extra income

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:

What to Do If You Can't Pay Your Private Student Loan

Ashley Eneriz — Mon, 19 Mar 2018 09:30:24 +0000

While your private student loan seemed like a good idea when you were pursuing a degree, now it might feel like an unbearable weight — especially if you didn't get the job or paycheck you were hoping for after graduation. If you are struggling to pay your student loans, know that you are not alone: American grads share over $1.48 trillion in student loan debt, with a delinquency rate of 11.2 percent.

Private student loans add an extra layer of difficulty for borrowers. While federal student loans offer various repayment programs to those struggling to make payments, private loans notoriously have less leeway.

Not paying back your student loans is not an option. Not only can defaulting on your student loans hurt your credit score, but it can eventually lead to calls from collection agencies and having your wages garnished. Here are several options to consider instead when you are struggling with your private student loans. (See also: What Really Happens When You Don't Pay Your Student Loans)

1. Refinance your loans

Are you paying a lot of interest for your student loan? Get quotes from private student loan lenders to see if you can land a lower interest rate. Decreasing your interest rate by 1 percent might not save you a lot each month, but it can save you thousands over the life of your loan.

If you are really in a pinch financially, and you have exhausted your options, you can refinance your student loans to a longer term. This can dramatically decrease your monthly payment, but it will mean that you are paying more overall over the life of the loan. Consider the long-term effects of refinancing your loan from a 10-year term to a 20-year term before finalizing that decision. (See also: Should You Refinance Your Student Loan?)

2. Increase your income

Earning more at work can help ease your budget woes. However, getting a bigger paycheck is easier said than done. For employees that have been on the job for a while, ask for a raise or look for opportunities for in-house promotions. Many companies like to hire current employees for higher positions because in the long run, it is more cost effective and timesaving for the company. Don't see a new job listing? Don't let that stop you from asking your employer. They might be too busy to post a new job listing. (See also: How to Negotiate a Raise Out of the Blue)

3. Look for jobs with student loan repayment perks

Many companies are starting to offer student loan repayment options as an employee benefit. Companies like Staples, Fidelity, and Aetna offer this perk, so it might be worth looking at job listings with these companies. (See also: These 17 Companies Will Help You Repay Your Student Loan)

4. Find a side gig

If you can't increase your income through your regular paycheck, try earning money on the side. There are many avenues for earning extra cash through a freelance or side gig; you just have to find the right fit for you and your schedule. Driving for Uber or Lyft, housesitting, or dog walking are all easy ways to earn extra income each month. For those with more specific experience, try freelance writing, social media managing, or virtual assisting. (See also: 14 Best Side Jobs For Fast Cash)

5. Sell unused items

You might have extra money taking up space in your closet or garage. Go on a decluttering mission this weekend and find everything you don't need or want anymore. Sell smaller, valuable items, like a name brand sweater, on eBay. Sell larger items on Craigslist or Offerup. For everything else, sell in a yard sale. People buy junk at yard sales, so don't be surprised if your old towels or comforter set fetch you a few bucks. (See also: 12 Garage Sale Items That Sell Like Hotcakes)

6. Get real about your budget

If you can't find room in your budget for your student loan payments, it might be time to get a new budget. Take a hard look at what expenses can be cut. This can be a painful exercise, but if it means being able to stay current with your student loan bills, it is worth it.

Cut the fun stuff from your budget first, like coffee runs and shopping trips. Downsize your cellphone and cellphone plan and cancel any monthly subscriptions. This includes magazines, Netflix, gym memberships, and anything else you can live without.

If you still cannot afford your student loan payments after cutting out the fun stuff, it may be time to adjust your way of living altogether. As hard as it may be, consider ditching your car with a car payment for an older vehicle that can be bought with cash. Live with a roommate or move back home temporarily while you get ahead on your debt.

Paying off private student loan debt is a huge chore and making the sacrifices to do it can seem impossible. However, it is better to live with your parents or a drive around town in a clunker than to be delinquent on your student loans. (See also: 5 Ways to Pay Off Your Student Debt Faster)

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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:

Here's What to Do if You Don't Make Enough Money at Your Job

Rachel Slifka — Wed, 21 Feb 2018 09:31:09 +0000

Do you believe you are underpaid? Are you fed up with not earning enough? Or, is your lack of income creating financial difficulty for you and your family?

Going to work every day and being paid less than you are worth can be emotionally and financially draining. Though you may not be able to secure the raise you think you deserve, you actually may have more control over your income than you think. Here are several things you can do if you don't make enough money at your job.

1. Create a list of achievements

Though you don't get the final say on whether you get a raise, you can take some actionable steps to bolster the process of raising your income. One way to prove to your boss that you should get a raise is to keep track of your accomplishments.

If you don't already track your work achievements, now is the time to start. Look back on the past year or so. What stands out as impressive? Did you improve a process or system? Save the company money? Take on an additional project?

Often, managers aren't aware of exactly how much value their employees are providing to the company. They may be impressed, or even surprised, to find out just how much you have accomplished for the company. By creating a list of achievements, you are one step closer to earning a raise.

2. Research salary data

What does someone with similar job responsibilities in your area earn? It's important to have access to up-to-date salary data when making your case for a raise.

Every position has a going market rate. To avoid being unrealistic in what you're asking for salary-wise, do your research in advance by using websites such as Glassdoor and Payscale. (See also: Are You Underpaid? How to Figure Out What Salary You Deserve)

3. Take on additional work

Could your boss use help on some additional projects? Do you have the opportunity to earn overtime? Would taking on additional work help solidify your request for a raise?

Volunteering for additional projects often shows how serious you are about your career and helping your company succeed. And by asking for extra work, you are likely to grow your skills by working on something that isn't a typical part of your job duties.

4. Talk to your boss

Talking to your boss about your salary can be intimidating. But it doesn't have to be.

Depending on your relationship with your boss, you may already have great rapport. Most managers expect that their employees want to be paid more, so the conversation won't be as shocking to them as you may think.

Simply ask your boss how you can work to increase your value to the company. Sometimes, just knowing that you are interested in taking on more responsibility is the boost you need to get the salary increase you desire. (See also: 5 Times You Should Demand a Raise)

5. Create an additional income stream

Creating an additional income stream outside your regular job is a great way to increase your income relatively quickly. Plus, you can typically earn money while doing something you enjoy.

Whether you choose to sell clothing, baby-sit, start a blog, do woodworking, or something else, there is no shortage of ways to earn money on the side. (See also: 14 Best Side Jobs For Fast Cash)

6. Slash your expenses

What's the quickest way to find more money in your budget? Slash your expenses.

Take a look at your current monthly spending. What could you do without? Are there any expenses you could cut entirely? If you can't cut them out, are there at least expenses you can lower? (See also: Are You Spending Too Much on "Normal" Expenses?)

7. Start searching for a new job

What do you do if your current company won't give you an increase in pay? It might be time to start searching for a new job.

You owe it to yourself to earn what you think you are worth. Sure, there are things you may enjoy about your current employer. But if you're not earning enough to live comfortably, it's time to see what new and better opportunities could be waiting for you elsewhere.

8. Save all you can

If you are barely making enough money to cover your bills, you will need to budget very wisely and save whatever you are able to.

Emergencies happen, and if you aren't earning enough income to comfortably make ends meet, it will be even harder to bounce back from an unexpected expense like a leaky roof or medical bill. Prepare yourself and protect your own finances by saving everything you can in an emergency fund. (See also: 6 Fast Ways to Restock an Emergency Fund After an Emergency)

9. Network

You never know who could help you land your next gig. No matter where you are in your career, networking is key.

