Three cars. Several computers. All your yard equipment. Electronics. And on and on. Stuff makes more stuff and stuff costs money!


• Having lots of stuff makes life a lot more crowded too. I know we really enjoy the "space" when we clean out our stuff.


• I consider our family to be on the lower end of the "collecting stuff" spectrum and even we have a big problem. Here's just one example of it: we have a pantry off our kitchen that is the size of a nice walk-in closet in a decent master bedroom. It has plenty of shelves in it too -- shelves that hold food, supplies, school materials, files, soccer referee equipment, sporting equipment, and on and on. My wife and I recently spent a couple days (maybe 10 hours between us) looking over everything in the pantry (FYI, food only accounted for maybe 20% of the space at most.) We took enough stuff out of it to give away or sell that, when combined with rearranging the items left over, we cleared out 1/3 of the overall space! It was amazing!


• And that's just the pantry! Add to this the garage (oh, don't get me started here!), the finished basement, the storage areas (two in the basement), the kids' rooms (we just relieved my son of a ton of clothes he never wears), and the closets. We have stuff all over the place! And I think we're doing much better than average (based on what friends have in their homes).


• At the end of the winter and summer seasons we generally go through all our clothes and give away or sell what we didn't use that season, so our clothes are probably in the best shape on the non-stuff scale. But everything else just seems to be multiplying.


• If this is the case (or worse) for the average American, just think of all the money we have sitting around in our homes. If you have a lot of stuff and need cash, then sell what you have -- turn your junk into cash! Of course it then becomes someone else's junk, but that's a different story.


• Heaven forbid if you have a long-term storage unit (I understand them for short-term periods like a student moving or for storing unusual items like a boat) full of everyday stuff. Sell the stuff and not only make some money but save yourself the monthly rental fee on the unit!


• If you don't want to sell the junk (or can't because no one would buy it), you can always donate it to the Salvation Army, Goodwill, and the like. You're rid of the stuff, you get a tax write-off, and you help out a charity. Very nice trifecta!

How about you? Do you have stuff that you don't want/need? Come on, be honest! :)

Two Great Books on Making Money, Part 2

This is the follow-up to this morning's post.

The second book I liked so much is more limited/targeted and not directly related to making money, but it will help you make money if you can benefit from being "well known". It's Platform: Get Noticed in a Noisy World.

Now when most people hear the word "platform", they think of a stage (which is an appropriate meaning in a way for this book). But really the "platform" talked about here is a synonym for "influence" and could even be a measure of how famous/popular someone is. The term comes mostly from the publishing world where it's used regularly to determine whether or not an author is "big enough" to take a risk on. Book publishers want authors with a platform (influence) because having a large platform makes it more likely a new book will sell.

Still not with me? Perhaps an example will make the definition of platform a bit clearer.

Let's say Joe Smith wants to write a personal finance book. He's just an "average guy" who doesn't really know many people and has no way to get the word out about his product. How interested will a publisher be in his work? Unless it's the next "millionaire Next Door" they probably won't be too interested because he's starting from ground zero.

Then let's say I decided to write the same book as Joe. Publishers would look at the fact that I have a sizeable blog, have some decent business contacts, and have a network of people and groups that can help me publicize my book as a plus. I would look more attractive to them because I have a larger platform than Joe.

Now let's say Dave Ramsey decides to write the same book. He reaches millions on radio and TV, speaks in front of tens of thousands of people each year, and has sold millions of books. His platform is HUGE. Publishing a book is not much of a risk with him since he has a large, built-in audience (platform).

As the book notes, a strong platform is not only useful for authors, but can have positive benefits for business people, pastors, speakers, and on and on -- anyone who will benefit from being noticed.

In the "old days" (like when I was a kid), building a platform was very difficult and could only be achieved by a few. But with the potential of social media today, the author says it can be done by almost anyone. And he tells us how.

Here's a summary of the book from Amazon:

Michael Hyatt, one of the top business bloggers in the world, provides down-to-earth guidance for building and expanding a powerful platform.

To be successful in the market today, you must possess two strategic assets: a compelling product and a meaningful platform. In this step-by-step guide, Michael Hyatt, former CEO and current Chairman of Thomas Nelson Publishers, takes readers behind the scenes, into the new world of social media success. He shows you what best-selling authors, public speakers, entrepreneurs, musicians, and other creatives are doing differently to win customers in today's crowded marketplace. Hyatt speaks from experience. He writes one of the top 800 blogs in the world and has more than 100,000 followers on Twitter. His large and growing platform serves as the foundation for his successful writing, speaking, and consulting practice.

In Platform, Hyatt will teach readers not only how to extend their influence, but also how to monetize it and build a sustainable career. The key? By building a platform. It has never been easier, less expensive, or more possible than right now.

Social media technologies have changed everything. Now, for the first time in history, non-celebrities can get noticed -- and win big! -- in an increasingly noisy world.

Finally, here's a video summary of the book:

It's a very interesting read. Hyatt offers great suggestions that will help you expand your influence through blogging, Facebook, Twitter, speaking, writing, and so on. So if that's a goal you want to achieve, this is a perfect fit for you.

For me, it was a great book because much of it is about blogging. And while I knew many of the tips he offered, many more were great suggestions that I either hadn't thought of or had neglected to do. So even for an "experienced" blogger the book was quite valuable.

The thing that made this book even more special for me is that I know Mike Hyatt personally. In fact, he once offered me a job when he was the president of Thomas Nelson. During that process I got to know him quite well (I ultimately didn't take the job for several reasons) and found him to be a very impressive individual. He's been successful in quite a few endeavors -- entrepreneur, executive, author (even before this book), speaker, blogger, and on and on. He knows what he's talking about and is worth paying attention to. And I can say this not only because I found the book to be informative but because I know the man and what he's made of.

Wrapping up my thoughts on both this book as well as the one I covered this morning, I'm going to pay them both two of the biggest compliments I can think of (other than the fact that I actually bought and took the time to read each one):

• I took several pages of notes on each one.


• I will read each of them again.

Yes, they were that good. :)

Two Great Books on Making Money, Part 1

There are two things regarding books that I very rarely do these days: 1) purchase one (most books I either get from the library or have publishers send me for free) and 2) read a hard-copy version (I either skim the book for highlights -- which I can do in about 30 minutes -- or get an audiobook version from the library that I listen to in my car.) But over the past couple of months I broke with tradition and actually purchased and read (completely -- and took notes!) TWO hard-copy books. They were both about making money and both were AWESOME.

My original plan was to tell you about both books in one post. But as I began putting it together the post kept growing and eventually became too big IMO. So I'll tell you about the first book in this post, then highlight the second book in today's afternoon post.

The first book is The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future. Here's a summary of the book from Amazon:

In The $100 Startup, Chris Guillebeau shows you how to lead of life of adventure, meaning and purpose – and earn a good living.
 
In preparing to write this book, Chris identified 1,500 individuals who have built businesses earning $50,000 or more from a modest investment (in many cases, $100 or less), and from that group he’s chosen to focus on the 50 most intriguing case studies.  In nearly all cases, people with no special skills discovered aspects of their personal passions that could be monetized, and were able to restructure their lives in ways that gave them greater freedom and fulfillment.
 
