One of the most popular posts on The Wisdom Journal is 26 Ways To Make Extra Money While Keeping Your Day Job. Many of the ideas in that article require cash seekers to start their own small business of sorts, from babysitting to plant maintenance to tutoring kids to “mining the miners.”. But there are at least three other ways to generate extra cash in your pocket.

The fours ways to make money are:

• Start a business
• Work more
• Passive income
• Spend less

1. Starting a business – okay, we’ve got that one out of the way.

Starting a business takes a special personality type. It takes someone with the motivation and ability to handle the details involved in putting an idea into motion and the wherewithal to follow through. The time, effort, money and nerves that it takes to run a business (that has no guarantee of success) means that very few people will take this route.

2. Alter your work situation

If you can manage to get some overtime at work, a major promotion or raise, or take on a second job, changing your work situation DOES have a guarantee of sorts: you show up, clock in, and work and you’ll get paid. Whether you take on a second job, get a raise because you went back to school to finish your degree, or because you seized an opportunity to move up in the company, make sure your lifestyle doesn’t absorb your extra earnings.

3. Go passive

No income source is completely passive. Everything requires some sort of effort from someone at some point (even an inheritance was earned in the past). Examples of “passive” income could be the interest earned on your investments, getting royalties for past work, or some sort of arbitrage. The key to making money through your investments is accumulation. The more you’re able to save, the more interest you’ll earn. Even if you can manage to get a 25% return, if you only have $500 in that investment, you won’t make much. Eventually it will make a difference, but it will take a while without major contributions on your part (maybe from that second job?).

4. Spend less

Sure, this is a way to increase the cash in your pocket. Before income taxes, Ben Franklin said “A penny saved is a penny earned” but today a penny saved is one and a half or two pennies earned. If you can avoid spending, you can stretch your dollars and put those “earnings” into your bank account.

One of the downsides of making extra money is, of course, taxes. In our progressive tax system, the tax loss resulting from entering a higher income bracket is not prohibitive, but it is discouraging. You work harder (and many times longer), but the returns on your efforts diminish as your income tax rate increases.

Don’t let it deter you though, especially if you set up a small business. Many times you can offset most of your income through business deductions and the legal avoidance of these progressive taxes but and still come out ahead.

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Priorities, especially financial priorities, are all about making choices. They’re about deciding what outranks something else, about the relevance of one item against the backdrop of your personal financial situation. Priorities determine what you spend money on … and what you DON’T spend money on. What are MY financial priorities?

I rank my financial priorities according to five separate criteria:

1. Things that are critical
2. Things that are essential
3. Things that are important
4. Things that are significant
5. Things that are preferable

The great thing about “personal” finance is that it is indeed PERSONAL. What is important for a 44 year old male with a stable job and three teenagers is different than what is important for a 72 year old female on a fixed income and different again for a 21 year old college student with erratic income and a bright future. There are general rules of thumb, but I personally avoid giving (or accepting) hard and fast advice, especially advice from someone in a completely different financial situation than myself.

So, where do my financial priorities rank?

Critical

1. If there’s one thing that’s critical, it’s taxes. I make sure my taxes are on time, complete, accurate, and honest.
2. Also critical is spending less than I earn … no matter what. Some people call this “debt avoidance.”
3. Regularly making deposits to my savings account is also critical in my personal financial plan.
4. Another critical aspect for me is taking advantage of any employer sponsored retirement benefits and backing those up with personal retirement investing.

Essential

1. Having the right insurance for my car, my home, my health, and my life.
2. Living by a budget is also essential. It keeps my dollars working for me rather than me working for them. YNAB is the best way to insure your spending plan is workable.
3. Another essential piece of my personal financial plan is having a healthy emergency fund. Nothing makes me sleep better at night than knowing I can weather a money emergency.

Important

1. Managing my credit score and credit report (they are different, you know!). I want to make certain that my credit reputation is stellar.
2. Fully funding my children’s 529 plans for college.
3. Making regular donations to my church is also important to me personally.

Significant

1. Preventing identity theft ranks relatively high for me. Having gone through that nightmare, I have a little bit of a different perspective than a lot of other bloggers.
2. Living a frugal lifestyle and not wasting money, while significant in my daily life, doesn’t overwhelm and dominate every decision I make. Life’s too short.
3. Making extra money is a significant aspect of many of my decisions. I think it’s a lot more fun to increase my income than constantly fight battle with the outflow.

