How to Make More Money: Stop Watching TV!

If you are like most people, you probably have a desire or a strong need to generate more income but you just don’t know where to start or how you will find the time in with juggling all of your responsibilities.  The question is always “how to make more money?”

You need to ask yourself,  what are you spending time on?
Have you seriously thought about it?  One of the biggest time killers is that black box that sits in your living room, bedroom, kitchen or den.  Know what I am referring to?  Yep, it’s your super sleek, shiny big flat screen TV!  You are proud of your big black box, you carefully wipe it down with all the rest of your possessions, and it may even be the “ooh and  ahh” focal point of your home when entertaining.  Heck, you probably spent a pretty penny on it, so why not get your money’s worth out of it right?  And you know what – there is nothing wrong with it.  The question you may need to ask yourself is this: how many hours a day do you find yourself zoning out in front of the television?  Is it only a couple of hours, or is it several hours in a day?  Do you use your television as a way to escape the things that aren’t working for you in your life?  If you do, you are not alone.  Most people nowadays use the television as a way to entertain themselves, as a babysitter, and as a way to escape from life’s problems.

According to statistics, the average time a person spends watching television in the United States is twenty eight hours a week.
Wow!  Those hours add up to a part time job!  It is a little alarming to realize just how much time is wasted on TV.  Would you like to be a lot more productive with your time and make more money in the process?  If the answer is yes, you may be thinking “how can I make more money?”  Stop watching so much television! Just think if you used those twenty eight hours differently.  The possibilities are endless and you can even add additional income for you and your family!

You might be able to figure out how to make more money if you stop watching so much TV!

So what are the different ways that you can use all this new found time to generate more income?
For starters sit down with a pen and paper and figure out just what it is that interests you.  What are you passionate about?  What have you always wanted to try but just haven’t had the time?  Do you enjoy writing or journalism?  What about sewing or knitting?  Do you have a passion for design?  Are you a great cook?  Why not come up with your own signature brand of homemade jam?  You can use your skills and maybe even make a lot of money in the process.  Have you thought of starting a side business?  You could try your hand at consulting, or a blog, even Etsy.  Are you musically inclined?  You could teach music lessons from your home.  Are you an expert in skin care and make-up?  You could teach other women how to properly take care of their skin as well as teaching them how to properly apply their make-up.  What about upgrading your education?  Take some classes or go back to school full time in a career field that interests you.  This will increase your level of knowledge and education and you will become a lot more marketable within your field.
If you are completely stuck about what to do, then  some research on the Internet is a click away then you can discover what is in high demand —what do people want to buy?  Then sit down and think of a way that you can produce what is in demand.  You may just come up with the next great invention and become very successful!

These are just a few ideas on how you can increase your income level simply by just cutting down the number of hours you spend in front of your television. Who knows – you may just happen to find that pot of gold!

Credits:freefrombroke.com

25 Traits Of The Not So Well To Do

Who hasn’t complained about money from time to time? I’ve had my share of gripes over the years for sure!  Some people follow up their gripes by doing something about it.  They save and work hard so they can have a better life later on.  They become the well to do.

Others are the not so well to do’s. They sacrifice their futures to live like kings and queens today, always with the latest “stuff” but at the same time complaining about money.

I’ve observed, over the years, that the not so well to do’s have some traits in common.  The following list are my observations.  These items aren’t bad per se, but when you see a good number of these traits in a person there’s a good chance they too are one of the not so well to do (read: poor)!

25 Traits Of The Not So Well To Do:

1) Big flat screen TV

I’d love to have one but I know we can use the money elsewhere right now.  But I’ve seen a lot of paycheck to paycheck households with a flat-screen TV.  They are the wave of the future but these were bought to have a cool tv not because tube TV’s were no longer available.

2) Premium cable channels

Who doesn’t love the shows on HBO or Showtime?  But the the ones who are most complaining about money tend to not only have one premium cable channel, they tend to have them all!  When you mention that it’s expensive they insist that it’s cheaper because of a package.  They might also have some sort of DVR to record all of the channels too.  Sorry, I can’t see spending over $100 a month to sit in front of the TV that much (thought there was a time that I did but I was also in credit card debt once too).

3) Eating out often

The not so well to do can’t get ahead because so much of their paychecks go to eating out often.  I’m not against a good meal but these people rely on other to cook for them rather than prepare food for themselves.

4) Leasing a car

A car lease can be useful but the not so well to do’s are perpetually leasing, enticed by the lower monthly payment.  Over time though a bought car would have saved them a whole lot!

5) Buying a new car every few years

Maybe worse than the car leasers are those who insist on buying a car every few years.  Oh, the horror of not having an up to date vehicle that you take care of for the long haul.  You must have something new to show off.

6) TV in every room (with cable)

The not so well to do’s are so consumed with their TV shows that they have one in every room lest they miss something on TV!  Every bedroom and kid has one too!  There might even be a small one in the kitchen.  And to add to the expense they probably all have full premium cable channels.  I love TV but come on!

