extra cash

8 More Smart Things to Do With Your Tax Refund

Mikey Rox — Tue, 17 Apr 2012 10:24:08 +0000

According to the IRS, the average tax refund for the 2012 filing season is $2,899. Although that amount is nearly $100 less than we received in 2011, it’s still nothing to shake a stick at.

Who couldn’t use $3,000, right? But in order for that fast cash to make a difference, you must use it wisely.

Before you get too excited and start burning through a check you don’t even have yet, consider these responsible ways — an extension of last year's post on 8 Smart Things to Do With Your Tax Refund — to help manage your personalized stimulus package. (See also: What If I Skip My Taxes This Year?)

1. Green Home Improvements

We're always fixing little things around the house — a squeaky door, a leaky faucet, that light bulb that always burns out — but not many of us think of the bigger picture when it comes to home improvements. When you receive your refund this year, concentrate on the long-term sustainability of your home instead of the quick fixes. Upgrading to energy-efficient appliances, installing solar panels, and building a garden are all great ways to add value to your property while preparing it for the future. The money you'll start saving on heating, cooling, and grocery bills won't hurt either. Don’t forget to stretch your dollar even more by DIYing the improvements (you do not need to hire someone to plant tomatoes in your back yard!) and searching for the best prices possible on eco-friendly supplies.

2. School Loans

On one of the last days of class at the end of my senior year in college, I remember one of my professors asking us to reflect on the time and money we spent on our education. He asked us if we would have done it all over again given the circumstances. Emphatically, I said yes! That is, until I got the bill. I’m being facetious, of course — I wouldn’t trade my college experience for anything — but I wouldn't be opposed to a generous benefactor (anyone out there?) paying off my loans; despite the financial aid I received, the cost was still unbelievable. Alas, until the day comes when a rich person who’s put me in their will kicks it, I have to send out a check every month to avoid financial ruin. Thus, I take every chance I get to send the bank extra money in order to pay off my debt off sooner — and so should you.

3. Big-Ticket Buys

One of the great parts of a windfall payday like a tax refund is that you can finally afford big-ticket items. That doesn’t mean you should book yourself an all-expenses paid vacation, however. Use this opportunity to pick up an expensive item that you need around the house, like a new vacuum cleaner, washer and dryer, or computer. There's nothing wrong with dropping decent coin on something that will somehow make your life a little easier. If you're a small business owner buying items you'll use for work, keep the receipt. Next year that purchase will qualify as a deduction, so you definitely don't want to miss out on that.

4. Credit Card Debt

We all know that credit cards are a no-no, but sometimes they’re a necessary evil when we’re in a bind. If you’ve racked up the charges on your plastic this past year, by all means try to eliminate that debt. By consistently brushing off what you owe, you’re incurring late fees that are driving up the amount you’re required to pay back while also hurting your credit score, which can affect your ability to buy a home, car, or anything else for which you’ll need a loan. Just pay it off and be done with it — if only so your phone will stop ringing.

5. Doomsday Preparations

I know some of you are going to laugh at this, brush it off, and call me a kook — but you'll be sorry when the zombie apocalypse begins and you're not prepared. That's a bit tongue-in-cheek, of course, but really, how prepared are you for disasters? The walking dead aside, crisis can strike at any moment, whether it be from Mother Nature or man made, and it's not a bad idea to at least pick up the essential survival tools that one needs to make it through a week or so inside the home (or, worse, on foot) without running water, the ability to find fresh foods, or access to technology. My go-to survival-tool source is Ready America. Its prepacked bags contain everything you'll need to stay alive at an affordable price. You can thank me for the tip when we get to the zombie refugee camp.

6. Life’s Necessities

Like with those school loans, it’s always beneficial when you can send in extra cash on whatever outstanding debts you have (such as a car loan or mortgage). But car payments and mortgages notwithstanding, there are plenty more of life's necessities that need TLC — tender, loving cash. If you're on the hunt for a new job, don't be afraid to splurge on an interview outfit that makes you look like you mean business; the Shop It to Me blog recently published helpful advice from frugal fashionistas that will have you looking your best without going broke. For those of you with kids, well, they always need money for something; there's no time like the present to stash a bit away for a rainy day.

7. Cell Phone Upgrade

This may seem like a frivolous purchase — and in some regards it is — but a cell phone upgrade isn’t all for pleasure. Because of my iPhone, I’m able to get infinitely more work done while I’m on the go than I would if I had one of the ancient models I used to have (remember the Motorola Razr? So primitive in hindsight). I can check and respond to e-mails, start writing new posts in the Notes, and plan my meetings, all which give me more time to concentrate when I’m back in the office. Plus, smartphones have an excellent resale value. Since I switched to an iPhone upon its launch, I have always sold the previous model for the price I pay for the latest version when I upgrade. Zero money out of pocket is my favorite kind of buy.