Preferable

1. Paying off my mortgage early is something I prefer to do, but it isn’t that high on my list.
2. Buying some rental property is another thing that interests me personally, though I know that being a landlord is a nightmare at times. I might prefer to buy fixer-uppers since I have a lot of latent handyman skills (that i rarely use anymore).

So there you have my personal financial priorities. What are yours?

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Note: This is a guest post from Taxdebthelp.com.  If you would like to guest post here at The Wisdom Journal, please use my guest post submission form.

Take a good look at your most recent pay stub and note the box that identifies how much in taxes the government skimmed off the top of your pay. Those funds are supposed to be used for better roads, cleaner water, and of course to pay the salaries of the elected officials.

In the spring, when taxes are due, refunds are met with joyful dancing and unexpected windfall spending. Wouldn’t it be better to get more greenbacks each pay period rather than lump sum windfall at the end of tax season?

When you overpay your taxes each pay period, your money is used for ‘free’ by the government. It skims a percentage from each paycheck and if you don’t ask for it back, it keeps it. It is up to you to prove that you have paid the government too much by filing your tax return. Usually when money is borrowed, the lender gets paid an interest rate.

If the government owes people money from overpayment of taxes, it doesn’t have to pay interest. Ironically, if the tables are turned, the government certainly charges interest (and penalties and fees) on money owed to the Treasury should the taxpayer fail to pay by the deadline! Seems just a bit unfair, don’t you think?

Forced Saving

Sometimes it is easy to determine the withholding tax. A single person, for example, may receive one W-2 form and the government extracts (via your employer) a certain amount per pay period. This person typically gets a refund.

But this means the government was paid more money than necessary. This can be seen as some as a ‘forced saving’ routine. The government takes off more money than is necessary and after tax time everyone forgets about it because they are so happy they got a refund rather than having to pay more in taxes.

‘Forced savings’ at best puts more money in the hands of government officials to satisfy day to day operations. The worst of the forced savings is that the government has use of the money rather than the person that made the money.

Earn More Money

The money that the government takes in taxes every pay period is earning them money. Each year the government plans on millions of people paying too much on their taxes throughout the year. This money earns interest in the coffers of the government until they have to pay it back to individual tax payers.

Why not LEGALLY reduce the amount that the government takes each pay period and put it to your own good use? Rather than giving YOUR money for excess taxes, keep the funds, invest them and make more money with interest. Taxes will have to be paid on the interest, but rather than handing your excess cash over directly to the government, why not make some interest on it until tax time? It might make you a tidy sum … certainly more than you would make otherwise! It may be even more than what you were expecting with a tax refund.

This article is provided for Taxdebthelp.com, a site designed to help with tax debt.  If you are in need of IRS debt help, this site can help you figure out what your options are.

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I always thought that reverse mortgages were a way to loot money from senior citizens. But after some careful research on reverse mortgages, I found out that they really can give a helpful boost of income to a struggling homeowner. Since reverse mortgages are targeted specifically at an older demographic, there are opportunities for abuse, but as long as ethics are followed and meaningful regulations obeyed, homeowners and their equity will remain safe.

Reverse mortgages work like a standard mortgages, but in reverse.

• They release equity from the house as a lump sum, a credit line, or a monthly payment (tax free).
• The loan is only required to be repaid, if the home is sold or no longer used as their primary residence for 12 months or more.
• If the loan becomes due, the homeowner or heirs can sell the home and pay it off with the proceeds of the sale. They may even keep the house and refinance to receive positive cash flow if the loan on the reverse mortgage payment exceeds the refinance payment.
• The homeowner can never owe more than the value of the home.
• Heirs will never inherit debt and can ultimately choose to sell, refinance and buy it back, or let the lender take the property.

Two facts changed my mind about reverse mortgages:

1. Reverse mortgages require financial counseling.

This assures that homeowners understand exactly what they are getting into. The counselors are a neutral 3rd party and have no incentive to persuade anyone to sign any loan papers.

2. A homeowner with a reverse mortgage will never lose their home as long as they pay their property taxes and insurance.

A specific type of reverse mortgage called a “tenure payment” guarantees the homeowner a monthly payment for life! No matter how long they live, as long as the home functions as their primary residence, they will receive a monthly payment.

