business

8 Networking Tips for Introverts

Paul Michael — Thu, 28 Jun 2018 09:01:10 +0000

Ask most people what an introvert is, and they'll describe someone who's shy, doesn't like being around people, and is very quiet and aloof. Well, that's not always accurate. Some introverts love social gatherings and can be very talkative. However, they tend to find the experience draining and need alone time to get their energy back.

Knowing that, networking can be a daunting and overwhelming experience for most introverts. So, whether you are shy in social situations, or just find the whole experience exhausting, here's what you can do to make networking a success. (See also: The 10 Best High Paying Jobs for Introverts)

1. Know before you go

Anyone who is shy, or has social anxiety, will find the unknown to be the most daunting part of the networking experience. Who's going to be there? What's the place like? Will there be music? Will I have to interact with a lot of people, or play those networking games?

Much of this anxiety can be reduced by researching the event before you step foot in the building. Send emails to the organizers and ask about the setup. If they have held this meeting before, see if you can find pictures and videos of it online. These days, it's easy to find a record of any kind of event like this thanks to Facebook, Instagram, and Twitter. If you do your research, you can dull that anxiety down to just some mild jitters. And once you're there, you'll be much more at ease.

2. Consider volunteering at the event

This may seem like the worst kind of advice for an introvert, but as I'm one myself, I can tell you it really works. If you volunteer to actually do something at the event — be it handing out name badges, taking coats, or helping serve food — having something specific to do stops that horrible feeling of being forced to interact with people without having a good reason.

"I can't just go up and talk to that person" becomes "I'll see if that person wants another drink, and maybe we can have a quick chat as well." Plus, if you have a job to do, it's very easy to escape the conversation you're having if it's all getting to be too much. Personally speaking, I was dreading going to San Diego Comic Con to network for my company; then they asked me to staff the booth. I was so busy handing out goodies and answering easy questions that I forgot I was networking at the same time. (See also: 9 Unexpected Benefits of Volunteering)

3. Have a prepared opener for introductions

Another way to make the event go smoothly is to know what you're going to say to people before you get face to face. The most important thing to remember with an introduction is that you are not trying to cram everything into a few opening sentences. You simply want an easy way to start the conversation without coming across as either pushy or "used car salesman." Go for something easy to remember, and universal.

Phrases like, "So, what brings you here today?" or, "How often do you come to these networking events?" are good because they're open-ended questions (asking a question with a yes or no answer can be a conversation killer) and they also put the focus on the other person. Let them talk about themselves for a while. Of course, if you're asked the same kind of question, be prepared with a brief sales pitch.

4. Practice your sales pitch

You've been asked the question you were going to ask: "So, what brings you here today?" The last thing you want to do is freeze like a deer in the headlights, or stumble over something that leaves a tepid first impression. You need something short and snappy that gets across who you are, what you do, and most importantly, why you do it.

It should not feel over-rehearsed and robotic. It should not be full of industry jargon, or go on and on about aspects of your industry that only the most die-hard professionals will love. Go for a 20 to 30 second explanation, checking off the most important and memorable aspects of you and your business. Give the other person some meaty facts that they can respond to. Then, practice this with friends and co-workers. Practice a lot. You will want this to feel natural. (See also: 5 Reasons Everybody Needs an Elevator Pitch — Even You!)

5. Bring some moral support

Often the reason networking events can be so off-putting is knowing that you will have to spend hours talking to strangers. You can almost eliminate that part of the challenge by bringing along a friend, relative, or co-worker you trust, and most importantly, with whom you have a great relationship. They will be your emotional crutch for the event, as long as you tell them beforehand that you're relying on them for that. You don't want them wandering off after 10 minutes while you're stuck in a crowd.

Your partner in crime can be there to help you field difficult questions, and if they're more of a people person, they can even introduce you and do some bragging on your behalf. Talking about yourself like you're awesome can sound egotistic. But when someone else does it, you're a star.

6. A few conversation-starter props can help

If you're one of those people that has trouble keeping the conversation going, why not bring a few props that you can bring out when you start having trouble? A fun business card is perhaps the easiest and most convenient one to bring along. I, myself, have used cards printed on wood, cards that expand to 10 times their original size, and even one that had a joke embedded in a sound chip.

7. Arrange small one-on-one meetings

If you are not good in crowds, avoid them. Sure, there are plenty of big events and meetings around, but you can also arrange to meet people one-on-one for coffee or lunch. Seek out people you want to meet with in online forums and through LinkedIn, which has become one of the best ways for anyone to find and engage with new contacts. Get the conversation started online, then ask to take it into the real world with a meeting. This is also great for easing tensions because you already know a little about each other, and know that you are both interested in talking further. (See also: 7 Social Situations All Introverts Fear)

8. Avoid meeting in person altogether

If all else fails to work for you, you can avoid in-person meetings completely. This isn't ideal — you eventually need to get your face out there and shake hands with people that can help your career. But if you just can't do that right now, use technology to help you out.

There are instant messengers and emails. You can also try a few webinars that allow you to chime in without actually being in the room. You can use Skype and video conferencing to connect with people in your city, or halfway around the world. And guess what? Your smartphone actually allows you to call someone. To be fair, I hate talking on the phone these days as much as everyone else — however, if it saves you from an in-person meeting, especially with a big crowd, it's definitely the lesser of two evils.

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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:

7 Other Kinds of Insurance You May Need to Buy for Your Home

Dan Rafter — Thu, 24 Aug 2017 08:30:04 +0000

Homeowners insurance provides plenty of protection for your residence. If a fire destroys your home, your insurance will help you rebuild. If a thief breaks in and steals your electronics, your policy will help you replace the stolen items.

But a standard homeowners insurance policy doesn't cover everything that could go wrong with your home. That's why you should investigate supplemental insurance policies that cover everything from earthquake damage and flooding to sewer line failures.

Here are some additional insurance coverages you should consider to provide the most financial protection for your home. (See also: 9 Surprising Things Your Homeowners Insurance Doesn't Cover)

1. Sewer and water line protection

The water coming out of your kitchen faucet comes from somewhere — a water line traveling under the ground to your home, to be exact. And when you flush your toilet? That wastewater leaves your home through an underground sewer line.

If these lines get clogged, damaged, or break, you're responsible for paying for the repairs. That can be expensive, as contractors will have to dig through the ground to get at the damaged or broken pipes. Not only will you have to pay for this work, you'll probably need to hire landscapers to fix the mess left behind in your front yard from all the digging.

You can protect yourself by purchasing a water and sewer line protection plan from your utility company, or from a private insurer if your utility company outsources this job. These plans are usually affordable — about $5 or so a month added to your utility bill — and will often cover $5,000 for the repair work to sewer and water lines and $5,000 for the street repairs necessary to fix this problem.

