If you are looking for a good part-time job or business to start, you should definitely consider the valet parking industry.

You’ve no doubt seen valets at nice restaurants and hotels. But did you know there are third-party valet service companies geared towards the private party (e.g. weddings) industry?

When people throw a big wedding or party, one of the things they don’t want their nicely-dressed guests dealing with is finding a place to park and then walking a long distance. A third-party valet service is a nice way to impress your guest and show them you appreciate their attendance. It’s also a good way to ensure your party doesn’t cause a riff with city parking ordinances.

My Valet Parking Job

I worked for a valet parking service company in college and it was one of my favorite part-time job experiences. It offered flexible hours and I could make a good amount of money (tips only) with little work.

The company I worked for did mostly private parties, so I worked a lot of weekend nights where I easily brought home over $50 for two hours of work. Each person would tip around two bucks.

It was good, quick money (in cash) and it fit my already busy schedule which had me at classes during the week and waiting tables most nights.

Who says you have to wait till you're rich to drive nice cars?

If you are interested in finding a valet parking job, I suggest you start with the phone book and/or craigslist. Find the local companies in your area and solicit your services.

If you aren’t having luck with making direct calls to companies, I suggest you pound the pavement (of the nice neighborhoods) on Friday and Saturday nights to meet the companies where they are at. Other places to inquire are local country clubs and nice restaurants.

Get to know the other valets and they can tell you about any opportunities.

Along with a smile and friendly disposition, you’ll need to be at least 18, have a drivers license, and you’ll most likely be subject to a drug and background check. You’ll also need to be able to drive a standard transmission.

Starting a Valet Parking Company

I could see how owning a valet parking company would be very appealing to many entrepreneurs looking for a lean operation to run. I reached out to Tulsa Valet Parking business owner, Joel Reyes for the inside scoop on starting your on valet parking company.

Mr. Reyes started his parking business back in 2005 while balancing a full-time career in marketing. He decided to start the business after discovering the poor service from other valet parking businesses in town.

I asked Mr. Reyes what his three biggest concerns would be in staring a valet parking business.

1. Insurance – As I suspected, insurance was most important. Insurance companies view the parking industry as very high risk and rates are as high at $20,000 in your first year. Your first step in establishing this business will need to be to reach out to an insurance agency and find the rates in your area. Along with insurance, be sure to inquire with your local and state governments about any permits or licenses required to operate.
2. Quality Staff – Finding quality valets is critical to your success. Start with people you know and trust and then hire only based on referrals from current staff members. At the valet company I used to work at, only one or two trusted valets were allowed to recruit others. Always check driving records and get a copy of their current license. Mr. Reyes says he pays his valets minimum wage and ensures the staff do a “tip share” at each event.
3. Client Contacts – As with most things in life, it’s all about who you know. Reach out to your connections to build your initial client base. Then expand your business with cold calls and professional face-to-face networking. This is a high-end client business, and your customers expect (and will respond to) a very professional approach to marketing material, website, phone calls and face time.

Have you ever worked as a valet or considered owning your own valet business?

Image by Damian Morys Foto

Finding a Valet Parking Job or Starting a Valet Parking Business of Your Own is a post from: PT Money: Personal Finance by PT.
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You may be hearing the term “right to work” in the news a lot lately. That’s because Indiana just became a right to work state.

All this means is that Indiana labor unions are now prevented from making union membership fees a prerequisite to getting (and keeping) a job with Indiana employers. As you can imagine, this will have a big effect on the fees unions are able to collect to use towards their causes.

• Union members in Indiana and other opponents of this type of law, who you will be seeing leading protests in the news, say that because of a decrease in union fees, harm (in the form of lower wages and health risks) will come to Indiana employees.
• Proponents of the right to work laws say that people should have a right to choose whether they want to join a union or not, and the law is needed so businesses will be enticed to open up shop in Indiana vs right to work states.

I’m not personally affected by the changes in Indiana. However, my opinion is that unions serve a good purpose, but that maybe the need for unions has decreased over time. Thus, some retraction of union power is appropriate to let free enterprise do it’s thing, especially when jobs are in such demand.

List of 23 States that are Right to Work States

Do you live in a right to work state? There are currently 23 states that are considered right to work states.

Right to Work States in Blue

Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Nevada, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wyoming

The Affect of Right to Work on Finances

This is all speculation on my part. Each side in this debate has their own set of stats and anecdotal evidence that they bring to the table. So I’m just going to make some assumptions about the law’s affects and let you give your opinion in the comments below.

