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Building wealth involves two broad skill-sets: cutting costs and increasing income. Most personal finance blogs — including this one — tend to focus on the former. Frugality tips have broad appeal because they can be applied by nearly everyone. But in reality, it can often be more effective to boost your income. You can only cut costs so much, but there’s no real limit on how much money you can earn.
For today’s link roundup, I’m sharing several recent stories about boosting the income side of the wealth equation:
I’m a huge fan of money-making hobbies. I think that generating a little cash from something you like to do can be a great way to help improve your financial situation. But sometimes it can be difficult to see exactly how your hobbies can produce income. Craft Stew has come up with a list of 20 ways to make crafts pay that may serve as a source of inspiration.
Next, Trent at The Simple Dollar recently compiled a collection of 50 side businesses you can start on your own. There are some great ideas on this list. I have many friends who do these sort of things to pick up side income. Maybe you can, too.
Can you make money blogging? A recent article in The Wall Street Journal is making waves. Mark Penn writes that bloggers for hire are striking it rich. Others, including Jason Kottke, question Penn’s methodology. My favorite look at this subject recently comes from Penelope Trunk, who offers a reality check: you’re not going to make money from your blog. I’m closely acquainted with several people who have found wealth through blogging. I’ve done it myself. But let me tell you: it takes a lot of work and it takes a lot of luck. Still, in most cases I do think it’s possible for a good writer to earn $100-$200 per month after becoming established. That can certainly help a family’s budget!
Finally, here’s an article that Ramit Sethi contributed to Free Money Finance last month. He writes that if you want to earn more money, you need to stop wasting your time. If you’re trying to boost your income, you need to focus on the things that make money — not the things that don’t. Simple, yes, but oh-so-true.
How do you feel about articles the discuss entrepreneurship and making money? I’d actually love to cover this topic more frequently at Get Rich Slowly. In the past though, I’ve got the impression that there’s only modest interest.
This article is about Spare Change Wednesday, 22nd April 2009 (by J.D. Roth)
April 22nd, 2009 at 4:21 pm
I’d love to see more coverage of this sort of thing, but that’s probably because of how I’ve gotten into my current financial situation. Over the last three or four years, my income has tripled. It’s made worlds more difference in my financial situation than things like going out to eat less often ever did.
I have to admit though, I’m a lot more interested in things that make a *real* difference — things like how to get promoted at work, how to move from the job you have to have to the job you really *want* to have, how to start your own *real* business (as opposed to a side business).
Selling hand-knit socks or earning $100/month with Google ads don’t appeal to me at all. Start-up acquisitions, six-figure salaries, and people who earn a decent living while traveling to exotic locations and working their own hours are far more interesting.
April 22nd, 2009 at 4:30 pm
This is where I’m at right now… I’ve read pretty much everything about reducing expenses, now I’m looking to find out more about earning extra income for added flexibility. I’m currently reading Robert Kiyosaki’s books and would like some practical advice on generating additional income … preferably without selling some froofy product that people don’t really NEED (such as craft items). I especially want help figuring out what I can really specialize in as a service as well as strategies to put myself out there if I’m not the best at networking.
April 22nd, 2009 at 4:57 pm
I would love to see suggestions and ideas on this topic. As someone whose rent will take 58% of my current income, picking up some secondary income in a rational way would be helpful. I think at least some treatment of the topic would be a nice balance to your current mix of posts.
April 22nd, 2009 at 4:59 pm
I have pretty much mastered living on less, so I personally don’t need any more frugality tips, although I still enjoy reading about them…I do, though, wish the financial blogs I read had a lot more about increasing income.
(And - the crafty stuff is great for those in whose lives it fits naturally, but as a knitter, I know that many crafty endeavors really take far more time and materials expense than most buyers would be willing to compensate fairly. It’s also a very good point made by the previous commenter that luxury goods may not be the best direction in which to look for sales, especially in the current economy…)
April 22nd, 2009 at 5:06 pm
I’d love to hear more about this sort of thing.
April 22nd, 2009 at 5:19 pm
I would love to hear more on how to make some extra cash — I feel, like the different stages of financial independence you wrote of a few weeks back, that I’ve “graduated” as it comes to frugality tips, keeping spending under control, etc. (Sure, I’ll do some research before I buy a car or whatever, but the day to day stuff is great).
Actual, real stories — how to do it, etc. — would be most helpful. Not — start a blog!, but here’s how you monetize a successful blog. Or, sell on ebay! — how, what?
I think this would be a great topic area to explore further!
April 22nd, 2009 at 5:44 pm
Count me in the “Want to learn more” column. I read a dozen or so blogs every day about earning side income, and I am doing it to a limited extent, at the rate of 100 or so per month, but would like to do more.
Once you cut everything you can cut out of your spending budget, the only thing left to do is make more.
Real stories are definitely a plus.
April 22nd, 2009 at 5:57 pm
that 50 business article was great!
in terms of what I would like to see, how about more discussions on sustained income growth ideas (get rich slowly) and other many saving tips and ideas that are realistic and practical to implement.
April 22nd, 2009 at 6:00 pm
OMG, here we go again. “How you can make gazillions of dollars working at your home computer five hours a day.” Back before the internet, the scam was to lick envelopes five hours a day and send out pyramid scheme letters.
AAAAAAARGH.
Bozo
PS: The only way I can conceive of making money off a blog is by click-thru ads. Which takes a lot of traffic. And good content, to drive clickers. The amount of research needed to generate the content, go figure. Could you make more in main-stream journalism, well, the answer today is, “probably not.”
April 22nd, 2009 at 6:20 pm
Keep ‘em coming. I love hearing more about this. I just haven’t read the “one” that fits my situation yet, so keep at it. I would guess I’m like some people on here and probably won’t ever blog, so something more realistic in my situation would be more applicable.
April 22nd, 2009 at 6:42 pm
I used to make a full time living sell ing online…. Sold over $900,000 in 2006, but the high eBay fees, paypal fees, auction management fees, etc. really took all my profits. That year, I paid eBay over $100,000 and only had net income of about $30,000.
In hindsight, I made major mistakes in……
1) spending way to much in eBay fees
2) My cost of goods sold was too high as a percentage to my selling price.
3) I felt I needed to keep buying products year round to keep my employees busy. In hindsight, I should have only had employees the 4th quarter and scaled way back the other 9 months of the year.
This way my sales would have been $500,000.00 a year, but with reduced employee expenses and less eBay fees, my net income should have been 7 or 8% OR $50,000 instead of the 3% I made with my 60 hour weeks.
Now, I am working 40 hours a week at a lower paying job, but with excellent health benefits.
My advice to anyone who wants to sell
online in 2009….
1) Do not rely on eBay. Use Amazon and other sites. Utilize Craigslist as it is free.
2) Sell necessities if possible. Brand name used clothes and even shoes sell on
eBay. Books, DVDs, Video games are easier to sll on Amazon.
April 22nd, 2009 at 6:53 pm
While, this is the first article that’s gotten me to post a response, so I suppose that shows how interested I am. Very! I read GRS primarily for the frugality and investing advice, but as a young single guy not really living off of much the idea of an occasional entrepreneurship article, or maybe even a weekly marathon is really appealing!
April 22nd, 2009 at 6:59 pm
I, too, would love to hear more on this. My husband and I are both self-employed (kind of…he runs his own business and I run the three kids plus a small blog), and there it’s often difficult to assess the world of PF through an entrepreneurial lens. Many “rules” are established with a steady, predictable salary in mind–which doesn’t describe our situation at all.
I’d also love to know about how being an entrepreneur (vs. being a box manufacturer) has changed your views on the world, financial and otherwise.
April 22nd, 2009 at 9:00 pm
I have only just started reading your blog and do not completely understand what you cover.
But I do think both cutting costs and increasing income should go hand in hand
April 22nd, 2009 at 9:05 pm
I agree with Bozo. It’s fun to ponder quick-money schemes, but it’s far more useful for most people to focus on their work or on their passions, rather than trying to strike it rich this way or that.
April 22nd, 2009 at 9:10 pm
I’d be fine with more business-related articles as long as they had concrete examples, and didn’t revolve around blogging. I’m not going to blog…doubt if I’ll ever try. (I enjoy your blog, but I’m not writer)
It’d be cool to hear from someone who’s done well for themselves (perhaps they’ve reached financial crossover), who could hit the crucial points along their journey.
Was it their interpersonal connections that did it? Pure luck? Business-savvy decisions? Cut-throat maneuvers?
A good success tell-all/case study would be interesting imho.
April 23rd, 2009 at 1:57 am
As always, an interesting and thought-provoking post. However, it always pays to remember the profound 17th Century proverb:
Thrift is a great revenue.
April 23rd, 2009 at 2:44 am
I’d be fine with more business-related articles as long as they had concrete examples, and didn’t revolve around blogging. I’m not going to blog…doubt if I’ll ever try. (I enjoy your blog, but I’m not writer)
It’d be cool to hear from someone who’s done well for themselves (perhaps they’ve reached financial crossover), who could hit the crucial points along their journey.
Was it their interpersonal connections that did it? Pure luck? Business-savvy decisions? Cut-throat maneuvers?
A good success tell-all/case study would be interesting imho.
BTW I love your blog!
April 23rd, 2009 at 3:12 am
I would definitely love to hear more about entrepreneurship and making money on the side! My husband and I are just starting out and have relatively low expenses, so we stand to gain much more from increasing income than by cutting spending.
April 23rd, 2009 at 3:24 am
JD– you make a valid point about wealth building. You are better off increasing the pie rather than just shifting the pie slices . . .
April 23rd, 2009 at 4:29 am
Hi JD! I agree with some of the other posters - if you’re going to have money making and entrepreneurship articles, please make them detailed and give concrete exams and stories - like the recent articles on Bonds - instead of just laundry lists of ideas. I would be interested in this occassionally.
April 23rd, 2009 at 5:45 am
Another vote for more posts about increasing income. But, I too like the idea of more grounded information on earning wealth instead of the typical get-rich-quick schemes that litter the blog world.
But, since that is already Get Rich Slowly’s style I wouldn’t expect any less.
April 23rd, 2009 at 5:48 am
I think it’s hard to write stuff that’s generally relevant–your options vary depending on your skill set, storage space, access to markets, and whether you’ve got anyone taking care of all that stuff that has to be done but that doesn’t bring in any money.
April 23rd, 2009 at 6:01 am
I can see where these types of articles would be very valuable to a certain segment of the world.
I made a strategic decision in my 20s to further my education and get into a more lucrative career. Now that I’ve got the degree, a good job I love and I’ve paid off the student loans, the idea of a side job holds less appeal. Now I’m focussed on controlling lifestyle inflation and ensuring my spending matches my values.
My very limited amount of free time is better spent with my family & friends than working.
April 23rd, 2009 at 6:06 am
I am going to be retiring soon. I will have a pretty good defined benefit pension but I am looking for ways to make some extra money- enough earned income to do an IRA every year(don’t question why- the answer is somewhat complicated). I do not want to have to think really hard(spent years doing thinking/desk work)- I’ve considered part time work at one of 2 major chains(one is books and one is food) or with a pet hotel/animal care service. I’ve also considered a local retirement blog(ok, this would involve thinking hard) -I haven’t found a good local blog combining local discount info, activities, items of interest to retirees or people of retirement age- I don’t think I would make much and I have never really considered how I could make money blogging. It might help to cut costs if I knew all the local resources for people of a certain age.
April 23rd, 2009 at 7:08 am
I’d like to see some solid articles on developing income streams. I currently work part-time in an office and have some rental property, but I’m looking for an additional income source. Thanks for an infomative blog.
April 23rd, 2009 at 7:19 am
I can’t believe earning extra income/makring more money hasn’t been a big hit at this blog. I enjoy the frugality/investing tips but I am doing a lot of that already. At this stage I am really interested in boosting the income. I love my job but don’t enjoy the travel so I am looking to become an entrepreneur. “How To’s” on raising my income and becoming an entrepreneur is definately something I would love to read about.
April 23rd, 2009 at 9:47 am
I’m always interested to hear about ways I can earn more income. More posts like these please.
April 23rd, 2009 at 9:51 am
I’m interested in any article that can help grow my wealth, be it saving-related or income-related.
April 23rd, 2009 at 10:56 am
More on this topic would be welcome.
April 23rd, 2009 at 11:47 am
Personally, frugality is important to me because it allows me to spend more of my time as I like. If people truly need more money to survive or have a short-term plan to work extra-hard and retire early, that’s great, but just looking for more ways to spend time doing things I don’t really like just to make money is a depressing thought.
April 23rd, 2009 at 12:41 pm
@Bozo:
Click through ads are not how most bloggers make money, and JD is about right on the figures - $100 a month is perfectly feasible is you have a niche that monetizes.
But, I don’t need a section on how to make money blogging at GRS (I get my fix elsewhere). Other entrepreneurship stuff might be interesting.
April 23rd, 2009 at 1:28 pm
I’m all for more articles like this; keep em coming!
April 23rd, 2009 at 2:00 pm
If you could make $500 a month by working five $100/month each self-employed opportunities that in total take 100% of your working time, or $5000 a month by working a job at a company that takes 100% of your working time, which would you choose?
April 23rd, 2009 at 3:11 pm
Interesting article. Also, I believe a post on generating passive income will be beneficial
April 23rd, 2009 at 4:00 pm
As a wannabe entrepreneur, I’d love to hear more on this topic. Currently I earn about a quarter of my income on my hobby/business and I’d really like some tips on how to manage getting the balance right between full-time work, family life and hobby/business.
April 24th, 2009 at 12:24 am
I think ways to increase income should be discussed here — in moderation. It is part of the equation, after all. Being frugal is fine, but sometimes that’s not enough. In this economy, it is better to have multiple streams of income.
April 24th, 2009 at 6:19 am
Frugality and multiple streams of income are the combination that offer some insurance of a big difference, albeit over time. However, I think that many people only look for some sort of “magic bullet” income source, when the fact is that several smaller streams may lead to something that is easier to manage and more effective in the long run.
Jerry
April 24th, 2009 at 8:14 am
For most people, I think the best way to increase income is through additional educational achievement. I know it’s not for some, but… doesn’t getting rich slowly depend on getting smarter slowly?
In 20 years of work before I got a bachelor’s degree, according to my Social Security earnings statement, I earned a grand total of $354,255. Since completing a Bachelor’s degree and two Master’s degrees, I have made a total of $956,003 - in only ten years.
So, education was the key for me. Might not work for everyone, but it worked for me. (Yes, I spent 6 years taking classes at night and on weekends while continuing to work full time, and that wasn’t easy, but it worked!)
Also remember that even if you increase your income, it’s not what you make - it’s what you keep.
April 24th, 2009 at 4:10 pm
JD,
I would love to read more posts about entrepreneurship. I myself have started many side businesses but have yet to strike gold. My goal is to do something part-time that can eventually turn full-time.
Thanks,
-Charlotte
April 25th, 2009 at 12:14 pm
I think that it is important to remember something skipped in this article - that just because something doesn’t make you money, doesn’t mean that it is not useful or valuable to you. And it is not necessary to gear yourself to spend all of your time and energy on money-making. I regularly do some of the suggestions on that list, for relaxation and self-satisfaction (like knitting, sewing) - but I would never consider doing them for profit, since that would take away the enjoyment for me.
And, yes, I do have two other ‘jobs’ in addition to my full-time job; it is getting harder, however, to justify having so little time to spend with my family, though, despite our very tight budget. Focusing all of your energy on making money with everything you do does tend to change the way you perceive your priorities, so it’s very important to make sure you keep balance.
April 25th, 2009 at 3:44 pm
I’d love to hear more articles like this.
April 25th, 2009 at 4:43 pm
I love these kinds of articles!
April 26th, 2009 at 12:33 am
Hi JD!
It will be great to have articles on entrepreneurship on your site. Such articles will encourage the readers on putting up their own money-making business/sideline.
April 26th, 2009 at 8:39 am
entrepreneurship articles are among my favorites on this blog — would love to see more!
April 27th, 2009 at 7:19 am
I would enjoy articles on making money. I started an Etsy shop selling handcrafted pendants. I really enjoy doing it and definitely enjoy the extra cash it produces!
April 28th, 2009 at 10:48 am
Love the focus on frugality. I think people in general underestimate the mindfulness required to maintain a frugal lifestyle AND the sense of satisfaction. I agree with others though at some point you run out of significant expenses to cut and the focus needs to turn toward increasing income in some sustainable way. So yes. More of this would be much appreciated. Thank you for your great work.