Increase Savings by Increasing Income -- Methods
bluecutie
It's been a while since I last posted. I began the post titled "How to
Prioritize Saving/Investing When Employer Doesn't Match Contributions"
on 8/18/06. I found answers to my questions and answers to questions I
didn't even know to ask!
Hubbie and I are continuing to invest 10% into our 401(k) plans. I am
currently moving our Roth IRAs to Vanguard and will be setting up
automatic monthly contributions. Funding both the 401(k) plans and Roth
IRAs will be a bit easier now that we have paid off the last of
hubbie's school loans.
Now that we're tossing about $755 into daycare each month, I'm kicking
myself for not having saved more agressively before baby arrived. We're
not struggling as I thought we would be. Well, it helps that both cars
are now paid off, so I shouldn't kick myself too much.
I'm realizing now that the only way we can increase our savings is by
increasing our income. (I also started the "What Is Your Latte Factor"
post. We've determined our spending is not out of line and we don't
have too much to trim down.) I do not plan on finding a new job with a
higher income because my current job has many benefits, including
working from home full-time (no commute, no eating out, go to gym
during lunch, which will help save on medical/health expenses later,
etc.). Hubbie will continue to move up and get adequate raises, but I
don't want to rely on corporate "safety."
What are some ideas to bring in extra income while keeping full-time
jobs?
1 - Buy property to rent out: residential or business (I think this is
the best idea for us; however, I don't know where to start especially
if we're not sure we're going to stay in the town we're in for more
than 2 more years.)
2 - Rent out a room in our house (I have a baby and I have trust
issues. I'm not crazy about this idea.)
3 - Provide a service in free time (Although you wouldn't know it from
my relaxed posts, I'm an editor and could provide freelance editing. As
if I have the time!)
4 - Provide goods in free time (This would require making something.
Again, time!)
What other ideas do you have? Again, the goal is to increase income to
increase savings. We're not interested in increasing income to lead
fluffy lives.
jIM
bluecutie wrote:
> Hi all,
>
> What are some ideas to bring in extra income while keeping full-time
> jobs?
>
> 1 - Buy property to rent out: residential or business (I think this is
> the best idea for us; however, I don't know where to start especially
> if we're not sure we're going to stay in the town we're in for more
> than 2 more years.)
> 2 - Rent out a room in our house (I have a baby and I have trust
> issues. I'm not crazy about this idea.)
> 3 - Provide a service in free time (Although you wouldn't know it from
> my relaxed posts, I'm an editor and could provide freelance editing. As
> if I have the time!)
> 4 - Provide goods in free time (This would require making something.
> Again, time!)
>
> What other ideas do you have? Again, the goal is to increase income to
> increase savings. We're not interested in increasing income to lead
> fluffy lives.
For me my hobby of soccer turned into a paying assignment worth around
3k per year, plus numerous tax deductions for travel expenses. For
each person is different.
If you are each saving 10% into 401k, plus fully funding a Roth for
both spouses, I think you are doing quite well. Be patient and give it
time.
bluecutie
jIM wrote:
. . .
>
> If you are each saving 10% into 401k, plus fully funding a Roth for
> both spouses, I think you are doing quite well. Be patient and give it
> time.
I guess I should add that I am 33 and hubbie is 42. He was a teacher
until he was 36, so we have some catching up to do. He had no savings
upon returning to school and switching careers. I didn't start saving
regularly until I was 27. Shame on us. Our daughter will not make the
same mistake.
bluecutie
jIM wrote:
. . .
> If you are each saving 10% into 401k, plus fully funding a Roth for
> both spouses, I think you are doing quite well. Be patient and give it
> time.
Sorry, correction to my last reply to jIM. Hubby was 31 when he left
teaching to go back to school. He entered industry at 35.
jIM
I am 34 myself... been saving since 25. The earlier you start, the
better. Age 35 is an OK place to be. Do not dwell on "what could have
been". Everyone, myself included, has made financial mistakes. The
fact you learned from yours at age 35 will make the next 40-60 years of
your life more enjoyable.
Sgt.Sausage
"bluecutie" <Blue...@gmail.com> wrote in message
news:1159924087.4...@k70g2000cwa.googlegroups.com...
[snip]
> I'm realizing now that the only way we can increase our savings is by
> increasing our income.
....
>I do not plan on finding a new job with a
> higher income
....
> What are some ideas to bring in extra income while keeping full-time
> jobs?