8. Put It Into Savings

Trust me, I know that saving your tax refund and letting it sit in an invisible vault isn’t as satisfying as handing over dead presidents to a bartender in a tropical locale, but your self-control will pay off in the long run. To make yourself feel better about your very-adult-but-no-fun-at-all decision, assign the money you're putting in the savings account toward something tangible. Maybe it's a new car, a down payment on a home, or another large purchase that will improve your life. When you have a goal to reach and a reason to send that money someplace you can't see it, you feel better in the short term about how being responsible totally sucks sometimes.

Tell me — what do you plan to do with your tax refund? Make it good, and let me know in the comments below.

Written by Mikey Rox and published on Wise Bread. Read more articles from Wise Bread.

Extra Income Online: 5 Websites That Can Seriously Pad Your Pockets

Mikey Rox — Mon, 10 Jan 2011 13:00:09 +0000

With the national unemployment rate creeping toward 10%, it’s fair to reason that some of us could use extra cash.

Frankly, even if you’ve still got a 9-to-5, more money in the bank is never a bad thing. Instead of taking on a second, or in some cases, third job to elevate your earnings, consider making use of these websites that can take you from rags to debatable riches. (See also: 9 Ways to Earn Extra Cash When Money Is Tight)

Craigslist

Craigslist has long been a freelancer’s dream, and there are always tons of projects listed in every region that are ripe for the picking. But the classifieds site isn’t just for scoping out potential work. Think about the converse, too — placing ads touting your services. For instance, I run a home-based copywriting and creative consulting business on a limited advertising budget. To expose myself to prospective clients who are seeking someone like me, I create posts in relevant sections describing my capabilities. As a result, I receive at least one inquiry a week, many of which have turned into steady work.

Otherwise, Craigslist is a great way to get rid of unwanted-but-still-valuable junk. Whenever my husband and I upgrade any device — like our iPhones — we list the old ones on Craigslist. They’ve sold quickly every time and at the listed price, which is set at what we paid for the new devices. To be honest, there’s a buyer for just about anything you list, so long as the item is desirable and in good-to-great condition. Best of all, you get the full amount of your proposed price (even if you have to negotiate here and there), whereas you’ll have to pay listing and other fees elsewhere.

Airbnb

Let me start by saying that I think Airbnb is one of the best new websites in recent years — and I’m not the only one: the San Francisco-based startup recently received $7.2 million in Series A funding from investors. The concept is so simple, too, that it makes you wonder, “Why didn’t I think of that?”

The concept is that if you have extra space in your home, you can turn it into guest quarters for tourists who will pay you to stay there. All you have to do is list your vacant room, add photos, and complete a profile. Airbnb does the rest, including blocking off reserved dates on your calendar to avoid double bookings and holding rental fees in escrow until guests arrive, at which time you can have the funds sent via check or direct deposit.

In the interest of full disclosure, we’ve been listing our guest bedroom on Airbnb since its launch in February 2009. To date, we’ve made more than $19,000 in extra income (that we duly pay taxes on, by the way. Don’t get all hot and bothered, IRS). It’s become such a success for us that my neighbors have hired me to manage their properties on the site, resulting in even more dough in my pocket because I charge them a percentage. Winner-winner, chicken dinner.

Agent Anything

If you have ample space in your schedule (and if you’re unemployed, you do; playing Angry Birds is not your new job, just so ya know), check out Agent Anything, a service that allows any college student (verified by having a current dot edu college email account) to register to run “missions” that can include grocery shopping, pet sitting and walking, house cleaning, etc. As a mission runner, you can set your fee by making an offer on a listed task. If the mission poster thinks your fee is reasonable, you’ll be hired. Agent Anything currently only serves the New York City area, but it promises to expand soon.

RentAFriend

When I saw RentAFriend posted on a friend’s Facebook page, I laughed. "Who rents friends?" I thought. As it turns out, plenty of people want a paid, platonic companion. According to Out of the Storm News (in which I was quoted about my participation on the site), 2,700 lonely folks are seeking play pals. Registering is a breeze and the site allows you to set your fee from $10 to $50 per hour of your time, depending on how much you think you’re worth. My fee is set middle of the road at $30 because I’m not greedy or an egomaniac, though some may beg to differ.

