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How to Make More Money

When you’re determined to get out of debt, or save for a big purchase, you want to do it as quickly as possible. Today we’re going to look at how you can make more money to hit your goals even faster.

Make More Money

Now, in all honesty, these 5 different suggestions are not going to make you rich, nor are they meant to replace your main form of income. Instead these are strategies that you can use in the short term to help you reach your financial goal.

Both my husband and I have used a couple of these tips to help us earn some extra money. My husband asked around to people he knew and ended up getting an on-call job with the city as a stagehand for our local auditorium. I on the other hand, decided to use my speaking skills and media skills as a teacher to create my own YouTube channel about personal finance and documenting our debt-free journey.

piggy bank with money

So if you’re willing to take some of your extra time and turn it into extra money for your bank account, let’s get started:

 

  1. Turn your hobby or your skill into extra money: Consider what you enjoy doing and know how to do and see if that is something that you can make some extra money from. For example, if you have a dog, and take that dog for a walk everyday, why not look into becoming a dog walker for other people in your neighborhood too? This is a great, easy way to make a few extra dollars. Crafty? Consider opening up an Etsy shop to sell your goods.dreams don't work unless you do
  2. Do some freelance work online: If you are interested in making extra money, but would like to do it from home, there is a great opportunity to pick up some freelance work. Check out Upwork. Becoming a freelancer allows you to select jobs that suit your interests and set your own workload.
  3. Flip thrift store finds: If you’re willing to spend the time searching through the racks, you may in fact find some sought after name brand labels that you could look at reselling online. You want to do your research to see what certain brand names go for in order to be sure it is worth your while, but this is a great way to supplement your income from the comfort of your own home.
  4. Selling your unwanted items: Do you have any old cell phones or tablets lying around if you’ve upgraded to the latest model? Do you have any DVDs hanging around that you don’t watch anymore? Do you have any home items that you simply don’t need? Selling your unwanted items is a great way to free up some extra money and get rid of some unwanted clutter. 
  5. Ask around: Let your friends and family know that you’re looking to pick up a few extra hours of work. Perhaps this will lead to some casual part time work either in a place of work or by helping others by completing small jobs.

 

This is certainly not an exhaustive list, but will hopefully spark some inspiration about what you might be able to do if you are looking for ways to increase your income.

 

Your Turn!

  • What is something that you have done to earn extra money?

Why I Have 7 Savings Accounts

In an effort to not overwhelm my budget every month, I have set up seven (yes, seven) savings accounts. I lovingly refer to these accounts as my sinking funds, and they quickly became my pride and joy (aside from my children of course).

A Sinking fund is where you set money aside for expenses that you know will be coming up, those expenses that would feel like an emergency if you didn’t have anything set aside. Sinking funds allow you to save in smaller, monthly installments so that when the time comes you are prepared with money in the bank (think Christmas or those pesky car repairs).

What should you be setting aside money for?

Think about those larger expenses or special occasions that come up once a year that you wouldn’t likely be able to pay for in one individual month without going into debt. Your sinking funds can also include expenses that you know, eventually will happen.

Our sinking funds include:

  • Car Maintenance
  • Home Maintenance
  • Christmas/Holiday
  • Taxes (my husband is self-employed)
  • Medical Expenses
  • Car Replacement
  • Other yearly fees

How much should you set aside each month?

Luckily this does not involve math that is too complicated. No fancy formulas required. All you simply have to do is consider how much you would like to spend and divide that by the number of months you are going to save up for.

My husband and I decided that we would like our total budget for Christmas to be $1200. That means that since January, I have been setting aside $100 into my Christmas sinking fund.

For something like Car Maintenance, take a look at what you spent on oil changes and repairs last year, divide that number by 12, and that will tell you what you should consider setting aside each month.

If your car is nearing the end of it’s life expectancy, setting aside money into a separate account will give you the ability to pay for that next car with cash. First consider how much you would like to spend on your next vehicle and divide that number by the number of months that you will be saving for. Instead of paying the bank or loan company car payments, plan ahead and pay yourself a car payment. Not only will you be avoiding debt when you have the money in hand, but you’ll be earning interest while you save rather than paying interest if you finance.

There are many ways that you can track the amount you are saving. One method would be to set the money into one savings account and then use a spreadsheet to track how much in that is set aside for each fund. The other option you have is to look into No Fee Online savings accounts where you can easily name and keep track of your sinking funds.

When looking for your savings accounts, you want to be sure that they are no fee. Be sure to avoid those banks that charge you a fee for withdrawing your money from your savings account. The other thing to be on the lookout for are the interest rates that your money will earn while it is in savings. Although the interest will not make you rich from these accounts, you want to look for the most competitive interest rate you can find.

How ever you decide to set aside your savings, you’ll feel great knowing that you’ll be prepared with money in the bank. The holiday season is so much more enjoyable when you know that it’s been paid for with cash.

Your Turn!

  • What are some big-ticket and not-so-big-ticket stuff that you are setting some money aside for?

 

Wants Vs. Needs

By night, I write about and share my budgeting and personal finance journey. By day, I’m a Grade 7 teacher who recently had the “Wants Vs. Needs” debate with my students as part of a Geography lesson. I’m amazed at the number of students who claimed that their PlayStation 4 is indeed a need that they absolutely could not live without.

It seemed ridiculous to me as I tried to convince them that although they would not like to live without these items (tablets, laptops, and TVs also made their list), they would in fact LIVE if those items were to be taken away from them.

