KNS Financial

Personal Finance From a Biblical Perspective

Why You Need to Diversify Your Income Sources

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Yesterday I ran into a friend I hadn’t seen in a few months; we only had a few seconds to talk but he let me know that he had lost his job a couple of months ago. Another buddy of mine was given word that his job would be gone by the end of this year. For what it’s worth, both men have families to support.

We hear stories of people losing their jobs all the time, so these episodes are hardly unique. But what is interesting is that both men were what you might call “well employed” – that is, each had a well-paying position with a large, well-known company that they had worked at for many years.

Why You Need to Diversify Your Income Sources

Jobs Are No Longer Secure

The moral of the story is that there are no safe jobs anymore. Anyone in nearly any job can be replaced either by some form of new technology, or by less expensive workers outsourced from overseas. This is happening with technical and managerial positions as well as clerical and factory jobs.

There are different ways to deal with employment instability and no matter how secure your job seems to be at the moment, you should consider investigating your options. And the time to do that is now, before you’re forced into it by a job loss.

Diversify Your Income Protect Finances

Savings Will Last Only So Long

Many people concentrate on building up their savings as a safety net in case of a job loss. That’s a good idea, however it’s not nearly as effective as it once was.

In an economy where it can take months or even a year or more to find a new job, a two or three months savings cushion just won’t be enough. Unless you can save enough money to cover your living expenses for a year or more, savings will do little more than give you a little bit of breathing room. Not that that’s a bad thing, but it will prove to be inadequate if the job loss turns into a long-term process.

What about unemployment insurance? There are two limitations with this, the first is that for most people, the amount of your benefit won’t come close to covering your living expenses. The second is that unemployment benefits only run for a few months. Like savings, they’ll help at the beginning but sooner or later, they will run out too.

Build up your savings in case of a job loss – but be ready with additional income sources. Savings will cover you in the months immediately following your job loss, but your additional income sources will be your long-term safety net.

How To Diversify Your Income Sources:

Using A Part-Time Job To Apprentice For A Back-Up Career

One of the best ways to be prepared for the loss of your job is to have another one ready. You may be able to do that with a part-time job. I’m not talking on a job pumping gas or serving lattes, but something more substantial.

Ask yourself the question, “If I didn’t have my current job what other kind of work would I do?” The answer to this question can provide you with the insight that will lead to the type of part-time job you should get. What you’re looking for here is a part-time job that will lead you into the career of your choice, or at least into one that could be a reasonable back-up career. .

By taking such a job on a part-time basis your accomplish at least two things: 1) you get the training and experience that you need to enter that field, and 2) you pre-position yourself in a job before you actually need one. The goal will be to convert the part-time job into a full-time one if you can’t find a replacement job in your primary career.

One of the problems with job losses is that they usually occur across an industry or even an entire career field. That makes finding a replacement job very difficult because not only are there a small number of jobs available, but there are also a lot of candidates applying for those jobs. Many people are having to change fields following a layoff.

With a serious kind of part-time job, you already have a replacement career waiting in the wings. The transition is shorter, smoother and easier because of your advanced efforts.

Diversify Your Income By Starting A Business

A similar alternative could be starting your own business. Choose a business that you would like to enter and/or one you have an aptitude for. You can begin it as a side venture and develop it at your own speed. The idea is to build up gradually so that if you do lose your job, you’ll be able to quickly convert the business into a full-time occupation.

Whether it’s a part-time job or a part-time business, not only will you be building a second career for yourself, but you’ll also be providing an extra income that you can put into savings. The combination of higher savings and a backup income source will leave you well prepared for whatever happens after losing your primary job.

Retraining

Retraining is another option. Even though some fields are in decline, there are others that are going strong or are in growth phases. Sometimes all you need to enter them is some formal training. This could be a degree program, technical training or just some courses that you might be able use as a springboard into another career field.