Let’s start with this: union fees average a little less than $400 a year according to this report. If you live in a right to work state, there is one expense you don’t have to factor into your budget. But this might mean you have a lower wage, fewer benefits, and less job security compared to those with the same type of job in states without right to work laws. This is primarily true if your job is in manufacturing or some type of service industry.

The trade-off of course, is thought to be job growth and job availability. If you live in a right to work state, potential employers have less of a financial burden to consider when deciding to create a job in your state or not. Thus, in a general sense, even though you aren’t paid as much, you have more jobs available to choose from.

As a small business owner, one encounter I’ve had with this issue recently is when looking at cities to host FinCon. The search consultant actually pointed out hotel labor costs due to unions in her expense analysis comparing different cities across the U.S.. While it didn’t ultimately affect my choice (we’ve had FinCon in Illinois and Colorado, two non right to work states), it’s interesting to note that it was an expense worth considering.

Have you been affected by right to work laws?

Image Credit

What is a Right to Work State and How Does This Affect Your Finances? is a post from: PT Money: Personal Finance by PT.
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Working part-time can really improve your work/life balance, and can provide you with the time you need to write that novel, spend time with your kids, or explore your passion for making artisan cheese.

But what will you do without the insurance you receive through your employer?

It’s possible to get individual health insurance, but that is usually limited or comes with a huge price tag.

We’ve all heard the horror stories of families and individuals bankrupted by medical bills. And the only way to keep your employer health coverage is to remain employed full-time, right?

Not necessarily. While not all companies are willing to extend their benefits packages to employees who work less than 25 hours per week, many forward-thinking businesses recognize the value of providing insurance to part-timers. The following sixteen employers offer benefits to part-time employees, leaving you free to think about making Gruyere, rather than worrying about health care costs.

1. Aerotek–This national temp agency offers generous medical benefits to its contracted workers who put in at least 20 hours per week. Medical benefits include dental and vision coverage, and spouses and dependent children are also eligible for the insurance. For a part-timer who needs health coverage for other family members, this would be an excellent employer to join. Check out Aerotek’s benefits page.

2. Barnes & Noble–The ubiquitous bookseller offers medical and dental coverage for part-time workers, in addition to a Flexible Spending Account, disability and 401(k) life insurance and paid vacation, sick days, and holidays to part time workers who put in at least 20 hours per week. The retailer has recently decided to end its medical and dental coverage for part-timers. However, the chain still provides a 30% discount on books for its employees. Read more about Barnes & Noble benefits.

3. JCPenney–This department store considers anyone who works less than 35 hours a week to be part-time. These workers are eligible for medical, dental, vision, life and disability insurance. See the JCPenny careers page.

4. JP Morgan Chase–This enormous multinational bank is remarkably generous with its part-time employees, starting with the easy-to-meet eligibility requirements: part-time employees for JP Morgan Chase only need to work between 20 and 40 hours per week in order to qualify for benefits, and those benefits are available starting 90 days after the date of hire. The benefits include medical, dental, and vision, use of flexible spending accounts, disability and life insurance, and a 401(k). In addition, after one year of service, all employees may take part in the JP Morgan Chase retirement plan, becoming 100% vested after three years of service. This is truly a bank that wants to take care of its employees. See Chase careers.

5. Kaplan–This educational company was once only known for test preparation, but it offers many different career opportunities for a part-timer–from teaching and tutoring to customer service and marketing, from publishing and academic administration to technology and management. While Kaplan’s part-timers are not offered the same benefits as its full-time employees, you are still eligible for a limited medical and dental plan, as well as paid time off, commuter benefits and access to a flexible spending account. Check out Kaplan benefits and perks.

6. Lands’ End–This socially responsible retailer provides part-time employees with dental, vision, and life insurance, as well as retirement plans. Though it does not offer medical insurance to part-timers, those who work at the Wisconsin headquarters have access to the medical clinic on site. Also, a generous discount at both Lands’ End and Sears is a major perk for employees. See Lands’ End job benefits page.

7. Lowes–The home improvement giant gives its part-time employees access to health, vision, dental, disability and life insurance plans. The health plan is a limited care plan, so it may not cover all the medical needs you may have. However, Lowes also provides vacation accrual for part-timers, as well as 401(k). See Lowes career site.