2. Sewage backup

It's an unpleasant surprise: Sewage has risen through your basement's floor drains and is now covering its floors. It's not only a mess, it's unhealthy, too.

And here's another surprise: Most homeowners insurance policies don't automatically cover sewage backups. If you want this covered, you'll have to pay for a rider — additional coverage — that specifically covers damage and cleanup costs relating to sewage backups. You can usually purchase this additional coverage for about $50 a year.

3. Flood insurance

You might think that your insurance policy will automatically cover the damages caused when heavy rains send water flooding into your basement. But this isn't the case. Standard policies don't provide coverage for flooding.

If you want this coverage, you'll need to purchase flood insurance.

The Insurance Information Institute says that homeowners can buy flood insurance from the National Flood Insurance Program, which is run by the Federal Emergency Management Agency, better known as FEMA. The Insurance Information Institute says that the average residential flood insurance policy starts at $112 a year. The maximum protection is $250,000 for the structure of the home and $100,000 for its contents. (See also: Everything You Need to Know About Flood Insurance)

4. Umbrella insurance

You were involved in a car accident and found at fault. The driver you struck was injured and now faces a $500,000 medical bill. You likely have a personal auto insurance policy with a bodily injury limit to help offset some of that cost — say $250,000. How will you come up with the other $250,000? And what if, three months down the line, the injured driver decides to sue?

An umbrella insurance policy is designed to protect you from the financial dangers of liability beyond what is covered in your current policies, such as your homeowners, boaters, or car insurance. Homeowners with a pool are usually advised to purchase umbrella insurance in case somebody gets hurt there. In addition to coverage for bodily injury or property damage, umbrella insurance also provides protection from certain lawsuits against you, such as slander, libel, false arrest, malicious prosecution, or mental anguish. It's also a smart investment for landlords who own rental units.

Umbrella coverage can be purchased in million dollar increments, typically between $1 million and $5 million. The Insurance Information Institute estimates the cost for a $1 million policy to be between $100 and $300 per year. Note that umbrella coverage does not protect against damage you caused to your own property, business losses, contract violations, or legal issues stemming from an intentional criminal act.

5. Earthquake coverage

Most homeowners insurance policies don't cover damage caused to your home by earthquakes. You might not think this is a risk worth insuring, especially if you don't live in California, but the Insurance Information Institute says that 42 states are at risk of suffering earthquakes.

The cost of this insurance varies according to where you live, and who offers it, but earthquake insurance usually comes with a high deductible. For example, the standard policy offered by the California Earthquake Authority comes with a deductibles of 5 to 25 percent of a home's replacement costs. This means that for a policy featuring a 15 percent deductible, to repair or replace $300,000 of earthquake damage the owner would receive $255,000 from the CEA ($300,000 - $45,000).

6. Home business insurance

Do you run a business out of your home? You might need additional coverage to protect it.

Insurers offer home-based business insurance that will help cover damages if someone visiting your home business is injured, your business inventory is damaged because of a fire or other disaster, or you have to shut down your business temporarily if your home is damaged. A policy can also provide liability insurance if you have employees working at your home.

7. Extra coverage for valuables

If you have a large amount of jewelry, collectibles, art, or furs in your home, you might consider buying additional coverage to protect yourself if these valuables are damaged or stolen.

The standard coverage offered by basic homeowners insurance might not provide the full replacement value for these items. To protect yourself, you can purchase a rider that will provide a coverage boost for these more expensive items.

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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:

8 Wise Tips Famous CEOs Would Give Their Younger Selves

Brittany Lyte — Thu, 25 May 2017 09:00:11 +0000

Every successful CEO has hit plenty of bumps on the road to the top. Despite the struggles, these top leaders have still managed to conquer challenges, shed their shortcomings, and grow both their skills and their net worth. They have made mistakes and learned from them.

We wondered what some of the wealthiest CEOs would tell their younger selves, and found eight gems worth passing on. (See also: 11 Finance Tips You Wish You Could Tell Your Younger Self)

1. Stay true to yourself

Kevin Johnson, CEO of Starbucks, is working hard to grow the chain from 26,000 locations today to 37,000 by 2021, all while maintaining the brand's unique appeal. He has some big shoes to fill, after taking over from Starbucks' iconic leader Howard Schultz in April 2017. His guiding principle, as he told Business Insider: Be authentic. By acknowledging all aspects of your authentic self — shortcomings and counterproductive tendencies included — you allow yourself and the people around you to do their best work.

"It's important to be comfortable being authentic," Johnson said, adding, "Being authentic means you have to be vulnerable."

2. Find a job you love

Berkshire Hathaway Chairman and CEO Warren Buffett — one of the world's most successful investors with a net worth of $73 billion — puts it in layman's terms: Take on a career that makes you excited to wake up in the morning.

"You follow your passions. You find something you love," said Buffett at Fortune's Most Powerful Women Summit in 2014. "The truth is, so few people really jump on their jobs, you really will stand out more than you think. You will get noticed if you really go for it." (See also: The 5 Best Pieces of Financial Wisdom From Warren Buffett)

3. Exceed expectations

DreamWorks co-founder Jeffrey Katzenberg's path to success was made by following this tip: Always give your best performance. And, if you can, outperform other people's expectations of your work.

"I don't think it matters how small or how big the task is," the Hollywood influencer, whose net worth is estimated at $750 million, famously said. "If you can do it just a little bit better than what is expected, you will be noticed and rewarded."

4. Embrace tough assignments

Don't settle for easy work — that's the advice of PepsiCo CEO Indra Nooyi, who earned $29.8 million in 2016.

"Nobody notices when you do an easy job well," she told Business Insider in 2014. "It's far better to challenge yourself by raising your hand for the toughest assignments and work to solve problems that no one else has been able to solve. That's how you truly become a trusted leader inside an organization."

5. Pursue extracurricular interests

"My advice is to focus on becoming a complete person," said Goldman Sachs CEO Lloyd Blankfein, who grew up in a Brooklyn housing project and now has a net worth estimated at $1.1 billion. "Everyone should focus on the content of his or her job, of course. But work is not the end; it's a means to an end. You owe it to yourself to open up to broader interests."

So, pursue a hobby, travel, learn a new skill, read voraciously. Become that interesting person that makes great dinner conversation.

6. Focus on developing your own unique talents

Former Birchbox co-CEO Hayley Barna knows a thing or two about developing personal strengths and talents. She helped launch the subscription beauty box company in 2010 before stepping down five years later to become First Round Capital's first female partner.

Her best advice is to identify and strengthen your distinct set of skills, rather than trying to be good at things you struggle with. For example, if you're a horrible writer but you're mathematically gifted, focus on your talent with numbers rather than trying to develop a literary voice.

