Check out my latest infographic to see where you fall on America’s spectrum of pet obsession:

Of course, the reverse of that is true as well. I have known quite a few business people much more willing to spend company money than their own. In my opinion, that is just as bad, because someone has entrusted you with those earnings (shareholders, business owners, etc.) and it is your responsibility to be a good steward of it.

I digress.

Over the years, I’ve tried to implement this approach in the Frugal household. One of the things I’ve been most adamant about is protecting our cashflow. That is, I try to avoid entering into arrangements that could offset our future income. I take this approach for a variety of reasons.

1. Future income is not guaranteed. Just like in business, especially a seasonal business, there is no guarantee of future cash flow. Contracts can be canceled. The local economy can tank. Customers’ appetite could change for your product.

2. Increased monthly obligations rob money to set aside for growth. Just like a business likes to reinvest a portion of their profits to grow, I like to “reinvest” a portion of our income into income-producing assets: dividend stocks, and eventually rental real estate.

3. The higher my monthly obligations, the more I have to work. By paying off our mortgage early, refusing to add new debts, and living frugally, we are hopeful that we can retire earlier than most people because we won’t need as much investment income to cover our basic living expenses.

Skip Toys and Luxuries, Unless You Can Pay for Them

Ever hear the saying, “He who dies with the most toys wins.” Maybe so; unless he also dies with a lot of debt for those toys.

I don’t begrudge anyone for wanting to collect a few toys along the way, but I do think it’s best to acquire them with cash, rather than obligating a portion of your paycheck over the next 60 months to pay for them.

This means you may have to:

• Drive an older car until you can pay cash for a newer one.
• Not trade up in house, but stay put and pay off the one you’re in.
• Buy modest gifts for friends and family for Christmas, rather than maxing out your credit card and struggling to pay it off before the next Thanksgiving shopping season.
• Take one or two reasonably priced vacations each year rather than a lavish get-away every other weekend financed by American Express.

Again, nice vacations, cars and houses are not necessarily bad things. It is the debt attached to them that steals from your future paychecks.

Some will say that debt is a tool to acquire these things, and in some cases their values do go up (then again, maybe not, as we’ve experienced with housing lately). However, for us the debt represents added risk, and we are all about reducing the amount of risk exposure in our lives.

Bottom line…I’d rather own my stuff than it own me.

One day I asked her how we could afford to pay the man to cut our grass. Mom said she could probably get out there and do it herself, but it would take her all day and her allergies would suffer the next couple days. To her, it just wasn’t worth it.

It wasn’t long before my grandfather convinced her I was plenty old enough to push that mower around the yard, and so I did, happy to be doing my part. As I got older, I seem to have inherited those same allergies…and no, that’s not just an excuse to get out of yard work!

These days I wear a mask to prevent inhaling dust and grass clippings, but my eyes still swell to the point I look like I’ve lost a fight. The next day, my sinuses are completely clogged. My wife, probably weary of hearing me complain about my allergies, recently asked the valid question, “Why don’t you just hire someone to handle the yard work?”

Outsourcing the Yard Work?

Honestly, I had never considered it, because it seemed more frugal for me to do it myself. In fact, despite the allergies, I’ve always enjoyed yard work. Well, for the most part. But maybe my wife was on to something. Maybe I should scout out local service providers at Angie’s List and give one of them a try.

I could hire someone to do the lawn, freeing up more family time, and maybe even giving me an opportunity to write more. Instead of spending Saturday mornings in the yard, and the rest of the weekend paying for it (physically), it might make sense to outsource the work and free up that time for something else.

Naturally, I’m reluctant to do it, because it is hard for the do-it-yourselfer in me to hire someone to do something I can do myself. But at some point you have to recognize that your time is valuable, too. Would I rather be enjoying more time with my kids, and/or pursuing more entrepreneurial endeavors, or working in the yard in 100-degree heat on a Saturday. Well, when you put it that way, it seems like a pretty easy decision.

However, I’m also careful to avoid lifestyle creep – something I’ve mentioned a couple times here lately. I haven’t quoted landscape pricing, but I imagine it would add $100-$200 to maintain the yard each month, maybe more. That doesn’t factor in other special projects I’ve completed like planting trees, pruning trees, spreading mulch, etc.

Maybe a compromise would be to outsource the regular mowing and trimming, but continuing to take on special projects myself.

Other Chores to Outsource

Yard work seems to be a popular chore to outsource, but it certainly isn’t the only one. Cleaning services seem to still be in demand, despite the tough economy. Assuming they have the disposable income, I know many people who are happy to pay someone else to perform the weekly maintenance inside the home: vacuuming, cleaning bathrooms, dusting furniture, sweeping porches, etc.

Most cleaning services offer a variety of package deals and an a la carte option, and will come up with a schedule that fits your needs (weekly cleaning, every two weeks, once a month, one-time deep clean, etc.).

My wife and hired a cleaning service to deep-clean our old house when we moved, because we were so occupied with getting our stuff settled in the new home. It added a couple hundred dollars to our moving budget, but we both agreed it was the best couple hundred dollars we ever spent!

Sure, it would have been cheaper for us to spend a couple days there scrubbing the place down after the furniture was moved out and the walls were painted, but at the time we were exhausted, I had to return to work, and my wife spent much of her time caring for our kids and my grandfather, who lived with us, all the while trying to unpack boxes in the new house.

I’m still weighing the decision to outsource the yard work, but for now I’ll keep wearing masks and taking Claritin on yard days. Maybe I could ask for service every two weeks to give myself a weekend off (the yard has to be cut just about every week in the peak of summer growing).