8. Nordstrom–The department store that has made its name by going above-and-beyond for its customers also takes care of its employees. The company offers medical/dental/vision coverage for any employee who works at least 129 hours per month-which works out to about 33 hours per week. In addition, Nordstrom workers are eligible for a 20%-33% discount, depending upon your role in the company and where you are shopping with that discount. View the Nordstom benefits page.

9. REI–A truly worker-friendly company, the outdoor gear retailer provides benefits for employees who work less than 20 hours a week. These benefits include a part-time health plan, as well as dental, life and disability plans, in addition to incentive pay and a retirement and profit sharing plan. Being a weekend warrior at this store can really pay off. See REI jobs.

10. Starbucks–Becoming a part-time barista at one of the over 16,000 Starbucks locations in the world will not only score you a free pound of coffee per week, but it will also provide you with medical, dental, life and disability insurance. Employees only need to work 240 hours quarterly (just about 20 hours per week) to be eligible. See more about Starbucks “assets”.

11. Target–If a red tee shirt is in your part-time future, you will also benefit from a health and dental plan from this chain. An added bonus: your employee discount is good toward your out-of-pocket cost for prescriptions if you fill them in the store. Finally, the company provides a life resources hotline for all employees with access to confidential counseling and support. See Target’s corporate careers site.

12. Trader Joe’s–This quirky grocery chain offers medical, dental and vision to part-time employees, as well as paid time off and retirement. One caveat: according to the Trader Joe’s website, part-time is “up to 40 hours per week.” See Trader Joe’s careers page.

13. U-Haul–The moving and storage company offers several benefits to part-timers, including a limited-care medical plan, dental insurance, travel insurance, U-Haul discounts, and a 401(k). In addition, the fine print states that (discretionary) Thanksgiving turkeys may be available to employees-although it does not specify if that particular perk is available to part-timers. See U-Haul’s benefits page.

14. UPS–In many ways, the United Parcel Service is the ultimate part-time opportunity. Not only does the company regularly hire for seasonal and part-time work, it also offers full benefits to those employees, which in addition to medical and dental coverage also includes tuition assistance. This could be an ideal job for a college student. See the UPS benefits page.

15. Wegmans–This grocery chain is only located in the northeast, but it is a great place to work part-time. The medical insurance for part-time employees includes a prescription plan, and as an employee you are eligible for discounts at health clubs, as well. Holiday pay and 401(k) round out a nice benefits package for part-time employees. See Wegmans job site.

16. Whole Foods Market–The go-to supermarket for natural and organic foods is regularly listed among the 100 best companies to work for, and the benefits package is part of this ranking. Whole Foods offers all employees medical, dental and vision coverage after 400 hours of service-about five months of work at 20 hours per week. In addition, that 400-hour threshold also makes you eligible for life and disability insurance, as well as access to a flexible spending account. One caveat, however: apparently the deductible for the health insurance offered through Whole Foods is over $1500. See Whole Foods’ benefits page.

Do you work a part-time job just to get the benefits? Know of any others to add to the list?

We sourced this content using AOL’s article, “Companies That Give Benefits to Part-Timers.” Additionally, for this 2012 iteration, we also used this post from Free Money Wisdom to find additional employers. In some cases (i.e. Nordstrom and Barnes & Noble) we were in touch with their PR departments to get the specific information that was not listed online. Also, we got the information about Whole Foods’ deductible at from this employee review at Glass Door. Finally, we never heard back from these PR departments: FedEx, WalMart and Macy’s. The information we were able to find on those three employers was not clear enough for us to feel comfortable including them without getting the skinny from the company itself.

The 16 Best Part-Time Jobs With Benefits – Updated for 2012 is a post from: PT Money: Personal Finance by PT.
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I just setup a new business, PT Money Conference, LLC. I thought I’d share my experience with you guys in case you are interested in setting up a new business, or formalizing the one you already have.

My first step, of course, was to have a successful business up and running. I doubt you need to go through any of the steps below before you’ve proven that you have a business that is going to make some money for at least a few years. I was fortunate enough to have some success with the Financial Blogger Conference last year, and I can see it being a business that turns a decent profit for years to come.

Last year I ran this business, along with this blog which is my primary business, under PT Money, LLC. This year, I decided that I needed a separate business structure to keep the two growing businesses, and all their endeavors in two different buckets. Thus, PT Money Conferences, LLC was born.

