Wednesday, March 26, 2008

Improved Savings Plan: 9 Ways to Save More by Earning More

My upgraded business & savings model is based on a plan to increase the amount of money flowing into my house. As such, I've been trying to restructure our home finances for some time with more weight on the income side of the balance sheet.

In doing so, I'm taking the advice of Bo Bennett, author of the book, Year to Success . On "Day 130," of his program, Bennett offers his view of "A Better Way to Save." He argues that trimming fat and fluff from the family budget can only take you so far. It's a fiscal move with limited upside potential. "When you save money by 'cutting back,' you are working with limited resources." Your savings, Bennett says, is limited to your disposable income.

"Also when you save by cutting back, you are, in practical terms, reducing your quality of life," he says. Not everyone will agree with his logic, but Bennett argues that cutting out the little perks and luxuries of life can hurt our self-esteem and attitude.

As an alternative, Bennett recommends that we save more by earning more. Income sources:

1. part-time job

2. side business

3. business partnership or revenue affiliation on the Internet or some other vehicle

4. request a raise

5. expand your current business or customer base

To that list, I add the following:

1. Sell new stuff. I once read an article about a group of kids who made money by flipping toys on the Internet. The strategy: Buy new toys at steep discounts and sell the merchandise through e-stores or on eBay at higher prices. Buy low and sell higher.

2. Sell your old stuff: Garage sales, Craig's List or consignment stores are money-generating uses for the extra stuff in our closets.

3. Cash in on a hobby or a sports interest: Schools and community centers often pay decent wages to adults who coach after-school sports teams or provide after-school workshops. I know people who have made extra money by offering craft classes, computer workshops and sign language seminars through after-school or community programs.

4. Market areas of specialty: Small and mid-sized businesses need a variety of skills and services, including event planning and technical support. Some companies are willing to pay for quality-of-life services and programs for employees, including Yoga, Spanish or parenting classes. As such, some corporations invite professionals or experts to offer on-site workshops for the staff. Your skills may be ideal for a company-sponsored event or seminar.


1 comment:

tracyho said...

Great tips , I want to try on some of your stuff , selling toys at ebay ,

Thanks & Good Luck ,

Tracy Ho