Here, finally, distilled into one easy-to-use guide, are the most valuable lessons from those who’ve learned how to turn what they do into a gateway to self-fulfillment.  It’s all about finding the intersection between your “expertise” – even if you don’t consider it such -- and what other people will pay for.  You don’t need an MBA, a business plan or even employees.  All you need is a product or service that springs from what you love to do anyway, people willing to pay, and a way to get paid.
 
Not content to talk in generalities, Chris tells you exactly how many dollars his group of unexpected entrepreneurs required to get their projects up and running; what these individuals did in the first weeks and months to generate significant cash; some of the key mistakes they made along the way, and the crucial insights that made the business stick.  Among Chris’s key principles: if you’re good at one thing, you’re probably good at something else; never teach a man to fish – sell him the fish instead; and in the battle between planning and action, action wins.

And here's a trailer for the book:

My personal summary of the book is much shorter than the above:

There are thousands of people who started with little money invested and used skills they already had to create unique businesses that allow them to live as they want while making very good incomes.

Sounds interesting, right? It is.

The best part IMO is that the author uses TONS of real-life examples to highlight the various ways people have come up with their own businesses. He then distills the vital factors that made these efforts successful and suggests ways we all can use them to create our own businesses. It's a very nice back-and-forth (examples and then practical tips) that makes the book an enjoyable learning experience.

The examples both inspire and challenge the reader as well as really get the potential money-making ideas flowing (at least they did for me.) And it's written in a very digestible style and layout -- very, very easy to read. I read the book in short increments here and there while traveling on a couple business trips.

If you've ever thought about starting your own business, you have to get this book and check out the concepts in it. You won't be sorry.
 
Click here to read part 2 of this series.

Soccer Earnings Update

As many of you know, my son and I are soccer referees. Now that the season is over, I thought I'd detail our spring earnings as well as give a general update on our efforts. If you want to get up to speed completely, read my last post on this subject before reading this one.

We have been referees for 3 1/2 years (it seems a lot longer than this -- maybe all the cold, rainy and hot, blistering days make it seem longer.) Anyway, here are the number of games we've done as well as what we've earned (total) by season:

• Spring 2009: 28 games, $0 earned
• Fall 2009: 36 games, $465 earned
• Spring 2010: 27 games, $440 earned
• Fall 2010: 25 games, $545 earned
• Spring 2011: 34 games, $905 earned
• Fall 2011: 28 games, $1,321 earned
• Spring 2012: 51 games, $1,885 earned

In summary, we've refereed 229 games (148 paid) and earned $5,561 in 3 1/2 years.

A few notes to add perspective to the numbers above:

• While one of us is usually the center referee (higher paying position) we pool our funds and then split the money. So the $1,885 ended up yielding us $942.50 each. This works out better for my son since I'm in the center more often and yet he shares in the spoils. (FYI, most of our games are for 11- and 12-year olds, though we do referee higher and lower than those ages.)


• We did two tournaments this year. The benefit of tournaments are that you can get a ton of games in a short time period (we got 20 games in three days this way). The disadvantages are that they pay less per game than normal, league games (and the coaches are much more aggressive towards the referees, so it's more stressful.) That's why our total earnings are higher than ever but our earnings per game are lower than last fall.


• We had very few expenses since we have all of our gear from past years. We do track and deduct mileage and we had some food expenses, but that's about it.


• As is usual in Michigan, we had cold, rainy, 50-ish degree days and 90+ degree days this spring. Oh yeah, good times! :-)


• We plan to keep refereeing for some time -- probably at least until my son either gets a "real" job or heads to college in three years -- but those plans are subject to change. Our current certification is good until next year, so we will at least complete the fall season this September/October.


• As per an agreement with my wife, my earnings go to pay for our cable bill. What I've made in the spring season alone almost covers our annual cable costs. My son is saving his money for a car.


• In addition to being a money maker, refereeing has several other advantages: 1) my son and I get to spend a lot of time together around a sport we enjoy, 2) my son is developing leadership skills that will serve him well throughout his life, 3) I get a mental challenge out of the game, and 4) it's a great way to get exercise (I swim five times a week, but I enjoy mixing it up, and you can sure get a lot of running in while doing four games on a Saturday.)

That puts a wrap on the spring soccer season. Now we can take a couple months off and will be ready to hit tournaments at the end of August.

How I Lost $280 in Credit Card Rewards by Not Paying Attention

As many of you know, I use a multi-card credit card system to maximize my cash back rewards. Doing so I earned nearly $2,300 last year. It was going to be hard to beat that number in 2012 because I had a couple big bonuses in 2011, but I wanted to get at least over $1,000 since that would be my second biggest year ever, but those plans have hit a major snag because I dropped the ball. Here's the story.

Late last fall my wife received a credit card offer in the mail. It was from Citibank and it offered a straight 1% cash back. But for the first year it had an extra 1% bonus, effectively making the card a 2% cash back card for a year. We added this card to our basic credit card strategy as the "sweeper card". It was the card we charged to when we didn't have a higher cash back percentage on another card.

At the same time, I moved much of our giving to credit card, setting up an automatic payment/charge to our church each week. That way, even when we were gone (like when we traveled to see my parents over Easter), our tithe payment would be made. In addition, I had some business and travel expenses that allowed me to rack up some nice charges in March and April. So we were off to a good start -- or so I thought.

I noticed on my February statement that I didn't receive all of my cash back rewards credits. But the statement said that it could take "one or two months before all credits posted", so I didn't think much of it. In March, I didn't receive any either. At this point, I should have called them to see what was up. But I assumed it was the "two months" leeway they had noted. When I received my April statement and still had no rewards, I called them.

I talked to a representative for 15 minutes until he 1) understood my problem (he had limited English-speaking skills) and 2) determined he couldn't help me because he didn't have access to my past statements. He then sent me to a manager at a different location. She had just said, "I can see from your account that..." and the phone went dead. Ugh! By this time I was nearing 20 minutes on the phone with Citibank. I was not a happy camper.

I called the main number back, made it through the voicemail gauntlet, and finally got another representative. I told him that I was cut off with a manager and needed to talk to one. I got one rather quickly. I gave her my home phone and asked her to call me back if we became disconnected.

She looked over my records and came up with the answer quickly. The card had a $300 cap on rewards annually and we reached it. Ugh. The woman on the other end was sympathetic, but said there was nothing she could do. She did, however, give me 1% cash back on my last month of charges as a courtesy for being on the phone so long and for being disconnected.

In the end, the fault was mine. I didn't pay attention to the card's terms and simply assumed I had unlimited cash back. It was a complete lack of attention to detail on my part (not to mention the fact that I should have called them right away the second I didn't get all my rewards). And $279.73 in lost cash back rewards later, I have learned a lesson I should have learned long ago.

So here's my reminder to you: be sure you know the terms and conditions of your credit card rewards. Otherwise, you may end up losing a good chunk of change like I did.