Selecting a Business Entity

As you can tell by my overuse of the term LLC above, I chose the limited liability company (LLC) as the entity type. The four primary entity types are sole proprietorship, general partnership, corporation, and limited liability company. I like the LLC structure because it’s easy to form (versus a corporation), helps create some separation of my personal and business assets (versus the sole proprietorship), and it’s very flexible when it comes time to file your taxes.

If you are thinking of formalizing your business structure, take some time to study the entity types and determine which one will serve you best now, at tax time, when you grow significantly, and when you eventually sell your business. The majority of new business owners can make this decision on your own (or with the help of a mentor in your line of business), but I’m not going to knock the advice of a CPA or business attorney in this situation. I grew up with a CPA for a father and he’s drilled entity types into my head since I was a teenager, so I have a leg up here.

Entity Type and Taxes

One last thing about entity types: how they are taxed. The sole proprietorship is taxed on the Schedule C of your personal return (Form 1040) at your rate. The partnership is taxed on a separate Form 1065, where income passes down to the personal level and taxed at personal rates. The corporation is taxed on a separate Form 1120 at corporate tax rates. The tax code also allows for another tax entity called the s-corporation, which has a slightly more complex tax structure, and is reported on Form 1120s.

An important thing to note here is that the IRS doesn’t recognize the single member LLC as a tax entity by default. The income “passes through” to your own tax return and it reported on the Schedule C. Additionally, multi-member LLCs are by default taxed as a partnership (on a Form 1065). For a LLC to be taxed as a corporation, you need to file a Form 8832 and “elect” to be treated differently. Finally, for a LLC to be taxed as an s-corporation, you need to file a Form 2553.

I elected to be treated and taxed as an s-corp. Thus, I’m filing the Form 2553. Why the s-corp treatment? The s-corp is great in that it is not taxed like a regular corporation (at those high corporate tax rates), and it is not taxed like a LLC in that you don’t pay self-employment tax on 100% of your companies earnings. The s-corp allows you to pay self-employment tax only on a reasonable salary that you pay yourself, and then you pay personal tax rates on the rest of the money that is passed down to you from the company.

Form the Entity with a (Your) State

Once you’ve decided what type of entity you want to create, research the rules in your state regarding entity formation. The Secretary of State will usually have all of the information you need. I filed for the formation of my LLC with Texas using Form 205, the Certificate of Formation for a Limited Liability Company. I was required to pay a one time fee of $300. A couple of weeks later I received a copy of my Certificate of Filing.

Edit: As some of the comments have suggested, consider incorporating in other states’ that might be more advantageous for whatever reason.

How to Get an EIN

My next step was to request an employer identification number (EIN). This, along with the certificate of filing would allow me to open up a separate business bank account. Getting your EIN is very easy these days. It’s free and can be completed online in less than five minutes. I waited another two weeks for my official EIN letter to come in the mail.

Open Up a Separate Bank Account

Now that you have your business formed, you need to create a separate bank account to keep your business and personal funds separate (this is important whether you have a LLC or not). Reserve at least an hour of your time to go through the bank account opening process. Again, you’ll need your EIN and evidence of filing with the state.

I chose to open this checking account at Chase, where I have my PT Money, LLC account. They were able to put it all under my same personal login. So now when I log into my Chase account online I can view our personal Chase Freedom credit card account, plus my now two business checking, saving, and credit accounts. Additionally, with a separate account, I get separate checks and an attached credit card to use in the payment of expenses with this new business.

Elect to Be Treated as a S-Corp

In the final step of my setup process I’m filing a Form 2553 with the IRS to elect for my LLC to be treated as a s-corp. Be sure to do this timely. There is a deadline to elect once your entity is formed and ID created. If you are going to go the s-corp route, I would suggest hooking up with a CPA to help you with the increased tax filings that go along with it.

Other Considerations

Be sure to consider any permits or licenses that may be needed in your line of business.

Lastly, remember that the formation of a business doesn’t create a good business. High sales and low expenses create a good business. So, while forming a business can be a huge undertaking of it’s own, keep it in perspective.

How is your small business structured, and why?

Image by opensourceway

How I Started a New Company for My Conference Business is a post from: PT Money: Personal Finance by PT.
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Today I interview Aaron Graham, a Chemistry Tutor, who’s been tutoring part-time with Tutor.com for 1.5 years.