I’ll keep you posted on what we ultimately decide, but I guess the takeaway lesson here is that just because we are frugal, we shouldn’t be against spending money just for frugal sake. Sometimes it makes more sense to buy the more expensive, higher-quality option, or in this case, trade some amount of money for your time, which should also treated with value. After all, time is the most important non-renewable commodity we have.

What are your thoughts on outsourcing household chores? Have you ever thought about hiring someone to perform yard maintenance, or to help clean your home?

It has never been a better time to get out of debt, build savings and learn to live more frugally. Along those lines, here are 62 money-saving tips to help your family spend less money (and earn more money) each month, recession or not.

1. Don’t pay a dime for banking privileges. There are too many free checking options out there to pay one penny in fees for the right to write a check or use a debit card. Many banks and credit unions simply require direct deposit or a minimum number of debit card uses per month to qualify for fee-free accounts. If you can’t find one, try ING Direct.
2. Shop your car insurance coverage at esurance.com. Take 6 minutes to complete the free quote and shave a significant amount off your car insurance premiums.
3. Scale back the cable. While getting out of debt, our family scaled back to basic cable for an entire year. Cable bill went down from $40 to $12 with this move alone, and we found we didn’t really miss those other 100 channels we rarely watched anyway.
4. Look for a value internet package. While I was scaling back on cable service I asked our cable provider for a cheaper rate on internet service. They told me about a little-advertised “value package” which costs half the normal monthly rate for reduced speed. Since I mostly surf the web and check email I barely notice, but I saved about $20 a month on our internet service.
5. Skip the theater, subscribe to Netflix. Going to the movie theater is a great way to beat the heat, but it’s also expensive. Skip the theater, and sign up for an online DVD rental service. No late fees, and no gas used up traveling back and forth to the rental store.
6. Transfer existing debt using balance transfer offers. Transfer high-interest debt to a zero (or low) interest card. By reducing your interest rate you will pay less interest to creditors each month, and make more of a dent in outstanding balances as you pay them off. Consider this 18 month promotional balance transfer offer from Discover® More Card. Be sure to cut up the old card(s) so you can’t run the debt back up again.
7. Hang up the land line telephone service. If most of your calls are to other cell users in the same network, consider canceling the land line and using a cell phone exclusively.
8. Have a no-spend weekend. Sometimes it takes a break in the routine to get spending under control. Try to go an entire weekend without eating out, shopping, or ordering something online. It won’t solve all your spending problems, but it’s a start.
9. Carpool a few times a week. Take turns carpooling with a coworker, especially if they live close to you. Pick them up and take them home this week, and next week allow them to return the favor. You’ll both cut your driving time in half.
10. Raise insurance deductibles. Assuming you have a proper emergency fund in place, raise deductibles on insurance policies. The difference in a $500 deductible and a $1,000 deductible on your car insurance policy can help reduce your monthly or semi-annual premiums.
11. Check your vehicle’s tire pressure each time you fill up. Things like under-inflated tires and dirty air filters can reduce your gas mileage. Pick up an inexpensive tire gauge and check the pressure while filling up.
12. Change your driving habits to save on gas expenses. Cut out “jackrabbit” starts and heavy braking.
13. Consolidate errands into one trip. If you have to get out try to consolidate all of your errands into one trip away from home, instead of driving back and forth several times from store to home.
14. Ride a bike for short commutes. I’m fortunate to live about 5 miles from my employer, so I occasionally commute by bike. If you happen to live close to stores, consider riding a bike for small errands. Take along a backpack, or put some panniers on your bike to carry things back home.
15. Figure out how to do things on your own, rather than paying an expert. This year I’ve managed to rescue a toy from the bottom of our guest bathroom toilet and unclog and empty an air conditioner drain line. With the help of the internet, or a good “how-to” book such as Save $20k With a Nail, you would be surprised how much you can do on your own and avoid expensive repair charges.
16. Look into 3-month supplies of prescriptions via mail order. Many employers now offer as part of the health insurance plan a 3-month mail order prescription plan. I only have one daily prescription for asthma/allergies, and the cost of a 30-day supply from a local pharmacy is $25. For the same cost, I can get a 90-day supply via mail-order.
17. Wash your own car. Our town has one of those automated car washes and for $9.00 you can get “the works.” Essentially, it is a wash, wax and application of tire shine. I’m pretty sure I can do it for less. Better yet, employ the kids and let them earn a little extra money this summer.
18. Bank “found” money in a separate account. With any income above your normal earnings, bank the amount in a separate checking or savings account and use the money to pay down debt, build up savings, or offset increased expenses. Overtime, tax refunds (and stimulus checks), gifts and similar windfalls belong here.
19. Eat like a kid again. Eat off the same plates your kids eat off, which will force you to eat smaller portions. Your wallet and your waistline will thank you.
20. Drink tap water. I don’t have the inclination to run a cost comparison between an ounce of Coca Cola and an ounce of tap water, but I’m fairly confident tap water is infinitely cheaper.
21. Eat less meat. I’m about as far from vegetarian as you can get, but I recognize that my carnivorous habits cost me big at the grocery store. We’ve recently started having breakfast for dinner (eggs instead of meat), and substituting things like pinto beans (a great source of non-meat protein) in meals instead of meats.
22. Look for manager meat specials. When you do buy meat, check the manager’s specials area for meat that is about to pass the “sell by” date. The meat is still perfectly good, but freeze it immediately if you don’t plan on cooking within the next day or two.
23. Look for a used freezer to stock up on meat specials. Many times people relocating can’t take the extra chest freezer with them and advertise it on Craigslist or the local newspaper. If you can find a good used one stock it full of manager meat specials to reduce your food budget.
24. Don’t be afraid to buy generic. Forget brand loyalty when trying to figure out how to save money every month on things like groceries. When we buy ketchup, we look for the lowest unit price, regardless of brand. Same with other foods and household supplies. There are a few exceptions, but for the most part generic items are just as good as name brands.
25. When in the store, look high and low for deals, literally. Marketers know that eye-level is the place most people tend to shop, so they put the items with the highest margins right in front of you. Better deals are usually found on lower shelves.
26. Switch to cloth napkins. I’m not sure why it took a down economy for this one to dawn on me, but cloth napkins are a great alternative to paper napkins, which increase waste and add to our non-food budget.
27. Water down juices. When we open a new apple juice for our kids we pour up half in the old container and add about 1/4 – 1/2 container of water to each bottle. This makes each new bottle last a little longer, and dilutes the grams of sugar and calories per serving.
28. Shop at a farmers market for in-season produce. Few things taste as good as fresh fruits and vegetables. Unfortunately, most of the produce you’ll find in a grocery store is grown elsewhere, particularly if it is out of season, locally. Figure out what’s in season and support local growers by visiting a farmers market.
29. Avoid using the oven during the summer. Ovens heat up a house faster than any other appliance, adding to the strain on air conditioner systems. Plan meals that don’t require baking, or bake in the late evening and microwave the next night.
30. When eating out, divide entrees in half and save the rest for a second meal. Ask for a to-go box as soon as your meal arrives and save half for tomorrow’s lunch. Restaurants are notorious for piling on portions, so this move will help you spread out the calories and cost of the meal.