7) Latest cell phones

The not so well to do’s always have the latest cell phones.  It’s a miracle if their cell phones last for the 2-year contract.  These are people where you run into them every few months and somehow they have a new phone.  They’ll insist that it didn’t cost them anything but we know better.

8 ) Eat poorly

This goes hand in hand with eating out.  The NSWTD’s tend to eat like crap.  Soda is a staple as are fried foods and fast food in general.

9) Overweight/No Exercise

When you eat out all the time and don’t eat well what’s going to happen?  Yeah, you’re gonna put on a couple of pounds.  Or more!  These people scoff at exercise and moan that they don’t have time and it’s too expensive.  Of course it is – you’re spending too much time and money on your TV’s and shows!

10) Lots of new clothes

Oh, the not so well to do’s have to have the latest styles or the biggest name brands.  And in excess too!  A few pairs of shoes or sneakers?  Yeah, that would be optimistic.  More like enough shoes so that none of them ever have a chance of wearing out.

11) Tons of gifts for the holidays when you can’t afford it

Have you heard this story?  Person complains that they are up to their necks in credit card debt because they had to buy everyone gifts for the holidays.  Not just immediate family but all sorts of extended family too.  Uncle Joe’s wife’s sister Mary’s kid needed to get that new X-Box game because you promised it to him.  Wonder why he likes it when you come over for the holidays?

12) New computer every couple of years

Man, the not so well to do’s go through computers like my two year old goes through diapers!  There’s always some reason they needed a new one.  And no, these people don’t need their computer for work in any way.

13) Don’t take care of their stuff

These folks not only have lots of stuff but they don’t take care of it either.  Rather than take care of their stuff they let it fall into disarray.  Even if there’s something small that can be fixed they’d rather just go buy another then go through the trouble of fixing it.  Yeah, here’s one reason they go through so many cars, cell phones, and computers!

14) Tons of gadgets

Always with the newest gadgets the not so well to do’s have (that was a Yoda sentence, huh?).  Besides cell phones and such they also have whatever is the newest thing, paying full price for being the first to have it.

15) Doesn’t own a home

Nothing wrong with renting but I find that the not so well to do’s more often than not rent.  And they move pretty often too.  I guess their apartments aren’t ever big enough for all of their stuff!

16) No online high yield savings accounts

No ING Direct Savings for these people.  For whatever reason they don’t trust online banking, or so they claim.  Yet they seem to be able to use their computers to shop online without trust issues, hmm.

17) Doesn’t budget

No budget what-so-ever!  “Budgets? We don’t need no stinking budgets!” Spend and we’ll figure it out later.

18) Couldn’t tell you their monthly expenses

The NSWTD’s can’t keep track of their expenses.  There’s so many to keep track of too!  Think a budget might help?  They also have a tendency to miss payments on bills making the cost of their expenses even greater.

19) Doesn’t share finances with their spouse

There’s a tendency that one spouse takes care of all the finances while the other one has no clue.  Scary.

20) Hates job but won’t do anything about it

Do these people bitch about their jobs!  But ask them why they won’t leave or look for another one and they’ll give you a litany of excuses.

21) Little or no college education

I don’t want to rag on people who don’t like school.  It’s not for everyone and not everyone needs it.  But it seems a lot of the not so well to do’s have little or no college education.  Just saying.

22) No financial priorities

These are the people that tell you they could never save a down payment for a house but then you see all of the gadgets and new items they have.  Yeah, they could save up they just don’t make it a priority.

23) Quick to pick up tab and tip

It’s great going out with these people because they are quick to pick up the tab and/or leave a ridiculous tip.  It’s like they are trying to prove they have a lot so they become over generous.  Hey, I’ll pay my share and you don’t have to prove anything to me!

24) They don’t realize their situation

For all of the complaining about money they do, the not so well to do’s don’t realize why they are cash-strapped.  When you try to point out how they spend or how expensive some of their habits are they say it’s nonsense.

25) No personal responsibility

Someone or something is always out to get them and causes them to be broke.  The IRS hates them.  Their bosses won’t promote them.  Their family takes their money.  There’s always some outside influence that causes them to not have money.  It rare that they blame themselves for their situation.

The traits I listed aren’t bad in of themselves. Hey, if I could always have a new car and the latest cell phone and eat out all the time at the nicest restaurants then that would be great.  But I can’t, and these people can’t either.  The not so well to do’s over-extend themselves and hold themselves back.  They try to live up to some imaginary ideal that is impossible for them to keep up with.  Some of it is keeping up with the Jones’.  Some of it is not wanting to know their limitations.  Whatever it is it keeps them back and they will always be struggling unless they change their ways.  They are the not so well to do and will remain that way unless they change.

If you are reading this and these traits resemble you then take a good hard look at your spending habits and ask yourself if there’s any way you could make a positive change!