In addition, the renter is required to pay any other fees associated with the outing — bar tab, tickets, whatever. Although I haven’t had any confirmed bookings, I did have one inquiry from a guy who was coming to Manhattan on business and wanted someone to go to dinner and a movie with while he was in town. In the end he didn’t hire me, so I’m still looking forward to my first RentAFriend experience. Which means that you should pass me along.

Amazon.com & eBay

Much like Craigslist, Amazon.com and eBay can help you rid your home of unwanted clutter and get you paid for it. Still, there are differences between the former and the latter. Craigslist is great for selling electronics and furniture locally, while the other two sites are more conducive to shilling CDs, DVDs, books, and other shippable wares.

When my husband and I moved in together, I had rows of media that I no longer wanted. Hours after listing the items, they were flying off my shelves. I’ve been a consistent user of the sites for years now, and in the past 12 months alone I’ve pocketed about $500 in cash. In my opinion, that’s much better than $500 worth of dust collecting paraphernalia hiding around my house. Translated, the moolah I made paid my cell phone bill for six months. Not too shabby.

Written by Mikey Rox and published on Wise Bread. Read more Extra Income articles from Wise Bread.

How to Make Money Tweeting

Paul Michael — Tue, 30 Nov 2010 14:00:07 +0000

Do you use Twitter? Are you popular? Like, really popular? Do you have a whole bunch of followers? Well, if you’re nodding rapidly to all of these questions, you could make money some extra money by tweeting. It’s called sponsored tweeting, or pay per tweet.

Paid endorsements are nothing new. The advertising world, which I am steeped in on a daily basis, is always looking for new ways to reach an audience. In the past, getting paid to recommend products and services was the domain of celebrities. After all, they had access to media outlets that let the advertiser’s message get out to the masses.

But we don’t live in the past. We live in a society that gives us all the opportunity to reach a mass-market crowd every single day. The internet brought us Facebook, blogs, and then Twitter. The cell phone made tweeting instant, and let us all broadcast our daily lives to whoever wanted to follow us.

If you’ve got interesting things to say, you get more followers. And the more followers you have, the more interesting you become to a business looking to spread the word about a product or service. Which in turn means that your tweets become valuable commodities.

In a nutshell, if you’re tweeting to a crowd, you can get cash for sponsored tweets.

How much cash? Well, that obviously depends on how many people follow you, and of course, if your fame extends beyond your immediate friends and family.

For instance, Khloe Kardashian, who has over two million followers, is currently accepting $2,941.25 to do a sponsored tweet. Her sister Kim...well, that price isn’t even listed. But like I said at the beginning, you don’t need to be a celebrity at all. You just need reach.

Have you heard of Wendy Piersall? She’s an entrepreneur who runs Woo! Jr. and is considered one of the 16 most influential moms online. Wendy charges $400 per tweet.

OK, well, Wendy still had some moderate fame. But how about someone who just does some occasional blogging?

Tyler Rogers is not, by any stretch of the imagination, a household name. I had never heard of him until I started researching this article. But he has over 2,300 followers on Twitter, and that makes his tweets, and his product endorsements, valuable. Not in the same league as Khloe or Wendy, but $50 per tweet is not exactly peanuts. With the minimum wage currently set at $7.25/hour, and the average hourly U.S. wage being between $15-$20, getting $50 for doing something that takes less than one minute is, well, obscene. And if someone is willing to pay you $50 or more for tweeting that you think some product is worth checking out, then good for you.

Of course, this can’t last. Product endorsements don’t carry a whole lot of weight if you start endorsing everything, all the time. But for the occasional wad of cash here and there, especially for a product or service you believe in, it’s a win-win situation.

Written by Paul Michael and published on Wise Bread. Read more Extra Income articles from Wise Bread.

Buying Shiny New Things Without The Guilt

Carlos Portocarrero — Wed, 15 Apr 2009 12:24:24 +0000

Around four months ago, I declared I wanted to buy a new computer without spending a cent.

Sure, the title was meant to be catchy and a little playful (were you not entertained?), but I had an actual system behind the hype. The idea was to save up all of my alternative income and use that money to save for a new computer. I wouldn't use any money from my paycheck or my savings. (See also: 5 Money Making Activities You Can Do Today)

In other words, I'd pay for the new computer with money I'd never miss.

The other rule I set for myself is that I wouldn't pull the trigger until I had enough money banked — no itchy trigger for me here. I had to wait until the money was there.

What Happened

Setting this goal for myself was great because it gave me a purpose. I started selling a bunch of my old books knowing that all that money would be going towards my new PC. Every time I wrote a new post on my blog, I knew the income I made from the site would go into my computer fund.

Setting a goal gave me something to work toward instead of just saving for the sake of saving, which was great.

What's This About Guilt?

