We've been living on one income since we decided to start a family. It's hard to do living in one of the most affluent metropolitan areas of the country, but we're making it paycheck by paycheck. We cut our expenses to the extreme by selling one of our cars, eliminating cable TV and by me working from home full time. We recently paid off the car we still own two years early. I have a work issued
Blackberry that I also use as a my personal phone so we pay for only one mobile phone contract. We started budgeting by using the best budgeting software for the money-
YNAB, which stands for
You Need A Budget. I found out about YNAB from my favorite personal finance blog,
Bargaineering. We don't go out to eat or buy anything without a coupon or discount. We subscribe to
Groupon and all it's copycat competitors. But you can only do so much cutting back before there's nothing else to cut.
2011 will be the year to "Forget Frugality". I've been looking into ways to make additional income, both passive and active. Passive income requires money but not time. Active income requires time and money, but less of the latter. We don't have a heck of a lot of money to invest in dividend stocks to generate
passive income, and I'm not going to dip into our savings to do so. It takes a lot of money to make a lot of passive income, but anything is better than nothing. I don't have the time for a part-time job and they usually aren't worth the trouble for the amount (or lack of) money you make or the time investment.
I stumbled upon the internet marketing website
Prosperly.com while researching YNAB's founder and online entrepreneur Jesse Mechem (He and I have something in common. See if you can figure it out by reading his
profile ;)). Prosperly is a website flipping blog. The founder, Adam White, is supposedly a successful online entrepreneur and will teach you the '
Prosperly Way'. He offers personal coaching to help you buy and flip your first website. I'm intrigued but nonetheless skeptical.
The YNAB community also introduced to me Ramit Sethi of blog and book
I Will Teach You To Be Rich and the "
Earn 1K on the Side" course. I participated in a two part webinar hosted by him. He's an in your face/personal guerilla marketing kind of guy that really talks up his Earn 1K course. His hard sell worked. He only opens the course for very short internals at a time so we talked about it and we decided to sign up. It's an expensive course, so I didn't take the decision lightly. I was again intrigued but skeptical. He offers a 3 month money back guarantee, so what did I have to lose? When I went to sign up and pay for the course the website crashed. How's that for a sign? I contacted customer service and they gave me another link to sign up, but I saw the writing on the wall. I Googled both Prosperly and Earn 1K to see if they were scams, but nothing negative came up in the search results. That doesn't mean they aren't scams, it just means that no one has posted anything negative about either program or that both guys are very good at suppressing the negative feedback or they are legitimate. Has anyone ever used either course? I'd love to hear feedback from people I know.
Image via WikipediaI know what your thinking - "money ain't free". I not talking about a handout. What I mean by "free money" is unearned money; obtained through means other than my paycheck. I guess you could call it random passive income. I always seem to get some free money here and there, whether it be a rebate, a class action settlement, or selling something on Craigslist. I wanted to know how much free money I received, so I started tracking it in 2010. I created a Google Docs spreadsheet to do so. The total free money amount for this year is a whopping $1337! About half of that came from a contest I won which had an approximate retail value of $598. I won the Redskins "AAA Ultimate Fan Zone Sweepstakes" for the Sunday night game against the Colts back on October 17. The prize included: 2 suite tickets to the game, 2 passes to the AAA Ultimate Fan Zone pre-game hospitality area & 1 FedEx Field purple parking permit. Although technically not cash, I didn't pay for it out of pocket and is in essence free money so I'm counting it. The second biggest amount was $200 in Southwest Airlines credit we got for a long delay coming home from Louisville, KY for Lebowski Fest a couple years back that I used to purchase my flight to the National Beard and Moustache Championships in June. Rounding out the top three is $101.65 in oil royalties. My wife's family owns a small stake in land leased for obtaining oil in Texas. The smallest amount is $.59 which was another oil royalty. We actually cashed a $.59 check. It probably cost more to drive to the ATM. But every little bit counts.