"Never compare your weaknesses to someone else's strengths," Barna has said. "While comparisons are tempting, especially for competitive, ambitious people, it's always important to focus on your own special talents. That's how you can make a real impact. And it's the coordination of everyone's unique skills that can make magic happen."

7. Own up to your mistakes

Dave Finocchio, CEO of Bleacher Report, would tell his younger self to admit his faults, act swiftly to correct them, and learn from them.

"I make mistakes all the time, and talk about them openly with people up and down our hierarchy," the digital sports franchise leader told Forbes in 2016. "It fosters a culture where people should feel comfortable critiquing themselves honestly."

8. Push yourself

Marissa Mayer, former CEO of Yahoo, says she would counsel her younger self to get comfortable being uncomfortable. You'll never get ahead without pushing yourself to do things you've never done, and that means embracing tasks that you think you might not be fully prepared for.

"I always did something I was a little not ready to do," Mayer, whose net worth is $189 million, said in a 2015 speech. "I think that's how you grow. When there's that moment of, 'Wow, I'm not really sure I can do this,' and you push through those moments, that's when you have a breakthrough."

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

It's the 21st Century — Why Is Your Money Stuck in the 20th?

Philip Brewer — Mon, 05 Sep 2016 10:00:10 +0000

If you read financial advice these days, you could be forgiven for checking the date to see if you'd wandered back into the 1990s (or 1970s).

What was good advice for the 20th century? Go to the best college you can, get a good job, live frugally, save and invest, buy a house, and max out your retirement savings.

But all that generic financial advice of the 20th century isn't necessarily the surest route to success anymore. Millennials figured this out a while ago. That's why so many aren't bothering with college, why so many are living at home with their parents, and why so many are getting by with casual jobs — or no jobs.

Smart Moves for the 21st Century

So, what's the right financial advice for the 21st century? Well, Millennials' instincts aren't wrong. But these are hard waters to navigate purely on instinct. Here's what I'd do.

It's Not "Don't Go to College"

Rather, it's "Don't go into debt to go to college."

Even that is a bit extreme, because there are career paths — engineering, technology — where you can earn enough to pay off student loans. It would probably be even better to say, "Keep your student loans small, relative to your prospects of paying the money back."

In particular, don't pay up to attend a mid-tier college. In the 20th century there was real ROI in going to the best college you could get into. In the 21st century, I think that's only true at the top. If you can't get into (or afford!) one of the absolute top colleges, there's no reason to pay extra to attend a second-tier college. The cost-benefit ratio shifts strongly in your favor if you do a couple of years at community college and then finish your degree at a good state school. Of course if your family is rich or you can get excellent scholarships, there's no reason not to go to a second-tier college — just not if you have to borrow extra to do it.

Even if you can get into a top-tier college, consider whether its cost is justified. Will your degree ensure a job upon graduation, or result in better-compensated roles than you might otherwise have access to? Will it make entry into a graduate program of your choice easier? Will it materially benefit your intended life path in some way?

It's Not "Live at Home With Your Parents"

Rather, it's "Live a lifestyle you can really afford, even if that means living at home with your parents."

Do not go into debt to support your lifestyle! In fact, you'll be way ahead of the game if you can start accumulating a little capital. Even just a small emergency fund can make your life enormously better.

Other sorts of debt may not be as bad as student loan debt (which can't be discharged even in bankruptcy, and which lenders will give you even if your planned course of study gives you no hope of ever paying it off), but that doesn't mean the other sorts are okay.

It's Not "Work Casual Jobs"

Rather, it's "Find a way to support your low-cost lifestyle, even if all you can get are casual jobs."

There are all kinds of ways to make money. There are good jobs, there are crappy jobs, there are side gigs of all sorts. The key is to fund your lifestyle (plus a little extra).

In today's economy there are times and places where crappy jobs are all you can get. That's unfortunate.

Also unfortunate is that so many people writing about "kids these days" don't see that these two items are paired. Millennials are (very wisely) matching lifestyle choices with income opportunities, while journalists (and even financial advisers) are pretending that these two things are independent of one another.

All the Other Generic Financial Advice

Investing used to be easy.

From around 1980 through the end of the 20th century, just about any mix of cash, bonds, and stocks purchased through low-cost index funds would yield several percentage points above inflation, letting anybody be an investing super-genius.

Housing prices didn't go up in a straight line through the whole period, but between the tax advantages of homeownership and the leverage of mortgages with a low down payment, as long as you didn't pay too much, anybody could have both a home and a valuable capital asset.

Because none of this stuff is true any more, investing is now really hard.

The return on cash has for years been so close to zero as to be not worth worrying about. Bonds, stocks, and real estate are all up so much since the crash that they're probably a lousy place to invest new money.

None of which is to say that you shouldn't be frugal and accumulate some savings, but doing so will not be the path to wealth this century that it was last century.

That means that we need to look someplace besides the 20th century for financial advice. And for that, I have an idea.

Look to Earlier Centuries

The 20th century was genuinely different. For about two generations — the generation that fought World War II and the Baby Boomers — we had a unique set of circumstances that made it possible to work for a paycheck and eventually, before you got too old to work, get rich.

Until then, for all of human history, there were only two paths to wealth: You could inherit wealth, or you could achieve wealth through some sort of risk-taking endeavor (entrepreneurship, speculation, etc.).

Those unique circumstances no longer apply, and because of that, the best place to look for strategies for the future is to look at the strategies that worked before the 20th century. The 17th, 18th, and 19th centuries will provide fertile ground. Things that worked then are going to work better going forward than reflexively copying what worked in the 20th century.

Perhaps financial professionals can be forgiven for not having figured this out — the whole financial industry is a product of the 20th century.

I have a book of financial advice from 1883 called Worth and Wealth by T.L. Haines. It's a fascinating book. Much of it reads exactly like personal finance advice from today (minus any high-tech stuff like automating your bill paying) — getting an education, finding a job, living frugally, and so on — except that it has nothing about what we would consider investing. There's nothing about stocks or bonds. Instead, there's investing the way it was done in prior centuries.

Buy Productive Land

Land was the basis of all wealth right up until the 19th century. In the old days it would have been land with crops or pasture, but rental property counts too. Of course, both running a farm and being a landlord are more like a second job than like passive investing. Speaking of which...

Invest in a Business

That is, invest in your own business.

The sorts of paper investments — stocks and bonds — that did so well in the 20th century are not going to go away, and no doubt a lot of people will make a lot of money in the market. But I don't think we'll see a continuation of the days in which a simple diversified portfolio of stocks and bonds provided a safe, high return.

Of course, running a small business is more like a full-time job than like passive investing. And that's my point. The right response now to any the article on investing for "passive income" is to shake your head and say, "That's so last century."

Organize Like a Family

The idea of an individual person as the fundamental economic unit is an idea of the late 20th century. Before that the fundamental economic unit was the family.