Government regulations make it work

Reverse mortgages are a complex financial agreement

The complexity of a reverse mortgage makes it easy to see how they could be used to take advantage of an elderly homeowner, but government regulations keep the homeowner from getting an unfair deal. To qualify for an reverse mortgage, homeowners must receive mandatory financial counseling to cover all the fine points of the mortgage and make sure the homeowner understands what they are signing. There are 5 different types of payment options to choose from, plus tax implications that come with an reverse mortgage. There is even a small chance that an reverse mortgage could affect disability payments. Counselors will make sure that homeowners know about any negative consequences an reverse mortgage might cause.

What about foreclosure?

Another thing that made me feel better about reverse mortgages, is that the lender can NEVER foreclose on the property as long as the homeowner resides there. No matter how long the homeowner lives, as long as it is their permanent residence, they can never lose their home. Also if a homeowner accepts a “tenure” payment, they get that monthly payment FOR LIFE! No matter if they live to 112, as long as the home is their primary residence, they will receive a monthly reverse mortgage payment.

Negative Aspects of a Reverse Mortgage

Although there are some positives, there are a couple negative aspects to consider.

High fees

Reverse mortgages are much more expensive than other types of loans. The closing costs associated with an reverse mortgage were about 150% greater than the fees from a traditional loan.

Medicaid and Social Security could be affected

Also it is possible (but not likely) that Medicaid and Social Security payments may be affected by a reverse mortgage. If reverse mortgage payments aren’t spent within the month that they are dispensed, they could accumulate to a level that would not allow Medicaid or SSI eligibility.

Reduced inheritance for heirs

Another negative is that reverse mortgages take inheritance away from heirs. If you wanted to pass down your home to your family, an reverse mortgage will affect that. Once the homeowner passes away, the heir will need to sell the home and the revenue from the sale will go back to the lender. The amount that is left over will be kept by the heirs.

Unethical companies

Also there have been instances of unethical companies convincing elderly clients to buy annuities or life insurance with their reverse mortgage cash. This wasn’t illegal, until a couple years ago. A law was been passed in 2008 making it a crime to sell homeowners annuities or other products when taking out their reverse mortgage.

The VAST majority of homeowners are happy with their reverse mortgage

Overall most homeowners that received reverse mortgages reported that they were happy with the outcome. A study by AARP showed that 93% regarded it as a positive experience. The studies show that younger homeowners tend to get the lump sum payment to pay off credit card debt or medical bills. While older property owners used it to pay day to day expenses. But I think the key to a very good outcome, is the type of payment option you choose. The “tenure payment plan” could add a level of financial security to an elderly person’s life. Knowing that as long as you live in the house you will “receive” a monthly mortgage payment can give you piece of mind. When you are past your working years, a reverse mortgage can help you live off the wealth you’ve built over your lifetime.

*About the author: This post was written Visit our site if you need information about credit card debt problems, bankruptcy, or debt collector issues.

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The biggest threat to your savings account isn’t Wall Street. It isn’t your bank. It isn’t your utility bills. It isn’t debt, credit cards, gasoline prices, your stockbroker, your employer, your spouse, your kids, your bombed out car, your credit report, buying Christmas presents, cable television, health care, your car insurance, or even a lack of a budget.

The biggest threat to your savings account isn’t your student loans, your fat mortgage, your friends, jury duty, your tax rate, your IRA contributions, going to the movies at the theater, failing to buy in bulk, overlooking a hot ETF, too many books, not enough books,or going out for a few drinks this past weekend. It isn’t buying a new car, drinking sodas, a lack of an inheritance, stopping off at convenience stores, season tickets, late payment charges, your shoe collection, gambling, your cell phone plan, bottled water, a lack of insulation, a home equity loan, or your affinity credit card.

It isn’t your credit score, your asset allocation, old medical bills, vacation expenses, declaring bankruptcy, or a lack of coupon clipping. The biggest threat to your savings account isn’t your past due dental bills, a daily latte, interest charges, your large home, too many clothes, chasing returns, or the size of your paycheck.

It isn’t buying lottery tickets, beer, cigarettes, pesky debt collectors, shopping at the mall, birthday gifts, a lack of a Christmas Club, your marriage, food prices, summer camp, your property tax, your mother-in-law, or your pet costs.