31. Avoid pre-packaged foods. The little 100-calorie packs are convenient, but you can accomplish the same thing by buying a larger package of chips or cookies and then dividing into smaller portions using Ziploc bags. The unit cost savings are significant.
32. Grow your own vegetables. Unless you plan to dig up the entire yard to plant rows of food, you probably aren’t going to be able to grow enough to live off. However, a square foot garden can produce enough for some great summer salads without adding to your grocery bill.
33. Properly insulate your home. Especially important in the summer and winter months, when the extreme temperatures outside can affect your temperature inside and cause utility bills to skyrocket.
34. Use a drying rack or line dry heavy clothing. Pick up a drying rack or install a clothesline to dry heavy garments and towels. When nearly dry, place items in dryer with a dryer sheet for just a few minutes to complete the drying cycle, remove wrinkles, and soften clothes.
35. Plant a tree next to your outside air conditioning unit. By shading your outside unit you may improve the operating efficiency of the overall system by 20%. Take care not to plant to close to the unit to maintain proper airflow.
36. Replace home air conditioner filter every month when in use. Manufacturers suggest changing your filter every 90 days, but I’ve found systems work better when changed once a month, especially in peak times like summer. Instead of picking up a top-of-the-line air filter, go for a medium grade filter and just buy more of them.
37. Half the number of days your lawn is being watered. An established lawn doesn’t really need to be watered every day. In fact, daily watering can cause a shallow root system because grass roots don’t have to work hard to find water. Water once or twice a week, for a slightly longer duration and let Mother Nature help fill in the schedule with the occasional rain.
38. Use bathroom exhaust fan during showers and for 10 minutes after. Exhaust fans help carry moisture out of the bathroom from a hot shower. Don’t believe it? Run the exhaust fan during your next shower and notice how the mirrors don’t fog up.
39. Take a “Navy” shower. Get in, soap up, rinse off and get out. And put a low-flow shower head on there while your at it.
40. Don’t run water when shaving or brushing teeth. While shaving pull up the sink stopper and pool a little water in the sink for rinsing your razor.
41. Skip baths. Even though they are relaxing, baths require a lot of H20 and drive up your water bill. They also drain your home’s supply of hot water, forcing your hot water heater to replenish the supply, further adding to your utility costs.
42. Bathe your own pets. Skip the pet grooming salon, pickup some shampoo at a pet supply store and wash them yourself.
43. Avoid stores. Stay out of stores unless you have a list (mental or otherwise) of specific things you need to buy. Shopping out of boredom leads to impulse buying and can quickly blow a budget.
44. Diversify your income. Look for ways to increase your income outside of your full time job. Do you have a hobby that you could make a small business? Could you spend some time working online surveys (many of these survey companies are scams, but the one I’ve linked is not. I’ve been a CashCrate member for over a three years now)? Could you add some freelance work in the same line of work you do full time?
45. Don’t renew the gym membership. Being healthy can save you money, but exorbitant fees and inflexible contracts make gyms a dangerous proposition. Take the money you would have spent at the gym and try to build one at home with used equipment.
46. Try a home haircut. Mine is pretty easy since I buzz it short all over. Guys, you will still need someone to help you with the neckline, unless you are good with mirrors.
47. Rediscover a local library. To replace the time previously spent watching television develop a reading habit, and support your local library while you are at it. Can’t find the book you are looking for? Don’t rush out and buy it. Many times libraries are networked and can request a copy of a book from another library. If you have a Kindle or other e-reader, check out the electronic book-lending features from your library.
48. Start your own “keep the change” program. Several banks are now running “keep the change” promotions where they round up your purchases and put the difference in a savings account. Problem is, these accounts don’t pay a great interest rate, and the program encourages increased spending. Create your own program by spending only cash and dumping the change in a coin jar. Make deposits into your own high-yielding savings account at the end of the month.
49. Put away the credit cards. Save cash for large purchases by creating a dedicated savings account specifically for the next item on your list. Make regular contributions to the savings account with each paycheck, and when the balance is high enough to pay for the item, pay for it with cash.
50. Ask creditors to lower your interest rate. Creditors are feeling the crunch, too, and they recognize it takes more money to find a new customer than to retain a current one. If you are a profitable customer (pay interest), call creditors and ask for a lower rate. Tell them about all the 0% transfer offers you’ve been shredding for your garden!
51. Divide credit card minimum payments in half and pay that amount twice a month. Interest is calculated based on the average daily balance of your account for the entire month. By making a payment every couple weeks you are reducing that average balance and therefore reducing the finance charges assessed, as opposed to waiting until the end of the month to make a single payment.
52. Brown bag it. Can you believe how much a combo meal is at a fast food restaurant? And don’t get me started on dine-in restaurant tabs for lunch. You’re lucky to get out of there for less than $10-$12 including the tip. Multiply that times four or five times a week and we’re talking $200 added to your food budget each month.
53. Adjust your W-4 at work. The fastest way to give yourself a raise is to reduce the amount of taxes withheld from your paycheck. If you received a huge refund this year, increase the number of exemptions on your W-4 to reduce withholdings. Check the IRS website to calculate the number of exemptions required to break even.
54. Sign up for budget billing with utility company. This won’t necessarily save you money, but it certainly helps the budgeting process by smoothing out highs and lows in your utility bills. Most companies offer this “levelized billing” service after you have 12 months of history to compute an average.
55. Use a power strip to power down unused electronics. Electronics continue to use power even when they are turned off for LED displays, stop/start memory, etc. Reduce this “phantom power” drain by unplugging devices, or plugging them into a central power strip which can be powered down with the flip of a switch.You can find amazon deals on power strips from amazon
56. Find new uses for old things. Not long ago my car’s check engine oil light came on, and the dip stick revealed I was seriously low on oil. I found a new use for an old milk jug by cutting away the bottom half and using the remaining top as a funnel to reduce spillage. This saved me a trip to the auto supply store to buy a funnel.
57. Cross train at work to make yourself more valuable. Make yourself more layoff-proof by taking on a new challenge, and adding to your skill set.
58. Sign up for medical flexible spending account (FSA) at work. Estimate carefully as unused portions of FSAs are not refundable. At a minimum, account for the amount of your family’s health care plan deductibles plus any over-the-counter medical supplies you must purchase during the year. As an added bonus, FSA contributions are pre-tax, which lowers your taxable income for the year.
59. Quit smoking. Besides being an incredibly unhealthy habit, smoking is expensive! Many pack-a-day smoker could easily trim $200 from their budget by kicking the habit. If you can’t find any other motivation to quit, use finances.
60. Buy wrinkle-free clothes to avoid dry cleaning bill. I have a golden rule about clothing purchases. I don’t buy anything that requires ironing. In some cases this means I pay a little more for “wrinkle-free” materials, but I save in the long run on the time and money spent ironing or dry cleaning.
61. Look for kids’ clothes at yard sales and thrift shops. Kids have a way of outgrowing most of their clothes before they “out use” them. For this reason, many times you can find excellent buys on clothing at thrift shops and yard sales.
62. Look for furniture on Craigslist or Freecycle. Many times people buy a new sofa or coffee table and don’t have a way to get rid of the old one. They will list it on Craigslist for a reduced price, or on Freecycle for free in exchange for picking it up and hauling it off. If you need a piece of furniture, but are short on cash, check out one of these sites before even thinking of going to a furniture store.

