Wealthy Turtle

How Does A 401(k) Work…In Plain English

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You’ve probably heard the term 401(k) at least a thousand times, and you might even have some of your own money invested in one.

But exactly what is a 401(k)?  And how does a 401(k) work?

Those are the questions I’m going to answer in this article.  And I’m going to answer them in plain English, so by the time you reach the end of this page you’ll be an official 401(k) expert!

Now, I’m not a financial advisor, but I do work in the 401(k) industry in my day job. That industry background means I understand 401(k) plans better than most people.

Sadly, that’s not saying much.

In my experience, the average American barely understands how a 401(k) works.

And the financial services industry doesn’t exactly make it easy for you to understand, does it?

Take a look at the 401(k) paperwork they gave you when you started your job and tell me how helpful it is.

If it’s like most documents I’ve seen it uses complicated jargon written by lawyers who like to make things as confusing as possible.

But that doesn’t really help people like you me, does it?

You don’t have time to read through the hundreds of pages of paperwork that makes up your enrollment package, summary plan description, deferral election form, beneficiary designation form, fee disclosure, and investment option paperwork.

What you need is a simple 401(k) guide that explains everything to you in simple, easy to understand language.

And that’s why I created this page.

But this is more than just a 401(k) for dummies type of post.  My goal is to make this the ultimate resource for people who have questions about how a 401(k) works.

Now before we get too far, let me make a couple of quick points about this guide.

First, when a company is first setting up a 401(k) plan they have many different options to choose from, which means not all plans are created equal.

Think of it like the difference in cars.  Your car might have a moon roof, a luggage rack, and leather seats. I could have the same model but without any of those extra features.

Same basic car, but very different in several important ways.

The same goes for 401(k) plans and since there is an almost infinite variety of options, I can’t possibly go over every single combination.

Instead, I’ll go over the most common features with the understanding that some of the sections below may not apply to your individual situation.

Secondly, I am not a financial advisor and anything I say is strictly my own opinion and shouldn’t be taken as advice.

What Is A 401(k) Plan In Simplest Terms?

In simple terms, a 401(k) plan is a type of savings plan that allows you to set aside a portion of your paycheck and invest it for retirement.

Contributions are deducted from your paycheck before taxes so you get a tax break with each contribution you make.

As long as you keep the money within the 401(k) account you won’t pay any taxes until you retire and withdraw the funds.

SIDE NOTE – 401(k) isn’t the sexiest of names, and people often misinterpret it as 41K plan or a 4o1k plan.  The 401(k) got its super exciting name from the section of the Internal Revenue Code that explains it. So, the next time you have nothing better to do, grab a copy of the Internal Revenue Code and turn to Section 401(k) so you can see for yourself.

How Does A 401(k) Work?

Okay, there’s a lot to go over so let’s take it one step at a time…

401(k) Eligibility Rules

You can’t just go to a bank or a website and sign up for a 401(k) on your own.  Your employer has to decide to offer a 401(k) to its employees.

If you work for a very large company you almost certainly have access to a 401(k) plan.  But smaller companies may not want to be bothered with the hassle or added expense of offering a 401(k).

Even if your company does have a 401(k) plan, you might need to meet age and service requirements before you become eligible to participate.

In general, you must be allowed to participate in the 401(k) plan as long as you have reached age 21 and have at least one year of service with your employer.

Keep in mind those are the maximum requirements you may need to meet.  Your employer may not have any age or service requirements at all, or they may set them at something less than 21 and 1 year.

For example, they might limit the plan only to employees who are over 18 and have worked at the company for 6 months.

Some plans do exclude entire classes of employees no matter how old you are or how long you’ve worked there.  Union workers and part-timers are types of employees who are often excluded from 401(k) plans.

What Are The Benefits Of A 401(k)?

When I think about the benefits of contributing to a 401(k), there are four things that jump out at me.

Forced Savings

How many times have you heard personal finance experts stress the importance of paying yourself first?

Heck, it’s one of the most fundamental rules of building wealth. By paying yourself first you’re making sure that your savings goals are being funded before you waste your money on that new video game or kitchen gadget.

Investing through a 401(k) plan makes saving easy and painless. Once you sign up, the money comes out of your paycheck automatically. You don’t have to worry about making a separate deposit or transferring money on your bank’s website.

It just happens automatically, so even the laziest among us can save for retirement.

Tax Benefits

One of the advantages of saving through a 401(k) is the ability to contribute a portion of your paycheck pretax.

For example, let’s say your monthly income is $5,000.  If you contribute $500 per month into your 401(k) you will only pay taxes on $4,500 instead of $5,000.

That lowers your taxable income and reduces the amount of tax you’ll pay.

Plus, the dividends and capital gains earned on your 401(k) investments are tax-deferred.  That means you won’t be taxed on them at all until you start withdrawing money from the plan.

Deferring taxes on those earnings will allow them to grow faster which is great for your bottom line.

Employer Contributions

Many employers will actually make contributions to your plan too.

For example, a typical employer contribution might be 50 percent of the first 6 percent you contribute.  If you earn $60,000 a year and contribute 6 percent of your salary ($3,600) the company will contribute 50 percent of that amount into your account.

That’s $1,800 in free money!

If your company has a really good year they might even make an additional contribution, such as a Discretionary Match or a Non-Elective Contribution (NEC).

You don’t need to worry much about those, but if you get them consider it a bonus.

Protection From Creditors

Hopefully this will never be an issue for you, but if you find yourself in debt and creditors are coming after you it’s good to know that your retirement savings are safe.

Generally, creditors are not allowed to take your retirement savings and your 401(k) is also protected during bankruptcy proceedings.

401(k) Disadvantages

Of course, 401(k) plans aren’t all sunshine and lollipops. They have their downsides too.

Taxes

While being able to contribute pre-tax money into your 401(k) and letting it grow tax free is a definite advantage, there’s another side to the story.

When you start withdrawing money from your 401(k) it gets taxed as income at whatever tax bracket you happen to fall into.  That will be much higher than the long-term capital gains tax you would owe if you had invested that money outside of a 401(k).

If you earn around $100,000, your income would be taxed at 24 percent.  But long-term capital gains taxes top out at the far lower 15 percent for most people, and 20 percent for those with higher incomes.

Lack of Flexibility

Your 401(k) doesn’t work like a savings account at a bank.  It’s designed to be used for retirement savings, so in general it’s very difficult to take money out early.

Most plans do provide ways for you to access your money when you really need it through loans or hardship withdrawals but as you’ll see later in the article those have disadvantages of their own.

When you put money into a retirement savings account you should expect to leave it there for years to come.  A 401(k) is definitely not a good place for your emergency fund.

Staggering Fees

Another problem with 401(k) plans are the high fees that eat away at your account balance.

A report issued by the Investment Company Institute found that an average working couple making a combined $30,000 and contributing five percent to their 401(k) would pay an obscene $154,794 in fees.

If that same couple earned $90,000, they’d pay a mind-boggling $277,000 in fees!

The worst part is that the fees are hidden and difficult to find.  They’re built into the funds themselves in the form of an expense ratio and you probably have to do some digging to figure how much you’re being charged.

When you compare the investment options available to you pay close attention to the fees charged.

The lower the fees the better.

Look for index funds or passively managed target date funds which will usually have fees that are just a fraction of what the actively managed funds charge.

Let’s quickly recap the pros and cons of a 401(k) plan:

How To Enroll In A 401(k) Plan

Once you become eligible to join your company’s 401(k) plan, you should receive an enrollment package containing some important documents including:

  • A summary plan description outlining how the plan works
  • A salary deferral election form so you can choose how much you want to contribute and which funds you want to invest your money in
  • A beneficiary designation form to indicate who will receive the assets if you die. If you are married this will be your spouse

You might receive an actual paper package containing these documents, but these days most employers allow you to enroll into the 401(k) plan online.

Automatic Enrollment

Some plans don’t even require you to enroll in them.  They will actually sign you up automatically unless you tell them not to.

This is called negative enrollment or automatic enrollment.

Those people who never took the time to read through the documents and notices they received are often surprised when they notice their paycheck gets smaller and money starts going into their 401(k) plan.

Fortunately for them, they typically have an option to withdraw your money within a 90 day window beginning with the date of the first automatic contribution.

How Much Can I Contribute To A 401(k) Plan?