The biggest threat to your savings account is YOU

Sorry, but it really is you. You are the biggest threat to your own attempt at stockpiling cash for your future. Offensive? Perhaps. But many times, it’s the offensive stuff that changes your life, so go ahead an be offended. It might actually help.

All the items I listed above CAN be threats to your savings account, but excluding judgments or garnishments, you are the only one who can withdraw that cash and spend it.

We tend to seek every opportunity to lay blame at the feet of someone or something other than ourselves. Even when we do “accept responsibility,” we do so begrudgingly, with justifications galore – expressed and not expressed.

We make choices every day and those choices have consequences. Too many times we blame the choice rather than the chooser. And so, we live in bondage to the choice, allowing it to control our lives, thoughts, actions, and future.

What should we do?

Protect your savings

Make your savings account somewhat difficult to access. Consider using an online bank such as ING Direct where withdrawals are not instantaneous (as opposed to the bank where you have your checking account).

Automate your savings. Make regular deposits. Once your emergency fund is in place, move specific amounts ($1,000 to $2,000) into a brokerage account for investing.

Sometimes you have to protect your savings from their greatest threat by putting those funds into accounts you can’t easily access.

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Perspective.

The more I learn about myself and my finances, the more I understand that I’ve lived far too close to the edge of uncertainty. Quite frankly, there were times in my past that I actually went over the cliff but was able to hang on just enough to pull back up. I’ve gained a lot of perspective from this risky living, and I’m focused on moving back from the edge. The view might be pretty, but I can still see everything quite nicely from where I am now.

How does someone know if they’re living on the edge?

1. Are you living paycheck to paycheck?

That’s the first sign and it’s the most glaring reason you need to develop a budget. Paycheck to paycheck living ain’t fun. It’s gut wrenching and frustrating. You can’t do anything until that next payday and if you need milk, or shoes for the kids, or a new tire, you have to wait. I hated living paycheck to paycheck.

What to do?

Get your finances on a budget. You don’t have to do anything fancy like YNAB (though it is the BEST budgeting software out there in my opinion). You can draw up a spending plan with a pencil and a notepad. The point is to know how much is coming in and where it’s going for the first month, then decide where you want it to go the next. YNAB will easily help you do that but don’t neglect budgeting if you don’t have their software yet.

2. Is the straw about to fall?

You’ve heard of the camel that carried more and more and more until he was at his limit. Then a straw fell on his load and that little bit of added weight broke the camel’s back. Does that describe your checking account? Would one more monthly bill crush you?

What to do?

Either you’re going to have to sell something to pay off a bill or learn how to make extra money. There are only two inputs into your financial equation – income and expenses. The name of the game is increasing your income while decreasing your expenses.

3. Would anyone’s untimely death throw you into a financial tailspin?

Every person in your family, yes even the infants, needs life insurance. Anyone who says otherwise is either ignorant or has never experienced the loss of a child. Losing anyone you love is devastating, but when you add to it the necessary grieving process, that usually means time off from work. Would you want to go back to work the day after your child passed away? If not, get a cheap insurance policy on them.

The need for life insurance is doubly important for parents, even the non-income producing ones (for the same reasons you need insurance on a child). But if you’re the breadwinner, you need at least 15 times your salary to sufficiently care for your family should you die.

What to do?

Get a life insurance checkup. You can protect a family of four for less than $40 a month with New York Life Insurance. If you don’t want to go with them, check out other options like NetQuote or insureme.com and find another company, but don’t put it off. Widows and widowers will back me up on this one.

4. What does your savings account look like?

Face it, your savings account needs a comma (two would be nice). There are all sorts of ways to squirrel away some cash if you can get a little creative. Try reading my 17 Sneaky Savings Strategies for some ideas. No matter how you do it, you have to start saving money.

What to do?

Check into ING Direct or any of the other banks in my list of online banking options and get an account started. Then fund it regularly with consistent amounts automatically deposited from your checking account.

5. What does your credit look like?

Your credit score and report are becoming increasingly important for anything from renting an apartment to getting a job to financing a vehicle. Protect your credit reputation (that’s what it really is) by making on time payments, keeping your creditors informed about your financial situation, and not getting in over your head.

What to do?

