selling

6 Ways to Avoid Scams When Selling Your Stuff Online

Paul Michael — Thu, 29 Nov 2018 09:00:12 +0000

These days, selling items you no longer want or things you've made has become easier and more lucrative than ever before. We no longer have to hold yard sales every week, or pay for classified ads in newspapers. With eBay, Amazon, Etsy, Craigslist, and so many other outlets available, you have the world at your fingertips. But of course, the more open you are to sellers, the more accessible you are to scammers. Know what to watch out for, and you can sell your stuff with minimal stress. (See also: How to Protect Elderly Loved Ones From Financial Scams)

1. Don't accept big bills

If you're selling on Craigslist, you have to be very careful with cash transactions. Something scammers love to do is present a fake $50 or $100 bill, and take home an item along with a bunch of change. The seller is left holding a worthless note and down a valuable possession. One way to keep this kind of damage to a minimum is to only take $20 bills and below.

However, $20 bills can be fake as well, so you have to keep your wits about you. There are many ways to detect fake notes, and if the bill has blurry text and lines, no watermark, you likely have a fake. If you're in no mood to become a detective, pick up a fake note detector kit. It costs less than $10 and will pay for itself the first time you detect a phony bill. (See also: 12 Garage Sale Items That Sell Like Hotcakes)

2. Always meet your buyer in a public place

It may be inconvenient for you to meet in a police station parking lot or at a local coffee shop, but your first priority here has to be your personal safety. You have no idea who you're meeting and what they have in mind, even if they sound wonderful via email or over the phone. Some "buyers" lure you in to steal your item, and whatever else you have on you. Some want to cause you physical harm, or worse, and have no intention of purchasing anything. If you ask to meet in a public place and they refuse, that's a massive red flag. If they want you to bring the item to an address of their choosing, you also need to steer clear of that transaction. If you can, bring a friend (or friends) and tell other people where you're going and all the details about the person you're meeting. Most of the time, it's just a regular person looking for a deal. But you really don't want to let your guard down and trust the wrong person.

3. Have evidence of the item's condition

Many people abuse the good will of online sellers to save money. One of the nastiest ways you can be taken advantage of is when someone buys a mint condition item from you, then asks for a return and a refund because "it doesn't work."

For example, let's say someone buys a high-end computer mouse from you, then they say it doesn't work and want a refund. You know it worked fine when you sold it. If it's something that costs more than just a few bucks, have evidence of the item working in the listing itself. Take accurate photos and videos, and record serial numbers. It takes just a few minutes to get this all down, and you only have to store it until the transaction is closed and everyone is happy. (See also: How I Make $800 on Month on eBay Selling Used Clothes)

4. Avoid buyers with brand new accounts

This is not to say that all buyers with new accounts are scammers. This is simply a precaution you should take to avoid getting stung. Scammers tend to get banned by eBay after a few incidents that form a pattern of fraudulent behavior. These people will just keep opening new accounts, doing a few returns for broken items, or "item not as described" before being banned again and continuing the cycle. Luckily, you don't have to weed these buyers out on your own. eBay has settings that let you block certain buyers. (See also: This Airbnb Scam Will Ruin Your Vacation — and Your Budget)

5. Be wary of requests for partial refunds

So, you sold your item and everything seems fine. Then you get an email from the buyer, saying that the item isn't in the condition they were expecting, or it's missing some parts — which you know were included. But they want to keep the item. They'd just like you to refund their money to make things right. If you're asked to do a partial refund, try and get evidence of the problem. If it's damaged, ask to see the damage. If it doesn't work as described, ask for a video. If they refuse, you know something's afoot.

If they do send pictures, you have a few choices. You can say you want the item to be returned, and will fully refund their purchase upon receipt. If they don't want to do that, they're probably trying to get a quick buck from you. Of course, sometimes these partial refund requests are genuine, perhaps due to an inaccurate listing from a new seller, or another mistake. In that case, a partial refund is something you can issue if you feel comfortable.

6. Never ship to a different address than the one on file

When you set up an account on an online selling site, you should enter a shipping and billing address. This is standard practice. If you sell an item, and receive a note asking that you ship to a different address, you should decline. On rare occasions, the person hasn't updated their shipping address from a move, or it's a gift for someone else. Too bad. Don't do it.

When you're asked to ship to a different address, it could be that the account in question has been hacked, or you will be asked for a refund because the item was not delivered to the address on file. It's just not worth it. (See also: Make Money and Declutter by Selling These 5 Unlikely Treasures)

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Build an Emergency Fund By the End of Summer

Mikey Rox — Tue, 29 May 2018 08:00:19 +0000

Everyone needs an emergency fund to cover life's what-ifs. Without one, a sudden home repair, job loss, or health crisis could leave you facing debt and desperation.

It's often touted that a solid emergency fund should have at least six months' worth of daily living expenses in it — but the truth is that goal amount is relative to each individual's circumstances. If you have a mortgage and kids, you'll need a lot more in your emergency fund than, say, a 20-something entry-level professional who shares a rental with roommates.

If you don't yet have this safety fund, don't worry. You can build up the bucks in just 90 days.

Open a new savings account at a different bank

The problem with having your savings account attached to your checking account is that it's too easy to transfer money over when the latter runs low. This makes it hard to grow an emergency fund substantially. To avoid this temptation, open a new savings account at a bank different from the one where all your other accounts live (preferably while there's a promotion going on, like $XX free dollars when you open the account), so you can't easily access that money. Out of sight, out of mind works with very little effort in this case. (See also: 5-Minute Finance: Start an Emergency Fund)

Put away the plastic and cut out nonnecessities

One of the biggest deterrents to making progress on savings goals is having plastic in your pocket at all times. Nip the temptation in the bud by removing all credit cards from your wallet (except for maybe an emergency card — which should be used for emergencies only!), hiding them someplace secure in the house, and living on a cash-only budget for the summer months while you build your emergency fund.

While you're at it, cut the extra fat from your budget, including subscription services, excessive drinking and dining out, paid activities, and expensive travel. You can still do plenty of fun things in moderation, but you also should be looking for savings and discounts whenever you're indulging. This is an everyday habit I practice, and it'll start to come naturally to you as well once you see how much money you can save with very little effort. (See also: Are You Spending Too Much on "Normal" Expenses?)

Side hustle your way to big money

I'm a single, nearly-divorced guy with no dependents other than my dog. I own a media consulting business, which serves as my primary income, but I also work four separate side hustles regularly (plus a couple mini ones) because I want more for my life than to "just get by."

To make extra money for my emergency fund, I open my home up to vacationers via Airbnb, shop and deliver customers' grocery through Instacart, pick up and drop off passengers with Uber and Lyft, and sit people's pets with the help of Rover.com. Combined, the income I earn from these gigs — which fit perfectly into my schedule — averages out to about $60,000 annually, about half of which I make during the summer months due to travelers and vacationers. By itself, that's a decent full salary for anyone to live off, but if you manage your time and money well enough, it can exist solely as your savings. (See also: 9 Summer Side Gigs for Grown-Ups)

Search your insurance policies for savings

Whenever I'm searching for extra savings, one of the first places I look is my monthly bills. Maybe there's an error I missed, or maybe there's a way I can manipulate the service I'm paying for in a way that will keep more cash in my pocket. Like my insurance policies, for instance.

Dan Green of personal finance site Growella suggests examining these policies for deductibles, specifically your auto and renters' policies.

"If you have $1,000 saved, raise your deductibles to $1,000," he advises. "This will get you an immediate discount on your bills, which you can use to boost your savings."

Set aside any cash you receive

I often receive cash tips during my Instacart shifts and sometimes on Uber and Lyft runs, and every dollar of that goes into an envelope at the end of the day. In fact, since January I've saved over $600 in cash tips alone. But I also stash away any other cash I receive; like for my birthday or holidays; lottery winnings; store refunds; yard sales; friends paying me back; and competition winnings, like the end-of-year payout from my bowling league. It adds up pretty quickly if you're consistently sending all cash you receive to your emergency fund.