Go on, you can admit it.  Sometimes you feel just a tiny little bit superior. Not in a “I’m so great, maybe even borderline perfect” kind of way,” but in a “I’m so reasonable”, and/or “why don’t other people actively track and manage their finances like I do,” sort of way.

Why it is Sometimes Tough for Personal Finance Devotees to Properly Communicate with Others

You are frugal and informed.  You are working hard towards financial security.  Sometimes it is easy to feel a little superior.  To perhaps scoff a little at those who do not know the difference between a traditional IRA and a roth IRA.  To maybe even feel a slight bit of schadenfreude when a friend asks to borrow money from you when their car needs a repair, or the like.  ”Oh silly (insert name here),” you think.  ”You have to get your finances in order!  If that happened to me, I would just tap into my emergency fund!”

At the same time it is not really schadenfreude, because all you really want deep down is for other people to do well.  You want them to make the “right” choices.  The problem is, if you have even the slightest air of snobbery about your “lessons,” then you will never be able to impart even a tiny fraction of your great knowledge.  Whether you are trying to tell a friend that dollar cost averaging into a diversified index fund may be the best investment or attempting to get your spouse or loved one to start budgeting their money, people are going to likely be resistant to your perhaps unwanted offers of help.

If you are reading this site, then you are either a personal finance blogger yourself, or you read and/or are interested in personal finance.  If so, with expanding personal finance knowledge will come a greater desire to help others.  Whether you are assisting others through a blog or face to face, it is important to keep a few things in mind so as to inspire rather than turn off the person you are trying to help.

Tips for Keeping Another Person Interested in Your Personal Finance Advice

1.  Give investing, debt reduction, or other personal finance advice with humility – Nobody enjoys being talked down to.  Do yourself and the person you are trying to assist a favor and show some humility.  As much as may know (or may think you know), there is without a doubt so much more that you do not.

On our site I try to constantly remind readers of my mistakes (better for me to remind them then for them to remind me).  I find it is easier to facilitate an honest communication when our readers know that I make amateur mistakes all the time.  Or the fact that I still owe six figures in student loan debt.  The same applies in real life situations, maybe more so.