Go to annualcreditreport.com and get your free copy. You’re entitled by law for one free credit report from each of the three bureaus per year. If you see anything that’s wrong, contest it. Don’t let your credit be damaged because of any inaccurate information. Remember, you can insist that inaccurate information be removed, but you can’t remove information that’s correct. If there seems to be some bad, yet accurate, information, try to add something positive to your credit report.

In tomorrow’s post, I’ll examine things that push you to the edge.

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Yeah, I know, it’s still cold in many areas, but SPRING is coming and you know what that means! Yard sales, the smell of freshly cut grass, grilled hamburgers, baseball games, and pool parties! Woo Hoo! There’s nothing like the feeling of getting rid of your unused stuff and getting cash in return. Sweeeeet!

Why have a yard sale?

• It helps you get rid of clutter
• It helps you make extra money
• It can be a social event
• It helps your kids learn to be entrepreneurial

Here are some of my personal tips for having a great yard sale.

Clean and de-clutter

Put some elbow grease into cleaning out your garage, your basement, your closets, and your attic in preparation for your yard sale. Get rid of anything you haven’t used in the last two years and don’t hold back! Just because you can’t imagine anyone wanting your junk doesn’t mean there isn’t someone who does. What have you got to lose by putting it up for sale? Budget plenty of time for the de-clutter step.

Make your yard sale an event

Involve the neighbors by asking them to have a yard sale the same day. Multi family yard sales attract a lot of people and the more “customers” you have viewing your wares, the better your chances of making some serious cash.

Advertise your yard sale

Remember the biggest principle of advertising – simplicity. Keep your signs simple and brightly colored. Post signs at busy intersections and on your front lawn. Big arrows pointing the way toward the sale make it easy for motorists to navigate their way to your wares.

And don’t forget to advertise on Garage Sale Tracker, in the newspaper (yes, there are still some around), on Craigslist, at your church, and any other place where people gather.

Organize your yard sale the night before

Make sure you have some tables and a few chairs as well as plenty of change. Organize your products by what makes sense, baby items with other baby items, tools with tools, and toys with other toys. Hang any clothes and make sure you have an extension cord or a power strip ready for customers who want to test electronic items. Have a trash can nearby so people don’t drop trash in your yard.

Price your goods to sell … but not too low

As much as it pains you, others probably don’t value your goods as highly as you do, but don’t sell yourself short. I’ve been to yard sales where things were priced 10 percent under retail and others where things were all 10 cents. Neither approach makes sense but selling most items at 10 to 20 percent of their retail value is a good rule of thumb.

You can also make group offers — “everything in this box for $10” for example.

What day should you have a yard sale?

Saturdays are by far the most popular day, but I’ve seen very successful yard sales start on Thursdays or Fridays. If you decide to have your yard sale only on a Saturday, be prepared to start early. I’ve had people show up at 6am, knocking on my door in an attempt to get the best deals on the freshest merchandise. Don’t be afraid to tell them what time your sale starts but remember that you don’t want this stuff! Sell it as soon as possible!

Other yard sale tips

• Don’t hover over your customers
• Be prepared to haggle
• Don’t stick to your prices so firmly you miss every sale
• Set up limits of where you want customers to wander
• Let your kids sell cookies and lemonade
• Watch your cash box and keep most of your money inside your home
• HAVE FUN!

A yard sale can be a great source of quick cash. Use these tips to convert your stash of stuff to cash to pay off debt, pay for a vacation, or whatever you want.

Yard sale photo by by ‘SeraphimC
Yard sale sign photo by by AndreJenny.com

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What if much of what you think you know is wrong?

Just because a belief is widespread and pervasive doesn’t mean that it’s true. If you read or hear something about personal finance or money, take a few moments to think it through. Do some independent research to see if there could be another side to the coin.  And never let a financial myth stand in the way of achieving your financial goals. The only way one of these money myths can stop you is if you believe it.

I assembled some pervasive money myths after listening to unsuccessful people over the years. This is a big list, but I’ll bet you have a few you could add to it. Which of these have you heard?

1. I don’t need to start a business or ask for a raise, I’ll just wind up paying more in taxes anyway.

2. Saving 10 percent of my income is plenty to carry me to financial freedom in my retirement.

3. There is a magic bullet out there somewhere that will make me rich – I just need to find it.

4, All credit cards are alike.