Set up an automatic monthly transfer

Building an emergency fund in just 90 days is a tall order, but you'll make bounds toward that goal by setting up automatic weekly or biweekly transfers — essentially a direct deposit from you to you — scheduled for the days you get paid.

"If you start with $25, that's $100 per month, or $300 by the end of the summer," says certified financial planner Tony Drake, CEO and founder of Drake & Associates in Waukesha, Wisconsin, but I recommend going bigger than that if you can reasonably afford it — maybe $50 a week — to hit the ground running on June 1.

Earmark your seasonal job paycheck for your emergency fund

If you're taking on a seasonal job for "extra" money, send most of it (at least 75 percent) to your emergency fund. Have fun with the rest; it is summer, after all.

Shop in-season foods while eating lighter and less

My grocery bills drop dramatically in the summer because I eat less — hot weather suppresses my appetite — but I also try to stick to the cheapest and healthiest in-season foods at the supermarket. I also take advantage of free food opportunities, like happy hours that offer free snacks; parties and get-togethers at friends' houses; art gallery receptions and other free food-available events; and my local garden, which offers free produce to residents. Whatever you would have spent that day by swapping in these alternatives, send that amount to your emergency fund. (See also: 5 Offseason Foods That Are Destroying Your Grocery Budget)

Turn saving into a competition with someone you know

I'm nothing if not competitive, and I'm always up for a challenge. If that sounds like you, raise the stakes by inviting someone to participate in a savings race with you. First one to $X, 000 wins.

Renegotiate your cellphone, cable, and internet contracts

I call my providers once a year to see if there are any new discounts or promotions for which I qualify. I generally have luck across the board since cell, cable, and internet plans are in constant flux. Most recently I took advantage of the partnership Uber has with AT&T, and I'm currently saving 22 percent off my monthly bill. Whatever you manage to shave off can go directly into your growing emergency fund.

Gather your junk and sell it

Spend a Saturday going through your house to identify anything you don't need anymore. Plan a yard sale or use online resources like Facebook Marketplace, eBay, Craigslist, and LetGo to get rid of what you don't need for extra money toward your fund. I do this at least twice a year and I routinely make a few hundred dollars on unwanted furniture, old electronics, and more. I've also started selling my used, good-condition clothing on Swap.com, which has so far netted me $483. (See also: 12 Garage Sale Items That Sell Like Hotcakes)

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Money Moves to Make When It's Too Hot to Go Outside

Ashley Eneriz — Mon, 21 May 2018 09:00:30 +0000

The heat wave is coming — are you ready? For many, summer marks the start of vacation season, especially for kids or those who have several weeks off work. While it is good to take a much-needed break, don't get too lackadaisical when it comes to your bank account this season.

Here are a few money moves you should make when it is too hot to do much else. You will be thankful later that you didn't take a vacation from managing your money wisely.

1. Comparison shop insurance plans

When you've had the same auto insurance and home insurance for over a year, you might be stuck in the mindset that you are paying the best price, especially if you shopped quotes the year previously. Recently, my husband and I thought we were getting the best price for our car insurance because it had been the cheapest option for us for the past six years, and we had racked up several discounts for being on the plan so long.

However, replacing our paid-off SUV with a new van and having a minor accident the year before slowly made our rates creep up. I honestly didn't think another company could offer cheaper insurance, but a few quick searches online helped us find the same coverage for $500 less a year.

Bottom line: Don't assume you are paying the best price for insurance just because your plan was the cheapest when you shopped for rates earlier. (See also: Here's How a Claim Will Impact Your Car Insurance)

2. Put investing on autopilot

Don't want to think about investing on your summer break? Me neither. Investing is similar to exercising. Only a select few really love to partake and the rest of us know we must do it to remain (financially) healthy. Thankfully, you don't have to become an expert in the stock market to start investing your money. Instead, try these simple ways to put your investments on autopilot:

Start with setting up automatic deposits from your paycheck into your 401(k) through your employer. If you can set your account to increase your investment by 1 percent each year, you can grow your retirement fund without feeling the monetary sacrifice.
Use an app like Acorns, which rounds up your purchases to the nearest dollar and automatically invests your spare change.
Set up automatic payments to investment accounts. Both Fidelity and Ally offer different online investment accounts where you can set up automatic transfers. While they might require a minimum amount to start the account (i.e. Ally's professionally-managed portfolio account requires $2,500 to open), you can set up small amounts of money to be transferred each week. Think about it. You really won't miss $10 to $20 a week, but setting up the transfer will equate to $520 to $1,040 invested each year.

3. Declutter, sell, and donate

It may be too hot for a garage sale, but that doesn't mean you can't sell some unused items and free up space around the house. Make a game out of decluttering and tackle one small area of your air-conditioned home each day of the week. You can worry about your garage, basement, or attic in the cooler months. Make your decision quickly about what to keep, sell, and donate. Remember, anything you don't use regularly is taking up prime real estate in your home. Don't try to justify a need for it in the future.

If the item is larger, such as a baby swing or chair, list it on Craigslist, OfferUp, or local Facebook selling groups. If the item is easy to ship and can make you more than $10, like designer jeans or an old iPad, list it on eBay. For eBay sales, I schedule postal pickups so that I don't have to deal with the heat and post office lines.

If the item does not sell well locally or through eBay, schedule a donation pickup. Fill up a box of unwanted goods, schedule a pickup with a local second hand store, leave it on your porch, and save the donation slip for tax season. Finally, enjoy a large glass of lemonade in your decluttered home. (See also: 11 Easy Ways to Earn More on eBay)

4. Review your credit reports and credit score

Plan to get your credit in tiptop shape this summer, especially if you hope to purchase a car, home, or open a new credit card in the near future. An excellent credit score will save you money on lower interest rates.

First things first, order a free copy of your credit report through AnnualCreditReport.com. You are entitled to three free copies — one each from Experian, Equifax, and TransUnion — every year. Check the report for inaccuracies and make sure everything looks as expected. (See also: How to Read a Credit Report)

Next, order your credit score. You can purchase your FICO score from myFICO — it will run you about $19.95 a piece from each of the three credit bureaus. You can also get a good idea of what your score is through free sites like Credit Karma and Credit Sesame, or through credit cards that offer free credit scores.

Note that these free scores often have their own metric for credit scoring, and that number may differ slightly from your official FICO score, which is what most lenders use when determining whether or not to approve you for credit. Still, a free score will give you a good ballpark estimate of where your score stands. (See also: I Checked My Credit Score in 11 Places — Here's What I Learned)

What I like about both Credit Karma and Credit Sesame is that they will show you which areas you need to improve to boost your score. For example, if your credit usage is too high, the site may recommend that you boost your score by paying off debt and/or increasing your credit limit, either by opening up a new card or asking for a limit increase. Of course, be aware that asking for a credit increase and opening up a new card can be reported as hard inquiries on your credit report, and too many hard inquiries can negatively affect your credit score. (See also: 5 Ways to Improve Your Credit Score Fast)

5. Start your holiday savings fund

Even though Thanksgiving and Christmas are months away, they are coming, and they will be costly. Avoid the holiday debt trap or credit card hangover by saving way ahead of time. If you start in June, you have six months to build up a savings fund without the stress. Calculate how much you spent on Thanksgiving and Christmas/Hannukah/Kwanzaa the year before, and use it as a guideline for how much you should save.

For example, if the winter celebrations cost your family $1,000 between food shopping, decorations, presents, and outfits, divide that number by six and aim to save that much each month. It is much easier to save $167 each month for six months than to try and find an extra $1,000 in your budget between November and December. (See also: Avoid These 5 Common Holiday Budget Pitfalls)

Don't waste your summer months wishing you were on a beach somewhere or enviously looking at friends' and co-workers' vacation pictures. Instead, work on your finances with these easy steps so that you can be the one enjoying a debt-free vacation next year.