There are all kinds of advantages to organizing your economic life around a family with more than one adult. It meshes especially well with the ideas I've already mentioned. Family members may work outside the family to bring in wages or a salary, but if there's family land or a family business, family members who lose their jobs can work them until they find a new job. That way the family still has some income and the family member has productive work to do.

One mental model for this might be the big farm families of the 19th century, but I suggest that you think bigger. Model your home economy after the aristocratic families of the 18th century. Everyone can contribute. The most able can be given scope to vastly increase the family's wealth, while the young and the old and those who simply lack that spark can still contribute to (and share in) the family's success.

If organizing like a family doesn't work for you, consider organizing like a tribe. It's probably an even better metaphor.

The Way Things Are Going to Be

In all these areas, I think that the Millennials' instincts have been pretty good, except that I think they've bought in on the 20th-century idea that the economic unit is the individual.

That's understandable. It's an appealing model, one that gives maximum freedom with minimal responsibility — you're only responsible for yourself.

Because of this, I worry that many of them, even those who are making the right moves on a piecemeal basis, have not figured out that the 21st century is going to look a lot more like the 19th and prior centuries than like the 20th.

The choices that they make — in particular, the choice to live at home with their parents — show them instinctively moving in the right direction, but until they can correct their mental model, they're missing out on some useful perspective that history can provide.

Look into how families organized their home economy before the 20th century. There's a lot of practical wisdom there.

Where is your money — in the 20th century or the 21st?

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

Get More Points for Business Purchases with the Chase Ink Business Preferred Credit Card

Kris Majaski — Thu, 12 May 2016 04:15:11 +0000

Editor's note: This offer is currently unavailable.

The Chase Ink Business Preferred℠ Credit Card offers a program that allows small business owners an opportunity to earn rewards for their business purchases. (See also: Best Credit Cards for Small Businesses)

How This Card Works

This card awards 3x points per dollar on the first $150,000 spent in combined purchases each year in the following categories: travel, shipping, internet, cable, phone services, and advertising purchases made with social media sites and search engines (then 1 point). Earn 1 point per $1 spent on all other purchases.

Bonus offer. Get a bonus of 80,000 points if you make $5,000 in purchases with your card in the first 3 months of account opening, which can be worth $1,000 in travel if you redeem through Chase Ultimate Rewards.

You can redeem your points for cash, gift cards, and even merchandise, with each point typically worth one cent. If you redeem your points for travel through Chase Ultimate Rewards, you receive 25% more value for each point.

Other Benefits

Free employee cards. Add employee cards to your account at no additional charge. Your employees can make business purchases with limits that you set, and can earn points for the company at no extra cost to you.

Cell phone protection. Get up to $600 per claim in cell phone protection against covered theft or damage for you and your employees listed on your monthly cell phone bill.

Trip cancellation insurance. Receive trip cancellation and trip interruption insurance if your trip is canceled or cut short. Get reimbursed for prepaid, non-refundable travel expenses which often include passenger fares, tours, and hotels.

Purchase protection. Your purchases are protected against damage or theft up to 120 days, plus extended warranty.

Considerations

Annual fee of $95. You need to make sure you earn enough rewards through spending to cover the cost of carrying the credit card.

No introductory APR. If you need to transfer a balance from another credit card or plan on making a large purchase that requires time to pay down, you can save money on interest with a card that offers a 0% intro APR, even if it means choosing a consumer card instead. (See also: When to Choose a Business Card Over a Consumer Card)

Cap on bonus categories. If your business expenses are typically more than $150,000 per year in any category, you can lose out on bonus points.

Who This Card Is Best For

This card is best for small business owners whose expenses fall largely in the bonus categories and can use the Chase Ultimate Rewards portal to redeem the points for travel at a 25% discount. Further, because there isn’t a foreign transaction fee, it’s a great card for small business owners whose spending includes international transactions or traveling abroad.

Info about the Chase Ink Business Preferred℠ Credit Cardhas been collected independently by Wise Bread. The issuer did not provide the details, nor is it responsible for their accuracy.

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

5 Reasons Why Life Insurance Isn't Just for Old People

Shannah Game — Thu, 11 Jun 2015 17:00:21 +0000

Life insurance isn't your average dinnertime conversation — no one likes to even talk about it. After all, life insurance is something that you only have to think about when you are old and grey, right?

But nothing could be further from the truth. Life takes unexpected turns, and at any age it could be just as important as having a strong emergency fund or funding your retirement.

Still need proof? Here are five compelling reasons why life insurance isn't just for old people.

1. You're Young and Healthy

Life insurance doesn't pay out until you die, but the best time to buy it is when you are young and healthy, since it's issued on rating scale. The healthier you are, the better the rating. The better the rating, the lower the price.

2. You Want to Boost Your Retirement Funding

401(k), IRA, ROTH, SEP-IRA — they are all great retirement options. But there are also hefty fees if you want to withdraw early from retirement accounts. Life insurance is the yin to retirement accounts yang. There are two kinds of life insurance: those that expire (term), and those that generate cash value (permanent). If you structure a permanent life insurance policy properly, you can actually use the cash value during your life to help fund your retirement, and even better, the benefits can be tax-free to you.

3. You Got Married

Being single can have many benefits. However, right after you say "I do" is probably the best time to start thinking about life insurance. What if one spouse works, while the other spouse might stay home? Or, maybe one spouse makes a lot more money than the other. However you slice it, life insurance can provide a very valuable asset if something was to happen to the higher-earning partner. You want to make sure you have enough life insurance to cover all your expenses, and then some.

4. You're Having a Baby

If you didn't think getting married was a compelling reason enough, that little bundle of joy should surely spur on the need. Kids bring on a ton more expenses — day care, education, clothes, food, and not to mention college. Tax-free life insurance benefits can become an important life preserver and ensure your child's well-being.

5. You're Open for Business

So, you've got a rock star business concept and are ready for world domination. If you've got a business partner, then life insurance should be your next step. You share expenses, knowledge, and more. What if something happens to one business partner? You've also got their family, their business interest, and the loss of a partner to think about. Business owners usually opt for life insurance on each other in what is a called a "buy-sell agreement." This agreement drafted by an attorney states who gets what when something happens. The most common form of currency to "fund" a buy-sell agreement…you guessed it: life insurance.

Do you own life insurance yet? If so, why or why not?

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

6 Signs It's Time to Make Your Side Gig Your Career

Amanda Meadows — Tue, 19 May 2015 17:00:10 +0000

You daydream about it: turning your side gig into your career. Quitting your day job and achieving your business goals on your own terms. But it can be hard to know when the right time to actually make the move is.

If you're unsure what's holding you back, but suspect you may be ready, take a look at these six signs it's time to quit your day job.