Start by going to a few networking events in your area, or getting involved with a new organization. Don't forget to nurture your current network by keeping up with your peers and friends on social media and LinkedIn. (See also: The 10 Best Networking Tips for People Under 40)

10. Ask for support

Emotional support is one of the best, but most underrated tools at your disposal. Without having someone to encourage and push you, your mental health could suffer.

Talk to your family, friends, or partner about your finances, your goals, and your current position. Ask for their advice and let them know how they can help hold you accountable. Though it might not feel like it, everyone has gone through some financial stress in their life and can offer you some sort of emotional encouragement.

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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:

8 Sacrifices That Will Supercharge Your Debt Payoff

Denise Hill — Wed, 21 Feb 2018 09:00:06 +0000

In order to get and stay out of debt, you have to shake things up. You need to change your thought patterns, financial habits, routines, and in some cases, your circle of friends. It requires intentional effort, diligence, and sacrifice. If you seriously want to get out of debt, here are the sacrifices that will expedite the journey.

1. Live on less

The long-quoted financial rule of thumb is that your housing should be less than 30 percent of your net income. If you're above that threshold, downsizing and moving to a cheaper place is one of the easiest and most drastic ways to lower your expenses. (See also: 7 Reasons You Need to Downsize)

If your housing costs are already under 30 percent of your gross income, and you're still in debt, you'll need to find other ways to save money as best as you can. Don't just draw the line at a smaller living space. Look for ways to cut costs across the board for your standard day-to-day expenses. Find ways to reduce your grocery bill, utilities, and water bill. The lower the costs of your lifestyle, the easier it is to pay down debt and stash some cash for a rainy day. (See also: 34 Smart Ways to Cut Your Electric Bill)

2. Pay with cash

A 2016 study, "Paper or Plastic?" How We Pay Influences Post-Transaction Connection, showed that items purchased with cash are valued more than items purchased with plastic. According to the report, spending cash feels the most "painful." Therefore, cash purchases become more meaningful.

Paying with cash makes you feel more connected to the experience. Pay for all consumer goods — including groceries and gas — with cash. You will spend less and appreciate your purchase more.

3. Get a side gig

One of the biggest sacrifices you often have to make in order to get and stay out of debt is your time. A great way to aggressively tackle your debt is by sacrificing a bit of free time and getting a side gig.

You can work part-time for a company, drive for Uber or Lyft, or even deliver pizza. Or you can do your own thing and freelance as a writer, photographer, or caterer. The key here is to find a way to turn your free time into money. (See also: 14 Best Side Jobs For Fast Cash)

4. Get cheaper transportation

Transportation is a sneaky little budget buster. According to the Bureau of Labor Statistics, transportation is the second largest spending category for an American family. The average household spends $9,049 annually — which is around 17 percent of the total budget.

Reducing transportation costs doesn't mean just getting a cheaper vehicle; it means lowering fuel consumption by taking fewer trips, combining errands, and mapping out travel routes. It also means using public transportation, ride-sharing or carpooling, and walking or riding your bike whenever possible.

5. Plan your meals

Convenience comes at a cost. Grabbing meals and snacks on the go is one of the quickest ways to blow your budget and eat up your income — literally.

Planning your meals and keeping snacks on hand can save you hundreds of dollars per month. Meal planning is also a great way to help you stick to your grocery budget. Try creating a menu for a week — or even a month — and making your grocery list from the menu you created. This will keep you from impulse buying and help you make fewer trips to the grocery store.

6. DIY

In America, we pay someone else to do everything. We pay to have our clothes cleaned, our dogs walked, and our toenails painted. If you simply cut back on some of the things you are paying someone else to do and invest the time and energy it takes to do it yourself, you could save a whole lot of money.

Take a minute and think about all the services you outsource. Which of those could you possibly do yourself? Can you cut your own hair? Do your own Mani-Pedi? Can you cut your own grass and trim your own hedges? Clean your own carpet? How about simple car maintenance — can you change your own oil or perform other small repairs? Can you alter your own clothing?

YouTube is DIY heaven. Find an instructional video on how to do what needs to be done and get to it.

7. Limit screen time

Instructional videos aside, TV and the internet are often counterintuitive to your efforts to get out of debt. It's estimated that the average person is exposed to 10,000 brand messages per day. Let that sink in. You are being bombarded with images and subliminal messages encouraging you to spend money. You've got to occasionally unplug and allow yourself to mentally detox in order to have the focus, drive, and discipline it takes to get out of debt.

Limiting time spent watching television, engaging in social media, and surfing the web will help you avoid spending. And if you get rid of redundant, overlapping services, you can save even more money. Consider how much you are spending on cable, internet, and subscription services like Hulu or Netflix. Work to ensure that the time you do spend watching TV or browsing online is productive and supports your efforts to be fiscally responsible.

8. Find frugal friends

"Show me your friends and I'll show you your future," is a saying that is steeped in truth and wisdom. Who you associate with directly impacts who you'll become. Hanging around people who spend big, waste money, and have to have the finer things in life — despite the cost — will keep you broke and chained to debt forever. Your friends influence your life decisions, which is why it is critical you find people that are headed in the same direction as you and share your value system.

Befriend people from Facebook groups, websites, podcast communities, and other groups that promote getting out of debt and saving for retirement. Changing your social circle is one of the most critical and beneficial things you can do to get and stay on a path to financial freedom. (See also: 10 Types of Friends Who Are Costing You Money)

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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:

8 Things Millennials Can Do Right Now for an Early Retirement

Tim Lemke — Wed, 24 Jan 2018 10:00:05 +0000

When you're young, it's hard to think of retirement planning as a priority. You have barely entered the workforce; now you have to think about what to do when you've stopped working?

But if you are of the millennial generation, the road to a comfortable retirement should begin now. And with the right moves, you may even be able to retire early. Consider these financial moves to supercharge your retirement plan.

1. Develop a net worth mindset

One of the keys to saving for a comfortable retirement is to focus on accumulating things that grow in value while reducing your liabilities.

This means earning and saving as much money as possible while eliminating debt. It means investing and watching your money grow, through things like stocks and real estate. It means avoiding spending money on things that will lose financial value or have no value to begin with.

This mindset will help you develop a high "net worth," calculated by how much your assets exceed your liabilities. You can't retire unless you have a high net worth, and you can't get there unless you make the right financial choices — especially at an early age. (See also: 6 Money Moves to Make If Your Net Worth Is Negative)

2. Open an IRA

If you have any earned income at all, you can open an individual retirement account (IRA), which allows you to invest in almost anything and enjoy tax savings along the way. With a traditional IRA, any money you invest is deducted from your taxable income. With a Roth IRA, contributions are taxed upfront, but any investment gains can be withdrawn tax-free when you retire. You will pay a penalty and taxes if you withdraw money before you turn 59½.

These retirement accounts can be powerful saving vehicles if you have the discipline to set aside as much money as you can. The earlier you invest, the more time your money has to grow. (See also: 5 Retirement Accounts You Don't Need a Ton of Money to Open)

3. Put money in a 401(k)

If you are employed by a company, there's a good chance that you have access to a 401(k) or similar plan. Don't ignore your human resources representative when they hand you a stack of plan documents urging you to sign up.