As for what I'll do now, I will likely go with the 2% Fidelity Amex card as my "sweeper card." I already have three American Express cards (Costco, Blue Cash Preferred, and Delta) and don't really want another one, but I don't really have a choice if I want straight 2% cash back for my "all other" charges.

How about you? How are your cash back efforts going so far this year?

Get Rid of Your Stuff: Make Money, Declutter Your Life, and Help Others

A couple years ago I suggested we all make and save money by getting rid of our junk. The idea was to simply sell stuff you don't need/use, make money off the sale, and save money by canceling outside storage (if you were paying for any -- personally, I didn't have any, but I did have a lot of stuff to purge.)

Well recently Parade magazine hit on the same topic and they listed suggestions for purging your clutter as follows:

• Sell it -- ebay, Craigslist, yard sales


• Trash it


• Give it away -- Regift, charities, "free" section of Craigslist

They also list 10 things to throw out today as follows:

1. Computer printouts
2. Paper copies of paid bills
3. VHS tapes, cassette tapes, or old video games
4. Home gym equipment
5. Worn-out linens
6. Hair accessories from years past
7. Outdated cell phones
8. Extra coat hangers
9. Reminders of past hobbies
10. Single-use kitchen gadgets

Here are my comments on this subject:

Twice a year (in the spring and the fall), we go through our clothes and ask two simple questions:

1. Have I worn this in the past year?

2. If not, do I foresee that I will need/use it in the near future?

If the answer to both of these is "no", then we either pack it up and donate to the Salvation Army or sell it at our HUGE church kids' clothing sale (our church gives the seller 70% of the proceeds and 30% goes to the church.)

In addition to this, we go through the "problem areas" in our house once a year where stuff seems to accumulate. These include:

1. The basement -- This includes both the furnished part as well as our three storage areas.

2. The garage -- AKA the wasteland of all outside items (tools, bikes, gardening equipment, etc.)

3. The pantry -- Our pantry is the size of a large closet/small room and is full of shelving. We use half of it or so for food items and the rest is a hodge podge of other items -- soccer referee gear, paperwork, arts and crafts, and so on.

There are a few other places we clear out too, but these are where 90% of the stuff we have but don't need/use resides.

We clear out our stuff for a few reasons:

1. To decrease clutter. It just seems to make life a bit nicer when parts of your house are nice, neat, clean, and not packed to the gills.

2. To help others. We don't want/need the stuff, but others might. We give away stuff that's in good condition. Anything that's useless or in very poor shape gets thrown away.

3. To make money. This is mostly for our kids. They sell some of their stuff at the church sale so they can...buy more stuff. :(

That's how we handle "stuff" in our lives that seems to accumulate with no real help from us (Does it actually breed and multiply? It seems like it sometimes!) How about you? What do you do in your war on accumulated stuff?

Some Side Hustles to Ramp up Your Retirement Savings

The following is a guest post from Steve at Money Infant. Steve has embraced an early retirement and pays for it with side hustles developed over the past 5 years as well as by living a frugal lifestyle. Early semi retirement has enabled him to move his family to Thailand where they are all enjoying a new culture and way of life.

If you are preparing for the world of early semi retirement one thing you might want to consider is getting into some sort of side hustle. A side hustle is simply something you do in addition to your "regular" job in order to make additional money. Getting something like this started well in advance of your early retirement date (3-5 years) can benefit you in several ways:

1. You'll be able to boost your savings leading up to your early semi retirement.


2. You will have a ready made stream of income when you do jump into early retirement.


3. You will have an activity to take up at least part of your new found free time and help you avoid drifting.


4. If your side hustle ends up being more lucrative than you thought it would be it could spur you to an even earlier early retirement.

While many people try to focus on the savings side of personal finance, I've always taken a more balanced approach and put just as much emphasis on the earning side of the equation. Let's face it, you can only save so much. If you are spending $5000/mo the most you could possibly save is...well $5000/mo. I have no idea how you could lower your expenses to $0 though, so if you do let me know below.

On the other hand, your income is theoretically unlimited. Just ask Bill Gates, Warren Buffet or Mark Zuckerberg. Granted there is small chance you'll be making billions of dollars, but there's no reason to think you can't make tens of thousands or even millions. Before you make a single cent though you need to find a great side hustle.

There are many different kinds of side hustles, from those that are one off like selling your crap on eBay to those that could eventually provide a full time income. The choice is up to you and is dependent on how much money do you want to make from your side hustle and how much time do you want to put into it.

One off side hustles

• Sell your crap on eBay


• Old school - Hold a yardsale to sell your crap

Ongoing part time side hustles

• Donate plasma. You can make over $200/mo


• Complete surveys and participate in focus groups


• House sitting or babysitting


• Make money from the Collaborative Consumption sites. Rent part of your house on Airbnb, give tours on Sidetour, teach classes on Skillshare, cook meals on Housbites, rent your tools on NeighborGoods, do odd jobs on TaskRabbit, become a tutor on Tutorspree.

Possible long term side hustles (Note: All of these can be part time as well)

• Become a professional dog walker/pet sitter


• Start a freelance business. Plenty of opportunities here from writing to software development


• Start a lawn care business


• Create a website and sell a product or advertising


• Invest in real estate and become a landlord


• Utilize existing talents - writer, photographer, interior decorator, wedding planner, music teacher, computer repair, tax preparation/accounting, etc.

As you can see, there are plenty of opportunities out there to make extra money on the side. The only thing holding you back is you. Instead of going out after work or coming home and planting yourself in front of the TV or compuer make time to create a side hustle income. You can start small with just an hour or two a day and I am willing to bet that if you stick with it you will be surprised at what an hour a day can yield 3, 6 or 12 months down the road.

Imagine after 3 years time your side hustle was making $3000/mo (not that difficult to achieve). Would you be more likely to consider an early semi retirement? If it meant you could spend your time doing something you love or at the very least enjoy, wouldn't it be worth it? If it gave you more freedom and options for how to live your life and who to spend your time with would you be more motivated to start now?

Don't dream it, be it.

(Bonus points if you can tell me what movie the quote is from)

Real-Life Stories of How People are Making Side Incomes

Recently the people at Fiverr, the site where people offer to do tasks for $5 a pop (though the good sellers add on services costing way more than $5), asked me if I wanted to highlight some success stories from their site. Since I love "how to make money on the side" pieces, I told them I'd love to. So here's what they sent me -- five stories of how people use Fiverr to make a decent side income.

$4k on Impressions

• Seller Name: Chris Hardy


• Seller Description: Repairs school band musical instruments by day, Voice impressionist by night


• Fiverr handle: Chrishardy


• Fiverr Profile: http://fiverr.com/chrishardy


• Gig (s) Offered: Standard voice over gigs, writes set of song lyrics, will sing name in four part harmony and more for $5


• Story: By day, Chris Hardy works at Guitar Center repairing musical band instruments. He first heard about Fiverr from the Clark Howard show which featured Fiverr as a great tool to earn extra cash and immediately began thinking what his talents were. As music has been an integral part of his life, he decided to use his musical talent and couple it with his voice over impressions to sell songs for 5 dollars. Chris uses the money he earns from Fiverr to supplement his wife’s college expenses like books.