The government wants you to save for retirement.  That’s why they offer tax savings on any contributions you make.

But they don’t want you to save too much, right?  They still need a healthy dose of tax income to keep the country running.

So, they put a limit on how much you’re allowed to contribute to a 401(k) plan.

In 2018, the 401(k) contribution limit is $18,500.  If you’re 50 or older you can make an additional catch up contribution of $6,000 for a total of $24,500.

That’s just the money you contribute yourself. If you include employer contributions the limit jumps all the way $55,000.

The chart below shows the maximum contribution (also known as the 402(g) limit) you can make this year and in previous years.

The chart below shows the maximum contribution (also known as the 402(g) limit) you can make this year and in previous years.

402(g) Limits

Your Age201920182017
Under 50$19,500$18,500$18,000
50 or Older$25,000$24,500$24,000

What Is A Roth 401(k)?

A variation on the traditional 401(k) is the Roth 401(k).  They are very similar, except the taxation and distribution rules for Roth 401(k) plans are different.

With a traditional 401(k), contributions are made with pre-tax money and they will reduce your taxes in the year you make them.  When you withdraw money from the plan it will be taxed at normal income levels.

On the other hand, Roth 401(k) contributions are made with after tax money.  You don’t get a tax break on them now but if you follow the rules your distributions will be tax free when you take them out.

Your Roth contributions themselves are already taxed when you put them into the plan so they don’t get taxed again when you take that money out.  Even better, if your contributions are in the plan for a minimum of five years, the earnings accrued on them will be tax free too.

So the choice between a Roth 401(k) vs traditional 401(k) comes down to what your future tax rate will be in the future.

If you think your tax rate in the future will be lower than it is today, then the traditional 401(k) makes sense. This way, you’ll avoid paying taxes on your contributions now when your tax rate is higher.

If you’re in a lower tax bracket now and expect to be in a higher bracket at retirement, the a Roth 401(k) would make sense since you would pay the taxes upfront when the tax bill is smaller.

Of course, no one knows what will happen to tax rates in the future.

So rather than flipping a coin or going with a hunch, perhaps your best bet is to hedge your bets.  Many 401(k) plans allow you to split your contributions and have half go into your account as pre-tax money and the other half go into a Roth as after-tax money.

This option reduces your risk and gives you the best of both worlds.

How Do I Invest My 401(k) Money?

The investment options available within your 401(k) plan depend on who your employer has partnered with to operate the plan.

For example, Fidelity will offer a different set of funds than John Hancock.

Regardless of who operates the plan, you will have a range of mutual fund choices that focus on different types of investments.

You should have a cash or money market fund, a bond fund, index funds, and funds that focus on various types of stock such as small companies, large companies, international companies, etc.

Some plans may even offer a brokerage option where you can invest in individual company stocks.

I can’t tell you which funds you should invest in, but most people would agree that you shouldn’t put all of your eggs in one basket.

Instead, divide your investments into a mix of cash, bonds, and stocks.  This strategy, known as asset allocation, aims to reduce risk by spreading your investments across different asset categories.

Many 401(k) plans also offer target-date funds, which automate the process of asset allocation for you.

Target-date funds are tailored to a specific retirement date.  For example, a 2040 fund would invest with an asset allocation designed for someone expecting to retire in 2040.

As that year gets closer the mix of investments would be updated automatically to adjust for different risk levels.

Target-date funds have become popular because they offer a more hands-off experience.

Whatever fund choices you make, be aware of the impact that fees and expenses will have on your investments.

Some funds charge more than others and the difference can be substantial over many years. Review your fund options carefully to see the expense ratio for each.

What is 401(k) Vesting?

Vesting is just a fancy word for ownership.

You’re always fully vested in any 401(k) contributions you make from your own paycheck. That money is yours to keep no matter what.

But contributions made by your employer are different.

Some 401(k) plans offer immediate vesting, which is awesome.  That means you don’t need to meet any service requirements at all and the employer match belongs to you immediately.

But most plans aren’t so generous and they make you stay with the company for a certain period of time before you “own” the employer contributions.

If you leave before you are fully vested you’ll forfeit, or give back, the unvested portion of your 401(k) account.

There are two types of 401(k) vesting schedules that can be used by a plan: graded vesting and cliff vesting.

With a graded vesting schedule, you start off at zero vesting and become more vested the longer you work there.

Here’s an example of a typical graded vesting schedule:

Years of Service with EmployerVesting Percentage
1Zero
220 Percent
340 Percent
460 Percent
580 Percent
6100 Percent

Your plan’s 401(k) vesting schedule may be more generous than this example, but thanks to the Pension Protection Act of 2006, it can’t be any more restrictive.

With a cliff vesting schedule there is no gradual increase in your vesting, you simply go from no vesting at all and skip right to 100 percent.  Here’s an example:

Years of Service with EmployerVesting Percentage
1Zero
2Zero
3100 Percent

A Real-Life Example

Let’s say your employer’s 401(k) plan follows the graded vesting schedule outlined above.  You work there for three and a half years and over that time your company contributes matching contributions of $10,000.

When you leave, you have reached forty percent vesting so you will be allowed to keep $4,000 of those employer contributions.  The other $6,000 will be forfeited and you’ll lose your claim to it.

401(k) Distribution Rules

Your 401(k) is meant to be used for retirement savings. It’s not a piggy bank to be cracked open to pay for a vacation or a new car.

That said, life happens. Sometimes you find yourself in a financial crunch and if that happens there are some ways to tap into your 401(k) account.

Let’s start with the options available to you while you’re still employed by the company and then we’ll talk about how to withdraw money from your 401(k) after you switch companies or retire.

401(k) Loans

If you need quick cash and you don’t have an emergency fund to tap into, you may consider borrowing from your 401(k) rather than using your credit card or taking out a bank loan.

Not all plans allow loans, but most do.

According to IRS 401(k) loan rules, you can borrow the lesser of $50,000 or half of your vested balance.

So, if you have a vested balance of $200,000 you can borrow the max of $50,000. If you only have $10,000 in your 401(k), you can only borrow $5,000.

The money you borrow from your 401(k) is usually paid back through payroll deductions, so you don’t have to worry about missing a payment.  It just comes out of your check automatically.

The maximum term for most 401(k) loans is five years, though that can be extended if you are using the funds to purchase a home.

Before you take out a 401(k) loan, let’s first consider some advantages and disadvantages.

401(k) Loan Advantages

  • You can use the money for whatever you want and don’t need to explain how you plan to spend it.
  • The interest rate is likely lower than what you’d pay through another lender.
  • You’re essentially borrowing money from yourself so the interest is repaid back into your account.
  • As long as you pay the loan back there are no tax consequences.

401(k) Loan Disadvantages

  • While a 401(k) loan is not taxed, there are still transaction fees which can be costly.
  • The money you borrow won’t grow because it’s not invested. If the market is going up you could miss out on significant earnings.
  • Loan repayments are made with after-tax dollars that will be taxed again when you withdraw them.
  • If you leave your job before paying back the loan, the full amount becomes due. If you can’t pay it back the outstanding balance is treated as a taxable distribution.  You’ll owe tax on the full amount, plus a 10 percent penalty tax if you’re under age 59 ½.

401(k) Hardship Withdrawals

Unlike loans, 401(k) hardship withdrawals are not repaid into the plan.

If your plan allows for hardship withdrawals (most do) you can take money out of your 401(k) for any of the six IRS approved reasons below:

  1. Unreimbursed medical expenses
  2. Costs related to the purchase of your home
  3. Tuition and related educational expenses and fees
  4. Payments needed to prevent foreclosure or eviction from your home
  5. Funeral or burial expenses
  6. Expenses for the repair of damage to your home

401(k) hardship withdrawal rules require you to provide documentation to prove you have an actual hardship.  You can’t just say “trust me” and take out as much as you like.

You will have to pay normal income taxes on your 401(k) hardship withdrawal.  Plus, you’ll also be subject to a 10 percent penalty tax if you are under the age of 59 1/2.

What If I Leave My Job?

If you switch jobs, you’ll have a few options to consider for your 401(k) account.

You can leave it where it is with your old employer’s plan. Most plans allow this but if you have a small balance (under $5,000) they may force you to take it out.

You can cash out your 401(k), though I strongly recommend against this option.

Sure getting a large lump sum of cash is great, but there are some serious consequences.