2. A Sense of Humor Will Help – As with most things, attempting to use a little humor should pay dividends.  If Warren Buffet can incorporate some humor into his Berkshire Hathaway annual letters to shareholders, then you can feel free to mix a little humor into, for instance, your discussion with a friend about the best mutual fund companies.  FYI: Vanguard is my personal favorite mutual fund company.  (See, so you know it must be good, because I don’t even own a Van…note: it will help if your humor is actually humorous).

3. Be a Good Listener – On a blog the comments and the analytics will tell you what topics your audience finds interesting to learn about.  In a one on one situation, it may be a little bit tougher to perceive such information.  If you can act as a good and active listener, then the person you are attempting to help will open up.  Thereafter your carefully chosen words can have a good chance of hitting home.

The other day my friend discussed his issues with choosing an investment strategy.  I was going to say at his age a target retirement or other such index fund with 80% in stock might make sense.  However, the more he talked the more I realized he was terrified of risk.  I knew he would be the type of individual who would sell the stock at a low point and never get the return he should out of such a volatile and long-term plan, so I tried to adjust my recommendation accordingly.  There is no one size fits all approach to personal finance.

4. Do Not Assume – This is something I have a tough time with sometimes during my day job as a lawyer.  I have to remember that most people need me to provide them with a basic framework before they can move on to more complex issues.  If you can’t get to that point when discussing personal finance with another person, then any conversation will ultimately not have the desired effect.

5. Be Compassionate – Personal finance is a sensitive subject.  If someone is willing to open up about their problems, then you have to respect that.  In other words, do the opposite of schadenfreude.

With any luck, you will be able to make a positive difference in another person’s life, which can be amazingly thrilling.  Be careful to remember, however, that at the end of the day everyone has to make their own choices and their own mistakes.

Let me know what tips you use to help impart your personal finance knowledge to other people who are interested in learning from you.  I am looking forward to reading and responding to the comments.

Broke Professionals is a personal finance blog aimed at over-educated and underpaid.  Join the husband/wife blogging team of Broke Professionals as they attempt to dig themselves out of a combined six figures in student loan debt.

Besides having a solid emergency fund, one of the best ways to hedge against financial ruin while surviving a layoff is to have one or two (or three) side hustles. Side hustles are a little different from traditional part time jobs in that they generally involve you starting up something on your own. They can range in complexity from selling yard sale finds on eBay to starting your own small business.

1. Dog walker. On the way to work each morning I pass a lady walking five or six dogs, usually three leashes in each hand. She carries a small shovel like a sword strapped to her waist, and has quite a few plastic grocery bags stuffed in each pocket. I’ve never seen them in action, but I assume these tools are for performing the neighborly deed of removing dog poop from lawns along the way.

• Pros: You are getting exercise; your own dog can tag along and get exercise
• Cons: Clean up (need I say more); untangling twisted leashes

2. “Date-night” sitting service. This is an idea we kicked around a few months ago when we were looking for ways to boost our income, without being away from the kids. A date-night sitting service is basically a Friday and/or Saturday night in-home service where neighbors and friends drop off their kids for a few hours while the parents enjoy a “date night.” Hosts charge a little less than a single babysitter would, but make a little more because they have more than one child to watch. Kids can play games, watch movies, and hosts usually order up some cheap pizza, or grill hotdogs and hamburgers (always a crowd favorite).

• Pros: Your kids can participate in the fun; hourly earnings typically higher than retail job
• Cons: Liability issues; five extra kids running around the house; no date night of your own

3. Survey participant. Anyone who has been on the web any length of time knows opportunities abound for participants to earn money completing surveys. What is less known is that there are only a small handful of reputable companies offering this service, in a space crowded by many scams. I have personal experience working with CashCrate, where I used to net $40-$60 a month working surveys a few minutes each day. Over time, I’ve managed to take advantage of their lucrative referral system and I now make a couple hundred dollars a month. It won’t make me rich, but it does add a little to the grocery budget each month.

• Pros: No costs to participate; can be done from home
• Cons: Email box full of offers (use a separate email account if you sign up)

4. Blogging. I’ve been writing for nearly a year now (three years, as of this update), but if I read this myself this time last year I wouldn’t have believed being a blogger could actually become an income-earning opportunity. The money comes very slowly, but for those with patience it can actually add up to become a nice supplemental income. It is not completely passive income, as there is a lot of writing, editing and behind-the-scenes administration that goes along with being a blogger. Still, if there is a subject you are passionate about it is worth a try.

• Pros: Work at your own pace; minimal startup costs; interacting with readers and other bloggers
• Cons: Time consuming; requires mental effort tough to conjure up at the end of a long day at your full-time job

5. House sitter. I have family member that recently graduated high school. He is headed into one of the military services, but his enlistment was delayed. Instead of hunting down a place to rent, he got the opportunity to house-sit for a couple that would be away from their home for a few months. While this job doesn’t pay an income, money saved is money earned. Rather than shelling out several hundred dollars for a half-year lease, now he gets to live rent free and pocket earnings from his job.

• Pros: Free rent; take advantage of amenities (pool, home gyms, etc.)
• Cons: No place for your own things; wondering when you’ll be asked to move out

6. Lawn painter. No, that’s not a typo. Painting houses has always been a nice way to make a few extra bucks, but in times of dry climate and numerous foreclosures, greening up lawns with paint is in high demand. Realtors would much rather show a “green” home than one with a brown yard. But the benefits of a green lawn don’t stop with curb appeal. A green lawn makes the house looked lived in, lessening the chances of the home being vandalized, or squatters taking up residence.