What traits have you noticed about the not so well to do’s?

Credits: http://freefrombroke.com

Facebook billionaire's tax bill: Zero?

With a salary of only $1, founder Mark Zuckerberg may not owe Uncle Sam anything. And there are strategies that could keep him from ever paying income tax again.

  Next year Mark Zuckerberg’s base salary will receive a dramatic pay cut -- going from a base salary of $600,000 to just $1.

Which raises the question: Will he ever pay taxes again?

Zuckerberg’s salary cut is similar to moves by other tech titans. Google’s Eric Schmidt and Larry Page are paid annual salaries of just $1 apiece. Steve Jobs took just $1 in annual salary from 1997 until his death last year. Other members of the 1%/$1 club include Oracle’s Larry Ellison and Hewlett-Packard’s Meg Whitman.

Zuckerberg was paid a base salary of $500,000 in 2011 and is set to be paid a base of $600,000 this year. He got a cash bonus of $250,000 for the first half of 2011 and will likely receive a similar bonus for the second half.

Interestingly, he was alone among the top executives at Facebook who got no stock awards for 2011. The board -- which is controlled by Zuckerberg himself -- decided that he had enough stock to align his interests with the other shareholders, at 28.2% of the company.

Zuckerberg’s pay cut could reduce his income tax burden to nothing.

It’s possible that he might even be eligible for certain types of government aid for those with low incomes -- although it’s unlikely that he would seek to collect it. (Post continues below.)
In order to reduce his tax burden to zero, Zuckerberg would have to forego any future cash bonuses or additional stock awards. He would also have to stop employing certain Facebook services for personal use. Last year, for example, he had imputed income from the use of aircraft for personal use of about $692,679. He also received $90,850 in estate and financial planning from Facebook.

Can Zuckerberg really live without income?

He almost certainly can. There’s no evidence that he has an exceptionally expensive lifestyle. His biggest annual expense is probably all that flying around. The income he has already received and been paid will go a long way.

Of course, his past income will not really be enough to see him through all of his expenses for his entire life. For those he will need a line of credit, preferably one with a tax advantage, and income that can be earned tax-free.

People sometimes talk about the rich "living off the interest" of their wealth. But that’s not a tax-efficient way to live if you are really, really wealthy. It’s better to live off debt and muni bonds.

The best thing for Zuckerberg would be a home equity line of credit -- perhaps multiple home equity lines. By borrowing against the value of real estate he owns, the money he receives from the HELOC is debt rather than income, which means it isn’t taxed. Even better, the interest he pays on the HELOC can be used to offset other income he may earn.

Zuckerberg will also be able to access credit secured by his Facebook holdings -- which will amount to billions of dollars. These lines of credit will not be tax-advantaged -- no deduction for interest payments -- but they will supply him with spending money that will not be taxed.

When you have the net worth of Zuckerberg, you can live for a very, very long time on tax-free debt that you can use as income. Let’s say that Zuckerberg needs $2 million of spending power per year and lives an additional 60 years. That’s $120 million of spending. If he gets an interest rate of 4% and just rolls it over as new debt, he’ll eventually accumulate around $520,919,997. Some of that interest, of course, may be deductible against other income.

The might seem like a lot of debt. But for Zuckerberg -- who will likely be worth around $25 billion after the Facebook IPO -- it’s a drop in the bucket. What’s more, if Facebook continues to grow, Zuckerberg’s worth will grow along with his debt. Thus, his debt burden will be negligible compared with his net worth. The unimaginably rich really are different from the rest of us.

Zuckerberg could also use the money he has earned, some from his HELOC and some from other loans, to purchase income-producing, tax-exempt municipal bonds. The interest on the HELOC would be tax deductible -- producing a double tax advantage.

The interest on the other loans would not be -- but the income from coupon payments from the muni debt would be. He could even use the income from the munis to pay some of his interest expense, which would substantially reduce the lifetime accumulation of debt.

The best way for Zuckerberg to meet large expenses -- for instance, if he wants to buy an island in the Caribbean -- would be to cash out some of his Facebook shares. He would pay only 15% in capital gains taxes on these.

Perhaps most bizarre, Zuckerberg might be eligible for an Earned Income Tax Credit if he keeps his personal income under $13,000. To be honest, that might be hard to do since a guy like Zuckerberg can produce that income by taking a company car home at night. And, in any case, it’s unlikely that Zuckerberg would find it worth the time to even file for an EITC that maxes out at just a few hundred dollars.

To be clear, I have no idea what kind of plans Zuckerberg has for his future income and taxes. He may not want to accumulate debt for his entire life. Perhaps he has plans to become a big spender and will need to derive income beyond what he can get from muni bonds. But it’s very likely that at least some of the $90,850 worth of financial advice Zuckerberg received went to minimizing tax exposure.
  
Story from CNBC.com.