A 401(k) plan allows you to invest in a variety of mutual funds and other investments, and your company will often match your contributions up to a certain amount. Money you contribute is deducted from your taxable income. You should invest as much as you can into your 401(k), but it's imperative that you at least contribute enough to get the maximum in matching funds. Your contributions, coupled with the matching funds, can add up to millions of dollars by the time you decide to retire. (See also: 401K or IRA? You Need Both)

4. Open a taxable brokerage account

There's no rule that says all your investments need to be in retirement accounts. Regular taxable brokerage accounts don't have the same tax advantages as IRAs or 401(k) plans, but they do offer other perks, chiefly the flexibility to withdraw money whenever you want it. This is especially key for someone looking to retire before age 59.

Taxable brokerage accounts can be used to accumulate dividend stocks, bonds, or other investments that provide income that will allow you to retire early. (See also: 7 Investment Accounts All 30-Somethings Should Have)

5. Get a side hustle

To accumulate enough money for an early retirement, you'll need a healthy and steady income. If your day job doesn't quite pay enough, look for other ways to generate cash. This may mean freelance writing or playing guitar at local coffee shops. Maybe it's tutoring math, working as a DJ, or doing ASMR videos on YouTube.

If you're young, you have energy and freedom, and the ability to make some cash on the side. Earn it, invest it, and watch it help you retire for good from work at an early age. (See also: 14 Best Side Jobs For Fast Cash)

6. Learn to budget

It's simple: The only way to invest money is to save it, and the only way to save it is to spend less than you earn. This may be easier said than done, especially if you aren't making a lot of money early in your career. But it needs to happen.

Start by tracking your spending so you know precisely where your money is going. Then create buckets for various categories of spending (rent, food, entertainment, etc.). Budgeting requires focus and discipline, but can be fun — and ultimately rewarding — when you see your savings grow. (See also: 9 Ways Staying on Budget Can Be Fun (Really!))

7. Tackle that debt

You may have student loans. As a result, you may also have credit card debt. If this is weighing you down, it's time to do something about it or an early retirement will be impossible.

Begin by going after some of the most onerous debt first — usually, this is the credit card debt with the highest interest rate. Once the debt is eliminated, you can begin to focus on actually saving and investing, rather than simply making ends meet. (See also: The Fastest Method to Eliminate Credit Card Debt)

8. Get insured

The ability to retire early is as much a product of avoiding disaster as accumulating wealth. It's hard to save and invest aggressively if you find yourself saddled with tens of thousands of dollars in medical bills, or expenses to replace items lost when your apartment flooded.

You may think that health insurance is a waste of money because you are young and in good shape. You may think that you're a good driver and don't need comprehensive auto insurance. But if you truly want to gain financial independence and work toward an early retirement, you must be properly insured. Even if you have insurance now, review your policies to make sure you're covered at the right levels. Fail to do this, and you may find a single disaster will send your financial future off track. (See also: 15 Surprising Insurance Policies You Might Need)

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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 to Plan for a Forced Early Retirement

Denise Hill — Mon, 11 Dec 2017 09:30:10 +0000

Every working adult dreams of the day they can retire and take it easy. But for some, retirement is forced upon them sooner than expected. When this happens, a world of financial stress can follow.

LIMRA Secure Retirement Institute found that 51 percent of workers retire between ages 61 and 65, while 18 percent retire even earlier than that. It may not have been in your plans to retire so soon, but life doesn't always go accordingly — things like declining health or caregiving for a loved one can force people to leave the workforce earlier than they anticipated.

Retirement experts advise that in the face of this new trend, your retirement plan should include early retirement options and safeguards. Below are six things you can begin doing now to prepare for an unexpected early retirement.

1. Start planning early

Retiring just five years early — at age 60 versus 65 — can significantly impact the amount of income you may need to retire comfortably. One common retirement rule of thumb that can help you roughly determine how much you should save is the four percent rule.

Financial experts believe you can safely withdraw about $4,000 a year per $100,000 of savings during retirement, and that would last you approximately 33 years. So, if your living expenses are $40,000 a year, you'd need to save $1 million. This simple rule does not account for inflation or other sources of income such as Social Security benefits, but experts believe it’s a good baseline for gauging your retirement needs. (See also: 4 Retirement "Rules of Thumb" That Actually Work)

Bumping up what you contribute to your retirement fund, even by just a few dollars a month, along with lowering your cost of living is a great way to prepare yourself and your family in case you have to retire prematurely.

2. Plan for inflation

While the four percent rule is a great place to start, if you know that early retirement is highly likely for you, you need to be more aggressive. Fidelity advises that your goal should be to save at least six times your current annual salary by the time you are 50, and 10 times your income by the time you are 67. If you are not near these targets, it’s time to rearrange some things, rein in your spending, and begin aggressively saving.

Another pitfall of retirement many people forget to plan for is inflation. Retirement investments have failed to keep pace with our aging population, Social Security cuts, and hedge against the investment risks brought on by the shift from traditional pensions to individual savings.

When you retire, the world will be a more expensive place than it was while you were saving. You must understand and plan for the fact that $10 today will not buy the same thing in 2035. (See also: 4 Ways to Protect Your Retirement From Inflation)

3. Don’t take Social Security early

In 2014, LIMRA found that 57 percent of men and 64 percent of women took their Social Security benefits early. But since monthly benefits rise five to eight percent annually between ages 62 and 70, the longer you can wait, the better off you'll be. For example, if your full retirement age is 66, but you begin collecting benefits early at 62, your benefit will be reduced by about 30 percent.

In years past, once you hit 65, you were eligible for full Social Security benefits and could retire and receive a monthly check from the government. However, that is no longer the case — especially for younger workers who must put in more years to reach their full retirement age. Experts agree that you should only take your benefits early if you absolutely need to. Proper planning can prevent this from being your only option. (See also: 5 Questions to Ask Before You Start Claiming Your Social Security Benefits)

4. Consider a partial retirement option

"Partial retirement" simply means keeping a job on a part-time basis as a means to help stretch your retirement savings. By remaining in the workforce for a little while longer, you can defer retirement funds — such as Social Security, pensions, and even savings — until you decide to fully retire.

Some places, such as government agencies, offer phased retirement plans. These plans allow you to supplement your income by working part time while still contributing to your retirement fund and allowing you to keep a portion of your benefit package. It’s important to begin researching these things and understanding your options while you are able bodied. (See also: 4 Reasons You Might Have a "Phased" Retirement)

5. Find a side gig

If your company does not offer a partial or phased retirement option, side gigs are a great way to supplement your income and help tide you over until you reach full retirement age. And while most side gigs don’t come with benefits, you do get to set your own hours and work as you are able.

Now is the time to look into different side or part time jobs that fit your ability, skill set, and situation. What interests and hobbies do you have that could become profitable? Write them down and research ways you can make money doing those things. You may also want to research jobs you could do from home that are not too physically demanding.

Side gigs and part time jobs can also be good for your health. A 2016 Oregon State University study found that those who retire early die sooner than those who work beyond age 65. (See also: 9 Easy Ways Retirees Can Earn Extra Income)

6. Stick to a budget and pay off debt early

Surviving in retirement is not only dependent on how much you save, but also how much you spend. Most people have to scale back a bit during retirement due to a reduction in income. Scaling back after you retire is a tough thing to do. You have more free time to travel, indulge in hobbies, and spoil the grandkids rotten — all of which can quickly shrink your nest egg.

Start now by creating and sticking to a conservative budget. The extra money you save should go into your retirement fund or toward paying down debt. Scale back on expenses where you can and consider downsizing before it's time to retire for good. Establishing disciplined spending habits now will carry over and benefit you later — when it really counts.