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This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways to Make Money From Mother's Day

Ashley Eneriz — Tue, 01 May 2018 08:00:17 +0000

The average American spends around $172 to make Mom feel special every Mother's Day. If you have ever purchased a bouquet of flowers or box of chocolates, you've seen firsthand how costly it can be to shower Mom with gifts.

Turn the tables this year by earning money rather than spending it. Here are some unique ways you can cash in on Mother's Day. (See also: 14 Best Side Jobs For Fast Cash)

1. Host photo sessions

One year, a photographer friend of mine announced she was throwing mini Mother's Day photo sessions for $65. The session included 30 minutes of shooting with cute props in her backyard and a disc of five to seven edited shots on a CD a week later. She allowed families to sign up for one of 10 slots the weekend before Mother's Day.

As a customer, I was thrilled to get some affordable, wonderful shots without the hassle of planning a Pinterest-worthy photo shoot. As the photographer, she was able to generate $650 for about 10–15 hours of work. If you are a talented photographer, have great editing skills, and have a nice camera and editing software already on hand, try offering this service.

As a word of warning, if you are not experienced photographing families, especially ones with unpredictable kids and babies, you might not want to jump into this business until you are more practiced.

2. Sell crafted gifts

If you love to make crafts, think of the many ways you can offer your skills for sale for Mother's Day. You can sell general crafts, like scarves, potted succulents in unique designs, or jewelry. You can also offer customized creations that will help individuals give their mothers something extra special for the day. Here are a few ideas to get you started:

If you sew or quilt, offer to turn baby clothes or special family clothes into a beautiful blanket.
If you create jewelry, offer customized jewels to represent birthstones or personalities.
If you paint or draw, do personalized silhouettes or drawings of the family from photographs.
If you enjoy woodwork or painting, create customized signs or wood scroll art.

3. Deliver flower arrangements

Even having a small bouquet of flowers delivered will cost you around $35–$50. If you live near a flower market or have a flourishing garden to choose from, you can make your own floral arrangements and sell them locally.

Try creating one or two arrangements several weeks before Mother's Day to showcase your skills and what you will be selling. This will allow you to take orders and know exactly how much to buy when you purchase florals and containers. Offer handwritten notes to make the arrangement even more special. Add on a small fee for local delivery to cover your time and gas expenses. (See also: 7 Ways to Earn Extra Money With Your Car)

4. Put your baking skills to use

Nothing says love like a plate of homemade cookies or a tasty cake. However, not everyone has the time or desire to be in the kitchen whipping up something for their mama. If you know how to make beautiful cookies or cake pops, or have a secret cake recipe everyone raves over, why not try finding customers for the holiday weekend?

You could also sell your goods at local farmers markets or craft shows. Be sure to brush up on the laws in your state to ensure it is legal to sell food goods from your home.

5. Host a Mother's Day boutique

If you can't think of anything to create or sell, sell other people's goods. Host a Mother's Day boutique or craft show that allows other local vendors to set up tables and sell their goods. You can host the event in your home, backyard, or a low-cost venue such as a church. Vendors should pay a small fee to set up their booths and donate one item to your show's raffle. Next, advertise the boutique through friends, acquaintances, local businesses, and social media. Create an event on Facebook and spread the word.

The goal is to help connect your community to great local vendors and to give vendors the opportunity to sell their goods. Be sure to sell raffle tickets to help cover the costs of running the boutique, as well.

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This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Creative Ways to Boost Your Retirement Savings

Kat Tretina — Wed, 25 Apr 2018 08:00:09 +0000

Everyone knows how important it is to save for retirement. However, actually setting aside money for your future can be challenging. When you're short on cash and have other demands on your budget, there might be little to nothing left to put toward your nest egg. How are you supposed to save for your future when you're completely strapped in the present?

If you don't make enough money right now to set aside, there are still ways to grow your retirement savings. You just have to think outside the box.

1. Use your tax refund

Many people daydream about how they want to spend their tax refund, which is often the biggest windfall they'll see all year. In fact, last year the average tax refund was $2,763, according to the IRS.

If you're getting a tax refund this year, put it to work. Rather than spending your refund on electronics or a vacation, consider depositing that money straight into your retirement fund. With the power of compound interest, that refund could grow by the thousands by the time you retire.

2. Deposit your credit card rewards

If you have a credit card that offers cash back, that cash can be a regular source of extra money for your retirement fund. If you already use your credit card for routine purchases like utilities, gas, and groceries, this is easy money. Just make sure you are paying off your credit card balance in full every month.

3. Use cash back apps

If you don't have a cash back credit card, you can still earn money for doing the shopping you were going to do anyway. Apps like Ibotta or SavingStar let you earn cash back on grocery purchases, while sites like eBates offer a percentage back on many online purchases. You'll earn a percentage of your purchase as cash, and a check will be mailed to you — which you can toss straight into your retirement account. It's a low-effort way to earn extra money going about your normal routine. (See also: 7 Apps That Actually Pay You to Shop)

4. Launch a side hustle

If you have some extra time, you can earn money in the evenings or on weekends by launching a side hustle for fast cash. From walking dogs to making deliveries, there are hundreds of side gigs you can do in just a few hours a week. That extra income can go a long way to funding your retirement.

5. Sell your clutter

Take a look around at all of the electronics, textbooks, toys, and more that you never use. You may have as much as a few thousand dollars' worth of items collecting dust in your home. That clutter can be eliminated while netting you some money for your retirement. Sell items on sites like eBay, LetGo, and Bookscouter to get cash for your stuff. (See also: 5 Things in Your Garage That Have Serious Re-Sale Value)

6. Rent out extra space

If you have an extra bedroom, you can rent it out on sites like Airbnb or VRBO. Depending on your location and the size of your space, you could charge hundreds per night. However, you don't even need an extra room to make money. You can rent out a spare closet or storage space in the garage on Spacer, or rent out your parking spot on SpotHero. (See also: 5 Easy Ways to Make Good Money From Airbnb)

7. Sell photos online

If you like photography, you can earn passive income to put toward your retirement savings by selling your photos. You can try your hand at selling stock photography on sites like iStock or Shutterstock, or you could sell your artwork in an online portfolio or on arts and craft sites like Etsy. You could also try selling smartphone photos on Foap, which is an app that connects brands with photographers looking to sell their images. (See also: Earn Extra Income With Your Smartphone Camera)

8. Let strangers drive your car

If you don't drive your car every day, your vehicle can become a lucrative source of income. You can rent it out to tourists or business travelers on Turo and set your own daily rate. According to the company, you can make nearly $5,800 a year if your car's market value is $20,000 and you rent it out for 12 days per month. That alone could get you to the contribution limit on an IRA.

9. Trade in clothes for cash

If you have clothes, handbags, or shoes that you don't wear anymore, stop letting them take up precious closet space. You can sell those items on sites like Poshmark, Tradesy, and even in-person at consignment stores like Plato's Closet or Clothes Mentor. A single bag of clothes could net you enough to send a couple hundred dollars toward your retirement account.

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This article is from Kat Tretina of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Easy Money Moves to Make on a Rainy Day

Rachel Slifka — Mon, 23 Apr 2018 08:00:07 +0000

Rainy day keeping you stuck inside the house? Take advantage of the down time by being productive with your finances. Start with these easy money moves.

1. Start an emergency fund

If you don't have an emergency fund, a rainy day is the perfect time to start one.

An emergency fund is money set aside for a major unexpected and urgent expense, such as a car repair, medical bill, or job loss. One rule of thumb is to save between three and six months' worth of daily living expenses. If you have a lot of daily living expenses, or a job that would be hard to replace, you should aim to save closer to a year's worth.

A bigger emergency fund will always offer more protection for your finances, but you can start an emergency fund today even if you can only contribute a few dollars. Start by creating a new savings account specifically for your emergency cash. By keeping it in a separate account, you are less likely to use the money for non-urgent needs. (See also: 5-Minute Finance: Start an Emergency Fund)

2. Up your retirement contributions

Have five minutes to spare? Log in to your retirement account and increase the percentage of your paycheck you are having withheld for your 401(k). By increasing it by even just one percent, you are ensuring you have more cash for retirement. It's likely you won't even miss that cash in your paycheck.

