I’ve struggled with the idea of a 9-5 job for a large part of my adult life. I’ve tried it before, but I just don’t think it’s for me. When you don’t have a steady income, it’s imperative to work as much as possible so you can financially support yourself. Since returning from my 6-month journey to South America and Southeast Asia, I have been predominantly working part-time at a restaurant so I can direct my energy on other passions such as my personal finance blog The Budget Babes.
With this choice I had to figure out alternative ways to supplement my income as the restaurant gig was only bringing in $2000-$2500 each month. I’d like to share those alternative streams of income with you now in case you’re looking to make a couple extra bucks to help with bills, savings, or anything else you’re interested in purchasing.
Maybe It’s Time For A Cleanse
Have you ever taken a step back and thought about how much stuff you have but never use? When I got back from my trip, I went through everything I owned and put a ton of stuff up on Craigslist, LetGo, Kijiji, Bunz, Facebook Marketplace, and took part in a sidewalk sale that my street was hosting. I sold clothes, kitchen supplies, electronics, sports memorabilia, candles, toiletries, and jewelry. Not only did it feel amazing to get rid of everything, I also made $500 in 2 months. One person’s trash really is another person’s treasure!
Freelance
I’ve been working on-and-off in the live events industry ever since graduating from George Brown College with a Sports and Events Marketing certificate. The events industry is small, and I now have an awesome network of connections that can often find me weekend work or smaller contracts. Although the hours are usually long, the money is quite good and the people you work with are great. And there are always events going on in every city. My advice? Reach out to the organizers to see if they need any help with ticketing or backstage work. It’s a great way to make some extra coin, and you’ll get to work in a new field that’s fun and exciting.
Sell Things
I know someone whose 18-year-old cousin went to Thailand last year and bought a ton of fidget spinners for 10 cents each. He then created a Shopify account, sold those fidget spinners for $4.00 each, and is now sipping Pina Coladas on the shores of Tahiti. Ok, the last part isn’t true, but still! He found a product that he believed in, bought in bulk, and created a small side business that made him some serious extra cash. I wasn’t that thrifty, but I did make an extra $600 this year selling new electronics that I bought in bulk.
Create a Side Business
Have you always dreamt of owning your own business? I had. So this past year, I grabbed the bull by the horns and became an Arbonne consultant to supplement my income and do something different. It’s nice to make an extra $100-$300/month working 8-10 hours on your own time when you’re passionate about a product. On top of that, I started to do social media for Minicards Toronto. This extra money can be put into my savings and invested. Which brings me to my last point…
Invest
If you’ve read any of my other articles, I am constantly talking about investing. It’s one of the most valuable tools that I’ve taken the time to learn about and has also been the most lucrative. Creating a passive income that you don’t have to work too hard for is so rewarding. For those of you who are new to the investing world and don’t know where to start, Wealthsimple is a really great platform. They will set you up on a plan that works for you depending on your goals, and will teach you the basic principles of investing along the way. If you use this link, Wealthsimple will waive the management fee for the first year, which could save you $100’s (depending on how much you’re contributing).
With all of my side businesses, freelance work, investments, and restaurant income, I’m currently sitting at just over $45,000 in after tax income as of October 2017. One of the best parts about it all is that I get to make my own hours (for the most part). You just have to be smart with your money and think of some alternatives outside of the typical 9-5 job. If you want to learn more or just reach out to say hey, you can check out my personal finance blog The Budget Babes.
Do you have any other suggestions on how to make more money now? Share them in the comment sections.
Featured Image: Flickr/Ryan Morse
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Most of my friends are as big into travelling as I am (some of them even more so). As I write this article, I’m sitting in my Airbnb in Weisbaden, Germany while here for my Oma’s 80th birthday. Travelling is an important part of my life, and it’s something that I try to do at least once a year. However, it can get expensive, and it’s something that definitely needs to be budgeted for. I’ve met a lot of travellers who end up stressing out during or after a trip because they’ve dug themselves so deep into debt.
At The Budget Babes, one of my personal goals is to help others create and manage their personal finances and budget for short and/or long-term goals. I’ve created a list of some handy tips to ensure that you have financially stress free travels.