A great way to reduce your overhead and free up some cash is to pay down your debt as quickly as possible and to get rid of your mortgage before you retire. The less debt you have, the more spending money you have. (See also: 6 Ways You Can Cut Costs Right Before You Retire)

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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:

9 Actions to Take When You're Denied a Credit Limit Increase

Mikey Rox — Mon, 11 Dec 2017 09:00:07 +0000

Ready to make a big purchase just to have your credit limit increase denied? How rude! Don't worry: There are a few ways around this letdown with a little financial finagling. Here's what's to do. (See also: 4 Questions to Ask Before Getting a Credit Increase)

1. Show the creditor you're serious about reducing your debt

In all likelihood, you're being denied a credit limit increase because you're a risk for the bank. Maybe your credit utilization ratio, which measures how much of your available credit you have already spent, is tipping too far into the no-no zone. Or perhaps you've been inconsistent with payments — and if that's the case, why should they invest even more money in you? It's nothing personal, of course; business is business. But now you have to prove to the creditor that you're serious about managing your money in a responsible and timely manner.

"Talk to the issuer to determine the reason for the denial and then work to make improvements, which would likely include paying down a portion of your balance," says Chantel Bonneau, a leading financial adviser for Northwestern Mutual. "Also, overall, a good rule of thumb is to ask for increased credit when you don't need it, not when you do."

Plus, some lenders just have rules. For example, certain card companies will only increase credit once per year. Others will automatically reject a credit limit increase if you've had any late payments in the last 6 months. If you get denied and have no idea why, ask. With the right information, you can proactively work on reversing the decision.

2. Cut back on your spending

You typically won't be denied a credit increase if you have enough money in the bank to justify a creditor taking the risk of lending you more. Show that you're serious about getting on the right track by cutting back on your overall spending.

"I recommend sitting down and looking at the areas where you spend more money than you really ought to," say Natasha Rachel Smith, personal finance expert at TopCashback.com. "If you notice a pattern, consider cutting back or looking for a cheaper alternative. Cut down on spending and put more toward paying down debt or toward your savings."

3. Order your credit report and look for errors

If you feel like you're on top of your credit cards and consumer debt, and don't quite understand why you've been denied the increase, maybe there are other factors at work that you're unaware of. Order your free annual credit reports from the three major credit bureaus via AnnualCreditReport.com to start investigating any potential errors or inaccuracies.

Consider these questions when digging into your credit report:

Do you have late bills or other negative marks? If so, are they accurate?
Does any activity appear fraudulent or unauthorized?

What is your ratio of outstanding debt to income?

If anything seems amiss on paper, start the process of fixing the discrepancies by first writing a letter to the credit bureau detailing what you think is wrong. This is the best first step. Calls and emails aren't ideal here. (See also: How to Read a Credit Report)

4. Fix the issues associated with your rejection

If you've been denied a credit limit increase, you'll usually receive a response explaining why you didn't get approved. Read over the explanation and take the necessary steps to fix the issues.

"Whether your credit score is too low or you're utilizing 30 percent or more of your credit line, you need to fix the issues before requesting a new credit limit increase," Smith explains. "Be mindful that some banks might require that you wait a few weeks or months before requesting a limit hike, while others will let you make a new request at any time. Make sure to call your bank's customer service to ask about anything you're unsure about before trying again."

5. Get a human being on the phone

If you used an automated process to request the increase online, your next step is to talk to a human being and ask for one. (After screaming, "Representative!" into the phone a few times during the automated tutorial, of course.) This way, you can explain your situation over the phone and tell them why you need a limit increase. You may not get a better outcome, but it can't hurt to try.

6. Try increasing another card with which you may have better history

If you have multiple cards and you're better at paying down one more than another (hopefully the one with the highest interest), that's the card on which you should pursue the increase. If that's doesn't work, try another card. Maybe you don't have as much debt on that card, which could increase your chances of getting what you want. Keep all interest rates in mind, however — especially if you're making a big purchase that you may not be able to pay off quickly. You don't want to screw yourself in interest charges that'll leave you worse off than you were before.

7. Consider asking your boss for a raise

Being denied a credit limit increase could be the perfect time to ask for a raise. Has it been awhile since your last one? Are you overdue? Do you think your performance warrants a raise? It never hurts to ask. The more income you report, the more the credit issuer will favor you.

8. Think of other ways to earn extra income

If you're already struggling to pay debt, you need to bring in more income. There are plenty of ways to do that these days with all the side gigs available. Look into your options, including taking on a roommate, listing your space on Airbnb, driving for Uber or Lyft, dog sitting through Rover.com, or delivering groceries via Instacart. All are really easy ways to earn extra cash without putting a burden on your full-time job or responsibilities. Any extra money you make can go straight toward paying down debt to improve your credit score so you're not denied an increase in the future. (See also: 14 Best Side Jobs For Fast Cash)

9. Look into a 0% APR credit card

If you've been denied a credit limit increase due to your bad credit, it's unlikely you'll be approved for another credit card. But maybe you got denied because you made one late payment two months ago, in an otherwise stellar payment history. If that's the case, and you're ready for a big purchase, you might be approved for a new credit card that offers a 0% intro APR on purchases during a promotional period. That gives the added benefit of some interest free time to pay off that big purchase.

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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:

How a Single Mother In Debt Over $200K Is Fixing Her Finances

Janet Alvarez — Mon, 16 Oct 2017 16:02:05 +0000

For those of us actively trying to improve our financial situation, it's inspiring to read about others who have succeeded. Dilenia Frias is one such example, embarking upon Wise Bread's Total Financial Transformation Plan, and successfully improving her credit score, better managing her debt, and on the road to higher earnings in just a few, short months.

When we first met Dilenia in August, she shared her financial concerns with us: Over $200,000 in student loan debt, tens of thousands owed on credit cards, personal loans, and a timeshare, a damaged credit score, and relatively low earnings despite graduating law school. To top it off, Dilenia was recently unemployed for two years, and is a single mother residing in New York City, an area with arguably the highest of cost of living in the country. (See also: The Fastest Way to Eliminate Credit Card Debt)

We decided to help Dilenia tackle these challenges one-by-one, by providing methodical advice for stabilizing her debt, raising her credit score, and improving her earnings. Read on to hear Dilenia's story in her own words — and even better, her remarkable progress in the two months since we first talked.

Credit Cards

I have $8,500 in credit card debt, spread over three cards — American Express, Children's Place, and Discover cards. My cards' interest rates are anywhere from 10.99-24%, and most are maxed out or over their credit limit.

Our advice:

Contact your creditors, explain your situation, and request lower interest rates, if possible. Always pay on time — even if it's only your minimum payments.
Try to bring your balances under the credit card's limit — this will have an immediate impact on your credit score. Long-term, your goal should be to keep your balances under 30% of your total available credit. This will significantly boost your credit.
One useful trick for repaying cards is to make two payments per month, instead of just one. For example, if you normally make one monthly payment of $100, try making two payments of $50 each. Since interest is calculated over the entire month, this will reduce your interest owed. Plus, depending on what time of the month your card reports to the credit bureaus, it may also show a lower debt level and boost your score.
Don't close your credit cards — even once you pay them off! This reduces the amount of credit you have available, which lowers your credit score.

Dilenia's credit card situation now

My Equifax credit score went up 48 points to 677!