• Quote: “I just cleared the $4,000 mark and I started in September 2010. It seems like a constant stream of money is going into my PayPal account.”

$10k in Puppet Videos

• Seller Name: Mark Gray


• Seller Description: LA producer cashes in with Professor Puppet alter ego – earning nearly $10,000 in less than a year


• Fiverr handle: professorpuppet


• Fiverr Profile: http://fiverr.com/professorpuppet 


• Gig(s) Offered: Will record a custom video of anything you like for $5


• Story: Rocket Pictures production company founder Mark Gray has more than 22 years of experience in the entertainment industry. He first heard about Fiverr through a colleague and immediately saw the opportunity to harness its power to make a little side cash. After creating the “professorpuppet” user name, he posted his offer to the site, “Prof. Hans Von Puppet, brilliant scientist and web'lebrity, will record a custom ~30 second video for you… Happy Birthday, comment on your blog, advertise your product – anything.”


• Quote: “I was enthusiastic about using the site, but the results far exceeded my expectations,” said Gray. “In just eight months, I’ve created more than 1,500 professorpuppet videos and made nearly $10,000, an incredible help in the unstable entertainment industry.”

Coffee Photos FTW

• Seller Name: Sarah Schubert


• Seller Description: Aspiring Actress turned Web Celeb


• Fiverr handle: sarahsunshine


• Fiverr Profile: http://fiverr.com/sarahsunshine/


• Gig(s) Offered: Will photograph a custom coffee bean creation for $5


• Story: An aspiring actress and disgruntled publishing industry employee, Sarah Schubert found herself unable to break into the competitive acting world. When a friend tweeted about Fiverr, Sarah jumped on the opportunity to bring in supplemental income, allowing her to focus on her passion: acting. Schubert, similar to many L.A. residents is a jack-of-all-trades and offered a variety of services from photography with coffee to video testimonials to android application ratings. Sarah has sold more than 500 gigs on made more than $2,000. More importantly, Fiverr gave her the flexibility to build an online brand, ultimately allowing her to launch her acting career. Since becoming popular on the site, Sarah has appeared in various music videos and a handful of short-length films.

$7k in Graphics

• Seller Name: Mary Ingrassia


• Seller Description: Freelance graphic artist


• Fiverr Profile: http://fiverr.com/uniquefivex


• Gig (s) Offered: I will speed color your logo for $5 – biggest seller – people would make it an ad for their website, put it on their Facebook page – lots of sales on that – that’s what she’s been doing the most of now – edits it to speed it up, then puts music and fades to logo


• Story: Mary is a freelance graphic artist who was looking for work as the economy hit bottom. She first heard about Fiverr a year ago from a Yahoo News article and realized she could see her designs for Five dollars. She offers upgrades – “gig extras” – lots of people add it - $10 for a faster turnaround time, speed write 3 pages before coloring in the logo (people say what they sell, etc.), for a more complex logo (with a character, there’s more color, etc.) charge more. So far she has made over $7,000 and it’s a consistent source of extra cash.

Social Media for $5

• Seller Name: Matt Wayne


• Seller Description: Sales and online marketing


• Gig(s) Offered: Gets Twitter or Facebook followers for $5


• Story: Upper West Sider Matt Wayne, founder of a company called No Social Limits, has generated over 1,000 orders over the past few months for $5 services that include boosting clients’ followers on Twitter or YouTube and friend counts on Facebook. He’s now offering larger-scale services that he hopes will turn those micro-gigs into an actual client base.


• Quote: “If they like us at $5, we can then convert them up to a $20 sale, which makes it more worth my while,” said Wayne, 25, who currently fields up to 20 orders a day on the site. “People thought I was crazy,” he said. “It was $4 in revenue. But money is money.”

7 More Great Ways to Earn More Money

A few years ago I wrote 11 Great Ways to Earn More Money, a piece that is quite popular here even to this day. I decided to add to that line of thinking and list seven more (relatively easily) great ways to add a bit of extra cash to your pocket. Here goes:

• Open a high-interest checking account. This is what I did with my credit union and it's worked out quite well so far. Even though they reduced the rate from 4% to 3%, 3% is still by-far the best rate of return I have on my cash. Check for similar offers where you live or locate a national bank/credit union with online accounts that allow anyone to participate in their offers no matter where they live.


• Tutor or teach online.  If you are an expert in a field, whether it be math, English, engineering, or something else, you can sign up to be an online tutor.  You’ll need a web cam as well as a head set, and of course, you should be good at explaining difficult concepts. To find a job as an online tutor, a good place to begin is tutor.com.  Tutor.com also offers bonuses and performance incentives. Or you could simply teach at a college or university.  I am considering this option as a way to make a bit more money as well as a potential transition job into early semi-retirement. To find a part-time job at the local college or university, check the school’s website.


• Sell your photos online.  In addition to good content, websites and blogs need photos (at least most do, I don’t use many).  If you have a knack for taking pictures, consider selling your photos to stock photo sites.  Most photos earn .25 to .50 per use.  Pick a niche, such as money related photos for personal finance blogs, and take photos to fit the niche to maximize your earnings.  A few good sites to consider include iStockphoto, Big Stock, and shutterstock.


• Rent out your car. If you don’t use your car frequently (and don't mind someone else using it), you can rent it out to your neighbors.  There are three major companies offering this service—RelayRides.com, Spride.com and Getaround.com.  These programs aren’t available in all states, but if you are eligible, you could make $7 to $10 an hour renting out your car to neighbors.  (RelayRides.com, for instance, takes 35% of what you earn and also charges you for the gas that the borrower used, so make sure to put a competitive rate on the cost of your car.)  Remember to consider wear and tear on your vehicle when deciding if this is a good program for you.


• Rent out your finished basement. If you have a home with a finished basement, consider converting it to a rental unit. If you live in a desirable location near a big city or close to a college town, you could earn a nice income every month without much added cost.  And you could use the money to pay down your mortgage more quickly. We have a finished basement with a bedroom and full bathroom. I've considered this idea, but haven't yet pulled the trigger. But I keep it in mind in case I ever really needed some extra money.


• Rent out your home for storage. If you don't like the idea of someone living with you, consider renting out part of your home for storage space. It's a $17 billion industry, so why not get your share of the pie? That extra space you have in your garage, shed, basement, or spare room could be earning you some cash. Just be sure you have the proper insurance to cover and storage-related issues/problems that could occur.


• Become a dog walker or pet sitter.  Dog walking is always an in demand job as long as you are willing to walk in any type of weather and you are reliable. Chances are, if you are hired as a dog walker, the owner may trust you enough to become a pet sitter in the future, which will save them kennel boarding costs.  You could either stay in the owner’s house (for which you could charge a higher fee) or have the animal come to your house.  Of course, if you stay in the owner’s house, they also get the added protection of not leaving the home empty.  A great place to find dog walking jobs in your area is Craigslist, unless you live in a subdivision as we do and have plenty of neighbors with dogs. (FYI, my daughter and a co-worker's daughter both pet sit and walk dogs and they do quite well.)  

