Budget Snob

Multiple Streams of Extra Income

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I’m always on the look out for ways to generate additional income. So I was especially interested in the extra income guide put out recently by Pinyo, owner of Moolanomy.com.

The guide is for those who are interested in earning more income so they can become less dependent on their job. Income diversification is as much about spreading risk as it is about doing something you love. We’re moving from the traditional, single employer for life to depending on ourselves—our skills—to create income now as well as in the future.… Read the rest

Focus on Job First then Investments

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What does it mean to focus on job first? According to a recent article in the online Wall Street Journal…

“You have more control over what you do in the work force than in your portfolio,” says Ms. Hogan [a financial planner in Milwaukee]. That’s why she focuses more on understanding her clients’ job profiles and growth prospects than she does on trying to figure out which asset classes are going to deliver market-beating returns, she says.”

This is interesting because it’s not conventional advice. Most gurus recommend saving right away regardless of profession and that the younger you are the more aggressive with stock allocations you should be.… Read the rest

Looking for 10% Returns? Not so Fast.

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Or so says bond guru Bill Gross,co-chief investment officer of Pimco and manager of the planet’s biggest bond mutual fund.

“The important thing to recognize is that if you’re looking for 10% returns to pay for college or to retire on, they’re not going to be there. We’ve been an asset-growth-based economy for so long. We’ve skimmed off the top, living off second and third mortgages on homes, and capital gains on stocks and even on bonds. Now instead of having money work for you, you’ve got to work for your money.”

No more investment books touting 12% returns “over the long haul”.… Read the rest

Not Enough Income? Or Just Bad Financial Habits?

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I’ve been more mindful of my spending lately because my wife and I are attempting to speed up our debt reduction (debt that was 99% my fault). We aren’t big spenders by any account. My car is 13 years old. My wife’s van is 6 years old—and both paid off. We don’t have cable or satellite TV. We don’t overspend from month to month. We don’t drink or go out to fancy restaurants. But something isn’t quite right.

While we both have an above average combined income, we can’t quite get ahead on the debt. As I’ve started going through our spending, I’m seeing a trend.… Read the rest

Fixed and Flexible Budgeting

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I like to experiment with my budget. One of my latest budget Frankensteins has been to separate what I refer to as my “must pays” from my discretionary spending.

These “must pays” are bills that absolutely have to be paid. If they don’t get paid, I lose a house, the electricity goes off (not good in the south during the summer), or I don’t drive to work. So, extremely critical stuff.… Read the rest