3. Fine tune your budget

When's the last time you gave your budget a tune up? Use a rainy day as an excuse to give it a makeover. Are you spending your money like you planned? Do you need to make any adjustments?

If you don't have a budget at all, now is a great time to make one. You can get started by listing your income, expenses, and savings goals for the month. Add information as time goes on and you become more familiar with your spending and money habits. (See also: 5-Minute Finance: Track Your Spending)

4. Sell items around the house

If you're stuck inside, take inventory of the clothes, electronics, dishes, and more you have lying around your home that you no longer use. Don't just throw everything out; you may be able to sell your stuff for cold, hard cash.

You can post your items for sale on an app like OfferUp or LetGo, or upload a listing on Craigslist or eBay. And as an added bonus, you can use the cash you earn from selling household items to jump start your emergency fund. (See also: 5 Things You Can Resell on eBay That Make the Most Money)

5. Create a filing system

What does your desk look like? If you tend to leave bills and financial documents piled up, it's probably a good idea to take some time to create an easy organizational system. You may as well get started on a rainy day.

To cut back on an influx of paper bills, you might find it beneficial to sign up for autopay so you don't have to worry about papers cluttering your space or getting lost. You'll want to be sure to store important and confidential files away in a locked drawer or safe.

6. Cut a bill

Once you've taken a look at your budget, you may have noticed a bill or two that is higher than usual. Or, maybe you realize you are still paying for a service you no longer use. Whatever the reason, take advantage of a rainy day by calling your providers to see if they can lower or cancel the service.

Since most bills are a regular monthly expense, lowering or eliminating them entirely can save you hundreds of dollars, if not more, every single year.

7. Read or listen to financial resources

There are a ton of free financial resources available at your disposal. If you need an excuse to take it easy on a rainy day, why not learn something while you relax? Try kicking back with a personal finance book, magazine, blog, or podcast. (See also: These 10 Money Podcasts Will Help You Save Tons)

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This article is from Rachel Slifka of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Make Money as a Superfan

Dr Penny Pincher — Tue, 03 Apr 2018 09:00:06 +0000

Being a devoted fan of something usually takes up a lot of time and money. But what if you could actually make money from being a superfan? Here are some ways you can turn your obsession with your favorite sports team, musician, celebrity, book, movie, TV show, or even video game into cold, hard cash.

Trade collectibles

Leverage your knowledge as a fan to spot collectibles and memorabilia that other fans would appreciate. With some study, you'll learn which items you can buy cheap at auctions, estate sales, and garage sales and sell at a profit. A perk of trading collectibles is that you will get to enjoy having the items around until they sell. Advertise your collectibles for sale on eBay or Craigslist. (See also: 10 Collectibles That Almost Always Become More Valuable)

Make YouTube videos

You can earn ad revenue from posting videos on YouTube and getting a lot of views. In addition to ad revenue, you could also promote your own website or blog where viewers can go to purchase items or collectibles from you.

You could make videos of yourself discussing concerts, new albums, and happenings with your favorite musicians, or even film yourself reacting to a new music video or song. You could upload videos of your commentary about sports news or events, or if you're a gamer, you could highlight game play video complete with tips and tricks. The options are endless. (See also: How to Make Money by Creating YouTube Videos)

Peddle merchandise near events

Set up a display of fan merchandise for sale near a concert or sporting event where there will be lots of pedestrian traffic from fans. You may need to get a permit to set up a vendor stand along the sidewalk, or you could strike a deal to sell your wares inside a coffee shop or restaurant near the event venue. A potential downside of this plan is that you could get stuck with unsold merchandise, but as a fan, you might not mind ending up with it. You can turn to eBay or Craigslist to try and unload more merch.

Sell handmade items on Etsy

If you are crafty, you can make fan items to sell on Etsy. For example, Star Wars fans are selling a wide range of items such as custom party invitations, costumes, necklaces, handmade T-shirts, and even light switches. You can also sell vintage items on Etsy that are not handmade, which is useful if you are fan of something that has been around long enough to become vintage.

Run a fan website, blog, podcast, or Facebook page

Offering free content for fans on a website, blog, podcast, or Facebook page allows you grow an audience and make money by selling advertising or promoting your own website where you can sell merchandise. Your content could include reviews or updates for concerts, albums, books, video games, movies, TV shows, or sports events.

Publish ebooks

You can take your interest as a fan to the next level by writing a nonfiction book on your favorite celebrity, musician, or team. Many successful ebooks are short reads, so an avid fan may be able to produce an ebook with a few weeks of effort.

Another approach to writing as a fan is to produce a work of fan fiction based on your favorite book or movie universe. Kindle Words has a publishing program for fan fiction that has over 90 licensed fandoms, so they have permission to publish fan fiction from these universes. (See also: Can You Really Make a Living as an Ebook Writer?)

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This article is from Dr Penny Pincher of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Signs You Should Sell Your Small Business

Denise Hill — Thu, 08 Mar 2018 09:30:09 +0000

Owning a small business is a labor of love. In addition to investing your money, resources, blood, sweat and tears, you also invest a small part of your soul. You love it. It's your baby — you've nurtured it from nothing to the success it is now. But every now and then, a thought flashes through your mind: Should I sell?

Or, maybe someone else has seen, appreciates, and is willing to pay for what you've done. They offer to buy you out. Should you accept?

Selling your business is a tricky endeavor. It's tough to know when you should take the money and run. Here are a few telltale signs that it's time to cash in your chips and call it quits. (See also: 8 Common Myths About Starting a Small Business)

You've become more risk averse

One of the biggest differences between a business owner and an entrepreneur is risk aversion. Business owners like to keep things steady and solid. As the business grows, business owners can grow more conservative — sometimes to a fault — to protect and preserve the value the business has gained.

However, taking chances is essential to continued growth. Once you get to the point that new opportunities invoke more fear than excitement, you may want to think about calling it quits.

When you become too conservative, you lose your edge and stunt your business's growth. Stagnation leads to death. Before you drag your business into the ground by standing still, consider capitalizing on all your hard work by selling it for a profit.

You're tired

Owning and running a business is not for the faint of heart. It sounds sexy, but behind the curtain of success is a ton of backbreaking work. And as much as you love what you do, no one wants to work that hard all of the time.

When you start to feel tired — I mean deep down in your soul tired — that's a sign it's time to exit stage left. Being successful brings with it a satisfaction in beating the odds and accomplishing something notable. But there is a hidden side of success that is brutal and exhausting. Running a successful business can drain your energy and sap your strength. At some point, you have to know when you have had enough and allow someone else to take over.

Exhaustion is dangerous. You don't make the good, hard choices you used to make. You find yourself doing what's easy, and nothing will bring your business down quicker than taking the easy way just because it's easy. It's better to sell and capitalize on your success, rather than lose what you worked so hard to build.

You've lost your drive and your passion

Running a business takes a sense of commitment and grit that is driven by passion. When you first launch a business, you are hungry for success and work day and night to achieve it. That hunger and love of what you do sustains you during lean years and propels you forward during turbulent times.

When you lose motivation and the enthusiasm just isn't there anymore, that is a sign that it may be time for you to try something else. When you are no longer intrigued by and "into" your business, that's the time to begin thinking more like an entrepreneur than a small-business owner. Use your energy, talent, and creativity to figure how to leverage what you've built and the knowledge you've gained.

This may be the time to groom an up-and-coming business owner and show him or her the ropes. You may not be ready to sell the business entirely, but you can allow others to buy controlling interest in the business and you can direct the choir from the back row. And when you're ready, sell your share and move to next challenge.

You need a change or you want to do something else

Remaining committed and passionate about the same thing your entire life is difficult. As a successful business owner, your experiences will undoubtedly cause you to evolve as a person. And sometimes that change whets your appetite for something new.