Got a knack for teaching others?

I had tutored students in-person before, but Tutor.com is the first time I tutored online. I was searching for part-time work that I could do from home. I was a graduate student at the time and I found Tutor.com on the internet and did some investigating.

I was a little cautious at first, but after finding them to be legitimate I was very eager to start the process. They are the only company I tutor for, because I have a full-time job now.

PT: Where would someone new to this type of work search for opportunities to get started?

The best resource is the internet. There are a lot of new online tutoring companies to look at.

PT: What skill set do you typically need to have to get started as a tutor? What qualities make you excel as a successful online tutor?

To be an online tutor you need to have a good grasp of the concepts in the subject you want to tutor in. Having the ability to relate topics to real-world examples and explain them to the students helps students understand how they can apply what they are learning.

Good communication skills and lots of patience are essential too. Sometimes it is very difficult to tutor someone online who might not have the basic foundation for the particular subject. As the tutor, you have to detect, adapt, and teach to the student so that they can fully understand the concept.

PT: What kind of hours can you expect to work?

At Tutor.com you set your own schedule. You can schedule hours a week or two in advance or sometimes work at the last minute.

PT: What are the pros and cons of the job?

The pros of this job are definitely the flexibility of being able to set a schedule yourself and pick up extra hours when you have free time. All you need is a computer and an internet connection. If you have the expertise, you can tutor in multiple subjects.

The cons would be that you have to sit at a computer all the time especially on a nice day. Sometimes you do not always get the hours you want to schedule. The peak hours for tutoring are in the evening when students are doing homework. This is the best part-time job I could ever have.

PT: How much money can you expect to make initially? How much do you make, now that you are experienced?

Tutors are paid by the amount of hours they tutor. When I was tutoring 20+ hours a week and had been with Tutor.com for several months, I was making about $1,000 per month. It was nice supplemental income.

Care.com has a great article on the average prices of various tutoring services which can give you some insight into how much you can expect to make.

PT: What mistakes have you made along the way to becoming a successful tutor?

Sometimes it is hard conveying the right information to students especially when they are frustrated. But with experience, you get very familiar with the types of questions students ask and this allows you to adapt and clear up misconceptions for a student with simple, real-world examples.

PT: How has this job helped you in your own financial life?

Tutoring online has really provided me with the income I need to do some of the things I enjoy like going to the movies or out to eat occasionally. My wife and I are saving up to purchase our first home and tutoring online has helped us save money for our down payment.

If you are looking for a way to earn a little extra money and help students understand a topic that you are an expert in, online tutoring and Tutor.com is definitely an opportunity you should look into.

Have you ever worked as online tutor? Share your experience below.

Editor’s note: Neither PT Money nor Tutor.com was compensated for this interview. I simply reached out to Tutor.com with a request to provide me with a tutor who could answer some of my basic questions about this increasingly popular part-time venture. I hope you found it useful.

Image by Tulane Public Relations

How to Become an Online Tutor and Make an Extra $1,000 a Month is a post from: PT Money: Personal Finance by PT.
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How's that typing career coming along?

Payscale.com recently released some data that shows which job types saw a decline in demand in 2011.

On the list were some jobs that you’d expect to see: postal workers and newspaper reporters.

Also on the list were real estate agents, video store clerks, toll booth collectors, and stock brokers.

You could probably get a good argument going about whether this is a good or bad thing, but I’ve decided to simply present a few tips for those who find themselves in a dying job.

Similarly, if you find yourself in one of these (or any other) disappearing jobs, don’t take the easy route: doing nothing and complaining about it. Do something to fix the situation before you go the way of the Lector.

Prepare your finances. In good times and bad, it’s wise to improve your financial situation. But if your job is in danger of going away, being outsourced, or simply given to a younger, cheaper version of yourself, then it’s time to fix your finances pronto!

Slash your expenses; crush your debt; and start saving like a madman. Give some serious thought to how big your emergency fund should be.

Look for a natural alternative. The research above says that newspaper reporters are a dying breed. But journalism isn’t going away. It’s simply transitioning online, where the readers have moved. Freelance writing and blogging is going strong. Salaries are going up in this area as the demand for more original online reporting is increasing. Thanks, Google Panda.

If your job is “dying off”, think about where the job may have moved. If you’re a real estate agent, consider moving into the property management business now that renting is so popular. I know this is an obvious one, but if you’re a postal worker, consider a career with FedEx, UPS, or other delivery business.