That's my list -- how about yours? What are your favorite ways to earn extra money?

Why a Personal Finance Expert Recommends Credit Cards

In the book 7 Money Rules for Life®: How to Take Control of Your Financial Future, author Mary Hunt tells why she recommends her readers use credit cards:

The truth is that a credit card -- the right credit card -- used smartly by someone with a modicum of financial intelligence can be a useful financial tool that can also contribute to a high FICO score.

She also has a lot of qualifiers as you might imagine. Things like only buy items you have budgeted for and never carry a balance. The same sorts of caveats I make.

Her recommendation might surprise you because she was once herself in deep credit card debt. From her website:

It took us 13 years to pay back more than $100,000 in unsecured debt, plus all the penalties and interest. Had I known then what I know now, we could have paid it back in six years or less. But, that's not important now. What matters is that we did it...we persevered and we are so much better for having gone through it.

The same reason she recommends credit cards is the same reason I recommend them -- if used correctly they can be great financial tools. And the same caveats she lists are the same ones I list. If you can't handle credit cards, you need to stay away from them. That said, I do take it a bit farther as I actually try to maximize my credit card earnings (almost $2,300 in earnings last year.) Why not earn a bit extra to boot? ;-)

Of course on the opposite side of the credit card debate is Dave Ramsey who is 100% against credit cards in any way for any reason. I understand where he's coming from, both personally as well as for those he advises, but to me there are too many benefits of credit cards to throw out the baby with the bathwater. Use them in a way that benefits you financially and keep them from harming you in any way, and credit cards can provide a nice boost to an overall solid financial plan.

Get Your Costco Amex Rebate Back in Cash

With the arrival of February credit card statements (which come in the month of March), those who have the Costco Amex card will be receiving their rebate checks. Many people believe that these checks can only be redeemed for merchandise at Costco, but this is not true. Here's how the redemption form reads:

Annual Reward Coupon from American Express may be redeemed for goods, services, cash, check or Costco cash card at Costco Warehouses.

Notice that "cash" is one of the choices? ;-)

This is the route we will be going -- getting cash for our reward. Last year our check was pretty small since we only had the card for part of the year, so we simply spent it on merchandise. But this year we got a healthy amount back from it, so we'll be taking the cash!!!

I'm guessing that we simply go to the customer service desk and ask for the cash. Does anyone know for sure? Anyone ever redeemed their Costco Amex reward for cash?

Best Credit Card Promotions, Offers, and Deals

Update: I have moved the cards once detailed here to my page that lists the best cash back credit cards. Please visit it.

I frequently get asked to name the best credit card promotions, offers, and deals available today. So instead of answering each person individually I thought I'd write a post I could point people to and then update it as offers change over time.

At the end of the post I'll give some thoughts on taking credit card promotions, offers, and deals, but some readers will simply want to get to the point and see the list, so I'll start with that.

Here's a list of what I consider to be the best credit card promotions, offers and deals. I'm not going to include fluff offers, just those I think are the best and are substantial. Each one below has a sign-up bonus of at least $250 in cash or value -- the minimum standard I have set to make it well worth the taking. The winners:

General Cards - Best cards for overall on-going use.

• Moved

Airline Cards

Having a credit card for any airline carrier you use even a bit has some huge advantages. To start off, the cards come with sign-up bonuses as well as points (of course) when you use them. But the big money comes when you use then to save on baggage fees. For example, on my family's trip to the Caribbean we saved $150 on baggage fees alone (three bags, $25 each, round-trip) using the Delta card below. Then I've continued using it, racking $50 in savings ($25 for one bag round-trip) a few more times. Here are the cards and a quick summary of their offers:

• Moved

Using both promotion offers as well as using the cards themselves, I made almost $2,300 last year from my credit card efforts.

A few other notes on this subject:

• Of course you need to use any credit card you may get responsibly. Getting a big bonus is no great deal if you burn that much and more on extra spending, interest, fees, and the like.


• From what I've seen, opening and closing credit card accounts have little to no impact on your credit score, an issue many people are concerned about.


• Please be aware that bonus offers come in and out quickly. In addition, card terms can also change without notice. I'll try to keep them up-to-date, but they may change before I update the post, so read the details when you apply for any card (something you should be doing anyway).


• Yes, there are fees with some of the cards above. Many are waived for the first year. Do the math and make sure they work for you.


• If you are more interested in using a card on an on-going basis (rather than getting a big promotional offer), see my list of the best cash back credit cards.

Have I left any cards out that you think I should consider?

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

How to Select the Best Credit Card

The following is a guest post from Marotta Wealth Management. Much of this is similar to what I talked about in How to Get the Most from Cash Back Credit Cards, though I don't agree that paying an annual fee is always a bad thing. As most of you know, I actively use credit cards and maintain lists of the best cash back credit cards and best credit card bonuses for those looking for new cards.

By now the bills from Christmas spending have arrived, and many households are burdened by credit card balances that seemed so promising when the application arrived in the mail. Unfortunately, none of them have a feature stipulating you don't have to pay.

Lots of articles steer you to the best credit card by categories--one if you want airline miles, another if you need to transfer a balance and a third if you are looking for the lowest interest rates. This is not one of those articles. The millionaire mindset does not want airline miles and doesn't carry a balance. And the sooner you start thinking like a millionaire, the sooner you will become one.

Principle number 1: The credit card company's job is to make as much money as possible, and your job is to keep as much money as possible. They are very good at their job. Principle number 2: The defaults should all be in your favor. Avoid any credit card that requires you to work against them. They will win, and you will forget to do some important piece of work.

Putting these principles into practice, here are the five key features to look for in a credit card.

No annual fee. No amount of rewards and bonuses can make up for an annual fee. If you start $75 in the hole, you have to spend $7,500 and get 1% cash back just to break even. No annual fee for the first year isn't enough for whatever rewards are offered.

As much cash back as possible on everything I purchase. Forget every other system of rewards. With immediate cash back, you are definitely getting something valuable. And you don't have to decide to use the rewards; they are simply deposited in your account. In the best of all scenarios, they are deposited into a savings or brokerage account.

An immediate 1% cash back on every purchase is the minimum you should settle for. The best I have seen is if you can get 2% on everything. Many cards entice you with 3% or 5% on specific purchases during certain months within limits when you remember to register. I'm too busy running a business to deal with such foolishness. Just give me the money. Don't make me ask.

Purchase protection, free extended warranty and return protection. If you've had a store that has not given you a fair deal and then given you a hard time, having made the purchase with a credit card can often help. If the original U.S. warranty is 5 years or less, some cards increase the warranty by up to a year. And credit cards often allow you to return anything purchased in the United States within 90 days from the date you bought it regardless of a store's policies.

In addition to these features, making purchases with a credit card can save you a tremendous hassle because a process is in place for disputes. We bought a digital camera that was supposed to come with a larger memory card as part of a promotion. But when it was delivered, the card was not included. The store refused to honor the original agreement until we disputed payment on the entire purchase. After that the memory card was sent immediately and our dispute was resolved.