• Pros: High demand (especially in winter months when grass goes dormant)
• Cons: Product costs; green legs and shoes

7. Holiday Decorations Installer. This one is seasonal, obviously, but with the holiday season approaching (or just behind us) I’ve heard of many enterprising people advertising their services to install or remove Christmas decorations. Many homeowners enjoy adding icicle lights and yard decorations, but don’t have the time, energy, or know-how to set them up themselves. That’s where you come in. Charge a flat fee based on the amount of decorations the owner wants displayed, and offer a discounted fee to come back after the holidays and take down the decorations and pack them away for next year. Who knows…you might earn a little extra Christmas shopping money by helping out your neighbors!

• Pros: Minimal equipment needed (maybe just a ladder, scaffold, etc.); set your own schedule
• Cons: A lot of patience needed (ever try to unwind a 100ft strand of tangled Christmas lights?)

8. Tutor. Many states are struggling to keep up funding for local school systems, and unfortunately, teachers feel the brunt of budget cuts in the form of layoffs, furlough days or frozen salaries. Class sizes are increasing, and in many areas, test scores are dropping. To combat this, many parents are turning to tutors to supplement what their children are learning in school. If you have particular training in a certain area, can speak a second language, or maybe used to be a teacher yourself, opportunities should be fairly easy to come by.

• Pros: Generally, you can set your own schedule with appointments beginning right after school and into the early evening.
• Cons: You must have patience and have “the heart of a teacher.” Not everyone does. Just because you are smart, doesn’t mean you can teach.

9. Spring Cleanup Yard Service. OK, so maybe you aren’t up for a full-time gig mowing lawns, but this time of year opportunities abound for someone to provide a “spring cleanup.” Offer to trim small trees, rake leaves, trim hedges, put down fresh pinestraw or mulch, or edge paved areas where winter grass has crept out of bounds, etc. I just spent an entire Saturday trimming trees and hauling limbs to the street. I would have gladly paid someone to do it.

*Bonus, talk with a local Realtor about offering this service for their properties. If owners have moved on, or the house is foreclosed, they might be willing to pay for a quick spruce up to improve their property’s curb appeal.

• Pros: No great skill or intellect needed, just a strong work ethic
• Cons: May need to invest in some equipment if you don’t already own an edger, trimmer, shears, etc. Check yard sales advertising yard or gardening equipment.

10. Curb painting. A few weekends ago someone came by our house offering to paint our house number on the curb using an attractive template that is highly visible at night. This is especially helpful to people making deliveries, emergency services personnel, etc. What a great way to make a few extra bucks on a Saturday.

• Pros: Highly profitable, just need a stencil kit and paint
• Cons: Check for any neighborhood covenants or homeowner association rules that might prevent either the solicitation or painting

Do you have any additional side hustle ideas to share with fellow readers?

As usual, I thought about how this related to personal finance. Shouldn’t we periodically review how prepared for financial emergencies? Consider the scenarios.

How long could you survive if you or a spouse lost your job? What if you are like me and are the sole income provider – how long could your family live on savings alone? Could you sustain a 6-month period of no income due to a medical disability? If you are not sure about the answers to these questions it is probably a good idea to conduct a financial fire drill.

Steps to Planning a Financial “Fire Drill”

The concept of a financial fire drill is based on the idea behind a real fire drill. It allows you to run through a real emergency before you have to act with smoke and flames. In the case of a financial fire drill, this means you will simulate a “what if” scenario so you’ll know what to do, and what things need to improve, before a real life financial emergency strikes.

1. Include the entire family. My family has a pretty good emergency plan. We all know where to meet in case a fire separates us in the middle of the night. We have a rendezvous point established for larger-scale emergencies, and even the kids are aware of actions to take based on various types of disasters. Similarly, the entire family should also be involved in a financial fire drill.

2. Gather a list of necessary expenses. These expenses are absolute necessities, so things like mortgage payments or rent, basic utilities like water, power, etc. (cable, XM radio and Netflix memberships don’t count), and other basic expenses related to food, shelter, prescriptions, etc. Nothing else matters at this point.

3. Determine how much is in your “extended emergency fund.” A basic emergency fund is a pile of cash stored in an online savings account or local credit union. Our goal for an emergency fund is to have one year of basic household expenses stashed away.

However, in a large emergency such as a job layoff or medical disability, you could likely tap other resources. Be sure to include any stocks or mutual funds not held in retirement, CDs (even if you had to pay a penalty), bonds and any other assets that could be converted to cash quickly. This total amount will represent your “extended emergency fund.”

4. Determine your maximum survivability (in months). Divide the amount of your extended emergency fund by the total expenses identified in step 2. This number represents the months you could survive without an income.

For instance, let’s assume an average family of four needs about $2,000 a month to cover their mortgage, basic utility payments and food. If the same family has a $17,000 extended emergency fund, they could expect to make it about 8.5 months on savings.

5. Adjust for increased expenses. Unfortunately, expenses don’t always go down in an emergency. In fact, they rarely do go down, despite your best efforts to cut expenses to the bone. Things like continued health insurance premiums under COBRA, or other medical expenses, can cause spikes in spending categories otherwise in check.

Make adjustments to your prediction based on these estimates. To show how much impact these “surprise expenses” can have, in our example above the same family could only survive five months or so with a $1,000 COBRA health insurance premium added to their $2,000 in household expenses.

6. Conduct a financial fire drill regularly. Armed with all the facts and figures required, it’s time to pull the alarm and practice getting out safely. Since laying yourself off is not exactly a smart idea, it is sufficient to simply pretend you just received your last paycheck.

What expenses would you immediately target to be cut? Write them down, along with customer service phone numbers and terms. Repeat this exercise once a quarter or so and update your list accordingly.

The day you are laid off you may grab your list and make phone calls to the newspaper subscription department, your gym, your lawn service guy, Netflix, and the cable company. These moves alone could save you a couple hundred dollars a month in expenses not necessary to your survival, preserving precious emergency funds. Keep this list handy, and only break it in an emergency.