If you feel the urge to strike out and do something different, go for it! Don't allow your business — which once was your inspiration — to become your prison. Allow yourself the freedom to do something different and explore other interests. Understanding when you've outgrown something takes a wisdom and insight that some people lack. Trust your instincts. If you feel it's time for a new challenge and a change of scenery, it is.

Making your decision

Deciding to sell your business is a tough call. And per the experts, the best time to sell is at the height of profitability, which is what makes the decision so much more difficult. Choosing to sell while business is good is paradoxical. On one hand, it makes sense because a prosperous business is more attractive and marketable. But on the other hand, who wants to sell when things are going great?

The easiest way to solve this dilemma is to begin with the end in mind. Start thinking about when you'll be ready to give it up and plan for it. You may not be able to sell during your most profitable years, but you can ensure that you are in an uptick when you do put it on the market. Selling your business isn't the end of something good. It's the start of something better.

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This article is from Denise Hill of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Ways to Make Money From St. Patrick's Day

Aja McClanahan — Mon, 05 Mar 2018 10:00:06 +0000

With St. Patrick's Day around the corner, you're probably anticipating things like parades, pub crawls, and all the green-themed festivities to come. You might even be looking forward to some of your favorite foods that show up around this time of year: McDonald's famous Shamrock Shake, Irish soda bread, and, of course, corned beef and cabbage.

According to the National Retail Federation, Americans planned to spend a whopping $5.3 billion for St. Patrick's Day 2017. Presumably, that number could rise for 2018 if past spending trends continue. Either way, St. Patrick's Day means big businesses for cities, venues and, if you play your cards right, people like you.

If you want to capitalize on all the ways people will be spending money for St. Patrick's Day, here are some ideas to get you started.

Create and sell St. Patrick's Day crafts

You can search for popular St. Patty's Day crafts that people are looking to buy on sites like Pinterest or Etsy. You'll find tons of ideas that will inspire you to get creative. People are often looking to buy party favors, home decor, clothing, knickknacks, and other accessories to make their favorite Irish holiday complete. If you can make some of these yourself, you could see the profits roll in.

If you're more of a designer than a crafter, you can start a tee shirt campaign with no money at all. Places like Bonfire, TeeSpring, and SunFrog let you design a custom shirt and presell it so the printing is fully funded. Once your shirt ships to your customers, the production platform takes a cut and sends the leftover profits to you.

Advertise your creations on social media or on marketplaces like Etsy, eBay, Mercari, or Offer Up. It's best to get started early so you have enough time to research your idea, create it, advertise, and make sales. (See also: The 5 Best Sites to Sell Your Arts and Crafts)

Ride sharing

With all the parties, parades, pub crawls, and related celebrations that usually take place around St. Patricks Day, there will be a lot of drinking. People who spend the day (and night) drinking will need safe, responsible ways to get to and from various locations. Plus, those who need to get around the crowds in major cities will need help with the hassles of parking or transporting small kids in the massive crowds. That's where ride sharing comes in.

As a driver for Uber or Lyft, you stand to make a decent profit in such a peak time. If you time your availability right, you could find yourself pretty busy on the weekend and weekdays leading up to St. Patrick's Day, when many celebrations take place. Make sure you are close to the action and get approved as a driver beforehand to make the most of this opportunity. (See also: How to Earn Extra Money Driving for Uber or Lyft)

Baby-sit

Again, from the party perspective, this gig could be the "gold at the end of the rainbow." Think about it. There's bound to be parents who'll use this opportunity to party hard without the kiddies in tow. Baby sitters can be pretty hard to come by in some places, so it's likely there will be a premium for baby-sitting around "hot" times like St. Patrick's Day.

Use online sitter marketplaces like Chime, Sittercity, or Care.com. It doesn't hurt to check pet care apps like Rover or Wag, either — pet parents will need care for their fur babies, too.

Start building your profile as early as you can. Go through the proper vetting and maybe even get a few jobs under your belt for reviews. This way, you will be a desirable candidate when parents (or pet parents) start their search for a sitter for St. Patrick's Day.

Be a hired hand

Many government and private citizens host St. Patrick's Day celebrations, which means there will be lots of extra work to go around. You can call down to your local city or village hall to find out what additional services might be needed during city-sponsored celebrations.

You can also put a listing in the "gigs" section of Craigslist or your local Facebook marketplace advertising any services you can offer. There are even Facebook groups where people sell recipes and crafts for holidays like St. Patrick's Day.

Whatever you're offering, there's bound to be plenty to do as many gear up to make the most of the fun times to be had on St. Patrick's Day.

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This article is from Aja McClanahan of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How an Exit Strategy Can Make You a Better Investor

Tim Lemke — Thu, 04 Jan 2018 09:30:11 +0000

While I am generally a big fan of buy and hold investing, I'm well aware that sometimes it makes sense to unload a bad investment. Similarly, there are times when it’s smart to take some profits from an investment that has done well.

But how do you know when to sell? Trying to find the right timing for the sale of a stock, mutual fund, or other investment is hard, but it helps if you have mapped out an exit strategy — a set of guidelines to give you a sense of when to sell.

The right exit strategy can help you maximize profits from good investments and reduce losses on bad ones. If you are pondering whether to be a seller, ask yourself if any of these things apply to you or your investment.

It’s in a bad industry

If you own shares of a company that’s struggling, it’s fine to wait and see if management can turn things around. But often, the company is in an industry that is in a downward spiral with no signs of recovery. It’s hard to admit, but there are some business sectors that are simply dying as a result of changes to technology, consumer habits, or other reasons.

Would you invest in a print newspaper chain, or a brick-and-mortar retailer? How about a coal mining operation? If you own shares of a company that’s part of a shrinking industry with no signs of renewal, it’s probably time to get out. (See also: Help, I Bought a Stock Dud! — What Now?)

It’s priced unreasonably high

It’s important to know when to sell a stock when it’s a loser, but there are times when you should consider unloading a stock when it’s performed exceptionally well. The point of owning a stock is to profit, so once a healthy profit has been reached, it’s smart to at least consider taking your profits and investing them elsewhere. This is especially true when a stock is overpriced and potentially due for a fall.

One way to determine if a stock is too hot is its price-to-earnings ratio. An average price-to-earnings ratio is between 20 and 25, though it can vary depending on industry. Ratios can go higher if investors are betting on future growth. But if the ratio is high and you’re not confident of the growth path of the company, consider taking your profits and moving on. (See also: Make Smarter Investments by Mastering This Simple Ratio)

You wouldn’t consider buying the stock now

If you own a struggling stock, it’s often important to ask yourself whether you would buy the stock today. It often makes sense to buy stock when it’s priced very low if you believe it will rise and make you a profit over time. But if you reflect on a stock you own and realize that you’d probably pass on buying if it was presented to you now, that’s a sign that it may be time to unload. When crafting an exit strategy, note the lowest price at which you’d be willing to buy a stock. Once shares dip to that point, consider selling.

Selling at a loss can help you save on taxes

If you’ve been thinking about selling a losing stock but have felt uncertain about when to pull the trigger, consider using the sale to offset your gains and save on taxes. For example, let’s say you sold some shares of one company and made $1,000 in profits. That $1,000 is subject to capital gains taxes. But if you sell a different set of shares at a loss, your tax liability will be reduced or even eliminated. This is called tax loss harvesting, and it’s one way to feel less bad about the duds in your portfolio.

You’re breaking the 10 percent rule

It’s not so much a “rule” but a guideline that many financial planners use to prevent big losses. If you have an investment that has lost 10 percent of its value in a short amount of time, it may be wise to sell before it goes down further. You can even put in place a “stop” order that automatically sells a security once it hits a certain price.

For example, if you buy Facebook stock at $180, consider setting up a stop order to automatically sell it at $162. By using a stop order, you have the peace of mind to know that the investment will sell even if you are not paying close attention. It’s also possible to put in a sell order when a stock reaches a predetermined high point, so you can take profits without worry.

