Subscribe Now!

Current Feed Content

Posted: Mon, 12 Jan 2015 22:20:13 +0000

With a new year underway I have been thinking a lot about the need to diversify my income streams.  While my near-term ability to continue full-time working status remains good, Ive become heavily dependent on my full-time job for income.

Not all of that is my fault.  I can thank declining savings and dividend rates for knocking down a good bit of my monthly interest income.  Some of my failure at diversifying our income streams has been my fault.  I havent had the proper motivation at finding a side hustle until just recently.

Maybe its the markets recent volatility that has me nervous, or perhaps just my own overly-conservative nature.  Whatever it is, it has motivated me to begin thinking about new ways of diversifying your income streams in the coming year.

4 Realistic Ideas for Diversifying Your Income Streams

1.  Dividends.   With yields on most savings accounts still well under 1% an annual dividend return of 4-5% looks awfully attractive.  I might just add to my dividend ladder. which is missing several rungs, to generate some monthly dividend return.

Of course, there is some risk of losing capital inherent in investing in the stock market, but there are plenty of opportunities for a relatively safe dividend return in utilities, telecommunications, and other other sectors.

2.  Savings.  I know savings rates are hovering below 1%, but there is a place in every portfolio for cash.  From emergency funds to sinking funds you should have plenty of cash put back.

I need to diversify my cash into various interest-bearing products, such as CDs and money market accounts, rather than letting it just sit in savings earning next to nothing.

3.  Rental income .  This may be one of my favorite ways to diversify income, but it is also one of the most difficult (at least it is for me).  Im generally risk averse, so I cannot fathom the idea of taking on another mortgage, even a small one for a rental property .  I also dont have enough cash floating around to pay cash for an investment property.

Still, I know that rental income has the potential to provide more than any other category in the long run.  I really need to get serious about this before mortgage rates go back up.

4.  A side hustle.  Besides this blog, I maintain a couple other web properties where I try to eek out some additional income each month.  Its hard to do, and requires a huge time investment, something Im also short on these days.

I could look at part time employment, but the thought of standing on my feet after a full day of work bagging groceries or delivering pizzas is not appealing.

None of these income streams are going to make me wealthy alone, but together each serves as sort of a safety net for the other.  Having four or five income streams in addition to your full-time job makes you more layoff-proof, and able to withstand periods of temporary unemployment.

Posted: Wed, 07 Jan 2015 13:00:41 +0000

A lot of work goes into maintaining a home. In addition to everyday tasks like vacuuming, sweeping, mopping and dusting, there are certain tasks that should be done at least a few times per year.

Its easy to overlook these kinds of things or to let them slide, but you can avoid this by creating a biannual to-do list, setting a reminder on your phone or email, and making sure theyre done in a timely manner.

So, what kinds of things need to be done every six months or so?  A few examples include:

Instead of waiting for your smoke detectors and carbon monoxide detectors to remind you to change the batteries, take a proactive approach and do so every six months. In addition to ensuring that the devices are in good working order, doing this lets you avoid hearing that irritating beeping noise at random times.

2.  Inspect the Attic

No one likes going up in the attic. However, this is one situation where out of sight, out of mind can backfire disastrously. By inspecting the attic every six months, you can detect small problems before they spiral into large ones. From pests making themselves comfy up there to tiny leaks that could ultimately destroy your roof, giving the attic a once-over is a wise move.

Despite your best efforts, youre sure to find stuff accumulating over time. Instead of waiting until things reach hoarder-like levels, make a point of going through the house collecting things you can donate, sell or throw away. Do it even if it doesnt feel like the house is too cluttered. In the long run, itll save you from dealing with massive piles of stuff.

In most homes, the refrigerator accounts for 15 percent of energy costs. Even if you have an energy efficient fridge, its efficiency can dwindle away as its coils become clogged with dust and other debris. Twice a year, pull the fridge away from the wall and vacuum its coils. Doing this can save you up to $100 per year.

Nothing is worse than a sink or bathtub that drains slowly. Rather than waiting for this to happen, go through the house clearing the drains two times per year. They sell a long, plastic thing with spikes at Home Depot that does a really good job. Use a regular plumbing snake for the bathtub drain.

6.  Inspect the Water Heater

Because its typically in the basement, the water heater is often overlooked at least, until something goes wrong. Take a peek at yours twice a year. Look for mineral buildup, signs of corrosion and evidence of leaks. By catching these things early, you may be able to avoid a flooded basement or other expensive problems.

If you have carpets in your home, vacuuming alone isnt enough. Every six months or so, pay to have them professionally cleaned. This deep cleaning will go a long way toward keeping them like new for a long time to come.

By taking care of these tasks every six months or so, your household will keep humming right along without any issues.

Posted: Tue, 06 Jan 2015 18:19:38 +0000

Over my years of financial struggle I have found great inspiration reading what others have to say on the subject of personal finances.

Fortunately, blogging about money became popular at my financial low-point, providing me with several great role models for a financial turnaround.

Since then, several newcomers have also made it on my daily reading list.  Here are five financial blogs I believe you should add to your reading list.

1.  Mr. Money Mustache

I enjoy Mustaches no-nonsense tone, and his unique approach to living on less.  You can get a flavor of his overall tone with this line from his About page, which describes his motivation for beginning the blog:

The whole country seemed to be displaying the same odd behavior: living ridiculously expensive lifestyles while thinking they were completely normal, and then being baffled when they had no money left over to buy their own freedom.   (mrmoneymustache.com )

2.  Debt Free Martini

Petrishs story reminds me of my own.  Well, at least the part about serving others better than she has served her own finances.  I enjoy her blog because it is personal she shares her struggles with breaking up with Starbucks and provides monthly updates on her debt free progress.

I am a active duty military single mom who is brilliant when it comes to serving others and my country, but have not done so well with handling my finances.  (debtfreemartini.com)

3.  Get Rich Slowly

I first stumbled upon J.D Roths blog back in 2007 and was immediately hooked.  I found much to relate to in JDs writing, and I appreciated his personal style of writing.

Today, J.D. has largely moved on to bigger and better things after becoming debt free and selling his website (he still contributed articles occasionally).  The site remains one of my favorites thanks to its excellent staff of contributors.  (getrichslowly.org )

4.  Good Financial Cents

Ive been a big fan of Jeffs work for a long time now.  Sure, hes a certified financial planner, author and CEO of his own wealth management firm, but he is a down-to-earth guy who served his country in Iraq.  Not exactly your stuffy, buttoned-up financial adviser.  If those credentials dont inspire you to follow Jeff, perhaps these will:

I’m obsessed with In-N-Out Burger, can deadlift over 500lbs, and may have threatened to punch some other financial advisors in the face.

5.  The Simple Dollar

Trent Hamm saw meteoric growth in his blog in the first few years.  Still, it doesnt seem to have changed him.  He consistently cranks out inspiring, thought-provoking articles on daily basis at a pace I find enviable!