Better late than never, that’s what I say. So, on to the weekly recap!

• Probably my favorite post of the week was a guest post by Millionaire Mommy Next Door  on Get Rich Slowly called How I Became a Millionaire While Working in my Pajamas. She talks about how she and her husband started young with a small income and achieved financial security by starting a business. Talking about saving money and cutting spending has it’s place, but stories like this one show why I believe that entrepreneurship and increased income are the real key.
• On a related note, Mrs. Micah wrote about determining what your time is worth when it comes to different ways of making money, particularly online. She mentions things like paid surveys, which can seem like good money but often work out to a very low hourly rate. I do like surveys for a little spare time cash, but her point of knowing how to focus on profitable use of your time is well taken.
• Continuing the income theme, No Credit Needed wrote about how just $10 a day can add up to $750,000 over a 50 year period with only a 5% return. Two points here: 1-Even a small investment really adds up over time, and 2-time is the most important factor, so procrastination is costly.
• Shifting gears, My Dollar Plan has a good list of 10 tips for holiday shopping online. I know that the convenience and lack of crowds has converted me to shopping online almost exclusively, and this list has some good tips to get the most out of it.

Finishing on a holiday note: 10 days till Christmas, are you ready?

Miscellaneous | 3 Comments »

Well, unless you’ve been living in a cave for the last couple of weeks, you probably know that the Writers Guild of America is striking against film and TV producers. Reading coverage of the strike, my first thought was, “Oh crap, more reality shows on TV.”
My second thought was that there were a few personal financial nuggets buried in all the talk.

1. Keep an Emergency Fund

I don’t mean that $1,000 in your savings account. Keep at least 3 months of your total living expenses in a liquid account. I personally would recommend 6 months. You never know when your guild is going to go on strike (or your employer downsizes, or you have to move without a guaranteed job, or…) I know, this is pretty common advice, but that is because it is so important and so neglected by so many people!

2. Develop Multiple Streams of Income

For many of the striking writers, like many of us, the loss of a steady paycheck from writing their show is a major financial blow. Even 6 months of savings can be inadequate if you have a long stretch between jobs.

There are some writers, however, who won’t take nearly as much of a financial hit. Why not? Because they will continue to make residuals from movies and shows they wrote before. Insurance agents are very familiar with residuals as well.

Regardles of what field you work in, try to invest time and money in efforts that will make you money apart from your paycheck. Consider starting a side business doing something that interests you, writing a story or book if you are a wordsmith, or investing in real estate either to fix and sell or to rent out. Learning to invest in the stock market more effectively or even getting a second job on the side are other ways to reduce your dependence on the almighty paycheck.

Notice that generally all of the above options are not mutually exclusive, no need to just do one!

3. Plan for Contingencies

It’s easy, particularly when you’re young, to think that nothing bad can happen to you. Insurance is for older people or those with lots of debt and dependents. Think again.

Losing your paycheck due to a strike or layoff is only one of the things that can put you in financial trouble. Illness or injury, on the job or at home, can do the same thing. Protect yourself with insurance.

Life insurance, health insurance, disability insurance, and even supplemental insurance like AFLAC should all be considered. For a young person, the cost of most insurance is so low that there is little reason not to have at least some coverage.

So while you may be sad that this season of Heroes is probably ending early due to the strike, at least here’s a few finance tips as a silver lining, right? 

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Hard to believe that Friday is already here! Heading into the first weekend of existence for Money Forge, here’s a collection of some of my favorite posts and stories from elsewhere in the financial blogosphere:

Lazy Business Owner has a great post on how to make your business look bigger than it actually is. One of the barriers to starting a small/side business is overcoming your customers’ perception that small=inexperienced and risky, and LBO has some good tips.

If E-Trade’s recent ups and downs have made you a bit uneasy, Jonathan at My Money Blog and Jim at Blueprint for Financial Prosperity talk about SIPC insurance: what it is, what it does, and how to know if you have it.

Also in the investment vein, Free Money Finance has a quickie on why index funds are great investments. I couldn’t agree more.

Trent at The Simple Dollar just finished reading 52 personal finance books in 52 weeks, along with reviews and rankings to help you decide what to read first. Very useful!

Finally, with the holidays approaching (is Thanksgiving really next week!?), five cent nickel talks about ways to reduce the financial pain of buying so many Christmas presents. Our family uses the “draw names” technique, but there are certainly other options!

Also in the Christmas theme, Free Money Finance talks about how to maximize gift cards while five cent nickel cautions against giving gift cards at all. I’m with five cent nickel on this one.

Miscellaneous | 1 Comment »

Congratulations to J.D. at Get Rich Slowly on taking the plunge and quitting his day job to become a full time blogger! Being able to work full time for yourself is a something many people wish for but few accomplish. GRS is one of my absolute favorite blogs, and I strongly recommend adding it to your “must read” list. I get new insights and inspiration from J.D. and his guests every day.

While I wouldn’t exactly call blogging “passive income”, it’s very clear that J.D. has made the mental commitment needed to achieve financial independence, and has advanced far along that path!

What will you do today to make your financial dreams become reality?

Success Stories | No Comments »