1. Your Bills Can Be Covered on Side Business Income

Are things going pretty well right now? It's time to do the math. Add up all of your household's living costs. Now, add up your side business's month-by-month revenue over the past year. Can a decent percentage of basic expenses be covered by your side business?

Making a big move based on this sign depends on a couple of factors such as how much your spouse or roommate contributes to the household, and whether or not those contributions can be counted on for the foreseeable future.

For many people, the answer is a gradual transition. In my business, my partner/husband and I found an arrangement that let us spend 75% of our time on the company, and the rest of the time on freelance income to bridge the gap.

2. You're Leaving Money on the Table

Are more opportunities arising, ones you don't have the time to take? A small business can only flourish if it has enough time to grow the infrastructure and increase client communications and partnerships. If you can only spend nights and weekends on your side business, then you will hit a plateau that is very difficult to break through without hiring help.

The best way to learn if you are leaving money on the table is reviewing your business plan and making a new year-to-year projection.

3. Your Clients Want More

Surely you've had more ideas on how to upgrade your services. Do you see your customer or client base growing and becoming more reliable? This kind of stable growth begetting a stable fan base is a good sign that your regular clients are ready to be upsold on more services. If you are B2B, don't let them grow antsy to leave for a bigger company. If you are a consumer-facing business, don't let your customers grow bored with your product offerings. Start with your most loyal customers to show them that your business is growing with their needs and that you value your relationship.

In my business, we grew so quickly in the past year that our customers were not able to keep up with our newest releases. So we started a new subscription program for our most rabid fans that allowed them to get everything we make for a monthly fee. When you start with your most loyal, you can work out the kinks of the new program with minimal pain and customer service issues before rolling it out to the public. We wouldn't have been able to plan, set-up, execute, and maintain this new service if one of us hadn't gone full time.

4. You Find Yourself Becoming an Expert

Are friends, family, and peers increasingly asking you for advice or resources on your industry? If so, the outside perception of your company must be good enough for you to be considered a thought leader on the topic.

A great way to give back as an entrepreneur is to share your expertise. It's also a great way to grow your business indirectly by inserting yourself in the major ongoing conversations within your industry. Look up industry conferences to attend, and you could create a Slideshare about what you've learned. When you have become a full-time entrepreneur, others will take you even more seriously. If you were already planning the full-time transition, this sign might be the morale boost you needed.

5. You Need More Time at Home

Is your household changing? Maybe you are planning to have children in the next two years. Maybe your spouse is earning enough money to cover the basic expenses so you can take more time on your business. Staying at home provides you the flexibility to grow both your business and your family on your own schedule.

Do it smart: Using your monthly expense calculator and business projections, start mapping out a plan that allows you transition to a home office. Calculate the costs of making a functional home office: desks, computers, office and creative supplies, and storage solutions. You might have to incorporate freelance income in your revenue mix alongside the other services your business provides.

6. You're This Close to Hiring Employees

Are you looking for help to improve workflow? It will be hard to manage employees from a desk at another company. It's time to look at the numbers and see how much more revenue you could earn with an employee's help, versus quitting your day job and doing most operations yourself for a while.

People-specific skillsets you don't possess (i.e. coding, graphic design, etc.) might be hires you can't avoid. But what if you just have too much basic upkeep to do? What I have learned is that repetitive, tedious, and time-consuming tasks are great to outsource to a freelance employee for an affordable rate. Core work like business development and creative should be left to you until you go full-time, so you can properly manage your employees and give them the one-on-one time they need to grow within your company.

Make sure you have what you need to hire your first employee, and learn about managing staff.

How's your side gig doing? Ready to make the leap?

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

4 Low-Cost Alternatives to a 4-Year Degree

Brittany Lyte — Wed, 29 Apr 2015 17:00:25 +0000

Education is about self-discovery, personal improvement, and professional development. And there are a whole host of ways to achieve those things outside of the traditional four-year college experience. Read on for our roundup of some of the most viable alternatives to a four-year degree.

1. Start a Business

Bill Gates, Steve Jobs, and Walt Disney are just a sampling of names on the list of America's uber-successful entrepreneurs who never earned a college diploma. Their legacies are proof that higher education is not a prerequisite to building a profitable business, no matter what anyone tells you.

Today, the barriers to launching a one-person enterprise are lower than ever. With dedication, drive, and an Internet connection, you can start a thriving business for less than $100. After all, the best way to gain experience in business is by launching one of your own. Even if it flops — 8 out of 10 new businesses fail within the first 18 months — the practical experience you gain will help you become more successful in your next endeavor. (See also: Starting Your Dream Business Isn't as Hard as You Think — Here's How)

2. Learn a Trade

How many college grads have you met who have no idea what career they want to pursue in life? This is rarely the case with trade school students, who graduate with a clear path to gainful employment.

Trade and vocational schools offering programs in fields like information technology, culinary science, construction, woodworking, and hairdressing will set you on the fast track for a skilled and potentially high-paying job. They're also usually much more reasonably priced than a four-year college and typically have more lenient acceptance requirements.

In fact, vocational schools are so successful in placing graduates in high-earning jobs that they have become the norm in countries like Switzerland, where young adults view the practicality of learning a trade as much more valuable than a more traditional college education. Whether your passion lies in auto mechanics or makeup artistry, you can launch a successful career by enrolling in a trade school that will help you hone your skills in a specific pursuit — without all those liberal arts requirements.

3. Go Straight to Work

The benefit of moving into the workforce rather than the college dorms is that you'll be honing new job skills, racking up experience, and — this is the big one — actually making money. That's pretty huge, considering the average college graduate is responsible for $30,000 in student loan debt. Loan officer, firefighter, web developer, retail or restaurant manager, commercial pilot, and criminal investigator are just a sampling of the bright and lucrative careers that don't require a four-year degree. Among the highest paying gigs that don't require a diploma are purchasing agent ($59,000), insurance claims adjuster ($60,000), and construction site supervisor ($60,000).

4. On the Job Training

Many employers provide educational credits and on-the-job training that can help you develop valuable skillsets without investment in a college degree. Others will offer financial support or rebates for continuing education at local colleges. Take advantage of this opportunity to learn for free or at a reduced cost.

What other alternatives to a college degree have you enjoyed?

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

8 Job Offers That Are Too Good to Be True

Paul Michael — Mon, 06 Apr 2015 09:00:07 +0000

These days, any job offer is one worth considering. Although the unemployment rate is under 6%, the median household income in the U.S. actually peaked over 15 years ago. That means in real terms, the average family was better off in 2000 than it is today. So when a new job offer comes to the table, it's always worth taking a look at.

However, some of these job offers can be fool's gold. On the surface, they look great. They seem to have everything you'd ever want. But sadly, the grass is always greener until you actually take the job, and see what life is like on the other side. Here are eight job offers that are often too good to be true.