I'm guessing other Wise Bread readers share this affliction with me: ponying up large amounts of money to buy stuff isn't easy. Parting with money is super tough for frugal people like ourselves, so whenever I have to (or want to) make a big purchase, I get very uneasy.

I feel guilty for spending my hard-earned money. Shouldn't I be investing it? Saving it? Doing anything but spending it?

Sure, but we also have to live our lives, and that's what money is for, right? To help us get what we want? To enjoy it?

Easier said than done, and this budgeting trick has helped me overcome the guilt.

NMG: No More Guilt

When I got close to my goal, I told my wife that maybe it was all a bad idea. Maybe I didn't really need a new machine and that I could probably cope with my five-year-old laptop for another couple years.

The guilt had crept into my foolproof system.

But she was having none of it. She wouldn't let me. After all the hard work I had been putting in toward boosting my alternative income selling books and blogging, she said I HAD to buy the new computer. That was the plan and that was the purpose.

So I did.

And guess what? It feels awesome.

My new machine should be here by the end of the week and I haven't felt guilty at all. Our budget is on track, our savings are on track—it's like I never spend the money.

And the best part is that now I have a system in place whenever I get the itch to buy something else. Until then, I'll go back to being the responsible, frugal (some would say boring), person I am: the side money I make will go into my high-yield savings account, where I'll let it accumulate.

I won't be buying anything else anytime soon...I'll be too busy toying around with my brand-spanking new computer.

Written by Carlos Portocarrero and published on Wise Bread. Read more articles from Wise Bread.

NotchUp - Get Paid to Go on Interviews

Xin Lu — Tue, 29 Jan 2008 18:02:59 +0000

Yesterday I received an email from my friend Retirement Hobo inviting me to join NotchUp . I was sitting there thinking, "oh no, not another social network!" Then I read the email in detail and it sounded quite interesting. Apparently NotchUp is a service that finds companies that would pay you to interview you. You can create a profile, set your price, and then wait for an offer. Sounds too good to be true? Even though I have no intention to look for a job now, I decided to sign in and see what it is all about.

First of all, NotchUp is in beta right now so only those with invitations or approved applications can sign up. The site is also painfully slow since its launch on January 28. When I signed up it prompted me to set my interview price. On the side it had a little form you could fill out for NotchUp to estimate a price to set. The form asks for your industry, position, and salary information and then spits out a number. It seems to give a higher valuation to those who have been at their current position for a good amount of time. This is probably to penalize job hopping. It suggested that I charge $290 per interview, but I just set it to $500 since I am just trying it out for fun. Then it asked which companies you would like to block from seeing your profile and whether you want recruiters to see your profile or not. Finally you can create your profile or resume. There was an option to import your profile from LinkedIn so I did just that and my profile was up and running in two seconds.

The site's layout currently looks like a clone of LinkedIn, and even the logo is quite similar. However I do not think the two companies are related other than that you can import your LinkedIn profile. You can edit your profile with links next to each position you have had and there is tab browsing for other options. There is also a little section for stats and feedback. The feedback box seems to indicate that the companies that interviewed you can rate you on whether you took the interview seriously and if your profile is accurate. Your payment is related to the feedback and if you are not a serious candidate the interviewer could choose not to pay you.

It may make no sense that companies would pay to just talk to someone, but in reality companies spend tens of thousands of dollars to recruit the people they want from competitors. It is really great that job seekers can now get a piece of the action usually reserved for recruiters. NotchUp is a good idea for companies who want those people who are not really looking for jobs actively. Only time will tell how this concept will work out, but the business model is that NotchUp is a middleman that charges a percentage of the interview fee you receive. So far quite a few big name companies including Google and Facebook have signed up with NotchUp to interview candidates. I think NotchUp has a brilliant idea that could entice candidates who would otherwise not bother with interviews to speak to a potential employer. I am not sure how the ratings system would work out since the site is so new, but it is pretty painless to set up a profile and it could net you a brand new job or just a few hundred dollars for your time to interview. If an interview is only a couple hours and you can be paid $200 to $300 then it is a very good deal. A possible negative effect of NotchUp is that we may see people set up fake resumes that are extremely attractive just to bag interviews, and then they would not care if they fail because they may still be paid.

If you want an invitation to NotchUp from me please send a private message with your name and email to me in the forums and I would get a 10% referral fee for each successful interview you complete in the first year of your enrollment. I will keep your information strictly confidential. Once you are signed up you can also refer the best people you know who are stuck in jobs they may not be totally thrilled with and possibly receive a referral fee.

Written by Xin Lu and published on Wise Bread. Read more articles from Wise Bread.