5. Budgeting is for nerds. I don’t need to waste my time.

6. A few late payments on my credit card won’t hurt my credit score.

7. A few bounced checks won’t hurt me either. The bank knows I’m good for it!

8. An emergency fund is for someone who always lives in fear.

9. I don’t want anything expensive so I don’t need a savings account.

10. I’m debt free so I don’t have to worry about managing my money or budgeting.

11. More money will make me happy.

12. I’m renting out my home while I’m living in another city but I don’t need to tell my homeowners insurance company.

13. I can’t switch checking accounts because I’m using overdraft protection.

14. I can eat out at restaurants as cheaply as I can prepare meals at home.

15. The more credit cards I apply for, the better.

16. I don’t need a will since my spouse and I own everything jointly.

17. My home equity is my retirement plan.

18. I don’t make enough money to save.

19. Going to a private college is always worth the cost.

20. Individual stocks are the best investment for the long run.

21. I can time my stock buys and sells to take advantage of trends in the market.

22. No one can pick stocks effectively.

23. Renting a home is like throwing money away.

24. My work is just a job and all I need to do is enough to not get fired.

25. All loaded mutual funds are bad and any no-load fund is better.

26. I don’t need to understand “how” an ETF makes money, I just need to know that it does.

27. All mortgage companies have the same rates and fees.

28. Real estate agents really understand the ins and outs of personal finance.

29. I’m not very good at math so I can’t manage my own money.

30. I always get a raise and a bonus every year so I don’t need to worry about setting up a budget.

31. Being happy is a direct result of being able to buy whatever I want.

32. Money is the source of all evil and trying to make more money is a bad thing.

33. It’s a fantasy to imagine that someone would PAY me to do what I love.

34. With today’s low interest rates, I’m better off keeping my money under a mattress rather than in a savings account.

35. I can make extra money anytime I want.

36. Making extra cash by using the Internet is easy.

37. You always get what you pay for.

38. The US income tax is illegal and voluntary according to their own charter.

39. One of the major advantages of home ownership is the ability to deduct your mortgage interest on your income taxes.

40. Real estate investing is the answer to all my financial problems.

41. Late night television infomercials have great ideas for making more money.

42. Don’t worry about the fine print – credit issuers won’t put anything nefarious in the contract.

43. Bad credit won’t stop me from getting a great job.

44. Bad credit won’t stop me from renting my dream apartment either.

45. Unemployment benefits will keep me afloat for six months or more.

46. I shouldn’t deprive myself of anything.

47. It’s too late to do anything about college financial aid.

48. Money is scarce.

49. Paying all bills online is always cheaper.

50. If I decide to walk away from my home, the mortgage company won’t care because they get to sell the home and keep the profit.