Do either you or your husband play a musical instrument
of any kind? About 15 years ago I was able to increase my
income by (average) about $350-$500 a week with my
guitar playing. $10.00 for a half hour lesson (that's $20 bucks
an hour) for the local high-school kiddies for about 10 hours
a week (roughly $200 bucks a week) and the remainder was
made playing guitar on stage at the local college pubs in
the area.
It ain't a lot of extra money, and it takes a while to build up
a large pool of students -- but at that time it was making
me more than my "day job" was -- and was far more fun
too.
.
bluecutie
jIM wrote:
. . .
> 3k per year, plus numerous tax deductions for travel expenses. For
> each person is different.
Are you coaching? I'm thinking maybe I could tutor in the local
community college learning center, but again, I'm just not into
spending precious time on top of my full-time job. I want to spend time
with hubbie and baby, which is equally important as saving. I'm hoping
some folks on here have advice on something like rental properties or
something else I'm not considering.
bluecutie
Sgt.Sausage wrote:
. . .
> Do either you or your husband play a musical instrument
> of any kind?
. . .
Long or short answer? Short: No. Long: I used to play the flute (4
yrs), then I switched to choir (4 yrs), then I left choir so I had time
to work while putting myself through college (5 yrs), then I took up
violin and got bored with it (1 yr), then I bought an acoustic guitar
and tried to teach myself (1 yr). The guitar is upstairs in a closet. I
was thinking of saving it for my baby girl, but maybe I should sell it!
I can sing, however, I don't think I could get paid doing it and don't
have credentials/knowledge to teach others how to sing.
Shoot. Good idea though.
Keep 'em coming, guys!
joetaxpayer
bluecutie wrote:
> I'm just not into
> spending precious time on top of my full-time job. I want to spend time
> with hubbie and baby, which is equally important as saving. I'm hoping
> some folks on here have advice on something like rental properties or
> something else I'm not considering.
I was thinking about this and about to recommend some side jobs that
would turn time into money at a fair rate, tutoring (in whatever subject
your husband taught in school), and consulting by you in your chosen field.
I caution you that rental property is not a low-time-sink endeavor.
If you can find a property where the rent pays for the mortgage, taxes,
upkeep, etc, you are likely to find it needs a bit of work, some sweat
equity. The risk that comes with bad tenants is always there, (see the
Michael Keaton "Pacific Heights" (1990)) and in the end the successful
real estate investors started by putting in a lot of time, if only to
avoid paying plumbers $200 to change a washer.
Just my two cents.
JOE
jIM
I am a coach and a team trainer for various youth organizations in
Cincinnati.
Tutoring is a good equivalent it sound like (for you). Sgt's
suggestion was an equally good one. The primary issue is you need to
ask yourself what is best investment of your time? family or money?
My wife participates in surveys and baby sits, does a few other things
to bring in around $1000 cash per year. My soccer brings in around
$3000. One of our keys to a successful marriage is we don't see each
other "that often".
Your post hints that you may want a passive income. Real estate is not
passive (from what I've read). The $$ might be more than the $4000 I
mention, but the time spent is much higher (and the liability is A LOT
higher).
CIL
Do you have hobbies that can be turned into profit on Ebay or similar
websites. There's tons of baby clothes, dolls, doll clothing, musical
instruments, sports cards, coins etc. being sold daily. It seems everyone
has a niche and some sellers are over 10,000 feedback entries.
I noticed one is selling spreadsheet applications; after you pay he/she will
email the spreadsheet. Some of you spreadsheet gurus may want to look into
this venture.
Hope all have a great evening..
bluecutie
jIM wrote:
. . .
> Your post hints that you may want a passive income. Real estate is not
> passive (from what I've read). The $$ might be more than the $4000 I
> mention, but the time spent is much higher (and the liability is A LOT
> higher).
Yes, I think that is where I'm leaning: passive income. So what about
it? Would it make sense to start investing for income and not max out
the Roth IRAs? Could I possibly make enough by buying assets to make it
worth not maxing out the Roths?
bluecutie
CIL wrote:
. . .
> I noticed one is selling spreadsheet applications; after you pay he/she will
> email the spreadsheet. Some of you spreadsheet gurus may want to look into
> this venture.
Actually, my hubbie is great with creating custom spreadsheets. That's
not a bad idea. He likes playing with Excel so it could be enjoyable
for him and not too much "work." I'll have to search the sites, find
this person and see what they're charging. Hmmm.