You’re breaking the 1 percent rule

Under this rule, the idea is that you never want a single investment to cost you more than 1 percent of your total portfolio. So for example, if you have $100,000 saved in a 401(k), you don’t want to lose more than $1,000 from a single stock or mutual fund. Having this approach will prevent one dud investment from ruining your overall retirement nest egg.

You’re nearing the “support” and “resistance” levels

Technical analysts use the term “support” to refer to the low price that an investment has historically never dropped below. At the “support” price, investors have generally decided to buy in and have prevented the price from moving lower. However, if a security moves below the historic “support” level, it’s a sign that there is more downward pressure and that things could get even worse for the investment. It’s a good idea to sell at this point to avoid further losses.

Similarly, the “resistance” level is the price at which a security has been historically unable to break through. If an investment keeps approaching the resistance line but isn’t breaking through, it may be time to take your profits.

There are other good investments available

There are some instances when it’s OK to stick with a subpar investment because there are few other good places to put your money. If interest rates are low and the market is performing badly, it might make sense to wait and see if an investment rebounds. But if you find yourself wishing you could put your money in other, better-performing investments, maybe it’s time to sell. There is a cost to selling, but if you free up cash to purchase something that is more likely to net you a profit, you may end up doing better in the long run.

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How Being Uninformed Costs You Money

Sarah Winfrey — Thu, 21 Dec 2017 10:01:05 +0000

Have you ever negotiated what you thought was a good deal, only to find out later that you didn’t have all of the information? You probably could have gotten a better deal (or wouldn’t have made the purchase at all) if you had all the facts. That’s an awful feeling, because you feel like you let yourself down.

In fact, there’s a name for this kind of interaction, and there are things you can do to keep it from hurting you again.

Information asymmetry

When one party in any sort of transaction knows more than another, it’s called information asymmetry. This mismatch of knowledge means that one person — the one with more knowledge — has more power in the transaction.

That power differential is why you often feel terrible when you find out you got a bad deal because you didn’t know enough. You may feel like you didn’t hold the cards you thought you held — like you were manipulated, cheated, or lied to.

Information asymmetry and your money

When you don’t have all the information, you end up losing money. My family experienced this when we bought our first used car. We did all of the right things: drove it around, took it to a mechanic, and asked good questions. However, the previous owners didn’t disclose that they had used the wrong kind of chemical in the radiator, clogging the entire system. They cleaned it up just enough so it would pass the typical mechanic’s inspection, and they sold it to us.

We found out soon enough what had happened, and we had to replace almost every component of the car’s cooling system. It was incredibly expensive. A mechanic let us know what he found inside, and we were furious. Had we known about the previous owners’ mistake, we would have never bought the car.

If you’ve found yourself in a similar situation, you know the pain of paying for someone else’s transgressions. Information asymmetry causes many of our most frustrating money moments, because you almost always lose when you don’t know as much as the person you’re negotiating with. (See also: 10 Negotiation Mistakes That Will Destroy Your Deal)

Mitigating the effects of information asymmetry

While you can never get inside another person’s head, there are ways to get as much information as possible before you make a financial decision. Research shows that a balance of information creates the best deals possible — the kind where everyone ends up happy. Therefore, both parties should be interested in disclosing as much information as necessary. Here are some steps you can take to help that happen. (See also: 8 Negotiating Skills Everyone Should Master)

1. Educate yourself

Before you enter into any sort of financial transaction, make sure you understand how it works. If you’re getting a mortgage, understand the interest rate, whether your loan is fixed or adjustable, and the loan’s terms. If you’re entering into a business deal, understand the details of what the other person or company does, so you can make sure they are doing as much as possible for you. This takes time, but it will help you get the best deal.

2. Read the fine print

People end up uninformed when they don’t read every detail that is available to them. Sometimes, the fine print is literally so fine that it’s hard to read. When you take the time to read and understand it, though, it will often give you additional information that you need to understand the deal you’re getting — and to negotiate a better one if you need to.

3. Ask an expert

If you don’t understand some aspect of a deal, ask someone who knows the subject at hand to help you out. People sometimes balk at this step because experts often charge money for their assistance (think auto mechanics, home inspectors, and lawyers). However, if you want to be sure you’re getting a good deal, it’s worth the investment.

4. Ask specific questions

People can always choose to lie, but many will not if you ask them a specific question. Even if they’re willing to hide something or omit a detail, they often aren’t willing to outright lie about it to your face. For instance, if you ask, “Have you ever had problems with this home’s foundation?” you are more likely to get an honest answer than if you just ask, “Any serious issues with the house?”

5. Bring out the big guns

This isn’t always possible, but sometimes it’s appropriate to get someone with authority on your side, especially if you feel powerless. When it comes to information asymmetry, this often means paying a lawyer to represent or advise you. This can be expensive, but if you’re in a major negotiation or you feel like something is wrong but you don’t know what, it can save you a bundle in the end.

You can lose a lot of money because of information asymmetry, but you don’t have to. Train yourself to carefully gather as much information as possible before you enter into any sort of negotiation, and try to level the playing field as much as you can. Use your intuition during the transaction to gauge whether something is wrong. If you feel that way, investigate some more. In the end, you will get a deal you feel good about.

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This article is from Sarah Winfrey of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Portfolio "Blind Spots" That Are Ruining Your Investments

Matt Bell — Tue, 17 Oct 2017 08:30:10 +0000

Ignorance definitely isn't bliss when it comes to your investments, and yet we all seem to be hard-wired with blind spots, or as psychologists call them, behavioral biases. Here are some of the more common ways we tend to make irrational and unprofitable investment decisions. (See also: This One Mental Bias Is Harming Your Investments)

1. Assigning too much value to the most recent news

Try to remember what you had for dinner on each of the past seven nights. Assuming there was nothing unusual about any of the meals, which one do you think you'll remember most easily? Last night's dinner, right?

That makes sense. It's only natural that we would remember most clearly what happened in the most recent past.

But here's the problem when it comes to investing: It isn't just that we most easily remember what happened in the recent past; we tend to assign greater significance to the most recent events as well, viewing them as indicators of what's likely to happen in the future. That's called recency bias.

For example, let's say you're thinking about buying a particular stock. Before placing a buy order, you check its performance today and are pleased to see that it's up. Without consciously thinking about it, your built-in recency bias sees this as added confirmation that the stock is worth buying. It might be a good stock to buy, and it might not. One day's performance means very little.

What to do? Make sure you're basing your investment decisions on something more than just the most recent news. What are analysts saying about the company's long-term prospects? Where will the company's future growth come from? How much competition does it have?

2. Reacting too strongly to bad news

Recency bias can be magnified if the recent news is bad. That's because of loss aversion — the tendency to feel the pain of loss on a much greater magnitude than the pleasure of an equal gain. According to some studies, losses can feel twice as bad as the good feelings that accompany comparable gains.

This can lead to many forms of bad investor behavior. During a steep market decline, some investors can't stomach the pain and decide to sell. But that often makes matters worse because selling locks in their loss. When the market eventually cycles back up, fear keeps them on the sidelines and they miss the rebound.

How to combat loss aversion? Don't monitor your portfolio so closely. People who check their holdings frequently have been found to trade more (because of fear-based selling) and generate lower returns than those who monitor their portfolios less often. (See also: Your Loss Aversion Is Costing You More Than Your FOMO)

3. Seeing only what you want to see

As the old saying goes, if you're a hammer, everything looks like a nail. By the same token, if you have a hunch about a stock, and especially if you've become emotionally attached to the idea of owning it, you may tend to notice only news that supports your point of view.

When confirmation bias gets its claws in you, it becomes very difficult to see things differently. You will ignore contradictory information, selectively remember conversations or articles about the investment you are considering, and even read ambiguous commentary as favoring your point of view.