Improve your skill set or education level. Before it’s too late, hit the books and pick up a new degree or certification. Look no further than this list of the most in demand jobs of the future to get ideas for a career you might want to move towards.

Once you get those skills under your belt, consider prepping a career change resume to help you in the transition.

Start transitioning to (part time) entrepreneur. Even if you just take on a small side project, get some extra money coming in. It’s becoming increasingly more important to create your own income. Andy Kessler, author of Eat People: And Other Unapologetic Rules for Game-Changing Entrepreneurs said,

“The era of easy money and easy jobs is officially over. Today, we’re all entrepreneurs, and the tides of change threaten to capsize anyone who plays it safe.”

While I don’t exactly think we’re all meant to be entrepreneurs, it doesn’t hurt to have an extra money maker to help you float the times when the pay checks aren’t coming.

The bottom line is this, if you sense your job is going away, start preparing. You don’t have to become a victim. Choose to make your move before you job makes the move for you.

What do you think? Have you ever had a job die? What did you do once it did?

Image by Foxtongue

What to Do if Your Job is Dying is a post from: PT Money: Personal Finance by PT.
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In the midst of a recession is not the time when most people would decide to leave their day job to work from home, but Crystal Stemberger, author of the blog Budgeting in the Fun Stuff, is not most people.

A relative newcomer to the blogging scene—Crystal started BFS in February 2010—she has nonetheless been able to turn her interest in money from a hobby blog into a $10,000/month career that includes blogging, freelancing, and advertising management. (And yes, you read that number correctly).

I recently had a chance to interview Crystal to find out more about her blogging success:

Tell us what you do as an online advertising manager.

I act as the middleman between bloggers and advertisers, which actually ends up saving them both time. I answer emails, negotiate deals, and send bloggers the final offers. I also save the advertisers time since they can come to me for access to a variety of blogs all at once instead of emailing hundreds of people a day.

What gave you the idea to start the online advertising management business?

Kay Lynn from Bucksome Boomer saw a comment I left in the Yakezie forums about how fun negotiating was for me. She emailed me and asked if I’d like to negotiate for her too since she hated that part. She officially was my first client in April 2011. It dawned on me a couple of weeks later to reach out to others bloggers since Kay Lynn probably wasn’t the only one who would appreciate some help.

How quickly did your new career come together?

I started Budgeting in the Fun Stuff in February 2010, started Crystal-For-Hire in April 2011, and quit my day job in July 2011 once I started bringing in $3,000 a month consistently.

How much do you make per month?

I only have about 3 months of what seems to be “normal” data since that is when my business really took off (see my monthly income reports). Most recently in November 2011, I made about $1,000 from BFS, $1,500 from my other blogs, $300 from writing, and $8,000 from my ad business. This wasn’t as good as October but I would be supremely happy if that is my new “slow” month.

How are you handling your extra income?

I pay myself a biweekly salary out of what I make online and we currently use the rest to pay off the mortgage and invest for our future. It’s way easier not to go crazy if the money is already used elsewhere. Once the house is paid off next year, we will be going back to splitting up the extra between our emergency fund, our investments, our vacation account, and our fun money accounts.

Do you have any advice for individuals who interested in becoming entrepreneurs?

Start with something you love. No matter what the business, it will probably grow slowly. During that initial slow period, if you don’t enjoy it anyway, you will give up. I started a personal finance blog because I love talking about money. I loved it even during the first few months when I was lucky to have 3-5 readers a day.

Also, remember that if you’re thinking about tackling a business of your own (or any project really), make friends in the same niche. I couldn’t have ever gotten this far without my blogging buddies. They are fantastic since we can vent together, learn together, and they actually understand my online frustrations, which is hard for my offline friends and family to grasp.

You can find more information about Crystal’s blogging story at http://howimakemoneyblogging.com/.

The Bottom Line

One of the most impressive aspects of Crystal’s story is the fact that she is walking the walk, too. Most of us would probably be perfectly happy blowing at least one month’s worth her new salary on something frivolous.

Crystal, true to the personal finance savvy that prompted her to start BFS, is using the extra income to pay off her mortgage. And I’m sure that her willingness to plan for the future is an important part of her success.

How to Make $10,000 a Month from Online Advertising Management and Blogging: Crystal Stemberger’s Success Story is a post from: PT Money: Personal Finance by PT.
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3. Make Extra Money with an Online Store

Ever dream of quitting your day job?