First, you’ll get a hefty tax bill.  Not only is the full amount considered taxable income but if you’re under 59 1/2 you’ll also get hit with a ten percent penalty tax.

Ouch!

Secondly, you’ll be wiping out everything you had saved for retirement and you’ll have to start all over again.

Assuming your new employer offers a 401(k) plan of its own, you can roll your balance into this new plan without paying taxes on it. Consolidating the two accounts will make tracking and managing your retirement savings easier.

Or, you can roll your 401(k) money into an Individual Retirement Account (IRA).  Again, you won’t pay taxes on the money rolled over and an IRA may have a greater selection of investment options compared to a 401(k).

You can open an IRA with any number of companies.  Vanguard and Fidelity are two very popular low-cost options.

Your 401(k) After Retirement

So what options are available to you after you retire?

Well, one option is to leave your money in the 401(k) plan and take withdrawals as you need them. This can be a pain as you’ll have to deal with your former company to get your money out and 401(k) fees can be hefty compared to other options.

Once you reach retirement age you can withdraw money from your 401(k) without paying any penalty tax (though you will still owe normal income tax on any withdrawals).

Another option is to cash out your 401(k) and keep it somewhere else.  You can avoid being taxed on the entire amount by rolling it into an IRA.  Then you can still take distributions as needed and have easier access to your money if you need it.

Many people choose to take a lump sum amount in cash and roll the rest over to an IRA.  This way they can use a portion of their 401(k) balance to treat themselves to a vacation or do some home renovations while keeping the bulk of their money for their retirement years.

Summary

The 401(k) plan is not perfect, but it is an important tool for the average American who wants to save money for retirement.

Your money will grow tax free until you take it out and that is a big advantage.  Over many years, steady 401(k) contributions can grow into a sizable nest egg.

Start contributing as soon as you can and make sure you’re putting in at least enough to receive any employer matching contributions.  Remember, that’s free money and it would be silly to pass that up.

401(k) FAQs

Question – Why did I receive a refund of my 401(k) contribution?

Answer – If you contributed to a 401(k) plan and then received a refund for a portion of your contributions, your employer’s plan likely failed one of several tests that 401(k) plans must meet each year.

I won’t go into detail here (I could write another entire post about 401(k) testing) but the government requires 401(k) plans to pass certain tests to ensure that highly compensated employees (HCEs) aren’t benefiting more than the lower paid workers.

If a plan fails one of these non-discrimination tests it must refund some of the contributions made by the highest paid employees.  In some cases, they can make as additional contribution to the lower paid employees so the HCEs do not have to receive refunds.

Question – What is a safe harbor 401(k) plan?

Answer – A safe harbor 401(k) is a specific type of plan that is structured in a way to pass or avoid non-discrimination testing.  In order to qualify as a safe harbor, a plan must meet more stringent contribution and vesting requirements.

Safe harbors are more common among very small employers who may have trouble passing 401(k) tests otherwise.

Question – What’s this about getting a 401(k) match on my student loan payments? Is that for real?

Answer – A new ruling by the IRS might just make it possible for you to both pay down your student loans and save for retirement.

It’s still early and there are many details to be worked out, but here’s what we know so far.

The ruling technically only applies to a single employer who specifically asked the IRS for an opinion because they wanted to offer an employer match to their employees who are saddled with student loans. The IRS opinion letter states that the specific provisions suggested by this company do not violate any sections of the code.

That’s great news!

Because if one company is looking to offer this benefit and the IRS says it is okay then you expect many others to be interested and before long this will likely be written directly into the code and offered widespread.

Here’s a breakdown of how the match would work in the specific example laid out in the IRS ruling (keep in mind your company’s match could be different):

Let’s say you earn $4,000 per month. As long as you make a student loan payment equal to at least 2 percent of your pay ($80), you’d receive a student loan repayment non-elective contribution (SLR NEC) of 5 percent ($200) into your 401(k) at the end of the year.

So just like that you’d have $2,400 contributed into your 401(k) and all you had to do was continue making your student loan payments on time!

But wait:

It’s important to remember that nothing is finalized yet. It’s possible there will be no government support for this idea and it will never get off the ground.

BUT, I think it will happen. Student loan debt is a huge problem and I think this is an effective way for people to pay down their debt and save for their future at the same time.

It may take some time to hammer out all the details and the final product might not look exactly like what we’ve heard so far, but personally I think it’s only a matter of time.

A Final Note

I worked really hard on this article to make it the most complete and ultimate 401(k) guide.  I edited it again and again to make sure I explained everything in the simplest terms possible so even a 401(k) novice could understand the concepts.

If you found this guide helpful, please take a moment and share it on Pinterest, Facebook, Twitter, or wherever else you like to hang out.  Spreading the word is the best way you can help Wealthy Turtle and I truly appreciate your support.

129 Legitimate Work From Home Opportunities You Can Start Right Now

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Hi there
Do you dream of one day working from home?  
Wish you could make it happen but don’t know where to begin?

No worries…we’ve done all the work for you.

We’ve painstakingly researched one work from home opportunity to the next to cut out all the nonsense and scams.

It took a lot of effort but we really wanted to create the ultimate guide to legitimate work from home opportunities.

As we wrote, this guide became so long and detailed that we decided to add a table of contents to make it easier for you to find what you need.

Pros and Cons of Working From Home

Working from home is a dream for millions of people.  But for one reason or another not everyone is cut out for it.

Before you make the plunge, read through the following advantages and disadvantages of working from home.

Advantages of Working from Home

Closer to Family and Friends – When you’re working from home you get to spend more time with your family and you can be there if someone is sick or needs to get picked up for school.

No Commute – Take it from someone who drives and hour and fifteen minutes each way to work and home, commuting sucks.  It’s stressful and there are just so many better things you could do with that time.

More Sleep – Lack of sleep makes people cranky and it can lead to health problems. If you don’t have to get up early to start your commute you can grab an extra hour or more of sleep.

Saving Money – With no commute you’ll save on gas and tolls.  You also won’t need to worry about your wardrobe since you can work in your pajamas if you want.  Plus, you’ll save money on lunches out with coworkers.

Disadvantages of Working from Home

Isolation – Some people who work from home struggle to adjust to being alone for much of the day.  They miss the camaraderie of working with other people and end up feeling isolated and lonely.

No Clear Boundaries – If you don’t have set hours it’s really easy for the border between work and home to blur.  On days I work from home my kids always ask me, “Are you home today?”  I have to remind them…”I’m working from home, I’m not home to hang out.”   It can be awfully tempting to run out for a haircut or an oil change but if I do that I’ll never get any work done.

Discipline is Vital – When you get to sleep in a little and work in your pajamas, it becomes really easy to take it easy.  Staying motivated to work hard and keep productive can be a real challenge.  If you’re not naturally self-motivated you can find yourself distracted by laundry or the television when you should be getting work done.

If you’re sure you can handle working from home, let’s talk some more about the best, and most legitimate work from home opportunities…

Freelancing

As a freelancer you act as an independent contractor rather than a traditional employee.  You won’t get benefits or paid time off and you won’t have taxes withheld from your paychecks either.  You’ll have to set aside money throughout the year to cover your tax bill.

But freelancing can be fun and rewarding as you work on diverse projects for many different clients.  You also have the potential to earn a lot of money based on your own skill and work ethic.

Here are some common freelance jobs that may interest you…

Staff Writing for Blogs

Many bloggers hire one or more staff writers to help them create content for their blogs.  (Mike – I’ve done some staff writing myself for a few other blogs).

Hiring staff writers allows them to scale back their own time commitments to the blog.  Staff writers also add additional voices and opinions which can help build more traffic.

Of course, staff writers can do more than just write blog posts.  Many business websites need help creating content to build and promote their website.

Pay rates for staff writers vary from anywhere around $20 to several hundred dollars per article.  It all depends on your experience, the niche you’re writing in, and who you’re writing for.

A small time blogger can’obviously t afford to pay as much as a larger, corporate-sponsored blog.

Magazine Writer

Writing for magazines is a bit tougher and more competitive than writing for blogs, but the pay can also be substantially better.

Depending on the magazine, writing topic, and length of the article you may be paid $1,000 or more per article.  You’d have to write a lot of blog posts to make that kind of money as a staff writer.

If you want to try your hand at writing for magazines, a copy of Writer’s Market is a must have.  It gives you tips on everything from getting started, negotiating rates, building your brand, and handling contracts.

