Extra cash now
There are plenty of people looking for ways to pay the bills now and while some people are saying that the economy is showing signs of turning around, I haven’t seen them yet. However, just because time are hard doesn’t mean that you can earn some extra cash to help with paying the bills or just to have some spending money. In fact, there are still plenty of things you can do to make some extra money.
1. Handyman.
Whether you are an out of work carpenter or just someone who knows his way around a hammer there are plenty of people out there who need an extra hand. Right now, if you are lucky enough to afford your house you want to keep it in good condition so that it will last. As a result, people are trying to keep the house looking nice and updated. Some people I know are even taking advantage of the cheap labor available right now and getting that porch built they always wanted.
2. Auto mechanic
Again, you don’t have to be a professional to know your way around a job. While the car dealers are trying like crazy to make a sale these days, people just don’t have the money to buy a new car on top of all their other expenses. Instead of buying new, they are paying to repair their current vehicles and keep them running for a few more years, after all, it is cheaper to pay a $500 or $1,000 repaid bill than it is to purchase a whole new vehicle.
3. Gardner
As prices for food goes up just like everything else, people are turning more and more to having their own garden so that they can grow their own fruits and vegetables. Instead of planting one tomato plant for your family, spend the extra $2 or $3 and plant an additional 2 plants and then you can sell your extra produce to your neighbors.
4. Blogger
Its true, some people do make money from writing blogs. While I have not hit that level, for people who have a specialty or passion that they just love to write about and share with others there can be some money in writing and promoting you blog. If you figure out how to make millions doing this just please remember little old me and help me out with a link or two. Seriously though, blogging can be a great way to spend a few hours each week writing about something you enjoy and hopefully making a few dollars at the same time. While it takes time and patience to develop a following and enough money pay a bill or two it can a very relaxing and enjoyable way to spend a couple of hours.
Budgeting to Survive
How much do you spend each week on eating out? How much on gas? Groceries? Impulse purchases? Until you know where your money is going you won’t know how much money you really have to spend and how much you could be saving.
To survive this economy you need to start running your household like a small business. Small businesses have limited resources so when they make a purchase they first do their research to make sure they get the best purchase for their needs and budget. What are your needs? Do you really need dessert with your lunch? What about the HBO movie package you pay extra for each month with your cable? A small business isn’t likely to purchase a soda machine just because one of its employees requested it. Similarly, you shouldn’t go to the movies once a week just because your kid wants to see the latest movie.
This is a time to prioritize and make those tough decisions. While you should not completely cut out spending you need to determine what spending is profiting you and what spending is just a waste of money. To some people getting a cup of coffee at Starbucks a couple of times a week is the only way they can relax for a few minutes and just enjoy life. If that is you then you shouldn’t cut out the Starbucks because without your relaxing me time you might not be able to function as well as you would with that me time. To you that is important so you can make it a priority and cut out something that isn’t as important to ensure that you have the money to keep that up.
While life isn’t great right now we need to remember that this doesn’t mean that we bury our heads in the sand and pretend that everything is normal and spend the same way we did a couple of years ago, but neither can we totally close our purse strings and save every dime we get. There has to be a happy medium where we make allowances for what is important and save for the future by cutting those things that aren’t as important.
Vacation Home or Investment Property in Florida Pays for Itself
Right now there are plenty of opportunities to purchase some deals in the Florida real estate market. One of the best opportunities I have seen on the market lately is an auction on May 16th in Panama City Beach. The auction features 223 1, 2, and 3 bedroom condos and 24 townhomes in a single condo community. The condo fees are reasonable, the properties are practically brand new, and the amenities are great including a huge lagoon style pool, fitness center, parking garage and indoor basketball court.
With so many properties for sale in a single area, let alone a single community means that the properties will sell relatively cheaply. Thus, for very little initial payment you can get a practically maintenancefree vacation property or investment property. Rental rates for the Panama Beach area run around $750 a month for a 2 bedroom unit. Do the math. The condo fees for a 2 bedroom are $175 a month. Say another $150 a month for real estate taxes. This gives you fixed monthly expenses of $325 a month with the potential to earn $400 a month in profit.
With so many units being auctioned at once, I would doubt that the units will sell for more than $30,000 each. Even that seems a bit high. At an auction I attended in Orlando a few weeks ago there were 3 units for sale in the same building. Other people in the building were trying to sell their units, with the eact same floorplan and square footage, for up to $400,000. At the auction, the first property went for around $72,000. The next two were for $65,000. Right now the supply is greater than the demand so the prices are not going to get that high. While that is bad for the banks foreclosing on the properties it is great for the investors looking to purchase. Take the invseting plunge. This is a great market for it.
Should I file an extension for my taxes?