Confirmation bias goes a long way toward explaining the existence of "perma-bears" and "perma-bulls" — market analysts who always see a bear or bull market on the horizon and can point to evidence supporting their opinions.

To avoid confirmation bias, proactively seek opposing points of view. Feeling strongly attached to the idea of investing in XYZ Corp? Look for reasons not to invest in it.

4. Using the wrong benchmarks

When you walk into a car dealer's showroom and see one of its most expensive vehicles on display, the model you had in mind probably looks like a bargain. That's a type of bias called anchoring in action, with the expensive car serving as a very influential point of reference.

When it comes to investing, it's common for people to anchor their portfolio's performance to "the market." Even if they have 40 percent of their money invested in bonds, the fact that the market generated a 30 percent gain makes them feel bad about their paltry 18 percent. It might even prompt them to change their portfolio and take on more risk than they should.

What's the solution? Create a written investment plan tailored to your age and risk tolerance, including a realistic assumed average annual rate of return, such as 7 percent. Using that as your anchor, an 18 percent return wouldn't be a disappointment; it would be amazing.

Other ways to combat behavioral biases

The ideal emotional state for an investor is unemotional. However, we're not robots. So, awareness of our many biases is a good starting point for preventing them from steering us in the wrong direction.

Perhaps the most helpful step of all is to press the pause button. Since it's impossible to time the market, waiting a couple of days before executing a buy or sell order isn't going to make much difference in that investment's performance. However, using that time to question your assumptions may make a big difference in helping you more rationally decide whether the investment should be bought or sold in the first place. (See also: 5 Mental Biases That Are Keeping You Poor)

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What Is Cryptocurrency, Anyway?

Damian Davila — Wed, 11 Oct 2017 08:30:06 +0000

Investors are always looking for the next "big thing." Throughout 2017, cryptocurrencies have been experiencing a surge in market valuations with Bitcoin and Ethereum trading above $4,000 and $300, respectively, as of August.

With the price of one Bitcoin (BTC) trading well above the price of one ounce of gold, more and more people are jumping on the cryptocurrency bandwagon: On August 8, 2011, there were only 8,638 BTC transactions. Fast forward six years, and the daily number of BTC transactions has surged to 260,955! (See also: Here's Everything You Need to Get Started With Bitcoin)

So what exactly are cryptocurrencies, and should you invest?

What is cryptocurrency?

Basically, cryptocurrency is a digital or virtual asset that uses cryptography as a security measure. Designed by somebody under the pseudonym "Satoshi Nakamoto" back in 2009, Bitcoin was the very first cryptocurrency. Today, there are over 1,050 cryptocurrencies (often referred to as "coins") with funny names, including Dogecoin, Veritaseum, Factom, and Counterparty. However, their valuations are no joke: The total market capitalization of all coins stood at $151 billion as of August 23, 2017.

Unlike currencies issued by nations, cryptocurrencies can be issued by anybody with access to the right technology. Capitalizing on this fact, tech entrepreneurs all around the world are launching coins every day with the promise that once products or services are available, the coins will be redeemable for those products and services. For example, the developers behind Siacoin provide a decentralized storage marketplace in which hosts compete for your business, and those behind Monero deliver a private and untraceable cryptocurrency. Research firm Smith & Crown reports that so far in 2017, 65 projects have raised over $520 million in coins.

Should you invest in cryptocurrency?

The upside potential of a coin is huge, but this doesn't mean that cryptos are for everybody. There are a few important details you should know before you dive in.

There is high volatility

Take for example Neo (formerly AntShares) which was trading at $1.50 per coin on June 10, 2017 and peaked at $51.94 per coin on August 13, 2017. There are very few places that you can get a 3,362 percent return in just two months. But what goes up eventually comes down and Neo traded at $31.76 on August 18, 2017. Could you stomach over a 38 percent drop in value of your investment in just four days? With big price swings on a daily basis, coins aren't for investors with low tolerance to risk.

Investing requires some tech know-how

Buying and trading cryptocurrency requires you to be comfortable using some desktop or smartphone applications. Attention to detail is critical to avoid losing your hard-earned coins. Here are some important things to note:

Typing one wrong character in your 33- to 34-character long Bitcoin address when doing transactions could mean that your money ends up in somebody else's account.
Sending cryptocurrency into the wrong address (say, for example, sending Ethereum Classic coins into an Ethereum wallet address) will make your cryptocurrency disappear. Most exchanges won't even help you try to recover the misplaced coins for small amounts (Bittrex sets a $5,000 minimum) and will charge you a hefty fee for the recovery.
All exchanges recommend doing a small test amount before doing a large deposit or withdrawal.

The rules are always changing

With more and more people buying and selling cryptocurrencies, more government agencies at different levels are creating laws that affect consumers in different ways. For example, here are a few regulations that have been placed in recent years:

In 2014, The IRS deemed a cryptocurrency as property. This means that the same general tax principles used for reporting the sale of a piece of land would apply to the sale of 10 BTC (around $42,330 at the time this article was written).
In 2015, the New York State Department of Financial Services (NYDFS) passed the BitLicense regulatory framework, requiring Bitcoin companies serving New York residents to keep detailed records of all users in that state. Claiming concerns for user privacy, Kraken and Bitfinex decided not to serve users residing in this state.
In mid 2017, the Hawaii Division of Financial Institutions (DFI) created regulatory policies that required exchanges to hold cash reserves equivalent to the value of cryptocurrencies held by Hawaii residents. This requirement prompted all exchanges, including Coinbase, to stop operating in Hawaii or postpone their plans to open in that state.

Transaction wait times can vary

Despite the claims that cryptos are the way of the future, it surely can feel that you're back in the stone age waiting for a Bitcoin transaction to clear. In order to verify transactions, exchanges rely on a number of confirmations from the network. Depending on the volume of transactions and other factors, the wait time can vary from a few minutes to several hours. Waiting for a purchase of $5,000 worth of Litecoin could be a nerve racking experience for a new (and even experienced) investor.

This delay in transaction time also means that you won't necessarily get the price you wanted when buying or selling your coins. On Saturday August 19, 2017, Bitcoin Cash was trading as high as $996.92. By Tuesday August 22, 2017, one coin was now trading around $582. If you had been trying to dump your coins on Tuesday, you would probably have done so at a price much different from the one you originally wanted.

There are liquidity issues

With over 1,000 cryptocurrencies to choose from, you may end up with a "winner" that performs well for some time. But as government laws or exchange rules evolve, your coin of choice may be dropped from several exchanges.

IOTA is a great example. U.S. residents could buy IOTA from Bitfinex, but on August 11, 2017 the exchange announced that it would stop accepting new U.S. customers and will discontinue services to all current ones over the next 90 days. If you held IOTA, you're now forced to seek a new exchange to trade and/or wallet to store your coins. In the very worst case scenario, you may have to liquidate your position to avoid losing your money. Just ask owners of SpaceBIT, Quebecoin, and DAO.

The bottom line: Trade cautiously

There are several individuals who are making money trading Bitcoin and other cryptocurrencies. If you had purchased $100 BTC on January 1, 2011, you would have acquired 333.33 coins at $0.30 each. By August 24, 2017, that original investment would be worth over $1.4 million!

However, make sure that you understand all the potential risks involved with these virtual currencies. Given their inherent volatility, don't bet the house on cryptocurrencies. Additionally, to have a true picture of how much money you're making with cryptocurrencies, include all applicable fees. Remember that every cryptocurrency transaction, whether it's a purchase, sale, deposit, or withdrawal has a fee from an exchange, financial institution, or both. Happy trading!

[Disclaimer: The author owns some Bitcoin and Siacoin. He received no payment from any of the cryptocurrencies or exchanges mentioned in this article.]

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This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways to Make Passive Income Online

Anum Yoon — Wed, 27 Sep 2017 08:30:11 +0000

The internet is responsible for many wonderful things, from letting you shop whenever and wherever you want, to the ability to view unlimited cat videos. And if you're savvy, the internet can also be a great place to develop income-producing assets for yourself.