Check with the course offerings at your local community college. They often offer training in career fields that are what you might call “closer to the ground”. This might include fields that are more hands-on in nature, such as those in the medical and computer fields, as well as some of the trades. Those are the type of occupations that tend to do well no matter what else is going on in the economy.

Whether you decide to use a part-time job, part-time business, or some form of retraining, seize the opportunity now to prepare for a job loss that may come later. If the job loss never happens, you’ll have yourself a solid second income. But if it does happen, you’ll be ready for it.

photo credit: freedigitalphotos.net

Professional And Affordable Logo Design Service IS Possible!

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[The following is a sponsored post, but all opinions, thoughts, and words are unbiased – you can read our full disclosure here.]

KNS Financial has been in business for a little over 7 years (existing in several different forms) and in that time, we’ve always had trouble finding dependable design services. Whether it was deciding on our basic color palette, trying to decide on a logo, creating stationary, designing business cards, it has always been difficult to find professional help at a reasonable cost.

To get those things done can cost thousands of dollars, depending on what’s involved and what all the designer gives you at the end of the process. To be honest, we’ve heard so many horror stories about people either using friends (or even friends of friends), looking on various ‘classified-type’ sites, or even finding a cheap gig on freelance websites.

Graphic logo Services

Fortunately, Sherrian is extremely creative and we’ve been able to use her color schemes and designs for most of our creative work (logos, headers, and even the design of our free course on worshipful giving). However, there are things that are beyond her scope and our software, and for that we need to look to professionals.

Since creating a side-business or even a full-time business is something that we strongly believe in and talk about often, we are always on the look out for companies or marketplaces where we can find designers with the right mix of professional and affordable. So when Deluxe Business Services reached out to me about their products, I immediately had to take a look.

Deluxe Business Services

When we’ve looked at other services and individuals, most of them simply asked for a list of keywords that represented our business and then went off on their own to create the design.

However, Deluxe Business Services doesn’t take such a minimalistic approach. They actually take you through an entire process that is designed to take as much of your input as possible and come up with the perfect logo that represents your business.

Deluxe Business Services Logo

Great Prices for What You Are Getting

This process involves a “Creative Brief and Brainstorming” session, initial concepts for you to review, and then a chance for feedback & finalization of your design. What I found amazing about this process is that you can have up to 5 designers working on your project and receive up to 50 design concepts with unlimited revisions!

They have 3 plans that you can choose from: Bronze ($245), Silver ($395), and Gold ($645). The extremely low price for bronze (with 2 designers, 2 revisions, and 10 design concepts) initially caught my eye, but once I saw all that comes with the other packages, I believe that the Gold package would be the best option.

In addition to the unlimited revisions, 5 designers, and 50 concepts, you also receive the font and color codes used (so matching future designs to your logos will be simple even if you use another vendor or do it yourself), custom email signature design, stationary designs (letterhead, fax cover sheets, envelopes), and even 1,000 business cards designed by their team to include and match your logo!

Discounts for KNS Financial Readers

I guess you can see why I think that the Gold package would be the best option. However, if that is outside of your budget at the moment, you can still get a great deal for less than $250! Deluxe Business Services was kind enough to offer our readers a $25 discount on their inexpensive Bronze package. That discount goes up to $40 off of the Silver package, and $50 off of the Gold Design Package (bringing to price to under 600).

Even if you aren’t sure exactly which package fits both your budget and your goals, you can always reach out to them for a free phone consultation in order to figure out which plan is best.

If you are looking to represent your business and brand properly, having a professional logo and consistent design is a must. To be able to do that without breaking the bank is the dream of every entrepreneur, and with Deluxe Business Services, it is no longer a dream.

If you use Deluxe Business Services to create your logo (or for any other design services) let us know. We would love to see what you choose and how it turns out for you!

How to Invest Money and Combat Debt

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[The following is a featured post discussing the idea of investing a small amount of money in order to pay off debt. This is something that I have done with mixed results so far.]

In days gone by, it was commonly believed that the specter of debt could only be overcome by reducing expenditure and committing to a frugal lifestyle. While this remains solid advice, however, it is not necessarily the most productive method in an age of technological advancement and advanced money making opportunities.