If you do not have your taxes done and filed yet time is running out. Tomorrow is the due date. If you know that your taxes will not be ready by tomorrow what should you do?
You can file an extension with the IRS that will allow you an additional 6 months to get your taxes in. Sounds great right, but there is a catch: if you owe taxes and you file under the extension you will pay interest on the amount owed starting on April 16th until they are paid. However, if you owe money and file late without filing for an extension not only will you owe interest but also penalties for filing late. Not fun. Either way, if at all possible it is better to get your taxes done by the 15th to keep from paying extra.
If you are getting a refund there is no penalty for filing late, but neither will the IRS pay you interest for allowing the government to use your money.
Get Extra Cash by Renting out Rooms
As many people are strapped for cash these days it might be worthwhile to consider renting out a room in your house to help with the mortgage payments. Most people who rent rooms in a house are looking for short term rentals but it is possible to find a longer rental if you are in the right location.
If you live in a college town this is a great way to get some extra money during the fall and spring semesters when students are in the market for housing. You can rent the room on a weekly or monthly basis. Sometimes the rentals I have seen include utilities and furnishings and other times they don’t include either. It just depends on the area and your preferences.
People considering this type of rental should first determine what type of tenant they are looking for and how much they can realistically get for renting the room. They also need to determine whether they are ok with allowing the person to work in the kitchen and assess the bathroom situation. However, if you are flexible this can be a great way to generate some cash to help pay the bills.
To find a person to rent to, you can post an ad with your local newspaper. Another great option is to post an ad on craigslist.org. This website allows you to post and also to check out others who have posted saying that they need a place. As an added bonus, it is free to post and respond to people on craigslist. There are also plenty of roommate websites available that allow you to search for a person based on preferences such as age, gender, whether they smoke, drink, have pets, etc. These sites do charge a fee though.
There are plenty of people looking for a place to stay so renting out a room in your house or condo can be a great way to make some extra cash to put towards bills or to increase your savings, however, you need to be flexible and don’t be afraid to turn a couple of people down until you find the person that will best fit your personality, after all, you need to find a person you can actually live with!
Financing an Education
During these difficult times many people are going back to school to further their education in hopes that when they get out the economy will be doing better, jobs will be available, and their new skills will make them more marketable. However, going back to school adds additional debt to what may be an already tight budget. So how can people continue their education without breaking the bank?
There are many programs available now that allow people to get cash back from everyday purchases that is then applied towards student loans or put into educational trusts. These are a very easy way to start putting some money down towards college. Parents who start when there kids are quite small can have a nice little cushion ready when their kids are ready to head off to college. The best part is, it doesn’t require any additional money on your part. The programs are free to join and then the parents and their friends and family shop online from the website or register their grocery cards on the website and then the purchases are tracked and you watch the earnings accumulate.
On of the better programs for this currently on the market is Upromise. Another option is LittleGrad. Personally I prefer Upromise because they allow you to not only save towards future educational expenses, but you can also apply your earnings against current student loan payments. By linking your student loan to the Upromise account, students can have Upromise make quarterly payments on their student loan as long as they have a minimum of $25 in their account. This is a win/win situation as it allows students and graduates to continue making the same purchases they would normally make online and at the grocery store but now these purchases are going to reduce their student loans.
Financing a Home Sale
Times are scary now, many people don’t know whether they will still have a job next month let alone money for the house payment, food, bills, etc. Because of the fear of the unknown, people are hoarding what they have and turning to other methods of getting what they need. Thus, people are saving all their money, some may have it in the bank, trusting the FDIC to keep it safe, a few may put some in the stock market hoping for a nice profit when things turn around, and some may have it in their mattresses. Wherever it is, people want easy access to it in the event something happens.
One group of people that has been hit particularly hard during this recession are retirees. These are people who usually live on a fixed income from the government and supplement it with part time jobs or savings that they invested previously in their lives. However, many of these are faced with a situation where their savings and investments are worth pennies on the dollar compared to what they were worth just a couple years ago. The snowbirds of Florida are now stuck with two houses that have declined rapidly in value, a reduced income due to savings and investments disappearing, and very few job opportunities. As a result, many are trying to sell one of their homes, but in this market it is difficult to find a buyer and even if they can find one, the buyers aren’t willing to pay the same prices they would have paid a few years ago.
Another issue that has arisen recently is a difficulty in getting financing. Conventional bank financing now requires larger downpayments for purchase of properties rather than the low downpayment mortgages that avoided PMI or required PMI for the mortgage. Thus, unless a purchaser has a downpayment amount of at least 10%, although 20% is preferred, the purchaser will have difficulty getting a conventional loan. The seller may consider seller financing. Many sellers may not have the expertise or want to deal with this option though.