Onetime-use credit card numbers. This feature, called "ShopSafe" by MBNA, allows you to create a unique temporary credit card number every time you make an online purchase. This number acts exactly like your real credit card number except it has a lower limit and a quick expiration date. For example, if you are purchasing a $35 item, you can create a temporary number with a $40 credit limit that expires in two months.

Merchants won't know the difference, but if their lack of security compromises the number you use, the thieves will find themselves with $5 more credit on a card that may already be expired.

Easily downloadable information. Entering every transaction into a budget by hand is a great way to create good spending habits. But once those have become routine, it is still wise to know what you have spent without all that manual labor. Many credit cards allow you to download a file and import it directly into Quicken or other budgeting software. Purchases from your usual vendors are automatically coded into their proper budgeting categories. Only new vendors need to be assigned a category.

My primary credit card had all of these features, including 2% cash back deposited directly into my investment account at the end of each month. Unfortunately, that card is no longer available, and the company recently reduced the cash back to 1%. The Fidelity American Express card, however, offers 2% cash back deposited directly into your Fidelity account. I have applied for that card. Here are some other cards that come close to approximating that deal:

With no annual fee, the Chase Freedom Visa returns 1% of all purchases. Like many other cards, it has a 5% limited cash back on rotating categories if you remember to sign up every quarter. The best gimmick is that they offer $200 cash back through a limited-time promotion if you have excellent credit and spend $500 in the first three months. Remember, it is just a come-on to get you to sign up. But for $200 it is at least worth the time.

Some consumer credit card advocate sites may receive cash payments if you sign up for a credit card through their website. Any recommendation comes with the caveat that to maximize profits, credit card companies remove the best features. But to stay competitive, others add new features. This competition is OK, but it means you must verify these recommendations to see if they are still reasonably good.

Credit card companies know that people have an irrational loyalty to their first card. That's why they market college students so heavily. You may feel attached to your current credit card, but believe me, the credit card company feels no such allegiance to you.

Using Credit Cards to Save Money

We talk a lot about using credit cards (specifically cash back credit cards) to MAKE some extra money over the course of a year, but does anyone ever get a credit card because it will SAVE them money? Recently I've gotten two cards just for this purpose and I'm wondering if any of you have as well.

The first card I got was the Gold Delta SkyMiles® Credit Card from American Express. Yes, it came with 30,000 miles, but the real reason I got it is that I fly four or five times a year on Delta (if you live where I do, you don't have much choice.) I am usually gone for three days or so on each trip, so I have a medium-sized bag with me. I also usually have a connection (if you live where I do, you don't have much choice.) I HATE dragging my bag through the airport for seven hours over the course of arriving, flight 1, going to flight 2, flight 2, leaving the airport, and so on. So I check my bag.

As you probably know, Delta charges $25 for one checked bag (each way). So if I travel five times for a total of 10 trips out and back at $25 each, that's a cost of $250 per year. But with the Gold Delta SkyMiles® Credit Card from American Express, the first checked bag is free. So even though the card has an annual fee of $95 (which is waived the first year), it still saves me over $150 per year. Better yet, I can use it for personal travel too. When we went to the Caribbean, we had three checked bags (both ways). Using the card, I saved $150 on this trip alone!

The second card I've already told you about. I got the Chase Sapphire (my first points-based card) even before I knew everyone loved it. I then used the sign-up bonus as a $625 savings to airline tickets I purchased to get us on our cruise. Not bad at all, huh?

Maybe this issue of "saving" with a credit card is limited to travel. I can see where others save on airfare (or related) costs, hotel stays, and the like, but I don't see anyone saving on groceries, eating out, and so on. They can EARN money on groceries, eating out, etc. of course, but they aren't really saving money.

Then again, maybe it's all semantics. Whether you "save" $500 or "earn" $500, you're still $500 ahead, right? That may be the case for the Chase card above, but the Delta card does earn something (30,000 points) PLUS saves money (on the baggage fee), so I think that one is a true savings move.

What's your take on the issue? Have you ever gotten a credit card to save money?

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

Earn Extra Money as a Pet Sitter

US News has an interview with a woman who started her own pet sitting business after she was laid off. To her it's a way to earn some extra money -- not really a business (she has other interests), but she is supporting herself on it and other odd jobs.

If I had the time and inclination, I'd start a pet sitting business. Why? Because I think it could offer a decent side income. People spend a fortune on their pets and their vacations. Unfortunately, it's often difficult to take Fido on vacation. Voila! A built in need for someone to watch him while you're traveling.

And the options aren't good. After all, do you want Fluffy caged up in tight quarters all week at $25 per day? Or would you rather have her home where she has the run of the house for $15 a day. Oh, and the person checking on her can also get your mail and do a quick security check of the home -- extras that pet-boarding-in-a-box can't offer you.

And then there are all the extra services you can add on (walking the pet, multiple checks per day, chores/tasks around the home, etc.) Don't get me started...

My daughter does some pet sitting (though she's not really interested in growing it like I want her to) so I know a bit about it first-hand. But there are probably some readers out there who have more experience than I do, so feel free to leave your pet sitting tips in the comments below.

Anyway, I think I'm adding pet sitting to my list of potential retirement/semi-retirement options for a side income. Just look how the numbers can add up:

• Five pets watched per day for $15 each: $75 per day
• Number of days: 200 per year (just a bit over half the year)
• Annual income: $15,000

And that doesn't include sales for things like walking that you could add on. With a couple jobs like this and some retirement savings, you could be looking at a faster-than-expected early semi-retirement.

Why Credit Cards Beat Debit Cards

Smart Money has a series listing ten things debit card issuers won't tell you. Of the ten, two of their points really stood out to me. They are:

4. "Credit cards can be a better deal than debit cards."

For years, consumers have been told that debit cards have more benefits than credit cards. Debit card users don't run the risk of going into debt and damaging their credit score like they do with credit cards. But some experts are questioning that logic. For consumers who diligently pay off their credit-card balance each month there's little reason to use debit cards. They won't incur interest rate charges, or late fees, and they can avoid annual fees by using credit cards that don't charge them.

The reason boils down to rewards. Credit-card rewards are becoming more generous while debit-card rewards are fading.

As for rewards, it's hard to beat credit cards. There are great rewards for using credit cards (see my list of the best cash back credit cards) as well as just getting a card (see my list of the best credit card bonuses). These can add up to big money over the course of a year.

The only decent debit card reward I've seen is the PerkStreet 2% debit card (which is a pretty good deal.) But I can earn more than that fairly easily (without the deposit requirement too) with my current credit card strategy. I think most FMF readers could as well.

My personal debit card doesn't pay rewards, but it allows me to earn 3% on my money saved at my credit union. We have to make 10 transactions per month to get this benefit, so we use 10 small charges, saving the big ones for credit card purchases.

7. "Your bank account is vulnerable to thieves."

Debit card thefts -- be it the actual card itself or the account number -- can destroy consumers' finances. In the worst-case scenario, a debit-card theft could wipe out a cardholder's bank account, and if a checking account is linked to a savings account, victims could lose that money, too, says Jay Foley, identity theft expert and founder of the ID Theft Info Source, a consulting firm.