Setting your own hours, and watching the money roll in seems like the ideal lifestyle.

Unfortunately, for most of us, it isn’t so easy.

Most of us can’t just quit a day job and turn a hobby into a money-maker.

There are commitments to meet, and financial considerations to account for.

Before you quit your job, it’s a good idea to plan ahead, and fix your finances — especially if you are bringing in a substantial portion of your household’s income.

With some planning, and proper preparation, you should be able to transition from a “real” job to living off the income you make from home.

Can You Afford to Quit Your Day Job?

One of the first things you have to figure out is whether or not you can afford to quit your job. In my case, it was an easy enough decision — I didn’t have a day job. I started freelancing writing right after earning my degree.

My husband was working on a degree at the time, so our small family of three went from living on student loans to…living on student loans plus whatever I could bring in.

However, not everyone is in the same situation. Most of those who start a side business from home have more traditional jobs with benefits, and families to support. Just quitting is likely to lead to difficulties making the mortgage payment, and doubts about whether or not there will be enough food money.

And you can’t forget the huge role health insurance plays in many families. For some people, the prospect of having no health insurance is enough cause for caution when quitting a “real” job.

Take a look at your finances. Are you in a position where the loss of your income would impact the family’s cash flow? Does your partner have a job that could make up some of the difference? How much are you earning on the side right now?

If you have a partner whose job offers sufficient income (plus benefits) when supplemented by your side income, and he or she is supportive, you might be able to quit your day job and concentrate on growing your home business.

Fix Your Finances for a New Situation

Even if you decide that you can afford to quit your regular job in favor of building a side business into a serious money-maker, there are still a few things that can help you better fix your finances:

• Pay down debt: Debt is one of the biggest reasons people are afraid to start a business. When you are preparing to do away with a major source of household income, the fewer obligations you have, the better off you will be. You don’t have to worry as much about paying your bills when most of your debt is gone. When you have consumer debt hanging over your head, it can be a source of stress in your finances and in your life. Turning a side business into a regular business takes a lot of effort, and often puts strain on even the best relationships. If debt is in the mix as well, it can pressure even the most loving relationships to the breaking point.
• Build your emergency fund: Prior to quitting your day job, you should go into high gear, building your emergency fund as much as you can. A safety net, to help you through the lean months, is essential. This is especially true if your partner doesn’t earn enough to support the family without your income to help. The bigger your emergency fund, the more time your business will have to grow into a success.
• Create a plan: Do you know how your business will grow? Make a list of everything you need to do in order to find success. Do you need to upgrade your web site? Do you need to spend time forging connections? Do you need to look for low-cost suppliers? Figure out what needs to happen with your business, and plan for it. Your plan can help you stay on track as you work to increase your income.
• Test out your living situation: Would you be able to live on a reduced income for the period of time it would take to grow your business? Test it out. Instead of using the money from your traditional job to live, bank all of that money in your emergency fund for at least two months (longer is better, though). See how stretched you are, with just your side income and what your partner brings in. Is the situation tenable over time?
• Prioritize your spending: Before you quit your traditional job, understand your spending priorities. Consider what’s most important to you. What budget items are necessities, and what items are wants? Know, ahead of time, which items can be cut from your spending plan. If you run into an especially difficult month, you will already know which expenses to cut in order to maintain fiscal solvency.
• Comparison shop for what you need: If you will need insurance, it’s time to comparison shop for what you need. This is especially important in the case of health insurance. There are online aggregators that can help you find health insurance at reasonable prices. If your family is relatively healthy, a high-deductible health plan, in combination with a Health Savings Account, can provide you with the protection you need.
• Prepare for taxes: Understand that you will need to pay your self-employment tax. Without your employer paying part of your taxes, your tax bill will increase as you earn more money. Most of those who own businesses pay taxes quarterly in order to spread out the cost over the course of a year.
• Research other costs: Prepare for the expenses of starting a business. Some of these include fees for a license in your state. If you plan to have someone help you set up the business, consider those expenses as well. You will need to make sure you understand the laws in your state, and that you are prepared to pay the requisite expenses.

Editor’s Suggestion: Getting a home loan when you are self-employed is significantly harder than if you are employed, even if your business is doing well. If you are planning to move or refinance your home, do so before you quit your job.