Although it may sound a little unorthodox, the prevailing contemporary theory requires individuals to invest capital in pursuit of greater returns. This money can then be used to repay debts more effectively, without forcing households to struggle against a back-drop of austerity and long-term uncertainty.

Debt Investing

How to Speculate and Accumulate: 3 Ways to Spend More and Generate Additional Income

With this in mind, how exactly can modern-day speculation inspire you to boost your income and stave off debt? Consider the following:

Embrace the Financial Markets

While access to the open financial markets was once exclusive to professional traders and large commercial institutions, the development of sophisticated online trading platforms and educational resources have removed many of the pre-existing barriers to entry. As a result of this, numerous markets are now within reach of independent traders with minimal dollars.

This has exposed everyday citizens to a diverse range of financial products and derivatives, from trading forex and currencies to exchanging carbon credits. While you will needs patience and knowledge to succeed, there is ample opportunity to build wealth through this method.

Understand how to Create a Stream of Passive Income

Passive income is a term used to describe capital can be generated without the completion of a direct action or the sale of a commodity. It allows you to speculate and accrue wealth that is entirely separate to what you earn through traditional working methods, which in turn can be used to clear a significant amount of your total debt.

There are several options of this type to suit alternative risk appetites, with the latest high yield checking accounts providing a low-risk avenue for growth and real estate investments available to those with more income and a desire to achieve greater returns.

Do not Underestimate the Rewards of Hard-work

While it may sound old-fashioned and overly simplistic, hard work remains one of the most effective methods of boosting your income and combating personal debt. This does not necessarily mean that you have to work for 12 hours a day in a number of physically demanding jobs, however, as those of you with a viable industry skill can use it to work from home and freelance in your spare time.

Website developers, content writers and software developers remain in constant demand in the current economy, and this has created opportunity for proactive individuals to market themselves as an independent contractor.

As a general rule, speculating to accumulate does require a certain degree of disposable income in order to generate any sort of return. This can be minimal, however, so as long as you are willing to commit this sum in the pursuit of reducing your debt then you can achieve outstanding results over time.

Garage Sales – Clean Out Your Junk and Make Some Money

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Garage sales have a double benefit – cleaning out your junk and making some money. You should want to do both. And there are few casual endeavors you can participate in in life that will provide two such advantages. For this reason, you should start thinking of having periodic garage sales as a regular part of your annual activities.

Making Extra Money

When it comes to having garage sales, making money is probably the primary motivation. And when you think about it, it’s easy money – you’re collecting cash from strangers in exchange for stuff that you already have but no longer want. There’s no inventory to buy, no employees to manage, and you hardly have to leave your home.

But the income potential of garage sales can make them worth doing, even two or three times each year. We average about $150 per garage sale – at least that’s been the result over the past few years. The last one fetched us over $200. Even using the $150 figure, two garage sales would bring in $300 per year, three would bring in about $450.

Make Money Garage Sale

Cleaning Out Your Junk

There is a secondary benefit to garage sales that’s almost as important, and that’s cleaning out your junk. Most of us have more stuff around the house than we even realize. If we’re not using it, then it’s just taking up space for no purpose.

But collections of junk also have financial costs. Consider some of the following:

  • Junk takes up space in your home, giving you the impression that you “need” a larger home than you really do. That larger home costs more across the board.
  • Money sitting in stuff is money that is not in your pocket, not being applied to pay down debt, and not being put into productive investments.
  • Money sitting in stuff is just collecting dust – just like the stuff itself.
  • Too much stuff creates clutter, and that interferes with clear thinking. An absence of clear thinking can cause you to make bad decisions – financial and otherwise. It can also interfere with your ability to earn a living (clutter is the enemy of creativity and organization).
  • Too much stuff can create a fire hazard in your home, which could cause you to lose everything. Sure, you may have home insurance, but not everything can be replaced by money. It can’t replace family photos, treasured home videos, heir looms, and business databases.