I hadn't used my Children's Place credit card in about a year, and the suggestion was to use the card for at least a small amount, so that my account wouldn't get closed for lack of use, so I spent $125 on gift cards in August. I received my bill later in August and paid it on time. I received an email approximately a week ago that my credit limit was increased from $500 to $750.

I also paid my American Express enough so that my statement only showed a $99 balance when the statement printed (so I was using a little under 20% of my credit limit). My Discover card was also a bit over the limit last month, but I brought the balance back down in time for the September statement closing date. I am still using almost 100% of my credit limit, but at least I am no longer above my credit limit.

Personal loan and timeshare

My $7,000 personal loan was unfortunately charged off in 2015, when, after leaving my job in February 2015, was only able to make payments until May 2015. I am currently paying $150 per month to the collection agency handling the account. Based on the amount owed, I would need to make payments until April 2021.

A $9,000 loan for a timeshare is also in collections. I am currently trying to negotiate a limited-use timeshare based on the payments I have already made, but was told that I needed to make a final payment to the collection agency before they would release my account to the timeshare company. If I am able to regain the timeshare, I might be able to sublease it.

Our advice:

Aggressively try to regain use of the timeshare on a more limited-use basis. Request that the collections agency annotate your credit report to show that your are making payments on time.
Once you regain limited use of the timeshare, sublease it using services such as rentmytimesharenow.com. Apply any extra money toward repaying credit cards more quickly, starting with the highest-interest card first.
Attempt to negotiate lower payments or interest rates directly with the personal loan collections agency. Ensure they've annotated your credit report to reflect that your account is being paid on time per your agreement.

Dilenia's personal loan and timeshare situation now

I recently made a payment to the timeshare company, and I am awaiting documents transferring ownership in my previous timeshare to a new timeshare. When the paperwork is finalized, the collection account currently being reported to my credit reports will be removed. That should also increase my score, and also allow me to sublease the unit.

Student loans

I have over $200,000 in federal student loans, most of which are being repaid via the Income Based Repayment program (IBR). However, I have over $16,000 in Perkins loans which are currently on deferment; I'll need to start making payments on these, too, by March 2018. Due to my limited income and two dependents, my current monthly payment is $0.

Our advice:

Consolidate all your student loans — including the Perkins loans, so that they can all be placed on IBR and result in a low payment.
Place your IBR account on autopay — even if your payment is $0, it may result in a slightly lower interest rate.
Contact your law school's employment services office and inquire whether your school offers any debt forgiveness for students in public service or other modestly-paid legal jobs.

Income, employment, and other credit boosts

In order to be admitted to the Bar, lawyers must pass a Character & Fitness (C&F) evaluation, including a credit check. Unfortunately, given Dilenia's credit issues, being denied entry to the Bar (and a higher income as an attorney) was a real possibility.

Thankfully, by bringing all of Dilenia's accounts current and boosting her credit score, C&F should be less of an issue, thus ensuring that Dilenia should be employable as an attorney by late this year. This will likely result in higher income and allow Dilenia to repay debt more aggressively. More importantly, it'll enable her to save — even a modest amount saved every month toward an emergency fund of three-to-six months' expenses will help ensure she doesn't get into this sort of trouble again. (See also: 7 Easy Ways to Build an Emergency Fund From $0)

Dilenia's 19-year-old son is also considering seeking employment to help contribute to household expenses, and once Dilenia's timeshare is subleased, the extra income can be applied to debt and emergency fund savings.

Dilenia has made great progress, and she can do more still. Dilenia should request higher credit limits on her cards once she's made twelve on-time monthly payments and dropped her balances. Then, once her cards are paid off, she should open new lines of credit — such as gas cards — and not use them. This will all result in lower credit utilization ratios — and higher credit scores.

Recently Dilenia joined eMoneyPool, since it reports user accounts to credit bureaus like Experian. eMoneyPool is an online version of a savings club in which members make regular contributions and receive "payouts" of their savings on targeted dates. She joined two $500 money-sharing pools in August, and by early September the account was added to her Experian credit report.

Dilenia can also have her rental payments reported to the credit bureaus using services such as RentTrack or RentReporters. Depending on the lender and the type of credit score they use to determine credit worthiness, this could help her with loans or other credit applications down the line.

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

Flashback Friday: 52 Things You Need to Know About Hosting on Airbnb

Chrissa Hardy — Fri, 15 Sep 2017 08:30:10 +0000

So you're looking to make some extra cash, and you realize you have the perfect house or apartment to list on Airbnb. It seems like an easy way to earn money, and many people earn enough to cover their rent or mortgage payments. However, there are many things to consider before opening your home up to strangers as a potential side gig. Here's everything to keep in mind before taking that step.

5 Easy Ways to Make Good Money From Airbnb — Think about the entire process from the customer's point of view. What would make your listing stand out among the rest? Taking professional photos, including personal touches in decor, and offering added services require minimal effort in exchange for big bucks.

13 Things I Learned From Renting Out My Home on Airbnb — Learn from the personal experiences of others. Sometimes the money is totally worth the nonstop cleaning and worrying about getting good reviews. Sometimes it isn't. Seek out honest reviews like this one to understand exactly what you'll face.

5 Cities Where Airbnb Is Way Cheaper Than a Hotel — Understand the market. What are hotels charging in your area? Do you have a second home to rent in a more desirable location where Airbnb might be the cheapest option? Local hotels are also your competitors, so research what they're offering before setting your price point.

What to Do About a Terrible Airbnb Stay — You can't please everyone, and you might run into some unhappy guests. Learn what their rights are compared to yours, and how negative feedback is handled.

5 Costly Pitfalls of Hosting on Airbnb — As an Airbnb host, there are some costs that will come out of your wallet. Before you create your listing and start accepting guests, make sure your budget can accommodate those expenses.

This Is How You Rent Your Place on Airbnb — and Succeed — Airbnb has been around for years, so there are many people who have learned the ins and outs of hosting, and now know how to do it right. This is one of them. Learn from their mistakes, and heed their expert advice.

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

How to Save for Retirement While Caring for Kids and Parents

Annie Mueller — Thu, 14 Sep 2017 08:31:09 +0000

As a member of the sandwich generation, you're not only raising your children, you're also caring for your aging parents. The financial burden, not to mention the daily responsibilities, can leave you struggling to invest in your own financial future. Here are some ways you can still save for your retirement while caring for those who depend on you. (See also: 5 Money Strategies for the Sandwich Generation)

1. Make your financial future a priority

Your financial future matters as much as the current responsibilities you have. Consider the stress you experience as you try to navigate life while being a parent and caring for your own aging parents. Do you want to repeat the cycle of stress by failing to plan for your retirement? No, of course you don't. However, by letting guilt and the needs of the moment dictate your financial choices, you may end up in that place. (See also: 6 Financial Steps to Take When Your Aging Parents Move In)

When you're juggling medical bills and child care costs, retirement may seem far away and unimportant. It isn't. You deserve to have your financial needs met in the future as much as your children and parents deserve to have good care now.

2. Take advantage of employer programs

If your employer offers any sort of matching contribution to your 401(k), take full advantage of that opportunity.

As you're able, increase the amount of money you're putting into your 401(k) from each paycheck. Having it automatically deducted — which is how most employers handle contributions — will keep you from depending on these savings for your daily expenses. Your goal is to bring your savings amount to the point of maximum matching contributions from your employer. It's an easy win, as those matching contributions double your savings.