The guide also lists hundreds of magazines that hire freelance writers along with submission requirements, pay rates, editor names and contact information, and the specific topics they cover.  It will save you many hours of research and I strongly suggest you pick up a copy today.

Virtual Assistant

Virtual assistants help entrepreneurs and business owners with various tasks they don’t have the time or skills to do for themselves.

VA work may include email management, live chat support, negotiating with advertisers, responding to blog comments, scheduling posts and newsletters, proofreading, social media management and much more.

What kind of services you offer as a virtual assistant depends on your own skills and what you feel comfortable doing.

Transcription Services

General transcribers listen to audio and video files and transcribe the words into either a Word document or some other written format.

They’re used in many different types of industries and mediums such as academia, marketing, interviews, films, lectures, and more.

Legal and medical transcription requires all of the skills necessary as a general transcriptionist plus the added knowledge of legal or medical terminology and documentation.

You can expect to earn about $15 to $25 as a general transcriber and a bit more if you offer legal or medical transcription services.

Translator

If you speak multiple languages you can find plenty of work as a translator.

On Site interpreters attend meetings, conventions, and trade shows to help break down language barriers and facilitate communication when parties speak different languages.

Telephone translators do the same thing but over the telephone.

Document translators review a wide range of documents and translate them into another language.  They may be asked to translate birth certificates, divorce decrees, product manuals, employee handbooks, or even entire books.

Graphic Design

If you’re the creative type and you’re good with graphic software there are plenty of work from home opportunities available.

Traditional businesses need graphic artists to create logos, signs, posters, billboards, brochures and other marketing material.

Plus, online businesses need help with web design including logos, ebook covers, and other web graphics.

Here are some popular freelance sites where you can sell your graphic design skills:

Search Engine Evaluator

Search engines like Google are pretty good at providing the most relevant results when you search for something.

But they’re always trying to get better.

Search engine evaluators rate the relevancy of results for various search terms.  These jobs typically pay between $12 and $15 per hour and can be done from the comfort of your couch.

User Testing

Web site owners need to know what you think of their site.  Is the site easy to navigate?  Can you find what you need?  Is their messaging clear?

To answer these questions they hire user testers to visit the site and perform a specific series of actions while they record your mouse movements and voice as you describe your experience on the site.

UserTesting.com will pay you $10 for each test you complete.  Each test takes between 10 and 20 minutes to complete, so you can easily earn $30 an hour testing web sites.

Starting Your Own Business

Millions of people dream of starting their own business.  Some just can’t take working in a traditional job. Others want to be in control of their own destiny and reap the full rewards of their efforts.  Some just want to follow their passion and do something different.

Whatever your reasons for starting your own business, there are plenty of options available. Think about your strengths and skills and choose something you’ll be able to stick with over the long haul.

Here are some ideas to get you started…

Selling Items Online

The internet offers small business owners a cost-effective way to sell their goods online.  With a minimal investment in web hosting (we recommend Bluehost ) anyone can set up an online store and start making money online.

All you have to figure out is what you want to sell.

Some people act as a re-seller where they buy items at yard sales, purchase clearance items at retail outlets, or work out private deals with distributors and then resell them online.

Others are what’s called drop shippers.  They take orders from the customer and pass them along to a manufacturer or wholesaler, who then ships the goods directly to the customer.

If you’re the artsy type you can even make your own arts and crafts and sell them online.

Or, learn to host your store on your own website and have unlimited growth potential.  Blogger Steve Chou has created an comprehensive step by step course that will give you everything you need to know to build a six figure online store.

Start a Merch Business

This is one side hustle we’re talking about starting ourselves to create another stream of income.

In a nutshell, you simply design T-shirts and then upload your design to Merch by Amazon.  Shoppers find your shirts for sale right on Amazon and order them, and then Amazon prints up the shirt and ships it to them.

You don’t have to deal with inventory, shipping, or customer service issues.  All you do is sit back and collect your royalties and let Amazon do the rest.

Blogging

Being a blogger is a lot of fun and the startup costs are extremely low.  While it is definitely not the quickest way to make money online, blogging offers tremendous income potential.

Most successful bloggers started out posting to their blogs in their free time.  They enjoyed it and found an audience and eventually they turned their side gig into a full-time business.

If you’re willing to put in the time it can definitely happen to you too.  But you can expect it will take a year or two before you’re earning any real money as a blogger.

There are tons of resources online about the best way to build a blog but the best one I’ve ever read is Making Sense of Affiliate Marketing, a comprehensive course created by Michelle from MakingSenseofCents.com

Michelle travels around the world and earns over $100,000 every month through her blog so she knows what she’s talking about.  We highly recommend you grab her course.

Making-Sense-of-Affiliate-Marketing

Pet Sitting

Most pet owners consider their furry friends an important part of the family and they’re willing to pay good money to make sure they’re well taken care of.

When we go on our annual vacation to the Outer Banks, we drop our beagle mix off at a pet sitter’s house where we know she’ll be treated like royalty.

We pay about $280 to have our puppy pampered for the week (our sitter charges $40 a day).

We’re willing to pay that price because it gives us peace of mind to know she’s in good hands.  When she was younger we put her in a big name kennel and she seemed traumatized by the experience.  But with the sitter she’s happy and we practically have to pull her away to get her home!

Forty bucks a day is pretty good if you’re willing to have an extra dog running around your house temporarily.

If you have the room to manage multiple pets at the same time you can make some serious money as a pet sitter.

Dog Walking

People who have busy schedules and are away from home most of the day need someone to check in on their dogs and take them for a walk.

Dog walkers typically charge per walk, not per day. Rates vary by region, but you can expect to earn somewhere around $15 to $30 for a 20 to 30 minute walk.

Find yourself a few steady customers and you’ll be earning a steady income as a dog walker.

Plus, you’ll be in great shape from all that walking!

Cleaning Up After Dogs (AKA Picking Up Poop)

According to The Humane Society of the United States, forty-seven percent of US households own at least one dog.

That’s a lot of poop that needs to be cleaned up!  And some people just don’t want to be bothered doing it themselves.

Smart people like you can really clean up by picking up after other people’s pets.

I called a local pooper scooper service to get some info and he said charges an average of $10 to $12 per cleanup.  That would be for an average-sized yard with only one dog and he would charge more for an extra-large yard and multiple dogs.

He also charges extra for the initial cleanup because there is typically much more work involved and it takes longer to complete.

Most people schedule two or three cleanups per week so you can easily make $20 to $35 per week from each paying customer.

That may not seem like a lot but remember each cleanup only takes about 10 minutes so if you can land a bunch of clients in one neighborhood you can bang out a bunch of jobs in a short period of time.

Child Care

If pets aren’t your thing but you love kids, there are plenty of opportunities to earn money as a babysitter, nanny, or au pair.

When we first moved to our new home (5 years ago now) we used a site called Sittercity to find a babysitter so we can go out together for a date night once in a while.  We found an amazing girl named Paige who the kids absolutely loved.

How much you earn will depend on your region, your experience level, and what kind of duties you’re expected to do.

Some families just need someone to pick up their kid at school and take them home for an hour or two until they get home from work.  Others might need help with a newborn and you’ll need to deal with feedings and diaper changes

Bookkeeping

Many small businesses need help keeping track of their income and expenses but they don’t really need or want to pay for a Certified Public Accountant.

Instead they hire a bookkeeper to post financial transactions into accounting software like Quickbooks, produce basic reports such as balance sheets and income statements, and follow up on overdue bills.

Web Design And Development

There are literally millions of people who dream of starting their own online business.  Most will never take action because they think it is too hard and requires all sorts of technical expertise they don’t have.

If you have the ability to build simple web sites you can help people realize their dreams.

Want an easy way to find some clients?  Just look around your own neighborhood.  The local pizzeria, nail salon, and florist probably have cheesy web sites that look completely outdated.  You can use your skills to build them a real online presence and get paid good money to do so.

You’ll need to build up a portfolio to show prospective clients.  You can build sites for yourself or you can find others who are looking for help building a web site at popular sites like those here:

Direct Sales

Direct selling is when you act as an independent contractor and sell a company’s products for a commission.  The sales could be made one-on-one, through a catalog, or through a party plan.

I was a PartyLite Candle consultant for a short time and this is how it works.