Bottom Line

Starting a side hustle for supplemental income is different from starting a home business. If you feel as though your business is growing enough to allow you to quit your day job, double check your finances.

If you aren’t ready now, create a plan that will get your finances in order so that you can quit your job and turn your side hustle into your main hustle.

Image by tom harle

Fix Your Finances and Quit Your Day Job is a post from: PT Money: Personal Finance by PT.
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They seem happy.

But the recent (and impossible to avoid) news about Kim Kardashian’s failed marriage had me wondering about the opposite side of the wealth/happiness coin.

Is it possible that being fabulously wealthy can make you less happy?

I’m not saying I necessarily believe in the “Poor Little Rich Girl” phenomenon. But I do think having so much wealth that you are insulated from some of the things that the 99% take for granted might cheat you of some real joys in life. Here are some things that millionaires and billionaires are missing by being rich:

1. Saving up to buy something. I remember reading about a shopping trip Michael Jackson took about 10 years ago, when he shut down the store for himself and his entourage and simply pointed to things that he wanted. He left with tens of thousands of dollars worth of merchandise. But did he really get any joy or satisfaction from that stuff?

We all like instant gratification, and saving up money to buy a coveted item can be a drag. But when you have accomplished your savings goal and can buy your new favorite toy, there is no better feeling in the world. The sense of accomplishment you feel in having reached that savings goal transfers itself to your purchase, and you’re very satisfied with it. It’s more than just a material item—it represents a goal accomplished. Being able to buy anything you want anytime you want it would rob you of that.

2. Friendships. Money has a way of eroding relationships. Any lottery winner can tell you about how “friends” come out of the woodwork hoping to get a piece of the wealth. While the very wealthy certainly can and do have great relationships with friends and family, the suspicion that a new friend might not really be interested in you rather than your wealth would be something that could make new relationships difficult.

Social scientists agree that the happiest individuals are those with strong social ties. Those of us living on an average income do not have a niggling concern about why friends like us, and that helps us to feel more comfortable in our happiness-generating relationships.

3. Sticking with your choices. I went to college with a young man from a fabulously wealthy family. His parents were able to give him a new car every other year, a $20,000 per year allowance, and any opportunity his heart desired. And yet he struggled. Each year—and sometimes each month—he had a different idea of what he wanted to do with his life. But since he had such a vast safety net, he never had to stick with any of these decisions.

No path is without setbacks, turmoil, doubts, and dark days. But if your wealth means that you don’t have to stick with a particular path or choice, then it would be very easy to back out of something you’ve tried just because you hit a speed bump. (The aforementioned Kim K comes to mind here). It’s much more fulfilling to commit to a goal or life path despite the tough going. Yes, some choices are wrong and sometimes you need a do-over. But if you never see any particular choice through to the end, how will you know if you’re really making the wrong choice or if things have just gotten a little bumpy?

Of course, I’m not saying I would turn down a million dollars if it were offered to me. Nor will I stop working to better my finances. But it’s good to recognize that my current station in life has some nice benefits, too.

The Problem with Being Fabulously Wealthy is a post from: PT Money: Personal Finance by PT.
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It’s finally here. Just in time for Christmas.

We are giving away an iPad 2, a Kindle Fire, and a Nook!

Who is “we”? Well, it’s nice list of friendly personal finance bloggers. You know them as Bob from ChristianPF, Jeff from Good Financial Cents, Jeremy from GenXFinance, and Ryan from Cash Money Life.

Our sponsor for this giveaway is Betterment. See my full review of Betterment, and learn more about their unique investing tool, soon to be made better by handling IRAs.

Win this…

Enter to win this iPad 2!

You can also win a Nook and a Kindle Fire.

Entry is simple and all you need is either a Facebook or Twitter account. If you have both, then that’s even better!

Just use the snazzy contest widget below to get your shot at winning one of the prizes above. Don’t see a widget? Hit refresh on your browser.

Also each Like or Follow is considered to be one entry to the giveaway. If you do them all, then you get 12 entries! The winners will be chosen at random on Dec 19th and the gifts will be presented in the order listed above. (1st winner gets the iPad, etc, etc)

Good luck!

By the way, Jonathan over at My Money Blog is running a (get this) $5,000 giveaway. Once you enter our giveaway above, be sure to head over and enter that one.

iPad 2, Kindle Fire, and Nook Giveaway is a post from: PT Money: Personal Finance by PT.
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