1. Heading Up an Ailing Department

Sales have been low. Performance is down. Customer complaints are at an all time high. The company looks to you to save the day. Now, you're going to head up a department that has more than its fair share of troubles, and you will be the hero who saved the day. Or will you?

The problem with this kind of job, whether it's an internal promotion or an external hire, is that it's all risk and very little reward. Say you do work day and night to fix all of the problems; will the company reward you with anything more than a thank you? Will they even acknowledge the part you played?

With ailing departments, the problems are usually systemic and ingrained. The chances of you fixing anything in a reasonable amount of time, without requesting sweeping and disruptive changes, are slim to none. You are going to be very unpopular, and are basically accepting the job of "fall guy." Do you really want that? Think back to all the sports managers who came in to turn around the success of the team. Most don't even come close.

2. Well-Paid Dead End

The good news is, you're getting more money. The bad news…it's a job no-one else wants — and with good reason. Dead-end jobs are often disguised as great opportunities, but if you look closely, the signs are there. How long has the job posting been up? Months? Years!? How many times has someone left the role in the last few years? What kind of daily work will you be doing? And most important of all, where does the job lead?

Dead-end jobs are the top rung of a ladder you do not want to climb. The only way out is to go to the bottom of another ladder, and that will mean a significant reduction in pay and benefits. Once you've got used to the money, it will be hard to step away.

3. Work-at-Home Job

Is it possible to make a lot of money working from home? Absolutely. However, the vast majority of people who become successful spend a lot of their own time and money making it work and grow. And most importantly, they start the business themselves. If you see a work-from-home ad online stating that you can make six, or even seven figures every year just by mailing a few envelopes or making a few calls, it's purely for suckers.

These jobs will lure you in with big profits and testimonials, but there is always a catch — you have to put some money into the business up-front, and then you'll see the profits roll in. No, you won't. You're only going to make someone else rich. (See also: The 5 Worst Work-From-Home Jobs)

4. Big Promotion to Upper Management

This is it; the offer you've been waiting for. Finally, you get the chance to rub shoulders with the decision makers, and earn the kind of salary you always dreamed of. But not so fast; before you accept the job, look carefully at the position, the hours, the workload, and the stress that may be involved. You could soon find that the extra money is not worth all the extra hours, and additional pressure. In fact, your hourly rate may actually go down when you go from 40 hours per week to 70.

Not only that, but when it comes time to trim down the workforce (which sadly happens annually at many companies), you could now be directly in the line of fire. You earn more, but you don't yet have the experience and expertise that comes with time served in that role. Suddenly, that job offer is looking more and more like a promotion to Stress City.

5. Job With Everything — Except Money

So many people in my industry — advertising — get suckered into this one. But it can apply to a vast array of professions. The basic premise is this; you are offered the world on a plate. It's a great company, with awesome people, in a very desirable part of the city. You can walk to work, it's so close. You get to actually have fun at work, and how many people can say that? There's only one tiny drawback…the salary is horrendous. You'd actually be taking a huge pay cut to get the job, and the chances of making any decent money in the next few years, well, they're slim to none.

I have done this. I went from a great paying job with average prospects, to a very poorly-paid job with great prospects. If you did it early on in your career, it can work. Later on, you may find yourself struggling to pay bills and eat, and then you will resent the job that had everything.

6. X-Rated Promotion

This one comes from a good friend of mine (who shall remain nameless, obviously). Several years ago, he was working as a web designer in real estate when a client approached him with a better offer. He said "Come and work for my new business, it's the same hours for a lot more money, and you could really make a name for yourself." He figured it was real estate, but was surprised to learn that it was creating websites for adult entertainment stars. Even though he knew it could be a black mark on his resume, he took the job. With that industry, once you're in, it's hard to come back into the clean-cut world. He was there for years, and had to take a job with much lower pay to get out. He regrets it to this day.

7. Morally Questionable Endeavor

There is no getting around this; if you take a job with great pay and benefits, but know deep down it is something you don't agree with, you're in big trouble. I experienced it personally when I was offered a cigarette account in my first advertising job. I took it, knowing it would lead to bigger and better things; and to be fair, it did. But the whole time I was working on the account, which was advertising cigarettes to poor people in India, I felt hollow. Don't talk yourself into a seemingly better job if it is going to conflict with who you are as a person. The money may be better, the hours may be shorter, the travel may be insane. However, if you can't look yourself in the mirror when you get home, it's just not worth it.

8. High Turnover Opportunity

Do you have a certain place of business near you that is always changing hands? First it was a pizzeria, then a donut shop, and then a barber's. Now, after a brief stint as a Mexican restaurant, it has become a nail salon. And you know it won't be long before it changes again.

For some reason, some locations just never find success. It can also be the same with certain jobs. If you are being offered a lot more money, and benefits, to take a job that five other people have had before you in the space of six years, then you know something is very wrong. Sure, maybe you'll be the one to finally make things right. But more often than not, you'll be interviewing for your replacement soon enough.

Have you ever taken a job offer only to regret it later?

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:

This Is the One Skill You Need If You Want to Work for Yourself

Jacob McMillen — Fri, 23 May 2014 08:00:44 +0000

Thanks to popular media and the glamorous success of entrepreneurs like Steve Jobs, Mark Zuckerberg, Richard Branson, and even Mark Cuban, the idea of entrepreneurship is all the rage these days.

A 2012 study showed that 54% of millenials want to start a business, despite only 8% actually running a business at the time of the survey. When we think of entrepreneurship, words like "freedom," "wealth," "passion," or "fame" might come to mind. We love the idea of being our own boss and the sole beneficiary of our own labor. (See also: Starting a Dream Business Is Easier Than You Think)

Few, however, understand what entrepreneurship really is. At its core, being an entrepreneur comes down to your ability to make one key sale.

You're the Product

Think of a sales pitch. The presenters walk in, introduce themselves, and pitch their product. Each of you have a product to sell, and the product is... wait for it... you!

Regardless of profession, we are all required to sell ourselves in some capacity. In the context of our lives, we are our own most valuable product.

For entrepreneurs, the ability to sell themselves is their single most important skill. At no point do entrepreneurs stop selling.

Product pitch? Selling
Investor meeting? Selling
Top talent hiring? Selling
Customer acquisition? Selling

If you've ever attempted to acquire a small business loan, you know your business plan is only half the story. The bank wants to know if YOU are a good investment. Ever watch Shark Tank? Those investors will laugh at a product and then fork over $100k, simply because the entrepreneur was able to sell him or herself well.

The truth is you cannot be a successful entrepreneur without the ability sell your most valuable product — you.

How to Sell Your Most Valuable Product

So what does it look like to "sell" yourself like a product? How can you influence people to buy into you?

1. Identify Your Value Proposition

Your "value proposition" is a fancy way of describing your selling point. What makes you uniquely valuable? What specifically do you have to offer? What makes you irreplaceable?