Income-producing assets are products you create or invest in that earn passive income. In essence, passive income allows you to earn money without having to do additional work after creating the asset. There are several ways you can do this online. (See also: 7 Surprising Ways to Earn Money Online)

1. Sell a course or ebook

Everyone's an expert on something, right? And the world is full of people looking to learn. One income-producing idea is to develop an online course. People will pay to learn what you know about the best travel spots in Europe, how to be a better public speaker, and everything in between. There are multiple online platforms where you can host an e-course (though you will have to pay for most of them), or you can host the course through your own blog or social media channels. (See also: Can You Really Make a Living as an Ebook Writer?)

There are plenty of tutorial, video course, and ebook content creators out there generating a steady monthly income. How you design, develop, and create your course or ebook will be very dependent on what you teach, how you teach, and the best way for your readers to learn. This all requires some legwork upfront, but if you can get the ball rolling, your online book or course can continue generating passive income well into the future. (See also: How I Made $400 in 10 Days by Selling an Online Course I Created)

2. Earn interest on a loan

If you have some cash to spare, you could earn a nice return by investing in peer to peer lending. Peer to peer lending removes financial institutions from the equation. With sites like Prosper or Lending Club, you can put up a sum of money — whether it's a few hundred dollars or a few thousand — to fund a personal or business loan yourself. Just like if they had worked with a bank, borrowers then pay the loan back with interest, which acts as a passive income stream for you. Most sites report lenders see a return of between six and seven percent. Note that each peer to peer lending site will have its own qualifications and terms and conditions, so do some research to find the best option for you. (See also: Everything You Need to Know About Peer-to-Peer Investing With Lending Club)

3. Become an affiliate

Affiliate programs pay you in exchange for sending them customers via your website, blog, or social media channels. The best-known example of a popular affiliate program is Amazon, which pays "Associates" commissions of up to 10 percent.

Here's how it works: Say you run a food blog where you showcase your favorite recipes. People who read your blog are likely interested in all things cooking: cookware, cookbooks, kitchen remodeling — you get the picture. If you include an Amazon affiliate link to a mixer you're using, for example, you'll earn money any time a visitor clicks through from your blog and makes that purchase. (See also: 5 Easy Ways to Make Extra Money Blogging)

If you want to expand your affiliate partnerships beyond Amazon, you can join networks that connect you to companies looking for affiliates — ShareASale can help you do this. Also, if there is a particular company you would like to work with, check out their website. Usually at the very bottom of the page, in the footer bar, you'll find a link to learn about any affiliate program they might offer.

4. Use AdSense

AdSense, an advertising service run by Google, operates in a similar fashion to an affiliate program. To use AdSense, you'll also need to have a content site, YouTube channel, or blog with views. But rather than letting you promote or link to a specific item or brand, AdSense automatically places relevant ads on your site for readers to click through. These ads won't be random; they'll relate in some way to the type of content you normally post. You'll automatically earn money for views and clicks on your ad. The more views you get, the more money you can make. (See also: Can You Really Make Money by Starting a Blog?)

5. Sell your photos

Do you have a good eye for photography? Are friends and family always commenting how much they'd love one of your photos hanging on their wall? Take the hint! Build a portfolio storefront with sites like SmugMug or Zenfolio where fans of your photography can purchase prints. Many gallery sites do require paying for a monthly "plan" and may take a small commission, but their bottom tier packages are often fairly affordable at a few bucks per month. Many also have plugins that allow you to process print orders with high-quality photo labs and drop-ship directly to your customers. (See also: Earn Extra Income With Your Smartphone Camera)

You could also sell your own photography to be used as stock photos. While there are many big-name stock photo agencies out there, such as Getty Images and Shutterstock, becoming a contributor often involves a lot of competition and a lengthy application process. Selling your stock photography on your own website allows you to set your own prices, licenses, and keep 100 percent of the earnings for yourself.

The internet has opened up a world of opportunity for anyone to earn a little extra money. Think of what you're passionate about, what skills you have that someone might be willing to pay for, and create a revenue generating asset that will keep extra cash flowing into your budget. (See also: 13 Ways to Make Money Online That Aren't Scams)

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This article is from Anum Yoon of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Turn Your Backyard Into a Moneymaker

Max Wong — Mon, 28 Aug 2017 08:30:15 +0000

Having a backyard costs money. Not only do you pay to own that space, but you also have to shell out for upkeep and maintenance. Regardless, your little plot of land could actually be the answer to your financial woes. Don't just spend money on your yard — make some money with it. Here are several clever ways to monetize your outdoor space.

Build a tiny rental house

Due to the housing crunch in major metropolitan areas, cities around the United States are relaxing zoning codes or creating new housing laws to deal with the shortage of rental properties. In Los Angeles, it is now legal to turn your garage into an apartment or build a "granny flat" in your backyard. Given that the average monthly rent for a one-bedroom apartment in Los Angeles in July 2017 was $2,209, according to Rent Jungle, converting an existing outdoor building into a living space, or even building one from scratch, is a real estate investment worth consideration.

Turn your property into a private campground

Do you live within walking distance of a convention center, major hospital, or historic center? My friend MaryAnn has been renting out tricked-out vintage trailers in her backyard since before online rentals were even a thing. (See also: 5 Easy Ways to Make Good Money From Airbnb)

But even if you don't have a prefab shelter, don't let that stop you. If you live close to a natural wonder, a killer surf break, or a unique trailhead, you can rent out your backyard as a private campground to backpackers and glampers via Hip Camp.

Sell your surplus backyard produce

I have a gigantic Mission fig tree in my backyard. Although I personally hate figs, I love this tree. Every year, I make several hundred dollars selling ripe figs and my award-winning fig jam to my neighbors, from the comfort of my front porch. People will pay a premium for organic, seasonal produce, especially rare varieties that are hard to find in stores.

Sell your trees

My neighbor just chopped down the 70-year-old Canary Island date palm tree in his front yard because he was tired of cleaning up palm fronds. Alas, he could have saved himself the hard work and made hundreds of dollars selling this tree to a commercial landscaper. Before you chop mature trees, check with your local arborist about your tree's potential resale value.

Raise bees or rent your yard to a beekeeper

As a backyard beekeeper, I am on track to make about $4,000 this year selling honey to my urban neighbors and selling bees to local farmers. And, because Los Angeles limits me to keeping just two hives on my property, I am always on the hunt for people willing to keep two hives on their property in exchange for a percentage of the honey harvest.

Keep city chickens

In an effort to keep food waste out of the landfill, the city of Austin, Texas is offering a $75 rebate to Austinites who keep backyard chickens.

Beyond the green street cred you will gain from chicken-based recycling, raising your own chickens comes with a host of benefits. The chickens can eat your food scraps and create healthy soil, all while giving you free eggs. That said, be sure to do the math before investing in a backyard chicken empire. In urban areas like Los Angeles, where fresh, organic chickens sell for $20 and no one blinks an eye at paying $1 per backyard egg, it's easier to make money raising chickens than in some other places. Check your local poultry economy to accurately assess your return on investment.

Grow vegetable seedlings

Lora, my gardener, discovered that she could make more profit growing and selling heirloom vegetable seedlings (with less effort) than she could by growing landscaping plants. Heirloom vegetable seeds cost a few bucks per package, but she sells seedlings for $1 each at her the local farmers market a — 1,400 percent markup!

Sell your garden space or expertise

Most community gardens are on the lottery system. Only a fraction of the people who want to grow their own food have access to arable land. If you have space to spare in your backyard, try renting out your land to local greenthumbs.

If you're creative with your own garden and landscaping, you might be able to market that expertise. My friend Judy accidentally launched her career as a garden designer after fixing up her own backyard.

Offer your yard as a wedding and party venue

Is your garden or farmland picturesque? Rustic weddings are all the rage these days. Connect with local wedding and event planners in your area to find out how much you can make renting out your pristine lawn or barn.

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This article is from Max Wong of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: