Questions

[timetosave]

Good morning all. I've been up since 6am reading vines on this site...I've probably read most of them in the personal finance section.

Questions:

What percentage should I strive for in savings vs wants and needs. I'm realistic enough to know wants will always exist ignoring that is foolish and will only defeat me in the end. I am assuming that wants should only be purchased in cash...is this cash left in an envelope (the envelope method) and not the bank

I'm still not fully understanding the envelope method...I just came across a vine about it and will go over and read that in a minute

What are Dave's Baby Steps and where do I find it?

What is "challenge money" where do I find these challenges?

Second Job - My goals are a little bigger now than just getting my credit in line. I want to never need to use credit again...I realize I'm old and am starting late but I feel I can not only get out of debt, but that I can save and eventually not need the bank for the things I want in life...I would like, for once in my life, not to look at cc as income (I know pathetic but I now realize that is how I've been looking at it) so my question is what companies (other than Mary K or Avon - one on every corner here) offer honest return if I dedicate evenings and weekends (which will help keep me in the house and out of the mall with dd and give me something productive to do instead of spending money on bb cards) to the business. I'm looking for a second, third and even fourth income that will work with my "mom" responsibilities (which I take VERY seriously) and will allow me to keep my current full-time job.

I have quite a bit of expertise in adopting children with special needs (my degree is in social work) I am thinking of maybe writing an ebook or something of the sort...there has to be a way I can put that degree/knowledge to work for me as added income.

Thanks everybody. I am also posting this in the personal finance section so I can get some feedback over there...

I'm so glad I've found this board.

[sweeps]

Originally Posted by timetosave

What percentage should I strive for in savings vs wants and needs.

It's impossible to give numbers that would apply to everyone. Ideally you're saving about 20% of your income, but that number is way too high for some and way too low for others.

In my opinion, needs and wants are so subjective that it's not very useful separating them. The idea is you want to minimize your monthly expenses as much as absolutely possible so you can maximize your savings but still enjoy life.

Originally Posted by timetosave

I'm still not fully understanding the envelope method

The term comes from an old budgeting method where people would divide their monthly cash into envelopes. Only one envelope is allowed per budget item (food, clothing, rent, gas, electricity, eating out, etc.). Once you've spent all the money in an envelope, you're not allowed to spend any more on that item. No borrowing from other envelopes either. This helps control your spending.

Now with Microsoft Excel and other software budgeting packages, there's no need to hold cash in actual envelopes (unless you're Ima Saver ). Now you can do virtual envelopes.

Originally Posted by timetosave

What are Dave's Baby Steps and where do I find it?

Link

Originally Posted by timetosave

What is "challenge money" where do I find these challenges?

Are you referring to the Daily Money Savings Challenge?

Originally Posted by timetosave

I'm looking for a second, third and even fourth income that will work with my "mom" responsibilities (which I take VERY seriously) and will allow me to keep my current full-time job.

What skills do you have? Do you have some interesting things to write about? You could create a blog and try to earn some passive income. Can you take in other kids for babysitting fees? You mentioned Mary Kay, are there some things that you might be good at selling (but don't end up costing you more than you are earning)? Some people like to buy things cheap at garage and estate sales and turn around and sell them on ebay. Are you artistic? You could look into making greeting cards or scrapbooks for people. You can also earn extra money by taking surveys and participating in market research studies.

I hope this was helpful.

[timetosave]

Thank you, that was very helpful,


I'm seriously thinking about writing an ebook, I have what I think is valuable insight when it comes to adopting children with special needs, not to mention I've been in the field for the last 15+ years.

I can't do daycare (my little boy is violent) and I have a fulltime job that I do not wish to give up. I've started selling off my 'stuff' on ebay, but this is not really showing any real potential.

Thanks for the input, I'm learning so much here.

[LuxLiving]

Selling on ebay can be time intensive. I used to do it and stopped when they got slap happy w/their fees! But I still like junque' (pronounced zhunk-a)! I still like buying junque'! I already have to much junque'!! So asked myself, "Self, what can I do?" So the first thought was to sell stuff at a flea market. UGH - No! Not for me. I'm not all that social in person and I didn't want to be away from my family and have to be there. I wanted a somewhat passive stream of income. Decided upon renting a booth at a nearby antique store. Now I can shop w/my inventory budget. Like it really well? Put it in the house after logging how much I paid for it in my records. Arrange it decoratively. When I get tired of it, or get something I like better, off it goes to the booth! She does all the money collecting, record keeping, etc. and I get a nice little profit each month! Ohhh...I like it!! Wish I was earning more but so far (a year) I've never once had to come up w/my booth rent, I've always made way more than enough to pay it 50.00 for a rather largish spot and made money to boot! Just a thought.

I get to shop. I get to decorate. I price stuff while watching TV. She does the manning of the store and pays light bills, etc. and cuts me a check on the 1st. What's not to like! Currently averaging 150-300 a month after expenses. Plus I'm clearing out my clutter at the same time (sorry Flylady I need the income!) Some clutter is being donated as I go thru the house, but most is being sold. I've been a junque' collector for years so have quite a bit to deacquisition!

[LuxLiving]

Selling on ebay can be time intensive. I used to do it and stopped when they got slap happy w/their fees!

But I still like junque' (pronounced zhunk-a)! I still like buying junque'! I already have too much junque'!! So asked myself, "Self, what can I do?"

Tthe first thought was to sell stuff at a flea market. UGH - No! Not for me. I'm not all that social in person and I didn't want to be away from my family and have to be there. I wanted a somewhat passive stream of income.

Decided upon renting a booth at a nearby antique store. Now I can shop w/my inventory budget - can you say thrift store?? If I like item really well? I put it in the house after logging how much I paid for it in my records. Arrange it decoratively. When I get tired of it, or get something I like better, off it goes to the booth!

Store owner does all the money collecting, record keeping, etc. and I get a nice little profit each month! Ohhh...I like it!! Wish I was earning more but so far (a year) I've never once had to come up w/my booth rent, I've always made way more than enough to pay it 50.00 for a rather largish spot and made money to boot!

I get to shop. I get to decorate. I price stuff while watching TV. She does the manning of the store and pays light bills, etc. and cuts me a check on the 1st. What's not to like!

Currently averaging 150-300 a month after expenses. Plus I'm clearing out my clutter at the same time (sorry Flylady I need the income!) Some clutter is being donated as I go thru the house, but most is being sold. I've been a junque' collector for years so have quite a bit to deacquisition! It's my retirement assets - I just have to clear them out - most have appreciated nicely over what I paid.

[Great to be Debt Free]

Lux -- I've considered doing this as well. I'm a collector of vintage linens and dolls and things, but my attachment is waning. Was considering e-bay, but maybe a local antique place would be better. May I ask what rent is reasonable? And what commission, or however it works? Thanks

[timetosave]

I think it is the time on ebay that has me already saying this is not for me. I don't mind doing the work, I just don't want to dedicate so much time to something that is not really going to make me any real money...I think I will try for the car payment and then stop...using ebay only when I need it. I wish there was a unique item I could get in bulk...let me think about this...maybe there is something I can do there...one product I can sell that I can keep in stock at little cost (must be something I make) there must be a way. I'm sitting here watching the U.S. Personal Revolving Credit Debt going up and up...what a sobering thing to watch on this site

[LuxLiving]

Originally Posted by Great to be Debt Free

Lux -- I've considered doing this as well. I'm a collector of vintage linens and dolls and things, but my attachment is waning. Was considering e-bay, but maybe a local antique place would be better. May I ask what rent is reasonable? And what commission, or however it works? Thanks

Dear GreatTBDFree-

well, uhmmmmm...it depends!

Depends on how much stuff you have to sell. I have a big house w/full basement, full attic that are chock full of future inventory! If you've only a few items or even only one room full of stuff then ebay may be the way to go. I never paid $50 a month in fees at ebay - BUT it was really labor intensive FOR ME as I'm graphically orientied and I enjoyed very much making my listings attractive and spent a great deal of time on that aspect. Others may not have that challenge! Those that can list something with three word descriptions and a quick pic I'm sure made more money than I did. My time being freed up is worth the $50 TO ME. May not be the case for everyone.

Prices on booth spaces I'm sure must vary across the country. My booth is about the size of a small bedroom - maybe a 10 x 10 and it costs 50 a month. She takes 10% of sales and I pay an additional $5 a month - this is a fixed charge that everyone pays for advertising for the store itself. The only time I've ever had to come up w/the 50 was to start - and have easily made my booth rent, advts. & percentage costs each month plus had a nice tidy profit.

I have a good eye for intrinsic value and can spot something at a thrift or garage sale that will sell. I have quick turnover in my booth, meaning my stuff doesn't stick around. I work it though - I'm in my booth at least once a week, changing the display, dusting, rearranging, etc. I also love to go to auctions, so that is another place I get items for resale. So for now, my booth contains many, many, many items that come right out of my house and a small group of specifically bought for resale items.

Hope this helps!

-LuxLivingFrugalis

[PrincessPerky]

keep looking..if you decide selling isn't for you right now, leave it open in the back of your mind to simmer, come back to it later. if you decide the ebook isn't uite right, leave it in the back of your mind for a time and let it simmer, consider any starts as practice. If you try a website and it fails, call it paactice (though try to keep it free practice)

DH now has a 'side income, after lots and lots of ideas..no money was sunk into any of them, just time and thoguhts..till he hit on his site. and while I have no idea how far it will go, it is fun and pays for itself.

Whatever you try, keep your eyes open for more ideas, never give up, and never say 'can't'! (try doesn't seem to be working right now)