None of these steps will happen on their own. You must be proactive. Force yourself to sit down and run the numbers. If you don’t know how much COBRA might cost, find out.

If you don’t know how much your health insurance plan’s deductible is under a major medical event, find out. Don’t wait until your exit interview to discover these new costs. Doing so would be like waiting until smelling smoke to map out an escape route.

Each family has to deal with finances their own way, but there seems to be some common threads among all of us.   A successful marriage isn’t easy and it often involves learning to adjust to circumstances, including financial ones, as they come. With many people having their pay cut or losing their jobs all together, money has become a sensitive subject for some families.

One thing that may surprise people is how our finances have helped us draw closer together. While other factors like our faith, friends, and values have been major assets to us, our financial system has been a positive force in our marriage. Like many couples, we had to create it from scratch and learn what worked for us and what didn’t.

Focus on Goals Together

We learned from family and friends that open and honest communication is essential to reaching family goals, whether it’s money or otherwise. Being on the same page with our goals and values has made all the difference for us.

We have made a point to have financial meetings to discuss budgets, goals, and ideas. We did this more frequently the first year we were married as we had to figure out a system that was going to work for both of us. This is important because many times couples will have different ways of getting there.

Living on One Income

The first major decision we made as a couple was to plan to live on one income. It first started out of necessity, but once we got accustomed to it, we kept it. Besides going to school full-time, I had an internship that had a long commute. We weren’t sure if I should or could keep the job since we moved into an apartment way in a different city to be closer to my school.

We decided to keep all our living expenses based on my husband’s pay, which wasn’t much at the time with him being a new college graduate. Since I was still in school and working part time, we decided to do proportional budgeting for our joint accounts.

Our Budgeting System

Here’s an example of how it worked for us. (I’m using some hypothetical numbers to keep the math simple.)

Family Income

• Person 1’s Monthly Net Income: $2100/month
• Person 2 Monthly Net Income: $1400/month
• Total Income:  $3500

Family Expenses

• Bills: $2800/month
• Person 1 brings in 60% of the income.
• Person 2 brings in 40% of the income.
• So here are the deposits:

Family Deposits

• Person 1 deposits $1080. That’s just multiplying the bills by 60%
• Person 2 deposits $720.

We feel like proportional deposits are a more fair way to handle the bills for us personally, but we understand that everyone has to build their own budgeting system. It’s fair for us because the bills don’t become a burden on one person.

We’ve automated much of our bill payments, savings, debt snowball, and retirement contributions. We’ve found that automating our budget keeps us on target.

Having visual reminders has been a big plus for us.  To help us focus on our monthly budget, we’ve used Google Docs and have shared a spreadsheet. This allows us to have an idea of what the plan is for cash flow. To keep track of actual spending habits, we use Mint for the weekly updates.

Postponed Big Purchases and Expenses

Our first apartment certainly wasn’t fancy, but it was by the beach, near the highway, and was well within our self-imposed budget.
Some friends thought we should’ve upgraded to a bigger apartment, but we didn’t want to live on a tight budget. Having an affordable apartment allowed us to tuck away some money and still have a bit to go out with friends for dinner and drinks.

It also provided a great lesson and reinforcement of this economic truth: we don’t have unlimited resources, so we should use what we have wisely.

Where did our little stash of leftover money go during the first few years?

• Emergency Fund – Big priority for us as we wanted to have a financial cushion.

• Paying Down the Car Loan – We sent in extra payments each month and even used our tax refund to get this eliminated.

• Spending Money for Eating Out – We wanted to still have fun, so we included this in our budget.

We’re weren’t immune to wanting to make some big purchases. Postponing purchases usually meant analyzing the situation. For example, my husband really wanted a big flat screen TV.

There were two problems with that though:

1. The money could be better spent on bigger goals, such as an emergency fund, debt reduction for our car loan, or house down payment.
2. Having a really small apartment would make the TV look ridiculous.

Realizing that, we were able to meet our financial goals.  We did eventually get a new flat screen TV, so it worked out for my husband. He was glad because he was able to find a great deal at Costco and made the purchase with our debit card. No payments, just enjoying his TV free and clear.

Bought Cars (with Cash)

When we married, we both had cars. My husband owned his vehicle outright and I was making car payments. Even though my monthly payments were fairly low, I could see how they were negatively affecting out budget.

We decided to pay off the car loan early and hold off on getting another car loan. So far we have purchased 2 cars with cash.

• Acura Integra – My brother had a friend of a friend who needed to sell his car. The guy had started doing upgrades to it, but he didn’t have the money. We bought the car for less than $2,500 and until our car accident, it ran fine. It had great gas mileage and relatively few mechanical problems.

• Toyota Celica – We again put the word out and people gave us suggestions of cars to check out. One car had been for sale for a couple of months. It was in good condition and the owners had taken tremendous care of it. Their children had left the house, so they were downsizing the car collection. So far, it’s been running fine.

It does take much more legwork to hunt for a used car, but we believe it’s been worth it. Both car are at least 10 years old, but they have ran as good as newer cars. Ironically my newer car with the payments has been in the shop more times!

Once we paid off my car loan, we reallocated that money for various new goals, including a car replacement fund.

Do I sometimes want a nice, new car? Yes, it is tempting, but having a large car payment for a few years is not an appealing option for mw. When we go on road trip vacations, we rent a car and that has helped us curb our car appetite.

I completely understand that buying cars with cash isn’t an option for some people. You alone know the state of your family’s finances. I’m just suggesting that you consider holding off having car payments at least until you have a little cushion in your monthly cash flow. My husband suggests trying to buy cars outright unless you have excess money to burn.

Worth the Work?

We have found living a frugal lifestyle to be fun and enjoyable. We eat out with friends, go on vacations, and once in a blue moon, just blow money on things we love.  Our next debt to take down is some student loans. Once that’s done, we’ll try to increase our mortgage payments to pay our house off early.

Getting adjusted to living on income takes time, but it’s worth it. It’s been a wonderful few years together and we hope to have many more.

Thoughts on Couples and Money

How do you organize your finances as a family? What has been your family success story (big or small)?

Couples Have to Respect Each Partner’s Money Boundaries

So how do partners that do manage their money well, and actually enjoy creating budgets and watching the household dollars, get the other partner on board with their financial plan? Often, it is by allocating a small sum of “my” money with which the partner is free to spend whatever their heart desires, with the understanding when it’s gone, it’s gone, until the next paycheck.

This is actually a pretty good idea for both partners. When my wife and I were still our snowball debt reduction plan, we often set aside an amount of money, maybe $50 or so, that each of us could spend from a paycheck without answering questions, justifying the purchase, or planning for it in advance.

The only rule was that the money could not be spent on household bills – groceries, utilities, debt repayment, etc. (unless of course we were in bad shape that particular month and just had to spend it on the household). The money was to be spent on something each of us enjoyed.

We often pooled our money to buy something for the house, or to enjoy the occasional dinner and a movie. Other times my wife bought a couple new books, and I would spend mine on some frugal camping gear, or maybe a new tool I had been eying.

We both enjoyed having a little “my” money, and as our finances have improved, we have increased the amounts a bit, too. Of course, we are quite content and often struggle to find ways to spend the money.

We did recently relax the rules a bit (we did set the rules, after all), and can now opt to add our money to savings (or to my personal favorite, the pay off the mortgage early monthly payment) if there is nothing we are interested in buying.

A Word About Stay Home Spouses

The plan outlined above works particularly well for stay home spouses with no income of their own. My wife has been home with our kids for over ten years, and for most of that time we were living on one income.

My wife and I make joint decisions on just about everything we buy, but one day my wife explained that she would like more freedom to buy things without prior discussion. I was actually relieved because I shared the same feelings.

For example, my wife felt silly asking to spend $50 around my birthday to pick me up a present, and a little something from the kids. I reassured her that I didn’t think of my income as my income, rather it was our income. But I could understand how it made her feel.

When we started setting aside an amount of “my” money every paycheck, it made gift-giving much easier because we could both simply save and spend a bit of our own “fun money” on each other.

Even though I brought up our scenario of one spouse staying home, I see other examples where couples and money don’t mix well. Often times both partners are spendthrifts, and rather than facing their financial problems, they both stick their heads in the sand and ignore them until they are forced to pay attention.

Other couples I’ve been around in the past are both so tight with their spending that they seem to challenge each other to see who can spend the least amount of money, and make each other miserable in the process.

Face it; we are going to occasionally give in and buy something we want. After all, life is to be enjoyed. The key is to find a balance that works for you and your partner. Enjoying success as a couple is often about compromise. And allowing each other the freedom to spend a bit of money each month on things they enjoy is a worthy compromise in your family financial plan.

Now that we are debt free, and that small, but ever-so-slowly growing number at the bottom of the net worth calculation is black, I am committed to calculating our net worth once a month and tracking it over time.

Assets Minus Liabilities

The basic definition of net worth reveals the number is essentially the difference of liabilities, or debts, subtracted from your assets. Seems simple enough. The problem is, there are many different classifications of assets.

In corporate finance, assets are generally classified by their liquidity. That is, how easily can they be converted to cash. Cash saved in a bank account is obviously the most liquid form of asset, while equipment might still be counted as an asset, but since it would have to be sold for a depreciated value to convert to cash, it is considered less liquid.

The same goes for most households. For example, our emergency fund is our most liquid asset. The two vehicles we own, and their estimated private sale value, could also be listed as an asset. However, knowing what a pain it can be to sell a car, I’m reluctant to include their value as part of our net worth.

And then there are houses. Assuming your home’s value wasn’t decimated in the recent housing market bubble, or you have been diligently making a mortgage payment for several years, chances are you have equity in your home. For example, if you own a home worth $200,000 and only owe $170,000, listing both the house and the mortgage as an asset and liability, respectively, would net increase your net worth by $30,000.

A more extreme example, after a couple decades of making a mortgage payment, might lead to a $100,000 bump in net worth. But to realize that money, you would have to sell your home, something you might be unwilling to do.

Calculating Two Net Worths

We simply calculate two net worth figures. The first, I call our “Total Net Worth,” is calculated by subtracting all of our liabilities (mortgage) from all of our assets (savings, house, etc.).

I then calculate a second net worth figure I call our “Liquid Net Worth.” This only includes assets that can be quickly converted to cash, or are already in cash form. This calculation would account for any stocks, bonds, CD ladders, and cash-based accounts such as our emergency fund, goal-oriented accounts at Smarty Pig, and various sinking funds, but would not include “hard assets” like cars and houses.

In most cases, this second net worth calculation is much lower, but is, in my opinion, a more realistic look at your current financial situation. Imagine someone $20,000 in credit card debt with negligible savings, but $35,000 in equity in their home. A $15,000 positive net worth presents a skewed view of their real financial shape. A more accurate, and sobering, liquid net worth calculation would show them nearly $20,000 in the red, and would hopefully motivate them to work on getting out of debt.

Ask the Reader: Do you currently track your net worth? What method do you use? Do you include all assets and liabilities, or some assets and all liabilities, or some other combination?