Junk isn’t just junk – it can end up costing you money. Are you motivated to make garage sales an annual event in your life?

Making Your Garage Sale Work

Though garage sales seem simple on the surface, there’s actually a series of techniques that can improve your results.

Make your stuff look presentable. Nothing turns off garage sale shopper’s more than unorganized piles of stuff in your garage or driveway. In the week before your sale, organize your merchandise, clean it up, make sure it works (if it doesn’t, just throw it away), and make sure everything is properly and clearly priced.

Advertise the sale on Craigslist. About a week before your sale, place an add on Craigslist under “garage sales“ – it‘s free. Give as much detail as possible, and include photos of any significant items – people love photos! Include the dates, times, your address, and a contact phone number or email address. People may want to contact you in advance of the sale to make offers on specific items. You may get more for those items if they do.

Place plenty of signs out the night before. You should prepare simple, clean garage sale signs. They should include nothing more than your address, and the dates and times of the sale. Don’t clutter up your signs otherwise no one will be able to read them. Remember, you’re aiming them at people in passing cars – small print and too much detail will be ignored.

Place the signs up to half a mile away from your home on busy roads and intersections. The number of signs should increase closer to home, and include one in front of your house- with balloons if necessary.

Have family and friends at your sale – crowds attract crowds. Two things that will draw people to a garage sale are the amount of stuff for sale, and the number of people at the sale. If either is too low, people generally just drive by and assume it’s not worth checking out. Ask some friends and family members to come and hang out if they have nothing else to do.

Potential shoppers won’t know that these are family and friends – they’ll just assume that you have a popular garage sale, one they’ll want to check out.

Have plenty of cash on hand, especially singles. Garage sales are cash-and-carry affairs, so you need to have plenty on hand. You should have at least $100 in cash, with at least half of it in singles, since you will need to make change. And stay with cash only – the passing of fraudulent checks is not unusual at garage sales.

And never, ever accept a check that someone writes in excess of the sale price of an item, wanting cash back. That kind of payment arrangement is almost certainly fraudulent (the issuer will get the item and the cash, and you will get a bad check and a bank charge – with little legal recourse. Be forewarned!)

Everything should be negotiable. When people come to garage sales, they expect to find bargains. Understand that nothing that you have is worth any more than what someone else is willing to pay for it. Never fall in love with your prices – always be prepared to negotiate.

If you don’t, you’ll just find yourself loading all of your stuff back in the house after the sale is over.

Watch the weather! Like baseball and backyard barbecues, garage sales are strictly fair weather events. A little bit of rain, or too much cold or wind, will keep shoppers away. Even if you have scheduled your sale, cancel it if it looks like the weather will be threatening.

Garage sales are pretty easy, especially once you know how to make them work. Once you do, you can make extra money and get rid of your junk. That’s a double win if ever there was one.

The Dark Side of Being Your Own Boss

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Being your own boss is probably something most people think about at one time or another. It may even be a natural human desire. If you have a job, you see things that happen at work and imagine how much better it would be if you were the boss. But as exciting as that thought may be, there’s the dark side of being your own boss.

What is that dark side?

Fully Embracing The Concept Of “Chief Cook And Bottle Washer”

When you work for someone else, the workload is typically distributed among several people. Each person has a specialty, but there are usually extra hands available to pitch in when the workload gets a little heavy. And sometimes new employees or even temporary workers can be brought in to help out.

But when you work for yourself, it’s all up to you. This is especially true when you’re first starting out in business. Though the responsibilities seem endless, there simply isn’t enough income to justify hiring others to help carry the load.

As your own boss, you are responsible for everything that happens in your business – from the most minute details right up to the heaviest tasks. You have to generate your product or service, market your business, maintain customer contact and support, fill orders, and handle all of the back office responsibilities that go with self-employment.

Stress Starting Business

If this type of arrangement doesn’t set well with you, you have two choices:

  1. Find someone to partner with in your business so that the workload is shared – without having to pay a salary, or
  2. Learn to love and appreciate being an employee – though it may be tough, at least your responsibilities aren’t unlimited.