51. I’m too old to start saving now.

52. I’m too young to save just yet.

53. I’m middle aged and still trying to get established so I don’t need to save either.

54. I don’t need to worry with protecting my identity.

55. Term life insurance is always the best bet.

56. I’m too young to waste money on life insurance.

57. I don’t need any life insurance because no one is dependent on my income.

58. No matter how much I have on deposit at the bank, I’m protected by the FDIC.

59. A debt consolidation loan is the answer to my problems.

60. I can declare bankruptcy on my student loans and get rid of them forever.

61. Bad credit will follow me for the rest of my life.

62. All credit cards come with automatic travel insurance.

63. Life insurance is voided in cases of suicide.

64. Only the rich pay higher taxes.

65. Stockbrokers are required to have my best interests at heart.

66. When the market hits the skids, it’s time to sell everything.

67. A 401(k) is always the best way for me to save for retirement.

68. I don’t have the time to develop a side income.

69. I’m smart enough to do everything financial on my own.

70. I can’t find a job that I really want.

71. Whatever it is, it won’t happen to me.

72. It’s useless to save money for college because my kids will be less eligible for financial aid if I do.

73. Once you hit your salary goal, you’ll be satisfied.

74. I can change my phone number and get those debt collectors off my back.

75. Using Consolidated Credit Counseling will hurt my credit.

76. If something is on sale, it makes sense to buy it … just in case you need it later.

77. Actively traded mutual funds outperform index funds.

78. To retire, you’ll need 80 percent of your current income.

79. Retirement means kicking back and relaxing all the time.

80. I shouldn’t worry about paying off my mortgage early.

81. I can’t do anything to positively affect my credit report.

82. Young people don’t have credit scores.

83. A bigger home is a sign of success.

84. You can get full Social Security benefits at age 65.

85. Money experts are skillful with numbers.

86. When layoffs are coming at work, it’s best to stay under the radar.

87. My credit score will improve if I always carry a balance.

88. I need a large sum of money to start investing.

89. The government will take care of my mortgage if I have problems paying it.

90. Borrowing funds to invest (using other people’s money) is a sure-fire way to make a fortune.

91. I make rational, reasoned decisions when I spend money.

92. A stack of credit cards could be used to successfully fund a new business.

93. I should buy GOLD!

94. There aren’t any really creative ways for me to save money.

95. Minimum payments on my credit cards are okay.

96. I can’t increase my value at work.

97. I don’t need any particular strategy when paying off debt.

98.I need someone else to help clear up my credit.

99. MY job is secure.

100. I’m too old to buy life insurance.

101. There’s nothing money can’t buy.

Photo by Precious Dream

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I love the new E*Trade commercials. The marketing company who dreamed up the talking babies created a memorable phenomenon with people who will probably never use their products. That’s a shame, I’ll explain later. First, watch these two new commercials and enjoy!

E*Trade has been around for 20+ years and was one of the Internet’s first major online brokers. Today, they’re recognized as the #1 online broker by Smart Money magazine.

With very low pricing and an innovative platform, it’s no wonder they’re ahead of the pack. E*trade also offers opportunities to learn about trading stocks and making the different investments they have available.

Me? I’m sticking with How A Second Grader Beats Wall Street, making small investments into a broad based US index fund, an international fund, a bond fund, and a commodities fund. The thing is, I make all these investments via ETFs (exchange traded funds) through my online broker – E*Trade! If you’d like to do the same thing, read the book and then open an E*Trade account yourself!

Links to products or services may be affiliate links. See my disclosure policy in the footer of the site or on my About page.

Congratulations to Kitty who left a comment on one of my posts about YNAB (You Need A Budget). Her comment didn’t win but her suggestion for a future topic DID! Kitty, I’ve sent you an email so as soon as you get it, respond back to me and I’ll get your $60 in FREE budgeting software on it’s way to you!

Her suggestion:

how to recover from stupid spending or stupidity in general, such as forgetting to pay your home owners until you have to be re-inspected or when you know you need a roof and don’t have the money for it.

Great idea, Kitty. There were a LOT of great ideas for future articles and I’m already sorting through them. Thank you to everyone who contributed.

I sincerely wish I could give everyone a copy of YNAB. It really is the best budgeting software you can use. Why?

The people who designed You Need A Budget really had their thinking caps on! If you head over to YNAB’s site, you’ll find several things that no other financial software company offers:  free tutorials, video tutorials, budget coaching, live online coaching, YNAB university, forums, a blog, as well as a free 7 day trial of their program. They don’t demand your passwords and logins from your bank (a super nice security feature). To top it all off, they don’t refer you to a FAQ page if you email their support staff – they actually respond to your individual email. Imagine that!

Everything YNAB revolves around their four tenants of budgeting:

1. Stop living paycheck to paycheck
2. Give every dollar a job
3. Prepare for rainy days
4. Roll with the punches

What sets YNAB apart in my mind is how they focus on helping you to establish a buffer – essentially you live on LAST month’s income by building a buffer with excess funds that your new budget helps you uncover.

From there, you learn to give each dollar a specific job. That job may be to pay your rent, feed your kids, save for retirement, or build your buffer.

YNAB helps you plan for those rainy days with a built in emergency fund for when your air conditioner dies, or your transmission needs repair, or your child gets sick and you have high deductible insurance.

Lastly, because you learn to live on LAST month’s income, a current hiccup in your budgeting plans doesn’t throw you off track. How many times have you started budgeting, had something come up, and you gave up? I know I have. YNAB’s built in flexibility keeps your budget in force even if life gets in the way.

So, if you didn’t win the software, you can still win by checking out YNAB’s free 7 day trial. Check it out and give it a try. I think you’ll see how intuitive and ridiculously easy it is to use.

Photo by jody.klopp

Links to products or services may be affiliate links. See my disclosure policy in the footer of the site or on my About page.