Consumers are advised to move quickly in reporting the theft to the card issuer. When a physical card goes missing or is stolen, consumers have just two business days after learning about the loss to notify the card issuer in order to limit their losses to just $50. But wait longer than that and the chances of recovering whatever money was fraudulently taken decline.

Ah yes, security. You have more of it with credit cards than debit cards, that's for sure. Especially if your checking and savings accounts are hooked together and you have a good amount of your emergency fund saved at the same bank (which many people likely do.) It's a BIG reason to favor credit cards over debit cards.

I'm sure someone will comment that you'll spend more with a credit card than you will with a debit card. The studies on this are mixed, but I think that they are likely true in general -- that the average American will spend more with a credit card than if he has a debit card or cash. That said, the average American is in debt, has little savings, and can't control his spending, so is it any wonder that he spends more when he has a credit card?

Personally, I'm not shooting for average (and I'm guessing most FMF readers aren't either). That's why I don't have any debt, have a good amount in savings, and can control my spending, whether that spending is in cash, credit, debit, or anything else. So for me, it's credit cards all the way. If used responsibly (which is the only way anyone should be using them), they can be a great asset and source of a decent amount of extra income each year. What's not to love? ;-)

Teaching the Chase Guy About Credit Cards

On a trip into my local Chase branch recently (it took me three separate trips to get them to link my Chase Sapphire card to my bank account -- long story why) I was talking to the guy "helping" me. We got to discussing how cool the Chase Sapphire card is. I defined "cool" as the color and the material (metal) while he raved about all the benefits of the card.

He "loved" the fact that the card offered 2 points back on travel for every dollar spent, 2 points back on dining, and 1 point on everything else. Uh, yeah. I could tell this guy was not experienced in the ways of the credit card world, so I decided to help him out a bit.

I said that I thought their best overall card was actually the Chase Freedom card (which makes my list of the best cash back credit cards and is a card I use personally.) He readily agreed and started raving about their 5% bonus levels. He also told me that I could earn even more with it since I had Chase accounts -- something I already knew.

I said I wished the card didn't have the $1,500 quarterly limit for bonuses. He agreed but said he thought the 1% cash back on everything else was pretty good too. I couldn't take it any longer and decided to introduce him to the dark side. ;-)

I showed him my American Express Blue Cash Preferred card and told him how it gives me 6% cash back on grocery purchases. Then I told him how I use it to buy gift cards at the grocery store and get 6% cash back on a whole host of purchases -- restaurants, gas, home improvement, etc.

He was dumbfounded. His mouth was literally hanging open. And he kept asking, "Really? Really?" I assured him that yes, it really did work that way.

In the end, he couldn't help me. The card offer had been in my wife's name, so she was actually the authorized user -- and she needed to fill out some paperwork (of course) to give me certain access. But I think I did help him. ;-)

A Great Example of How to Make Big Money with Credit Cards

A reader recently sent me his credit card points and bonus summary for 2011. It's a great example of how you can make a good amount of money using credit cards to get both bonuses and rewards. Here are his results:

New Cards, August 2011

• Wife--Chase Freedom, 20,000 points, no annual fee. -- $200 check received


• Husband--Citicard, 50,000 points, $500 gift certificates, however $125 annual fee. -- $375 net in Lowe’s cards


• Wife--Chase SWA, 50,000 points for $833 flights/$500 cash; $99 annual fee. -- $734 net in flights redeemed


• Husband-- Chase SWA, 50,000 points for $833 flights/$500 cash; $99 annual fee. -- $734 net in flights redeemed


• Husband—Chase Freedom, 30,000 points after spending $2500, no annual fee. -- $310.92 check received

New Cards, December 2011

• Wife—Citicard Thank You Premier Card, 50,000 points w/ $2500 in 3 mos. -- $500 check to be received


• Wife—Chase Sapphire, 50,000 points after spending $3000 in 3 mos. -- Pending ($500)

2011 Points Redeemed for Spending on Cards

• Wife’s SWA spending; 8,000 points redeemed for $100 gift cards/special deal -- $100.00 Amazon cards


• Husband’s Chase Sapphire spending/redemption in 2011; $29,836 on card. -- $298.36


• Husband’s Citicard spending; Around $11,000 so far, 10,000 points redeemed. -- $100 Barnes/Noble cards.   

Grand Total for 2011:     $3,852.28

He ended the summary with the following quote:

"The beauty of having spotless credit.  Bonuses/Redemption not taxable income, which is HUGE!"

Gotta love it!!! ;-)

If you're interested in making more money with credit cards either by getting large bonuses or simply using the cards, I keep lists of both the best cash back credit cards (for use) and best credit card bonuses.

FYI, I'll report my credit card rewards for the year once I get around to adding them all up.

What People Think About Rewards Credit Cards

Capital One recently sent me a copy of their 4th quarter "Rewards Barometer", an on-going research study among people with rewards credit cards. I looked over the data and wanted to share some findings I found interesting. Their results are in red below, followed by my comments.

92.5% are satisfied, very satisfied, or completely satisfied with their current rewards card(s).

I'd probably put myself into this category, so I can see why the number is so high.

44.6% have cash back rewards, 42.1% go for points, and 26.8% have miles cards.

Note that the percentages are over 100% because people have multiple types of cards.

Looks like cash is the winner, though points are close. Then again, many points-based cards can be redeemed for cash, so I would guess that cash was over 50% of the rewards redeemed. But I'd be wrong (at least for this quarter)...

Rewards users recently redeemed include: 43.8% cash, 42.1% airline tickets, 31.1% gift cards.

Then again, there's really not much difference between cash and gift cards, right? Aren't they in effect the same thing?

The survey asked people what could be done to improve their card. 56.6% said "more special deals with retailers to earn more rewards", 46.7% wanted "making earning rewards simpler", and 24.1% wanted "removing caps that limit the amount of rewards that I can earn."

I would take any of these, but my top one would be removing the amount of rewards I can earn. Especially with the Chase Freedom card. It's a great card but the $1,500 per quarter limit is too low in some quarters (like the one we're currently in).

People were then asked why they have a rewards credit card. The responses: 60.9% said "it’s free money", 35.3% said it "allows me to earn trips", and 26.7% said it "allows me to earn merchandise."

FREE MONEY!!!! Oh yeah, baby!!!! ;-)

Any of these results surprise you? Any of them different than what you would have answered?

Gift Cards at Kroger Can Earn You Big Gas Rewards

Kroger is one of the biggest (if not the biggest) grocery store chain in the U.S. And while on their site recently looking for some product information, I ran into this promotion they are running (additional details are here). The summary:

Get 4 times the fuel points when you buy gift cards.

For those of you who don't know, Kroger has a frequent buyer card called the Plus Card. Not only does the card allow you to get grocery savings, but you also get reductions on gas (at Kroger stations) the more you buy at the store. We don't have Kroger stores where I live, but if we did, I'm sure we'd shop there and take full advantage of this program.

They are currently quadrupling the gas rewards offers when you buy gift cards at Kroger's. Here's how I would work the program:

• I would buy as many gift cards for presents as well as for personal use (at restaurants, department stores, etc. -- places I knew I would shop at over the next few months) as I could. If need be, I'd spread the purchases out over a few weeks to maximize my gas rewards (I'm sure there's a ceiling of some sort.)