3. Take advantage of tax-free savings

If you don't have a 401(k), now is the time to set up a traditional IRA. It's another way to maximize your retirement savings, as a traditional IRA will generally allow you to defer taxes on the money you save until much later — when you start withdrawing it. Deferring taxes enables you to save more now, while you're living in the sandwich generation budget crunch.

4. Find and apply for available tax benefits

Some additional tax breaks exist for adult children who are providing full-time care for their aging parents. Talk to your CPA about the requirements for claiming your elderly parents as a dependent.

Additionally, examine your options for claiming tax deductions for medical care and other dependent expenses such as transportation, food, and supplies. Not all costs will qualify for tax deductions, but those that do can save you a good chunk of money that can go straight into your retirement savings.

5. Liquidate the assets your parents no longer need

It can be difficult to work through big financial decisions with your aging parents, but doing so can help you both navigate the somewhat rough financial waters of elder care. (See also: 6 Things You'll Encounter When Taking Over a Loved One's Finances)

Identify the assets that are used very little but require ongoing maintenance, such as a house that's not lived in, or a boat or car that sits unused. These unused assets are financial drains. Work together to come up with a plan for liquidating them. Then put the money gained from their sale into an account that pays for your parents' monthly expenses. This relieves the financial burden you're carrying so that less of your income is required for your parents, and more of your income can go to your retirement savings.

6. Reduce a big, ongoing expense

The goal here isn't to come up with a one-time win, but to find a monthly cost that eats up your income and find a way to reduce it. Then you'll take that difference and add it to your monthly savings.

Make a list of your monthly expenses, rank them from most to least expensive, and start going down the list with your goal in mind. You can shop for better insurance rates and a cheaper cellphone plan. You can sell the expensive car you're still making payments on, buy a cheaper one outright, and put the amount you used to spend on a car payment directly into your savings. The key is to make sure that the amount you save goes into savings; don't let it get absorbed into your budget and spent on other things.

7. Take a money challenge

A money challenge is a fun but temporary way to reduce your costs and increase your savings by cutting an expense for a short amount of time. It's doable because it's temporary, which also makes it fun. You might not want to haggle over expenses or shop from thrift stores all the time; however, you can do it for a month or so and use what you save to add to your retirement.

8. Invest in a hobby that makes money

Taking on yet another responsibility may seem impossible. However, prioritizing your own interests — in this case, one that can make you some money — is a good idea. You need time to dedicate to your own interests in this time of intense caregiving. If you put time into developing a hobby that has income potential, you'll be able to add to your retirement fund.

If finding the time is an issue (and of course it is!), don't be shy about asking family members and friends to pitch in on child care and parent care. You may handle most of the responsibility for your aging parents, but you don't have to do everything yourself. Set up a schedule so that adult siblings, cousins, and community members take on caregiving for a day or afternoon out of the week. Use that time to work on your side hustle, and funnel the money you make from it straight into your retirement savings.

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

14 Best Side Jobs For Fast Cash

Paul Michael — Tue, 08 Aug 2017 08:00:06 +0000

When you need money fast, you have several options. You could sell a bunch of stuff, refinance the house, or borrow money from friends or relatives. Or, you could look into something much simpler: getting a side gig. (See also: 13 Ways to Make Money Online That Aren't Scams)

Side gigs are not exactly second jobs, because they come with a lot more flexibility and leave you in control of your hours and commitment. But, they can still be invaluable sources of income when you're really in a pinch. If you're ready to start bringing in some extra money, quickly, here are some great places to start.

1. Drive for Uber or Lyft

If you have a car, and you don't mind adding some extra miles, you can drive for Uber or Lyft and earn extra money in a very short amount of time. As a driver, you can set your own schedule and work on your own time. You could even sign up to drive up for both services. Uber drivers can earn between $13 to $30 an hour, while Lyft drivers can earn anywhere from $8 to $25 an hour. (See also: How to Earn Extra Money Driving for Uber or Lyft)

2. Rent out a room in your home with Airbnb

This isn't for everyone, but if you have a guest room, or can find a way to make one in your home, you can rent out the space on Airbnb. Some people do this seasonally, and others rent their space year round. It can become very lucrative, especially if you live in cities that experience tourism surges throughout the year. Some people have made up to $60,000 a year from Airbnb. (See also: 5 Easy Ways to Make Good Money From Airbnb)

3. Become a mystery shopper

If you are out and about a lot, you can turn that into a profit. Mystery shopping is something that happens daily around the world in thousands of stores. The idea is to help businesses improve their experiences, and they are willing to pay for genuine feedback. While you may only earn $5–$20 per store, it can really add up. In 2013, one person made $14,000 in one year. (See also: Check Out These 5 Legit Mystery Shopping Gigs)

4. Become a "tasker"

There are other sites offering similar gigs, but TaskRabbit is the leading provider of small services right now. The idea is simple enough; you make yourself available to do small tasks, and the site matches you with people who want things done. It could be hauling large items, assembling furniture, cleaning, yard work, or even small repairs. You set your own rate, your own hours, and your availability. You could do it on weekends, mornings, or evenings. The site takes roughly 15 percent to 30 percent of the advertised rate. For example, if the customer sees $100/hr, you would get between $70–$85 for the task. It all depends on the type of service. So far, taskers have loved the experience. (See also: 4 Ways to Make Money Doing Household Chores)

5. Sell things on eBay

Start with items you have laying around the house that you just don't need any more. You might be surprised at the money you can make just by putting these things up for sale. If you're not sure how to price something, do a quick search on eBay's "sold listings" to see what an item's typical selling price is, and then use that as a template for your own auction. You can easily make a few hundred dollars in the first week alone. (See also: 11 Easy Ways to Earn More on eBay)

6. Take online surveys

How does an extra $250 per month sound? Well, it's achievable by taking online surveys in your downtime. Some survey sites offer just a few dollars for a lot of work, so make sure you do your research and sign up with companies that are known for reasonable payouts. (See also: Can I Really Make Money Taking Surveys?)

7. Dog walking or pet sitting

If you're an animal lover, dog walking and pet sitting is another quick and easy way to raise some extra cash. Many dog owners just don't have the time (or the energy) to walk their dogs, and are more than happy to pay someone else to do it. The money is excellent, with the average walk paying $1 per minute, according to Angie's List. If you walk a few dogs at once, you can bring in $40–$60 every morning for just a half-hour of work. Similarly, you can make money pet sitting. Angie's List reports around $50 per day for pet sitting. (See also: Get Rich Walking Dogs in 9 Easy Steps)

8. Cook meals for people with Feastly and EatWith

This concept has been called the "Airbnb for dinner" and it's really starting to take off. If you have a knack for cooking, but don't want to work in a kitchen or open a restaurant, then Feastly or EatWith could be just for you. The basic idea is that you cook a meal for a group of strangers, usually at a place where you host. The strangers get to share an exciting meal with a group of new people, and you get to show off your culinary skills and make a nice profit. EatWith states you can make up to $700 per event, and Feastly says you get around 88 cents on the dollar for whatever you charge.

9. Participate in clinical trials

How far are you willing to go to get some money in a hurry? Well, every year hundreds of companies require human guinea pigs to test the safety of their products. By the time the trials come to humans, they have already undergone some rigorous testing, so the chances of making you sick are slim. But, there's still a chance, so know this going into it. However, you can make some serious money from this kind of side hustle. Some clinical trials pay as much as several thousand dollars. (See also: Making Money From Clinical Trials: Worth the Risk?)