If you think you don't have a value proposition, you're wrong! No one else on Earth has the exact same combination of experiences and talents as you. You might need to spend some time investing in yourself (acquiring education, skills, and experience), but you have something to offer. Identify it! And then offer it!

2. Fall in Love With Yourself

The best sales people truly believe in their product. They know it inside and out and can't stop talking about it. Once you've identified your unique selling point, it's time to fall in love with yourself. It's time to get excited about you!

If you don't believe in yourself, there's a better than average chance no one else will, either. Don't limit this idea to the positive thinking routine. When I'm confident in myself, I impart that confidence to others. People around me get a gut feeling that I have what it takes. Confidence and passion are infectious.

Don't sell yourself short. Get excited about you!

3. Get Out There and Sell

Success in sales is all about playing the numbers.

Entrepreneurs know the more people they pitch their product to, the more customers they'll acquire. You'll never accomplish your dreams from the couch.

Selling requires action. You have go put yourself out there. You always have to risk a "no" if you want a shot at getting a "yes." In five years, you probably won't regret "wasting" a day on failed interviews. You might not feel the same way about those daily six hours of television.

4. Always Be Closing

This old sales adage is a classic for a reason. Every successful salesman and entrepreneur knows you can't make a sale without closing. The close is the point in your pitch where you bring your audience to a point of decision. This is of the utmost importance. You have to bring people to a decision. You have to request them to take an actionable step.

Without the close, the presentation was nothing more than an informational experience. Your audience now knows about one more thing they'll never buy. But the close changes everything. As you convince others to buy into you, bring them to a point of action. Require a response.

I've witnessed firsthand the power of this technique. At the beginning of my career, I’d send informative emails out to prospective clients, detailing my experience and inquiring about their needs. I’d hear back from 1 in 15... maybe.

The entire goal of my emails wasn’t to get hired. It was simply to achieve a response. I realized that describing my qualifications just offered another sheet of information for the recipient to glance at and move on. I wasn't closing in my copy.

So I changed my approach. I started using wording that forced the reader to form an opinion and influenced a response. Sometimes it was a direct pitch, other times a suggestion, question, or offer. Each target requires a slightly different approach, but the point is, I’m attempting to close the target within my email.

This change in approach has increased my response rate to 1 in 5. For segments where I’ve discerned a trending problem I can fix, it's as high as 1 in 2.

Conclusion

The point is, if you want to be successful, you must be willing and able to sell yourself like a luxury product. The sales process can be applied to virtually any business relationship (I'd advise you to leave it out of your personal ones). You are your own most valuable product, and you’ll never stop selling.

Are you considering starting your own business? Have you thought about how you are going to sell yourself?

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

Are You Ready to Turn Your Hobby Into a Business?

Mikey Rox — Thu, 24 Apr 2014 08:36:22 +0000

Do you have a hobby you enjoy? This can be anything from painting to building furniture to playing video games. In other words, anything you do in your spare time to have fun. (See also: Awesome Money-Making Hobbies)

While some people are content with keeping their hobby a hobby, others get the bright idea of turning theirs into a side gig or business. They begin to wonder if there's a way to take their favorite activity and turn it into a money-making machine.

Before you make this big decision, it is imperative to consider the pros and cons. If you take the leap without thinking twice, you may find that you have killed your hobby and are now in over your head. (See also: The Worst Ways to Make Extra Money)

Can You Handle the Pressure of Turning Your Hobby Into a Business?

A hobby is supposed to be fun. A hobby is something you turn to when you are looking to relax and escape the stress of your everyday life. The second you turn this into a side gig, everything is going to change. Now, there is a lot of pressure on you to perform.

Let's look at the example of somebody who enjoys painting. When this is a hobby, you don't have any pressure to make the piece "marketable." You don't have to concern yourself with what others may think. In other words, you are painting because it is something you love.

Once you turn this into a business, however, everything changes.

Do you have a plan for selling the piece?
Can you work fast enough to make it worth your while?
What will you do if a customer is unsatisfied?

As you can see, there are many questions you need to answer. As a hobby, your only concern was the actual painting. Once it is a side gig, everything else is a concern.

Do You Have Enough Time?

A hobby doesn't require you to work a certain amount of hours. You don't answer to anybody but yourself. If you decide to take a day or week (or longer) away from your favorite activity, it really doesn't matter.

When you have a side business, there is no walking away, especially if you have customers who rely on you or orders you have to fulfill.

The big question is this: Do you have enough time in your day to handle your full-time job, personal life, and the side gig? If you bite off more than you can chew, you could find yourself strapped for time. You'll be making a few extra dollars each month, but you may find it coming at a cost, such as less time with your family or your other work suffering as a result. (See also: The Secret to Work Life Balance)

Are You Prepared for the Risk?

Starting a business, regardless of the size or industry, is a big risk. This is particularly true if it will cost you a lot of money to get up and running.

There is no denying the fact that a bigger risk comes with a bigger potential reward, but you must decide early on if you are willing to put yourself on the line. Are you OK with losing money if your move from hobby to business fails? Are you OK ith wasting a lot of time should things not work out?

Questions to Answer

At this point, you may be so scared about turning your hobby into a side gig that you never let this cross your mind again. But remember, it's not all bad. There are many people who've taken something they love and turned it into something that earns them a lot (or a little) money. (See also: 10 Great Home-Based Side Businesses)

By answering these questions, you may find it much easier to decide what to do next.

Do you enjoy your hobby so much that you wouldn't mind if it turned into a money-making business?
Would you shy away from your hobby in the future should your business flop?
Are you the type of person who can deal with the pressure of owning their own business?
Do you have the time to start a side business?
Will your side gig pose too much of a risk?

Now that you understand when you shouldn't make your hobby a side gig, you can decide which steps to take next. Tread softly as this is a decision that will impact your life on many different levels.

Have you turned a hobby into a side business? Please share your experience in comments!

Like this article? Pin it!

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:

Starting Your Dream Business Is Easier Than You Think — Here's How

Jim Wang — Thu, 13 Feb 2014 11:36:35 +0000

One of the great pleasures of owning my own business and working for myself is that I get to talk to a lot of aspiring entrepreneurs.

They want to be entrepreneurs, but they aren't quite there yet. They read all the business articles online, they constantly make plans, they aspire to own their business and maybe one day they will get there. (See also: 10 Home-Based Side Business Ideas)

I've heard Mark Cuban, and others, call them "wantrepreneurs" on Shark Tank because they are perpetually in the pre-business phase. Having ideas is great, but executing them is what separates true entrepreneurs and wantrepreneurs.

Unfortunately, so many of them never start a business because they put up barriers in their own mind. One of those barriers is that they think "starting a business" is an arduous task that will take them months and months, if not years, of planning and preparation.