Wants vs. Needs

 

But if I’m going to be completely honest with myself, I too have been guilty of blurring the line between what is a want and what is a need, and blurring that line has lead to overspending throughout my adult life. I could step into Target and within five minutes find ten things I didn’t even know I “needed”.

Part of breaking my bad spending habit was to truly define what in fact are my needs vs. my wants.

Defining Your Needs

After a solid half hour of debate, I finally convinced my Grade 7 class that a need is something that is required to survive and live somewhat comfortably:

  • Shelter (no mansions required)needs
  • Food (Fillet mignon every night for dinner doesn’t count)
  • Clothing (just not those $200 basketball sneakers)
  • Basic Furnishings (one TV is fine, having more TVs than people might be overkill)
  • Access to some form of transportation (including comfortable shoes if your main way of getting around is to walk)
  • Basic hygiene and personal care products (including access to medicine)

 

We could all agree then that anything above and beyond these needs could be classified as wants, and there is nothing wrong with wants, as long as you can afford them and you’re not putting them before your needs.

Once I had a solid definition of what in fact a need is, I found that I became much more content with what I have and the list of what I “needed” became much shorter. I also realized that a lot of those things that I thought I needed have simply become stuff. Luckily Ryan has already written about the purpose of stuff and the questions I need to ask myself as I begin the daunting task of decluttering in an attempt to simplify.

Your Turn! 

  • What item do you now realize was a want that felt like a need at the time (Hint: Mine may have been a red pair of heels)

Checking in With Your Budget

When we first started budgeting many years ago, the biggest mistake we made was that we never took the time to check in with our budget. I was under the false assumption that once the budget was written everything would just magically fall into place. This was certainly not the case.

Our financial picture only started to turn around when we not only made our monthly budget, but more importantly, began regularly checking in to make sure we were sticking to the budget. Let’s look at some of the ways you can manage your budget on a daily, weekly, and monthly basis.

Budget Check In

Daily Budget Check Ins:

If you love your smartphone, you’re about to love it even more when it comes to sticking with your budget. With many apps available, you will be able to establish and manage your budget on a daily basis while on the go.

One of my personal favorite apps is Mint. It’s user friendly and you can link up your bank accounts free of charge, allowing you to track your spending in the various categories of your budget which you can also create using this app.

Everydollar and You Need A Budget are two other budgeting apps available to use. For a yearly fee you can link these apps to your banking information. The one advantage of these apps is that you can have two people access the same budget which is great for both you and your spouse to stay in the know.

My one complaint with the budgeting apps is that the purchases made aren’t always categorized correctly so you do have to go in and edit as necessary.

budget pen calculator

Weekly Check Ins:

Since I’m a paper and pencil girl at heart, this is my go to. Every Friday I’ll sit down with my online bank statements from that week, receipts, and my budget and start entering in what I’ve spent and add it to the previous week’s spending. This weekly check in allows me to see where we are in each of the budget categories and how much room is left.

 

Monthly Consolidation:

This is the most important step when checking in with your budget. At the very least you want to make sure you consolidate your budget at the end of every month before the next month begins.

When consolidating my monthly budget, I’ll add up the total amount of income and subtract all expenses. At this point I can ensure that we didn’t overspend, and that with any luck, more money came in then went out. Any money left over we then put toward our debts until all of our debt was paid off.

stay on budget

Once you start paying attention to your budget and track your spending, you’ll really feel as if you got a raise. Paying attention will cause you to spend within your means, if not below your means, freeing up a lot of the money that would have slipped through your fingers to now put towards a more important financial goal.

 

Your Turn!

  • How often do you check in with your budget?

Establishing Your Emergency Fund

Our first step to getting our financial act together was to establish our emergency fund. We had no intention of fully funding it before we paid off our debt, but we knew that we needed a little bit of a cushion between us and life so that we could avoid going further into debt as we paid off what we already had.

Setting up a Starter Emergency Fund

Emergency Fund

Why should I have money in the bank when I’m trying to pay off debt?

Having money set aside in the bank will allow you the chance to continue to work towards your financial goals in case the unforeseen happens. Money in the bank takes the stress away if you face an unexpected car repair or medical expense. You’ll feel relief knowing that you are prepared for a little bit of life to happen while you continue to pay off your debt.

Where should I keep my emergency fund?

You want to make sure that your emergency fund is accessible without being too accessible, that way a take out pizza or a new pair of shoes don’t become an “emergency”. We have ours in a savings account that is accessible online but not with my debit card. Within 24 hours I can have the money transferred to my checking account if an emergency was to occur.

emergency fund

How much should I have set aside?

Keep in mind that your starter emergency fund is not your fully funded emergency fund. While you’re focused on getting out of debt, you want to set aside an amount that would cover most minor emergencies. For our family of four, that meant having $1000 set aside. You may not need that much if you’re single with fewer expenses, while some might feel comfortable with having $2000 or $3000 in savings.

When should I start my emergency fund? garage sale

As soon as you possible, you can never be too prepared. If you already have savings in the bank, it’s as simple as earmarking that money as your emergency savings. No money? No problem. It’s time to look around the house and start selling stuff online or gather up your goods and plan a garage sale. Perhaps you can pick up some extra hours at work or pick up some extra work. Don’t forget to take a look at that budget and see where you can squeeze to save up the money.

With any luck you won’t need to use your emergency fund, but what a feeling of relief it is to know that if life does happen, you’ll feel be for it. Your emergency fund, although just a starter one for now, will bring your one step closer to building your own personal freedom.

 

Your Turn!

  • What does financial freedom mean to you?

 

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