The consultant buys a starter’s kit with various samples of the company’s merchandise.  She then attends parties and displays the items or does a short demo showing how they’re used.

Attendees place orders and the consultant earns commissions on the sales.  The host can also earn freebies based on how much her party guests spend.

As a consultant your goals are to sell as much merchandise as possible AND to continuously book new parties to keep the gravy train rolling.

I started my direct selling career off with a bang and it looked like she had found the perfect work from home opportunity.  But after a few months the parties started drying up and I realized it was a lot harder than I thought.

A career in direct sales is not for everyone.  But if you are a people person with good selling skills and a willingness to work your butt off it might be a good choice for you.

Wedding Planner

Planning a wedding has become a complicated and time-consuming affair.  In today’s busy world, many couples can’t do it all on their own and need to hire a wedding planner to help organize their special day.

Wedding planners deal with florists, churches, reception halls, limo drivers, bands, DJs, and pretty much everyone else involved in a wedding.  They are the project managers who coordinate all the details and make sure everything goes smoothly.

In 2017 alone, there will be an estimated 2 million weddings, so there is plenty of demand expected for wedding planners.  If you like working with people and don’t mind doing some leg work, this could be the work from home opportunity for you.

Resume Writer

My husband is a manager in his day job and he’s had plenty of opportunity to interview and hire new employees.  Most applicants never even get a sniff because their resumes are so dreadful (trust me, he’s shown me a few of the worst he’s come across).

If you’re skilled at creating resumes that will draw attention and secure an interview, there is a definite demand for your services.  Check out the National Resume Writers Association for tips on getting started.

You can even expand your business and help people prepare for interviews too.

Real Estate Agent

Whether the real estate market is up or down, people are always looking to buy or sell their homes.  As a real estate agent you’ll be your own boss.  You can make your own schedule and have the freedom to make it as flexible as you need.

Plus, since you’re working on commissions the income is potentially unlimited.  How much you earn will depend strictly on how much time and effort you put into it.

You do need a license to be a realtor and requirements vary from state to state.  Here’s a link to a book that will give you all the basics in plain English:

Home-Based Travel Agent

Do you like to travel?  Do you get a rush out of finding the best travel deals available?

As a home-based travel agent you can put your skills to good use while helping people plan their own dream vacations.

It may seem a little old-fashioned to use a travel agent these days, but millions of people still prefer an experienced pro to help them sort through all the details of flight schedules, rental cars, and hotel options.

Experienced travel agents can help save traveler’s time and money, and also help them steer them clear of pitfalls that would ruin their perfect vacation.

Vending Machine Business

Have you ever seen those vending machines full of candy, stickers, toys, or other items that are always located right outside stores or restaurants where your kids will be certain to see them and beg for your spare change?

Yea, I hate them too.  But they do make their owners some good money.

There are some startup costs in buying the machines, but once you set everything up you’ll have an easy to operate business with a steady income.

Home Inspection

An essential part of the home buying process is having a professional home inspector check out the house to report on its condition and point out any potential problems.

Millions of homes are sold every year, so there will always be a demand for home inspectors.  If you have a background or interest in construction or a related field, you can start your own business right in your neighborhood.

Licensing and regulations vary from state to state, and you can find everything you need to get started through the International Association of Certified Home Inspectors.

Get Hired To Work From Home As An Employee

Many companies offer both full-time and part-time work from home jobs and quite a few positions even come with health benefits and paid time off.  Basically, you’re an employee but instead of driving in to work every day you just boot up your computer and log in from home.

Home-shored employees are becoming more popular with companies because they don’t require a desk, which in turn cuts the employer’s rent expenses.

They’re great for you too because you get to work from the comfort of your own home and there are no commuting expenses to worry about.

Customer Service Agents

As a home-shored customer service agent you’ll be answering customer questions and helping to resolve their issues or complaints.

You’ll need a friendly demeanor and strong customer service skills.  You’ll also need a good internet connection so you can log into your company’s software and a landline to field telephone calls.

Tech Support

Are you tech savvy and enjoy troubleshooting issues?  Can you explain technical issues in plain English that anyone can understand?

If you answered yes, you might want to consider working from home as a tech support provider.

You’ll need to be knowledgeable about whatever company and products you support, but because tech support calls are typically more complicated you can usually earn more than you would performing general customer service.

Here are a few companies that hire tech support reps to work from home:

Even More Legitimate Work From Home Opportunities

The items below are all legitimate work from home opportunities, but they aren’t meant to replace your day job or provide an income you can live off.

But they are easy ways to supplement your income and provide some extra spending cash. Most don’t take much time to do either so they are worth trying out.

Swagbucks

In a nutshell, you earn points called Swag Bucks by completing various activities such as watching movie trailers, playing games, taking short quizzes, or exploring new websites.  They also have a mobile app that will let you earn even more points.

If you refer friends to the site you’ll earn bonus points based on how many points they earn for themselves.

When you earn enough points you can redeem them for either cash through Paypal or gift cards.  We usually go for the Amazon gift cards but there are tons of stores to choose from.

Microsoft Rewards/Bing Rewards

Our other favorite reward site is Microsoft Rewards (formerly Bing Rewards).  All you have to do to earn points is use their search engine.  You’ll earn rewards just for doing something you would have done anyway.

We earn enough points for a $5 reward about every three weeks.  It’s not much but it requires absolutely no extra effort so it really is free money.

Inbox Dollars

Inbox Dollars is another reward site where you can earn points for watching videos, taking surveys, and opening emails.  The problem is it takes a looooong time to earn enough points to actually get a reward.

We still use both Microsoft Rewards and Swag Bucks, but we gave up on Inbox Dollars a while ago because it just didn’t seem worth it.  But if you have extra time to spare you can give it a shot.

Job Spotter

Job Spotter is an app sponsored by Indeed.com which pays you for submitting photos of help wanted signs.

All you have to do is take a picture of a help wanted sign in the window and a second picture of the store front and hit Submit.  Once approved you’ll get paid in the form of Amazon gift cards.

The payouts for Job Spotter submissions are pretty low.  Each submission will only earn you somewhere between 5 cents and $1.50.

At those rates, this definitely isn’t going to be a big money-maker.  I wouldn’t go out of my to drive around looking for help wanted signs to submit, but if I happen to see one while I’m out I’ll take a quick picture and send it in. It’s not much, but it is easy money.

Sell Stock Photos

There are over a billion websites online today and the vast majority use stock photos when they want to add an image to a web page.

If you have a decent camera and a photographer’s eye, that’s a huge market to tap into.

When you sell stock photography, you simply upload your photos to a microstock web site and they make it available for sale.  Each time someone buys a license to use one of your images you make money.

Payouts start at about $1 for smaller images but may be higher for larger image sizes.

The key to making money selling stock photos is volume so you want to add lots of photos to your portfolio.  You can also sell your photos on multiple sites.  The wider you cast your net the more likely you are to find buyers.

Write for Content Mills

Sometimes websites and businesses need people to write articles, ebooks, or other content for them.  One place they go for their writing needs is a content mill.

Content mills offer a way for them to post requests for articles on specific topics.  Writers can then view the list of writing opportunities and choose the ones that fit their expertise.  They write the article and once it approved they get paid.

Don’t expect to get rich writing for content mills.  In fact you shouldn’t even expect to earn anything more than a little extra spending cash.  Rates start at around $1 to $5 for a 500 word article, so you’d have to write a ton of articles to make any significant money.

But if you have some extra time on your hands and you’re able to quickly pump out articles on weirdly specific topics such as teeth whitening, air compressors, or backyard patio designs, you can pad your wallet pretty easily.

Focus Groups And Taste Testing

Companies hire marketing research firms to run focus groups, surveys, and taste testing panels to get objective opinions about their products BEFORE they commit to spending a fortune developing or changing them.

That’s where you come in!  When you sign up for a paid market research program you can actually get paid to drink coffee, test new kitchen utensils, or watch pilot episodes of new sitcoms.

We’ve participated in numerous studies and gotten paid for our time.  My favorite was when I was paid $75 to taste different flavors of iced coffee.

Mike once got paid $60 to taste french fries.  Another time he got paid $150 to watch Verizon commercials and share his thoughts.

Mystery Shopping

Retailers of all types and sizes use mystery shoppers to get an objective opinion of their stores and employees.  All you have to do is visit the store and act like a customer.