10. Rent out your friendship

Are you a people person? The life and soul of the party? Then you should rent out your friendship with RentAFriend.com. The pay is not great, usually $10 an hour or less. But, you're making money doing things most people spend money on. From going to movies and amusement parks, to nightclubs and bowling, there are a lot of people out there who just need a friend for the evening. You could be that friend, and earn a tidy sum at the same time.

11. Become a background artist

Also known as "extras," these actors are used to fill out the scenes of TV shows and movies so that everything looks as true to life as possible. There is usually work to be found in almost every state, although it's not always glamorous. Background artists are paid on a sliding scale based on what kind of performance is required, whether you're in a union, and if you speak or not (if you do, you get more money). Check out Backstage.com for more information. (See also: Look Ma! I'm on TV! Life as a Background Actor)

12. Officiate weddings

Did you know that almost anyone can become ordained to officiate weddings? And, in many cases it costs absolutely nothing to get the credentials you need. Once you get the legal authority to perform weddings, you can then hire yourself out. The average cost to preside over the ceremony and read the vows comes in between $300–$500 per wedding. Do one of these every weekend, and you're looking at up to $2,000 extra every month for very little work. Of course, you have to be a good public speaker, and love weddings.

13. Tutor students

Do you have a particular area of expertise that would be useful to a student? From math and science, to music and foreign languages, parents across the country are always looking for people to help their children advance in school. You can advertise your services on a site like Craigslist, and meet your clients at local libraries or their own homes. You can easily make $15–$30 per hour, or more. You can also make money as an online tutor.

14. Model for art students

Art models do not have to be Greek gods. Most art colleges would actually prefer a range of body types, because students need a wide variety of models to hone their skills. To become an art model, understand that you will be stripping off in front of strangers who will be staring at every wrinkle and blemish. So, you should be very comfortable in your own skin. You also have to realize that you could be holding some poses for up to an hour (although you will be allowed to take short breaks). If this all seems like no big deal to you, then apply at a local art college or night class, and you can easily make $20 per hour, or more. (See also: 8 Freelance Gigs Anyone Can Do to Make Extra Money)

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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:

Who Really Benefits From a Class-Action Settlement?

Christa Avampato — Mon, 31 Jul 2017 08:30:09 +0000

A couple years ago I got an unexpected letter in the mail. A company where I had interviewed for a job 10 years prior was accused of using discriminatory hiring practices. My human resources record with the company had been unsealed as a result of the lawsuit and, according to this letter from the lead law firm for the plaintiffs (the people filing the lawsuit), I had been discriminated against during the hiring process. I needed to respond with a phone call and letter confirming that I had indeed interviewed during that specific time frame.

The letter struck a chord. I had indeed gone through a harrowing interview process with that company and I was devastated when I didn't get an offer because they were my dream company to work for at the time. Their reasons for not hiring me were very hurtful (they were actually honest about their discrimination when it happened), and it left a scar on me that persisted for a long time.

About a year after the law firm contacted me, I received a sizable check in the mail for a settlement. This incident prompted my interest in class-action lawsuits and who benefits from them. You see stories about class-action settlements all the time in the news, and you may even get contacted if you purchased a certain product within a period of time, with a message saying you could be entitled to a settlement. Many of these settlements will only yield a few dollars per person, so the effort put forth may not be worth it, but how can you tell?

Here's what I learned from this experience.

Settlements vary widely

Depending upon the damage done to plaintiffs and the number of plaintiffs in a case, the amount of a settlement varies widely from a handful of dollars to thousands of dollars per plaintiff. Almost all class-action suits that resolve favorably for plaintiffs result in a monetary settlement. As a plaintiff, you don't have much, if any, say in how the case is argued, the way the firm representing the plaintiffs presents the evidence, the amount of the settlement, or even when to take a settlement rather than continuing to litigate. (See also: 8 Smart Things to Do With Your Settlement Money)

How to track them down

In my case, I was fortunate that the law firm directly contacted me at my home address. I didn't even know the lawsuit was underway. I thought it was odd that I wasn't aware of this, but actually, it's not that uncommon.

Many people don't realize a lawsuit is underway unless it makes headline news. Fortunately, you can keep tabs on some class-action suits by checking Consumer Action. If you suspect you may be entitled to money from a class-action lawsuit, type in the name of the company being sued, for example, and see what pops up. If you do find something, this website provides instructions on how to file your claim as part of the lawsuit.

Who cashes in?

The law firm of Mayer Brown LLP did an empirical study of 148 consumer or employee class action suits that were filed in or removed to federal court in 2009. This kind of study is very rare and it turned up some disappointing data.

It turns out, 14 percent of cases during that period had not reached a resolution.
Of the 86 percent that did have a resolution, less than a third involved any kind of settlement for the plaintiffs. So most of the time, there was absolutely no benefit to those who were suing the company.
Also, of the 86 percent that did have a resolution, not a single one went to trial. This means that the merits of the plaintiff complaints were never fully considered by a judge or jury in any of the cases.

Given the data, should you participate?

Should you even participate in a class-action suit? That's a very personal question and despite the data, I would say "maybe." If, like my class-action participation, there is a high amount of potential payout versus time involved to participate, then it can be worth it.

For 10 years, I felt badly about what had happened to me with that potential employer, so the emotional stakes were high. But the time investment needed to participate was small. It took me just 15 minutes to make the phone call to the law firm, confirm my details, and send them a short letter. I didn't have to do anything else. I didn't have to pay anyone any money to participate or to collect my settlement. Through my research, I found out that my case was the very best case scenario of a class-action suit. The vast majority don't resolve nearly as favorably as mine did.

Even if my class-action suit hadn't resulted in any kind of settlement for me, I would still consider my participation worthwhile. I had felt wronged by this company for a very long time. For me, just the fact that the case had enough merit to be brought to the company's attention was a form of vindication that relieved a lot of sadness and shame for me. In my book, that's a victory.

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

5 Ways to Earn Extra Money With a Healthy Lifestyle

Damian Davila — Fri, 14 Jul 2017 08:31:05 +0000

Whether you made yourself a promise to eat better, exercise more, or become healthier, you'll dramatically increase your chances of success by earning some bucks every time you stick to your plan. Here's a list of apps and sites that can help you turn your healthy lifestyle into a decent side hustle.

1. Explore your neighborhood for job opportunities

Use the Job Spotter app from Indeed to explore your neighborhood in search of local help wanted ads.The app gives you five to 150 points per eligible shot of help wanted ads and allows you to convert points into Amazon gift card codes (one point = one cent in Amazon credit). A stroll through your nearest mall or marketplace could help you get a couple extra dollars. Yours truly made $42.37 in Amazon gift cards in 21 days.

2. Bet on your fitness goals

With StepBet, you can put your money where your mouth is. By placing around a $40 bet, you'll join other players in a competition to meet personalized step goals every week for the entire duration of the competition. If you hit all of your personalized goals, then you split the pot with all the others that did, as well. (See also: 6 Apps That Pay You to Workout)

3. Compete with friends on weight loss

With HealthyWage, you can make a bet to lose a certain amount of weight over a period of time and win cash prizes. For example, if you were to bet $50 per month that it would take you up to nine months to lose 30 pounds, you could win from $500 to $1,323.53 in cash prizes.

However, by joining forces with four more friends or relatives, you could compete for three top prizes of $10,000, $5,000, and $3,000! You just need to bet $25 per member per month for three months. To get at least your money back, you must lose at least 10 percent of your body weight within a nine-month period.