In reality, the paperwork of starting a business is almost trivial compared to everything else you'll need to do to start and run a business. But before you embark on filing anything, make one sale.

Make One Sale

Before you go down the route of "starting" a side business, make a sale. Just one.

If you wanted to start a snow shoveling service, would you start by incorporating your business, getting insurance, paying for advertising, or opening a bank account?

No, that's crazy. You would find a shovel and go door to door looking for people to pay you to shovel their driveway.

That's what you should be doing with whatever business you're considering. Make one sale. You will learn a tremendous amount about your market by selling your product or service to one person. After you make one sale, sell it to a second.

After you've made the first dozen sales, you'll know whether you have a business on your hands, a nice hobby, or a dream that can't be realized. It's valuable to do this before you waste time and money doing the paperwork of forming a business. (See also: Awesome Money-Making Hobbies)

Also, it's important to actually sell a product or service, not ask people if they would buy it. Most people are polite and tell you they would buy. But few people are so polite that they'd actually pay you for something they don't want.

Once you've made enough sales to be sure this is a business, it's time to make it legitimate.

Startup Paperwork

So you've made some sales and you're ready to make it official. You need to do some paperwork. (See also: 250+ Tips for Small Business Owners)

State Licenses

The first step is to research the licensing and bonding requirements of your state. Some businesses need a license to operate. If you're starting a blog, you don't need to get a license or a bond to operate. If you're starting a tattoo parlor in Maryland, you need a Tattoo License before you can do business. Check your state's laws for what you'll need as it's different for each state.

Insurance and Bonds

The next step is to research your insurance needs. A surety bond covers guarantee of service but liability insurance protects you from accidents, lawsuits, and other business disasters. Some businesses need a surety bond, nearly all businesses should have liability insurance. If you intend to hire employees, workers comp insurance may also be necessary, as it protects your business from any medical or legal expenses associated with accidents on the job.

LLC, EIN, and a Checking Account

If you're starting a simple business that has no licensing, bonding, or major insurance requirements, the rest is easy. It's a three step process:

Incorporate as a Limited Liability Company (LLC)
Obtain an Employer Identification Number (EIN)
Open a Business Checking Account

Do you need to incorporate?

It depends. Incorporating is a must if there are any potential liabilities associated with your business because it shields you from your business, if set up properly. You are often not required to incorporate and can operate as a sole proprietor. As is the case with any type of legal advice, check with a professional and with the requirements of your state.

Incorporate as an LLC

Incorporating is often a straightforward process, but it depends on your state because the complexity varies. In Maryland, it's a one-page form (Articles of Organization) with a handful of fields.

One minor bit of advice, in the area where you write in the "purpose" of the company, use this: "To engage in any lawful activity for which a limited liability company may be organized."

Some states leave this Purpose field blank, some states automatically fill it out with a similar phrase (California automatically fills it out with "The purpose of the limited liability company is to engage in any lawful act or activity for which a limited liability company may be organized under the California Revised Uniform Limited Liability Company Act." Don't get caught up in writing something descriptive here, it'll only slow you down.

The cost associated with incorporating will include the one-time filing fee. In some cases, it may also include annual fees too. In Maryland, every business has to file a personal property tax return that has a minimum $300 tax. (See also: Is Starting a Small Business for the Tax Deductions Worth It?)

Obtain an EIN

An EIN is like a Social Security Number for your business — you can get one for free by applying with the IRS.

Once you get an EIN, use this instead of your Social Security Number on all forms for your business. Congratulations! You've graduated from sole proprietorship to an LLC.

Open a Business Checking Account

Once you have the incorporation confirmation letter (original with stamps) and your EIN, go to your favorite bank and open a business checking account. Look for one with low minimums and no fees. Most banks make their money off business accounts with merchant processing and other add-ons, so the base checking product shouldn't cost you anything. (See also: Best Credit Cards for Small Businesses)

Use this checking account as the center of your business banking world. Any revenue you receive should go into this account. Any bills you pay should come out of this account.

Now Go Back to Selling

Once you do those three steps, you're officially a business. Don't forget to file the necessary tax forms and get back to the important part of business, getting more of it.

Good luck!

Guest Post Blurb:

Jim shares insights and lessons learned with new bloggers at Microblogger.com. Be sure to sign up for his free (and very in-depth) Create a Lifetime Income Blog course to learn from his experiences.

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

Best Money Tips: Businesses You Can Start Online

Ashley Jacobs — Fri, 01 Feb 2013 11:00:35 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some awesome articles on businesses you can start online, saving money at the drug store, and principles for growing wealth.

Ask the Readers: Do You Use Business Cards? (Special $100 Giveaway)

Ashley Jacobs — Tue, 10 Jan 2012 11:36:24 +0000

Editor's Note: Congratulations to our first prize winner, Aaron L, and our second and third place winners, Guest and Emily.

Business cards are one of the most important networking tools. Professionals, job seekers, freelancers, and even students have used business cards to advance their careers. Whether you hand them out to clients or prospective employers, a tasteful business card provides people with a great first impression.

Do you use business cards? If yes, how do you use them? If no, why not?

Tell us if you use business cards and we'll enter you in a drawing to win a $100 Amazon Gift Card or two sets of die-cut business cards courtesy of our sponsor UPrinting.com.

Prizes: $100 Amazon Gift Card & Two Sets of Die-Cut Business Cards

This week we will be giving away thee prizes:

First Place: $100 Amazon gift card

Second and Third Place: Each will get a set of 250 die-cut business cards courtesy of UPrinting.com. Winners of the business cards can choose among UPrinting.com's available die-cut shape and sizes and cardstock option. Standard turnaround time and shipping applies (no shipping charges). Restricted to people 18 years and above, US residents only. Check out these beautiful samples.

How to Enter:

You can enter 3 different ways:

Comment Entry. Answer this question in the comments below: "Have you used business cards? If yes, how do you use them? If no, why not?"
Facebook Entry. Go to UPrinting.com's Facebook page, "Like" the page, and leave a separate comment on this article telling us: "I liked UPrinting.com on Facebook."
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If you do all 3 things you get 3 entries into the contest. Maximum 3 entries per person. Be sure to always include your email when leaving a comment.

Giveaway Details:

Contest ends Monday, January 16th at 11:59 pm Pacific. Winners will be announced after January 16th on the original post. Winners will also be contacted via email.
You can enter all three drawings — once by leaving a comment, once by liking UPrinting.com's Facebook update, and once by tweeting.
This promotion is in no way sponsored, endorsed or administered, or associated with Facebook.
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Good Luck!

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

Best Money Tips: Find Business Attire for Less

Ashley Jacobs — Wed, 04 Jan 2012 11:00:18 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some awesome articles on finding business attire for less, ways to cut your expenses, and benefits of a smaller home.

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