You usually have to purchase or return an item and then you fill out a short questionnaire to rate your experience.  You’ll be asked things like how long did it take for someone to greet you and did the cashier smile when she helped you.

For your trouble you’ll get paid a fee and you usually get to keep whatever item you purchased for free.

Be warned though…there are a lot of scammers out there who promise they’ll give you a list of all the best and highest paying jobs out there for a fee.  Don’t buy it.  All you’ll get is a list of companies that you could easily find yourself with a search engine.

Paid Online Surveys

Another way to supplement your income is taking online surveys.  Individually, they don’t pay much.  But if you sign up for a number of sites the earnings will add up.

You won’t get rich, but you can earn some extra spending cash.

Like mystery shopping, there are many survey scammers out there.  You should never pay to get access to surveys.

Rent Your House on Airbnb

Do you have an extra room in your house that you aren’t using?

Are you often out of town?

You can earn some extra cash renting out your spare room or even your entire house. Depending on where you live, you could potentially earn several hundred dollars per month renting all or part of your home through Airbnb.

Become a Driver

Ride-sharing has revolutionized the transportation industry, reduced fatalities due to drunk driving, and opened up a new work from home opportunity for people like you and me.

As long as you have extra time on your hands and don’t mind driving strangers around, you can offer your driving services and earn some extra money.

Fiverr

Here’s where you can really get creative.  Fiverr is an online marketplace where freelancers can offer just about any service you can imagine for $5.

And there are some pretty weird gigs available on Fiverr.  Just look at this guy who will send you a video of himself dancing to your favorite song while wearing a hot dog costume.

Yea, that’s weird.  But just look at the number of reviews he has (262 at the time I’m writing this).  That means he’s earned well over $1,000 just for dancing around in a crazy costume.

Check out Fiverr for yourself and I’m sure you’ll find something you can do to earn money from home.

Amazon Mechanical Turk

As smart and efficient as computers have become, there are still many simple tasks that they just can’t do as well as humans.

Amazon Mechanical Turk allows individuals and businesses to tap into a huge network of humans who can perform what Amazon calls Human Intelligence Tasks (HITs).

HITs are very simple tasks that include things like viewing an image of a receipt and copying the data into a database, categorizing a product listing, locating the work email of a person based on their LinkedIn profile, or providing a one sentence description of a short video.

These are all very simple tasks you can complete from the comfort of your couch while watching TV.

Easy money.

The catch?  The payouts for each HIT you complete are usually between $0.02 and $0.15.

 That’s certainly not going to make you rich.  But if you have some free time you can earn some extra spending money.

Conclusion

Most people who read this article will never do anything with all of the knowledge I’ve shared here today.

It’s true.

They’ll continue bouncing around from one web site to the next reading about all the different work from home opportunities that are available.

But they’ll never take any action which means they’ll continue being in debt or stuck in a dead-end job that they hate.

Don’t be like them.

Be different.  Take action.  Live your dream.

I don’t even care which of the 100+ work from home jobs you choose from.  Just pick one and run wioth it.

And never look back.

PS – This article took a very long time to write (it’s almost 6,000 words!).  We truly wanted to write the ultimate guide to legitimate work from home opportunities.  If you found this guide helpful please take a moment to share it with anyone you think could use it.

Practical Tips for Saving On Internet Bills

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Most internet users hardly ever pay attention to how much they use the internet until the day the bill arrives at the end of the month.

That is when they realize how important it is to try and cut down on internet costs.

But in the modern world where internet penetration seems to be growing by the day and the number of internet service providers is on a steady rise, the wide variety of choice means that internet users no longer have to pay through their noses in order to be able to stay online.

If you find yourself struggling to pay your internet bills then there is probably something that you are not doing right and below are a few tips which, if properly applied, should be effective in helping you cut down on your internet bills.

Check your internet speed

Internet service providers typically charge users according to internet speeds. Faster internet speeds cost more money while users with slower internet connections may pay much less.

However, not all internet service providers actually provide internet users with the exact speeds that they advertise.

In some cases you might be paying a lot of money in order to be able to access high speed internet and yet the kind of speeds that you are getting are worth just a small fraction of what you are being asked to pay.

As such, the first step in reducing your internet costs is to test the speed of your internet to determine whether you are actually getting real value for your money or if you’re just being taken for a ride. There are numerous online applications out there that you can use to test your internet speed so it should not be too difficult to find one to use.

If, after testing, you find that your internet speed is slower than the advertised speed then it might be time to start looking for a new internet service provider.

Know and balance your internet needs

It is important to take time and understand the things for which you need and use internet the most. Some online activities usually require more bandwidth than others and, as a general rule, internet service providers will normally charge more fees for more bandwidth.

For instance, while normal surfing activities such as email and social media can be managed well enough with 1 Mbps or even less, online gaming would require up to 2 Mbps of bandwidth while heavier activities such as HD streaming of videos would require up to 4 Mbps.

When tackling this part, the main question you need to be asking yourself is whether or not you need all the bandwidth that you are paying for. If, for instance, you just use the internet for light surfing but you have a subscription for 4Mbps bandwidth then you need to have your ISP adjust that downwards so that you do not have to incur all the unnecessary expense.

Negotiate your internet bill

It’s funny how some people will negotiate and haggle for hours on end before making simple purchases and yet never think to do the same when it comes to the costs of internet. This is perhaps due to the fact that the internet is still relatively new and most people just assume that the rates set by their internet service providers are cast in stone.

But here’s the thing, most internet service providers are actually quite flexible in their rates and would be willing to revise them downwards if you try to negotiate with them. This is particularly true for organizations and companies that require a lot of bandwidth in order to conduct their activities.

You do not even have to be a great salesman and convince them, all you need to do is point out that you know of a better deal that you can opt for if they do not adjust your rates.

Buy your own equipment

Renting equipment such as routers and modems from internet service providers might definitely seem cheap in the long run but the rental expenditure keeps accumulating over time. The total cost of renting the equipment for, say, two years when calculated will almost always be higher than that of buying and using your own equipment.

7 Tips For Driving In Snow

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Well we’ve gotten pounded hard with snow here in New Jersey.  There’s at least two feet of snow out there I still haven’t dug my car out of the driveway.

Playing in the snow with my kids always makes for some good laughs but driving in the snow is not quite as fun.  But if you follow these 7 tips for driving in the snow you’ll be sure to reach your destination in one piece.

Stay Home

Every time it snows, the weathermen on TV say the same thing…”Avoid the roads unless you absolutely have to be on them.”

Good advice, and I wish more people listened to them.

I’m fortunate that I can work from home when the weather is bad, but not everyone can do so.  Still, it amazes me how many people hit the roads when they don’t really have to.

Do you really need to hit the bar or the mall in a snowstorm?  Maybe staying home would be wiser.

Seriously, the safest way to drive in a snowstorm is to not leave home to begin with.

Check Your Tires

Not everyone has the luxury of staying at home in a snowstorm.  If you have a job or responsibilities that require you to be there no matter what, you might have to brave the elements even if there is a blizzard outside.

If that’s the case, you definitely need to keep a close eye on your tires.  Tires are the most important safety feature you have when driving in snow.  After all, they’re the only part of your car that is actually in contact with those slippery roads.

If your tires are bald are worn, now is the time to replace them.

Don’t Get Cocky

Just because you drive an SUV with 4 wheel drive doesn’t mean you’re invincible.

In my experience driving an SUV often gives drivers a false sense of security in the snow.  They drive around like they own the road and can do no wrong.

One time I was driving home from work in the snow and taking my time in my Camry when a Ford Explorer when blowing past me like I was standing still.  I cursed under my breath as he sent up a stream of snow right on my windshield as he raced past.

A couple miles down the road I saw the same Explorer where it had lost control and popped up on the curb and into a small retaining wall.  The driver was just fine but his beautiful SUV was in rough shape.

Four wheel drive won’t help you brake any quicker if you hit an icy intersection or black ice.  Don’t get cocky.

Slow Down

Many car accidents can be avoided if everyone just slowed down a little bit.  This is especially true in bad weather when you have less time to react and make decisions.

When roads are slippery I always drive in lower gear because it gives me more room for error and it will help me stop quicker.

Remember, slow and steady gets home safe and sound.  Accelerate slowly.  Leave plenty of room between you and the car in front of you.  Start stopping well before you have to.