4. Track your weight loss goals

Every time you enter your weight into the Walgreens Balance Rewards program, you'll get 20 points. With these points, you can accumulate points for dollars off your purchases at Walgreens. Every 5,000 points are redeemable for a $5 discount, but once you hit 30,000 points, you'll get bonus points (30,000 points and 40,000 points are redeemable for a $35 and $50 discount, respectively).

5. Walk dogs

Companies like Wag and Rover are looking for individuals age 18 and over who are able to walk dogs for a few hours a day. If you're outgoing, eager to hang out with some cute pups, and looking to increase your daily step count, this is a great side gig. (See also: 8 Ways to Get Fit While Hanging Out With Animals)

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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:

How I Make $800 on Month on eBay Selling Used Clothes

Kat Tretina — Wed, 26 Apr 2017 09:00:10 +0000

When I graduated from college and started my first job, I was on a strict budget. I was always looking for ways to make extra cash and save money. I built my work wardrobe entirely from thrift store finds. It was while I was thrifting that I stumbled across one of my most lucrative side gigs: reselling clothes on eBay.

How I got my start

I love NYDJ jeans. They're the only jeans that fit me off the rack without tailoring. But they cost about $120 brand-new, which was way outside my budget. I would peruse the thrift store aisles, hoping to find a pair in my size.

One day I did find a pair, but they were three sizes too small. But at just $4, they were too good of a deal to pass up. I bought them, thinking one of my friends would want them. But on a whim, I decided to check how much they go for on eBay. A used pair often goes for $30 or $40. I sold that first pair within a week and pocketed $25, after fees.

It got me thinking about other things I could sell online. Within a few weeks, I was selling about 20 items a week and pocketing $800 a month in profits.

Building this hobby into a business

At first, I started very small. I bought just a few items at a time to sell and had very little in terms of supplies. I mostly relied on free priority shipping envelopes from the post office and printed shipping labels at the library. (See also: From Fine to Fabulous: 7 Ways to Improve Your eBay Business)

But once I had made several hundred dollars from this, I started taking it more seriously and reinvested in my business. I added the following tools and supplies to support the expansion.

Bulk vinyl envelopes for shipping

By switching to the vinyl envelopes and the scale, I could ship for much less money.

A dress form

The dress form made my clothes look better in photographs and helped make them more appealing to buyers.

Professional business cards

I also researched the competition, and ordered business cards with my eBay store name on them.

HTML templates

Another thing I noticed was that other sellers weren't just typing in the item description like I was. They had polished templates. I had zero HTML experience, but I found free eBay store templates, and I learned enough in order to customize them. It made my store look much more professional, and buyers were more comfortable buying from me.

Better photos

Other sellers also removed the backgrounds in their photos to highlight the items better. I mimicked that approach with a site that does the work for you, and I saw an increase in my selling prices.

Focusing on eBay best-sellers

Just about anything sells on eBay. But if you're looking to start your own store, it's a good idea to pick a niche you know well. By focusing on a specific customer type, you can build up your clientele and get repeat customers. (See also: 5 Things You Can Resell on eBay That Make the Most Money)

I've helped new sellers get started on eBay, and one of the most common problems that comes up is when a seller is tempted to sell things outside their niche. You might stumble across a set of china or sports equipment that just looks expensive. But unless you know a lot about that kind of item, you have no idea if it's junk or a treasure. And buying inventory without knowing if it will turn a profit can be a costly mistake.

My niche was women's clothing, particularly workwear. I specialized in jackets, suits, dresses, and cardigans. I'd look for name brands and quality fabrics — cashmere, angora, and lamb's wool — and items in excellent condition. I'd check out thrift stores, estate sales, flea markets, and clothing swaps.

If I thought an item looked to be high-quality but didn't recognize the brand, I'd search for it on eBay. Under "filters," you can search for sold listings. The results would let me know if the item would sell for enough money to make it worthwhile; with eBay's fees, I aimed to sell items for at least four times what I paid for it. (See also: 10 Things You Should Always Buy and Sell on eBay)

Cashing in on eBay

By being diligent, I was able to make nearly $10,000 in one year from selling on eBay. That was money I used to pay down debt and bulk up my savings, and it gave me much-needed room in my budget. You can get started selling without a lot of startup costs or expenses, so you can start making money right away.

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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:

4 Reasons You Might Have a "Phased" Retirement

Dan Rafter — Tue, 04 Apr 2017 18:21:50 +0000

The prospect of working full-time one day and then heading into a complete retirement the next doesn't work for everyone. Some people don't want to work a full-time schedule as they get older, but they don't want to completely ditch the working life altogether.

Instead, they prefer what is known as a "phased" retirement. Rather than leaving the working world completely, they work on a part-time basis for several years, or even pursue freelance or small business opportunities, until they are ready to retire permanently. (See also: 6 Great Retirement Jobs)

Some will embark on a phased retirement because they want to stay active. Others will do so because they have little other choice; they need the money from part-time work to supplement their retirement income.

As you near your retirement age, a phased retirement might be in your future. Here are four reasons why you might choose this nontraditional retirement path.

Your current employer offers a version of phased retirement

A growing number of large employers are offering flexible retirement options for their workers. According to a 2015 report from WorldatWork, about 30 percent of large employers — those with 1,000 or more workers — offer flexible retirement plans, anything from allowing their employees to work on a part-time basis to letting them participate in job-sharing programs.

If you're fortunate enough to work for a company that offers such a program, entering a phased retirement will be relatively easy. Instead of working full-time for your company, you'll shift to part-time or job-sharing duties. This could be a simple way for you to slow your work schedule while remaining active in the working world and bringing in extra funds each month.

You need the money

The most common reason why older workers choose a phased retirement is because they need the money. Not everyone enters their retirement years flush with cash. Even with Social Security benefits, savings, and, for the fortunate few, pensions, many retirees can't afford to maintain the lifestyle they want. Working on a part-time basis, or starting their own consulting services, can help these seniors afford the retirement they want.

The key to deciding whether phased retirement is a smart move is to create a detailed budget that lists all of your retirement-year expenses. Depending on where you want to live and whether you want to boost your travel, the income from a phased retirement could make all the difference in how happy your retirement years might be. (See also: 9 Easy Ways Retirees Can Earn Extra Income)

You'd be bored without working

Then there is the specter of boredom. Relaxing days spent reading books, golfing, binge-watching TV, and visiting your grandchildren might sound great when you're commuting to work every day. But in reality, retirement can be long and boring. You might find that you don't have enough to fill the hours of your suddenly emptier days. You can only travel so much, after all.

A phased retirement might be the solution. You can still travel, visit your family, and spend relaxing afternoons catching up on your reading or pursuing favored hobbies. But you don't have to relax all the time. By working on a part-time basis, you'll retain some of the structure that many people need in their days.

And if alleviating boredom is the issue and not a lack of retirement funds, you're free to pursue only that work which interests you the most.

You've always wanted to be your own boss

Maybe you won't spend your phased retirement working for your former employer. Maybe you won't spend it working with any company. You might spend your phased retirement working for yourself.

Your retirement years might give you the opportunity to finally start that business you always dreamed of running. Maybe you've always loved animals and you want to start your own pet-sitting or dog-walking business. Maybe you're the inventive type who's created your own product. In your retirement years, you can devote more energy to building a business around this invention.

If the entrepreneurial spirit has always burned inside you, a phased retirement might provide the perfect opportunity to unleash it. Freed from the chore of driving into work each day, sitting through meetings, and filing reports, your retirement years can provide you the time you've always lacked to finally build your own business.

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