• In case you're wondering, you can get gift cards for all sorts of purchases at grocery stores. Here's a list of the choices I have at my grocery store.


• I would buy them using my American Express Blue Cash Preferred card -- getting 6% cash back on every gift card purchase. (FYI, I would have already done a test charge to make sure Amex gives 6% cash back on gift cards purchased at Kroger.) If you want details on exactly how to buy gift cards and get 6% cash back, see My New Credit Card Strategy.


• I would then redeem my gas rewards as needed at a HUGE savings. Easy as pie.

Those of you who shop at Kroger and use the Plus Card -- do you have anything to add? Any tips or tricks I'm missing?

How to Run a Successful Reselling Business

The following is a guest post from David Bakke. In addition to running his reselling business and working a full-time job, he contributes his best personal finance tips and ideas on Money Crashers.

A few years ago, I decided to sell some of my wife's old college textbooks on Amazon. Later, I found several unused items around my house that I also sold for a decent profit. With a little luck and a lot of hard work, I eventually developed my own reselling business. I made quite a few mistakes along the way, but I learned a lot and quickly realized I could do this as a side business and make decent extra income. There are a number of things you should do (and things you should avoid) when starting, developing, and maintaining your reselling business.

6 Strategies for Running a Successful Reselling Business

1. Start Out Slow and Safe

Unfortunately, a lot of people lose a great deal of money trying to sell products on auction websites because they don't understand the basics of supply and demand. If you dive in head first and build up a $50,000 inventory before you know whether your inventory will sell, you may lose substantial money. Instead of jumping in headfirst, start out slow and safe. Find an item that you can purchase and resell at a profit, and list it as cheaply as possible while still making money. Later, you can adjust this mentality and begin leveraging the expertise you've gained to improve profit margins.

2. Leverage Your Expertise

When I started out, I had a particularly strong knowledge of laptop computers and other small electronics. I possessed a thorough understanding of different features and benefits of the products, and I had a good idea of what I wanted to sell and the prices I should set. If you have no clue about Apple computers, then don't start your business off trying to sell them just because they're popular. Stick with selling products that you know about, and start small.

3. Provide Impeccable Customer Service

Fantastic customer service results in a high feedback rating for your business. I use eBay to sell a large portion of my inventory, and my current eBay feedback rating is 100% positive; I have never received any negative feedback. Buyers use the feedback ratings in part to decide whether to buy from you. In addition, I've found that customers pay a higher price for an item for sale by someone who has a higher feedback rating than another seller with a lower feedback rating. What entails excellent customer service? Some aspects include:

• Fast shipping
• Careful packaging
• Quick responses to emails before and after the sale
• Going the extra mile whenever possible for a customer
• Having a clearly stated, fair return policy
• Describing items accurately

Although I don't advertise this, if someone buys an item from my company and it turns out to be defective, I offer the customer a full refund, including paying for return shipping costs, and I usually also refund an additional 10% of the purchase price for their inconvenience. Although it may seem like this provides no real benefit for my company, it has helped my perfect customer service rating, which has yielded improved profits and continued expansion.

4. Expand as Your Confidence Grows

If I find a good deal on a laptop and I know I can sell it at a profit, I'll pick up three or four of them. This has expanded my business's profits, and it doesn't take too much of my time to set up multiple auctions and sell more than one item. Time management plays an important role in my business because I also have a full-time job. I've learned a lot more about which products sell over the years, which has also helped me to expand. Through trial and error, I now know which brands of digital cameras sell faster than others, and I adjust my purchasing and pricing accordingly. I've also learned that I don't always have to out-price the competition either. Prospective buyers sort listings on auction websites in ascending order by price. If you have an item that you know can sell, make it the fourth or fifth cheapest listing to improve your chance of making the sale.

5. Keep Records and Don't Ignore Tax Obligations

Keep accurate records. Utilize accounting software or set up an Excel spreadsheet to track your sales and payments received, as well as your monthly profits and losses. This provides many insights into your business's profitability, and may spur ideas for improving. Do not ignore your tax obligations. Both eBay and Amazon report sales numbers to the IRS once sellers exceed a certain sales or transaction threshold. You don't want the IRS to discover that you sold $50,000 on eBay last year, yet paid no taxes on your earnings. Consider making quarterly estimated tax payments to stay ahead of the curve.

6. Market Your Business to Friends and Family

When I first started out, I never said much about my new venture to family and friends. I was initially unsure as to whether I could actually make money at my new business. After I gained confidence I began spreading the word, and I soon developed a solid clientele of friends and family who regularly buy products from me. These sales account for almost 30% of my business! Get the word out, maintain a high level of customer service, and watch your business grow even more. As a bonus, friends and family can provide free word of mouth marketing to help you find even more new customers.

Final Thoughts

I started my reselling business with little more than a roll of mailing tape and a little disposable income. I started off slow and always provided the best customer service possible. Use your business sense and expertise to become a reseller - believe me, the sky is the limit! Do you have any other tips or strategies for starting or running a reselling business? 

How Much Closing a Credit Card Impacts Your Credit Score

While we've discussed the fact that opening a new credit card account probably doesn't impact your credit score (and actually could help it), I've never see anything on what closing a credit card account does to a credit score. That is until now.

Moneyland highlights the story of Rick Draper, a guy who has close to 40 credit cards -- all designed to get him frequent traveler rewards. Here's how he's doing so far:

The mass of points compiled by Draper has allowed him to fly himself and a guest in first class to Buenos Aires, $4,500 worth of free hotels during the trip, and even free top-notch lodging for his family on a vacation in Disney World.

But it's later on in the piece where a nugget of information is stashed. Check this out:

One question travelers like Draper hear all the time is: Doesn’t constantly opening and closing credit card accounts damage your credit score? Indeed, it does. But perhaps not as badly as most people think. Kenneth Lin, from CreditKarma.com, says he himself opens and closes at least one card per year in order to snag bonus miles and cancel the account before annual fees are assessed and that turning over 10 cards in a short period of time is likely to push a good credit score into an average or poor one. But opening and closing one or two per year isn’t going to do much damage:

“You take a five-point [credit] hit but pick up 25,000 bonus miles, and that’s a good trade off.”

So, it looks like there's not much impact at all -- as long as you keep it in moderation (closing only a few, not many.) And with all the big-time credit card bonuses out there it's worth a 5-point his if you can earn $500 or more, isn't it?

This is what I do. I only open/close a few cards each year. This year I'll close two -- the FIA/Schwab card that is closing because it's going away and the Bank of America card they automatically sent me and wanted me to use (but is worth well less than any of the cards I use). I've also picked up two new cards -- the Amex Blue Cash Preferred card (which is top dog in my current credit card strategy and the Chase Sapphire Preferred card which hopefully will get at least half of my family to our cruise port next year (due to a big sign-up bonus.)

So it's finally good to find out what the credit score impact actually is when you close a card. And especially good to know it's not a very big hit at all.