And if possible, don’t stop at all.  If you’re careful you can sometimes roll up to an intersection when you have a red light and then slowly accelerate when the light turns green.  Stopping completely can get you stuck with spinning tires, but if you can avoid stopping you’ll have inertia on your side and it will be easier to get going again.

Stay Focused

Driving in snow can be tricky business and you don’t need any more distractions making things even more difficult for you.

That means you need to turn down the Lady Gaga, put down the Egg McMuffin and stop sending text messages so you can focus on the road.

Driving while distracted is a bad idea under the best circumstances.  In the snow it is downright dangerous.

Keep Your Tank Full

A few years ago I got caught in a snowstorm and had to drive home from work under horrible conditions.  Winds were gusting and visibility was practically nil.  Snow was accumulating quickly and the roads were a disaster.

My normal drive home took about 25 minutes but under those conditions it took me 3 hours and 15 minutes.

Fortunately I had a full tank of gas when I left the office.  If I had been running low and planning to stop on the way home I would have been screwed.

People have run out of gas while driving in snow before, and you could find yourself stranded on the side of the road for hours without heat.

Be Prepared

Driving in snow adds an element of unpredictability to your trip and it’s best to be prepared for something to go wrong.

Make sure your cell phone is charged.  Keep some jumper cables in your trunk.  Toss in a small shovel and ice scraper.  And don’t forget a bag of sand to help get some traction if your tires are spinning.  Cat litter or even a couple boxes of dried pasta will work too.

A blanket and some glow sticks are also a god idea to keep handy.

And don’t forget some snacks.  A few granola bars will keep you going if you’re stranded in your car and waiting for help.

Do you have any other tips for driving in snow that you can share?

Fun Family Staycation Activities That Won’t Break Your Budget

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The temperatures are starting to rise, flowers are blooming and the grass is green.  You or your neighbors may even begin outdoor barbecuing.  Summer is right around the corner.  Many people take their vacations in the summer, but what happens if you won’t be one of them this year?  Maybe you can’t afford a vacation or you are saving for another goal.  Whatever the reason, you can still have fun, right in your own neighborhood with a staycation.

Staycations don’t have to be boring.  Simply look at a staycation as a way to explore your own city—you become a tourist in your own hometown.  Consider some of these staycation activities:

Set up camp in your own backyard.  There is no need to drive to a campsite and pay to camp.  Instead, set up your tent in your own backyard.  Let the kids pitch in and have a campfire where you can cook a meal and roast marshmallows and make s’mores.  Then, spend the night in the tent (and the house is nearby if the little ones get scared.)

Explore tourist destinations you have not visited.  Your hometown may have many tourist destinations, but chances are you haven’t visited many of them.  You may even drive by them every day, but you have never stopped because you are so busy living your own life.  Look at your town through the eyes of a tourist.  What destinations are the must-visit spots for tourists?  Visit those places.

Take the kids somewhere they have wanted to go.  Maybe your kids have been begging you to take them to the water park, but you could never get time off from work.  During a staycation, take them to the places they have wanted to go.  You’ll enjoy spending time with the kids, and they will enjoy getting to go some place they have always wanted to visit.

Try a new restaurant.  If you were a visitor coming to your city, what restaurant would be on your must-go to list?  Splurge a bit on your staycation and go with your spouse and hire a babysitter for the kids or take the kids if it is a family-friendly restaurant.  Since you are enjoying a staycation rather than travelling, you can afford to spend a little bit of money for a fun night out.

Indulge in foods you wouldn’t normally eat.  Hot dogs may not be on the menu regularly in your everyday life, but for your staycation, consider giving the kids foods they enjoy but don’t normally eat such as hot dogs or ice cream or whatever treat they don’t regularly eat.

If you are planning your own staycation, make sure to treat it like a real vacation.  Take time off from work (and that means not doing any work at home either—this is not the time for home improvement projects), make your arrangements in advance, booking restaurant or other reservations you must make ahead of time, and include the kids in the planning.  While having a staycation may not be as exciting as visiting a new locale, it can still be a lot of fun, and, more importantly, it will give you the time to both relax and spend time together as a family.

Office Etiquette – Top Ten Worst Things You Can Say At Work

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We spend so much time at work that we often see our coworkers more than we see our own families. It’s easy to let your guard down and say something inappropriate, but a passing comment that you think nothing of may come back to haunt you.

Here are the top 10 (plus a bonus one) worst things you can say at work. Don’t be the one to make these epic office etiquette failures…

“That’s not my job.”

Wow, not exactly a team player are you?  Keep up that attitude and before you know it people will stop asking you to do things altogether.  But that’s not a good thing…you’ll be marked as an uncooperative jerk who is only interested in helping if it suits your own needs.

And don’t forget karma.  When you’re busy working on an important project and need help your coworkers may use your own words against you.  Payback is a bitch.

“No problem. I’ll have this done in no time.”

If you’re one hundred percent sure that you can keep your promise then this statement isn’t so bad.  But if you don’t come through you’ll be seen as someone who is unreliable and untrustworthy.  If you know you can’t complete a project in a certain amount of time be honest about it.  It’s better to under-promise and over-deliver than promise the moon and fail to come through.

“It’s not my fault.”

Mistakes happen and all businesses have to deal with them. It could be as simple as an easily fixed typo or it could be a complicated and embarrassing blunder that will cost the company its largest client.

Your first inclination might be to cover your butt and stay out of the line of fire so you don’t get blamed for the mess.  But that attitude just makes you look bad and all your coworkers will hate you.  When there’s an emergency, your bosses expects all hands on deck working on the problem.

“I got so wasted last night.”

Keep your private life private.  No ones needs to know how many shots you did last night or in whose bed you woke up this morning.

“Why can’t I log into Facebook?”

Because you’re being paid to work, not to update your status every half hour and spend your day cyber-stalking the new girl in accounting.

“Go away. I don’t have time for this.”

Yes, you’re busy. But that doesn’t mean you should be rude. The person coming to you for help is probably just as busy as you are and having to deal with your cantankerous attitude isn’t going to help.

“Want to step outside to settle this?”

How old are you?  Eight?  Settling a workplace dispute with a physical confrontation is never acceptable.  No exceptions.  And if you go around intimidating people and threatening violence you won’t be employed for long.

“How did HE get promoted?”

So maybe you don’t have a very high opinion of your coworker who was just promoted, but your bosses obviously do.  Insulting and undermining him will only make you look bad and squash any chance of you getting promoted in the future.

“I’m the only one who does any work around here.”

Yea, yea…we get it. You’re a good worker.  So are most of your colleagues whether you acknowledge it or not.  And even if you are the hardest working bee in the hive, no one wants to hear you patting yourself on the back since you’re really insulting them at the same time.

“You know how she got this job, don’t you?”

That’s just not right.  Spreading rumors that a coworker is sleeping her way to the top is just wrong (even if you’re pretty sure it is true).  How would you feel if people were spreading rumors about you?  Or your wife? Or your daughter?

Bonus #11

A few years ago, I was working in a large office and as I walked from the parking lot towards the building I bumped into one of my coworkers named Roseann.  She was walking with a little girl who was maybe seven years old.

Now I knew for a fact that Roseann had a daughter who was in college and she was a bit older than me, so in an attempt to make small talk I innocently asked, “Is this your granddaughter?”

After a split second pause Roseann replied, “No, she’s mine.”

I couldn’t even respond since my foot was so far in my mouth.  I was so embarrassed but she didn’t hold it against me.

I guess the only thing worse to say to a woman would be “Are you pregnant?”

Have you ever said something at work that came back to haunt you later?

How to Attract Renters to a Home

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By Jennifer Riner of Zillow

In a highly competitive rental market, large property management (PM) companies often meet prospective tenants eager to submit their applications for approval. Single-family homeowners looking to lease space in their primary residences or individual investment properties aren’t as lucky. Typically, word-of-mouth marketing best suits small-scale landlords, increasing the probability of renting to close family members or friends.

However, word-of-mouth marketing isn’t the best solution for all circumstances. Some rental property owners need tenants sooner than the friends in their close networks need rentals. Or, investors and homeowners may prefer to do business outside of their inner circles. In these cases, deliberate upgrades and effective advertising are better marketing strategies.

The following tactics render all rental homes highly appealing to lessees, regardless of ownership size or building type.