An Unlimited Schedule

Speaking of unlimited, one thing you learn early in the self-employment process is that your schedule seems to have no end! That’s not an exaggeration either. If working 40 or 50 hours per week on your job is tough,  imagine working 10 or 12 hours a day, six or seven days per week. That kind of schedule is entirely possible when it comes to being self-employed.

One of the ways the self-employed manage to get all of the work done – without paying someone else to do it for them – is by working an incredible number of hours to complete all work that needs to be done. For example, you might spend the regular workday – Monday through Friday, 9 to 5 – doing the basic functions to keep your business afloat. This can include product production, marketing, dealing with vendors, and making sales calls.

Since you’re so busy during the day, and on weekdays, you might do all the administrative tasks in the evenings or on weekends. Sometimes you may even find yourself doing more substantial work nights and weekends as well, like making sales calls or designing marketing material.

When you’re your own boss, your schedule essentially has no time limit. You work as long as you need to in order to complete the work that needs to be done.

Cash Flow Insecurity

When you work for someone else, you get comfortable with the idea of having a fixed amount of income arriving at predictable intervals. You may be paid weekly, semi-weekly, bi-monthly, or monthly. There may even be predictable bonuses along the way.

But when you’re your own boss, there is no income except what you generate. That means that cash flow is a constant issue. There may be times when plenty of money is coming in, but others when it’s hard to come by. Many businesses are seasonal, and have to make their money when they’re in season to provide for themselves when they’re not.

It’s a juggling act, and you have to be able to create multiple income streams – as well as a decent sized cash cushion – in an attempt to even out your cash flow.

Paying Your Own Income Taxes

This is an issue that most people never think about when becoming self-employed – until it’s time to file their first income tax return. When you work for someone else and you’re on a salary, your employer withholds income taxes for you. Most times you probably get a refund when you file your return.

But not so when you’re self-employed. The only way that your income taxes are withheld is if you make regular income tax estimates. And that has to include a sufficient amount of money to cover federal income taxes, Social Security and Medicare taxes (15.3% of your net income), and state income taxes. There’s nothing automatic about it – you need a rough idea as to how much money you expect to make, and then make estimates accordingly.

No Benefits

With the possible exception of cash flow issues, a lack of benefits is probably the biggest concern for the self-employed. When you work for a company, especially a large one, they will not only provide you with subsidized health insurance, life insurance, disability, and various fringe benefits, but they will often also provide you with the means to save for your retirement.

When you’re self-employed, none of those benefits are available unless you find a way to provide them for yourself. That will mean maintaining a private health insurance policy – which is never easy to get – as well as establishing and funding your own retirement plan.

Ultimately, you can do all these things when you’re self-employed. But it does take extra time, effort, and money to make them happen.

With All The Negatives, Why Would Anyone Want To Be His Or Her Own Boss?

I know what you’re thinking – why would anyone become self-employed facing all those obstacles? The reality is that not everyone can. Unless you are prepared to deal with the issues above and more, you’re probably better off letting someone else be the boss, then sit back, relax and not have to worry about all of this.

But some people are fully prepared to deal with it all, and there are compelling reasons for becoming self-employed that make working with all these obstacles well worth the effort:

  • The potential for unlimited income
  • Not having a boss to answer to
  • A chance to have creative control over your career
  • A more flexible schedule (despite the need to work longer hours)
  • Having more control over your income
  • Having a business to pass on to your children
  • The ability to live in a place where there might not be many jobs – thanks to the internet, many businesses today are completely portable

You have to balance it out. Some people are willing pay the price to gain the benefits of self-employment. But if you aren’t, that’s okay too. Stay where you are, and learn to love your job! Not everyone can or should deal with the many commitments self-employment requires.

photo credit: freedigitalphotos.net

Do you ever think about becoming your own boss? Have you given serious consideration to some of these obstacles?

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