Income Sources Archives - MoneyWatch101

Side Hustle During the Holidays For Extra Money

Hello readers I want to share with you a tactic you can implement this year to help you make some extra money in 2018 and beyond. These tactics can be used during the holidays only, as there is a ton of ways to make extra money. The only real way you can make this work is if you save most of your vacation days throughout the year, to be used in the last two weeks in December. The reason to do this is to make extra money, while still getting paid from your regular employer. The only difference is you will not be sitting on the couch watching TV, but you will be out there hustling to make at least 2-4 thousand dollars in 2 weeks. That’s why you should find a Side Hustle During the Holidays For Extra Money.

Depending how much energy you have you can really actually make this much extra money. The purpose for the extra money is for you to get some traction with debt, emergency fund money, avoid living paycheck to paycheck, and maybe adding some vacation fund money. The point is to, Make Money, not make it rain on Amazon wish lists. The consumption during the holidays is staggering, and guess what if you’re working you will not be consuming. I have found that I spend more on days off, than on days when I’m working. So work while still young and able, and get a head of all these crazy money goals you should complete today.

Continue reading Side Hustle During the Holidays For Extra Money

7 Ways to Make $500 Extra Dollars Next Month

Side hustle topics and podcasts are all over the internet to help people find a way to make extra income. But how do you really start today to get some extra dough without killing yourself with an immense number of hours added on top of your weekly work load. Most of us have a 9-5 consuming the bulk of our time every day, so if your day is flexible maybe you can hustle and bustle your way to make surplus money.

How you can make $500 extra dollars next month well that depends on your abilities, skills, and dedication to get out and make it happen. Why would you want to build another income source? Because its a good idea to diversify income away from 1 source and into multiple sources. As of right now I have 3 sources of income and I am I looking to increase it every year. Those with 5 income sources or more are in a position to presumably avoid financial risk due to the diversification of total income. If 1 income gets eliminated the person can fall back on the 4 others to pick up the slack. See Below for a few ideas on how to add another income source.

Continue reading 7 Ways to Make $500 Extra Dollars Next Month

Making Side Money

Did you know that making side money can help you achieve money goals faster? I believe anybody can do it on a part time basis. Do you have some debt that you detest? Do you want to save up for a home down payment? Do you want to finally establish a business? The side money you can possibly make will help you attain the things you want if your cash flow is not sufficient enough. What are some of the things you can do to build up the savings? Well jobs are available if you are willing to serve others.

I know some of you are already fed up with working 40 hours a week and cannot even think it will be possible to fit in another 15-20 hours for a side money work. But I have done it in the past and I do not mind doing it again in the future. I try to find jobs that fit in with my personality and schedule. The pay does not have to be substantial, but it definitely is a factor that you must predetermine before you begin applying and accepting offers. I will offer you a few examples further in the post as to give you some ideas how to make side money. These side jobs should only be considered if you do not have over time opportunities in your day job or if you desire to do something different.

Continue reading Making Side Money

States with the Highest Income

The Highest Paid States

I recently read an article based on a study done regarding which states have the highest income mobility. For many people being affluent means having an income over a certain amount and living in a community focused area. What is the amount in income that the study is referring too? The study focuses on typical 30-year-old, earning income slightly greater than their parents did (30 years ago)and upwards to the top fifth percentile for income in the U.S. The study then states that the reasoning behind it is where you live as the primary factor.

The second factor is how involved one is with the community, aka get along with your neighbors as connections are important. If after reading the study based on income mobility, will the information sway people to move in order for their children to hopefully have a better chance to be in a higher income bracket when they are in the work force? It might definitely get me to think twice about where I buy a home in the future. The third factor in the study, towns with great school districts, this factor is very important because many people use this as the primary factor before moving and I totally agree with this because it is the highest criteria I am placing on my home location preference list.

Continue reading States with the Highest Income

Income Sources

Most of you all already know that you can earn income from many different ways. But maybe you didn’t know the actual categories each income source belongs too. I wanted to share with all of you these income sources and give you a brief description and hopefully you can understand how you earn your money better. Personal finance is hard to figure out for many people, but this post will get you one step closer to understanding how one income source favors the other.

Income Sources:

Earned
Portfolio
Passive

Brief Descriptions of each Source:

Earned – Income derived from working for someone else or from a business you own or are a part of. This type of income is taxed the highest out of all the other incomes. It is also the biggest chunk of tax the government makes off individuals for GDP Revenue. In certain situations this type of income can be taxed at and up to 50% of the gross amount you make. The reason being that in this income type you have to pay Social security and medicare taxes.

Portfolio – Income derived from investments including dividends, interest, royalties, and capital gains. When you put your money in a savings account and the bank pays you for having it there that is considered portfolio income. If you write a book, then the royalties of the book sales are considered portfolio income. The tax implications from these types of incomes can be confusing, but dividends and capital gains taxes usually are up to a max of 20% and royalties can be taxed like self-employment ordinary income.

Passive – Income made of work in which you do not actively participate in. Examples include Rental real estate and silent business arraignments. This type of income is what people call gravy because you do not have to put your blood, sweat, and tears into it. Building a rental real estate empire is considered passive income for tax purposes, but believe me when I tell you managing something like a rental empire does take a lot of participation unless you hire a management company and reduce your time commitment.

In the United States people make the mistake to think that income from dividends are considered passive income and this is a mistake, the IRS clearly defines that type of income as portfolio. In my opinion I believe it is mandatory to try to build income from all three sources and then to begin to eliminate earned income and focus on growing the portfolio and passive income sources. If you can eventually grow your portfolio and passive income to cover all expenses then you are finally considered financially free.

Comment to let me know what are your thoughts to the three types of income sources listed above.

Always consult with a tax professional if you have a tax related question or if you are receiving income from different sources as mentioned above. If your taxes are complicated always consult with a certified CPA professional.

RichUncle EL