Modernize the Space

Renters don’t receive returns on investments (ROI) when their leased homes sell, so the chances of them performing cosmetic upgrades on their rentals, even if allowed by their lease terms, are slim. Rather than look for inexpensive properties with potential, renters gravitate toward move-in ready spaces. Therefore, private owners leasing their homes can captivate prospective tenants by transforming dark, dated houses into bright and modern abodes.

Review other apartments on the market and their accompanied aesthetics – specifically equal-sized units at similar price points. For instance, the median monthly rent for single-family properties in Atlanta is $1,000. Alternatively, the median sale price for single-family homes is $289,000. A three-bed, two-bath home listed for $289,900 has an estimated mortgage of $1,459 including taxes and insurance, assuming 20 percent down and a 4 percent interest rate on a 30-year fixed-rate loan.

Regardless of the competition, don’t go overboard with renovations that limit resale ROI. Private owners sometimes lack the budget to perform complete overhauls on their properties since their rental incomes likely subsidize their monthly mortgage costs. Landlords should limit luxurious upgrades and amenities in their rentals, unless renovations were made prior to lease dates. While beautiful spaces attract and retain lessees, the cost of rent probably won’t reimburse the total cost of upgrades – at least not for an extended period of time.

Not all upgrades are going to break the bank, either. Replace carpet or consider installing linoleum floors for a sleek, clean look. Apply fresh paint to walls after each tenant vacates to eradicate old odors and mask moving damages. Stage homes appropriately, ensuring furniture choices fit properly without spaces appearing cold, or alternatively, cluttered. Finally, thoroughly clean rentals before showings. Albeit temporary, lessees require the same standard of living as potential new homeowners.

Take High-Quality Listing Photos

Attractive listing photos are fundamental factors of real estate marketing. After all, many renters and owners use online services to scout properties before viewing them in person. First impressions are important, and unappealing images can compromise the renting success of high-quality units. For captivating photos, remove date and time stamps. Similarly, avoid using photos more than a year or two old – especially if spaces have undergone recent upgrades. Snap multiple photos of each room, so interested parties have full radial views of apartment and home layouts. If possible, use a wide-angle lens to capture the largest possible shot, eliminating the need for multiple, cramped images. Photos should be large enough for clients to see details without enhancing, which often leads to distortion and blur. Take listing photos around dusk to achieve the best possible natural lighting and use interior lights to complement the warm hues of a setting sun.

Modernizations and quality advertising are key elements in drawing applicants toward one property over another. Pricing appropriately, maintaining property condition and establishing good rapport keeps tenants renting long-term, or at least recommending properties to help eliminate vacancies in the future.

These Buyer Incentives Will Get Your Home Sold Fast

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A decade ago selling your home couldn’t have been easier.  Prices soared in what was a true buyer’s market and competition among buyers was fierce.  It wasn’t uncommon to see a bidding war push the sale price tens of thousands of dollars over the initial asking price.  Buyers were practically falling all over themselves to make a deal.

Those days are over.  When the housing bubble burst in 2005, selling a home became a lot more difficult.  And while some real estate markets have recovered nicely, most sellers still need to go the extra mile if they want to get a quick sale.

The simple truth is that property buyers wield far more control these days.  Obviously, adding curb appeal to your home is still very important, but you also may have to offer some concessions if you want to close the deal.

What kind of incentives can you offer to make a buyer pull the trigger on a deal?

A Lower Price.  In the end it usually comes down to the bottom line.  Unless you’re in the rare situation of having multiple offers, you may have to lower your price a bit to get your house sold.  Buyers know there are plenty more homes on the market and if you won’t play ball they can easily find someone who will.

 Offer to Pay Some Closing Costs.  This is kind of a pain because you already have some closing costs of your own, but most of the expenses are paid by the buyer.  Offering to pay a portion of their closing costs will free up some of their money for other expenses and it may be enough to help seal a deal.

Offer a Home Warranty.  The last thing a home buyer wants to worry about after closing is the furnace dying or the water heater leaking all over the floor.  By offering them a home warranty, you provide a little piece of mind that they’ll be ok even if the worst happens.  Typically a seller would offer a one year home warranty which would cost around $500 to $700.  And while I personally don’t think they’re all they are cracked up to be, they are certainly popular and if it gets a deal done that’s all that matters to you.

Other Seller Concessions.  Since we spend so much time in our homes we get used to theirs flaws and learn to overlook or ignore them.  But the stained carpets you barely notice may be a real eyesore to a potential buyer.  Odds are you will have to make at least a few seller concessions which could include everything from steam cleaning the carpets to replacing them.  You don’t have to do everything that is asked of you and you certainly don’t want to spend a ton of money if you won’t get it back, but a good realtor should be able to objectively tell you what problems you will need to resolve.

Setting Mom Up in Long Term Care

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The last few months have been very difficult for my family.  My mom’s health is in serious decline and we’ve had to deal with a whole slew of unpleasant situations.  We’re going through the Medicaid approval process, we pre-paid funeral expenses for when the inevitable occurs, and we’re working on getting her house up for sale.

The whole situation has been really stressful and time-consuming which means I haven’t had as much time and energy left for blogging.  But that’s ok, family always comes first.

After her latest hospital stay my sisters and I talked with her doctor and realized that she is no longer able to take care of herself.  Even with my one sister still living at home and caring for her, what she really needs is skilled nurses watching over her around the clock.  So when she was discharged from the hospital we had her moved to a rehab center/long term care facility that is only about 4 minutes from my house.  This is great for me because I get to see her all the time and I can swing by with the kids at a moment’s notice.  Previously she had been almost an hour away and it was difficult getting up there to visit.

The hardest part of this ordeal was having the talk with her.  No, I’m not talking about the birds and the bees…we had to sit down and explain to her that she’s not going home.  She’s going to stay in the long term care facility where she can get the care she needs by trained professionals.  Rationally, I think she understands that.  But emotionally she has had a hard time accepting it.  We’ve gotten to see a lot more of her and we even took her out for Mother’s Day and a couple of family barbecues.  Of course, it’s not the same.  It’s hard seeing someone you love and admire slowly break down.

Anyway, my apologies if this post is a bit off-topic.  I just wanted to share a bit of what was going on in my life and urge you to appreciate what you have while it is still here.  Never miss an opportunity to tell someone you love them.

How to Make the Most of Your 401k

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When you look at the balance in your 401k account, do you start to get depressed?  Do you panic and worry that you’ll never have enough saved to retire and enjoy the finer things in life?  If so, you’d better start whipping your retirement savings into shape!  Here are some tips to help you make the most of your 401k.

1. Participate.  I know it sounds like common sense but millions of people who have access to a 401k plan are not taking advantage of it.  If you don’t put anything in then you can’t act surprised when there is nothing there to take out.  And the sooner you start contributing the more time your money will have to grow.  If you know anything about compound interest, you’ll know that even a few years of procrastination can have a huge impact on your savings.

2. Take the Company Match.  Many companies will match a certain percentage of your contributions.  For example, let’s say they match 50% of your contributions up to 6% of your salary.  That means that while you’re contributing only 6% of your salary, a full 9% is being deposited into your account.  That’s free money and you’d be a fool not to take advantage of it.

3. Leave it Alone!  Your 401k is meant to be used for retirement savings, not as an ATM machine.  Yes, there are loans and hardship withdrawals that allow you to take some funds out, but you should only do so after exhausting all other avenues.  Anytime you take money out of your 401k, you’ll miss out on all the earnings those funds could have accrued.

4. Diversify.  Your 401k plan probably has a dozen or more investment funds to choose from and I don’t blame you if you can’t make heads or tails out of the selections.  But you need to take the time to learn about them so you can diversify your funds to maximize growth potential while minimizing risk.

For example, if you invest everything in a money market fund your returns will be minimal and you’ll never have enough to retire.  But if you invest everything in risky company stock you could lose it all.  You have to find the right balance to meet your individual needs, which is easier said than done.  Fortunately many 401k plans include age-based funds which will automatically adjust their allocations as you get closer to retirement age.

5.  Take it With You.  Far too many people cash out there 401ks when they change jobs and that’s just a bad idea.  Not only will you pay taxes on your distribution, but if you cash it out early then you’ll have nothing left when you need it.  401ks are portable, which means you can take them with you when you leave a job.  You can either roll them into a 401k with your new employer, or into an IRA.  Either way your money will continue to grow until you are ready to retire.