Plan and Research
It’s always smart to have some kind of idea as to where you want to travel to so you can start looking into flights and accommodation. This will be the most expensive part of your trip. Sites like Google Flights, Kayak, Momondo, and Cheapoair will scrounge the Internet for the cheapest flights possible, while websites like Next Departure, YYZ Deals, and Hopper will alert you of last minute deals. And with so many great websites like Airbnb, Couchsurfing, Booking.com, Agoda, Priceline, and Hostelworld, it’s always great to give yourself enough time to find the cheapest accommodation available in parts of the city you want to explore. It’s also helpful to to read some travel bloggers who have recently travelled to your destination as they often discuss how much money they spent. On top of your flight and accommodation, don’t forget to budget enough money for your food and drink, daily excursions, transportation, and a small emergency fund in case anything goes wrong.
Budget
Just like your food, clothes, rent/mortgage, car etc., travel should be a line item in your budget. If it’s something that you foresee doing in the near future, add it into your annual budget and account for it from the get-go. That way you won’t be scrambling a few weeks/months before you leave, and you’ll have already had some money set aside.
Save, Save, Save
When I saved $20,000 for my trip to South America and Southeast Asia in 2015, I took 15% of my paycheques and put it into a high-interest savings account that I didn’t touch. If I had any money left over after all of my bills were paid and my fun was had, it went into a TFSA where I invested in Index Funds. These funds paid out a dividend and gave me between a 5-10% return for that particular year. It’s one thing to save, but investing your savings will help you make money even faster, getting you one step closer to take off.
Open a Separate Account
Once you have a rough idea as to how much money you’ll need, open up a separate bank account that’s out of sight, out of mind. A TFSA and/or high-interest savings account is great because it will accumulate interest faster than an everyday savings account. For those who don’t know the first thing about investing, Wealthsimple is a really great platform that makes saving and investing easy and effortless. And if you use the link above, Wealthsimple will waive the management fees for the first year when you sign up for your first account.
Be Flexible and Open
When I was in Brazil, I was complaining to this Irish girl that the flight from Chile to Thailand was $2300. She suggested that I try to be a little more flexible with my timing and not look for a direct flight, but rather create my own trip around the world and book different lags of the flight myself. At first, I was a little skeptical, but she helped me research some different itineraries and I booked 3 separate flights. Although it took me 48 hours to reach my final destination (I had lots of time, remember!), I ended up saving over $900. It’s definitely worth being flexible and having an open mind because you can find some really great deals if you just think outside of the box.
For those of you who are as adamant about seeing the world as I am, be sure to work hard so you can play hard when on the road. The worst thing that could happen is that you start to travel and realize that you don’t have enough money to do the things that you want to do. This is a once in a lifetime opportunity for most. Make sure you’re smart with your money before you takeoff so you can leave your financial stresses on the runway.
Do you have any other tips on how to save money for your next vacation? Share them in the comment section.
Featured image: Instagram/ @mvandersluis
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If you had a chance to read my article on how I managed to save $20,000 in one year while living in the city of Toronto, then you’re probably aware of the fact that I’m big into budgeting. So big in fact that I started a personal finance blog called The Budget Babes where I teach 18-40 year olds the concepts surrounding finance that we should have been taught in school. I wasn’t taught how to budget while growing up, and didn’t become financially savvy until moving to Toronto in my mid 20’s; money wasn’t something that was consciously top of mind. I had to teach myself to think differently. The following apps are great tools that can help you manage your money and track your spending so that you too can start saving for the future.
I wanted to share a few of my favourite budgeting apps with you in case you’re finally ready to grab the bull by the horns and take control of your finances.
Mint.com
As one of the most popular FREE budgeting apps out there, Mint.com seems to do it all. It has an easy to use budgeting tool that links up with your debit and credit cards (automatically inputting each transactions for you), provides you with a free credit score, tracks your bills and investments, sets financial goals, and tracks your savings.
I was considering using Mint.com but didn’t want to link my banking information to a third-party app. On top of that, if you find you have a bit of a spending problem, Mint.com may not be the best budgeting app for you. By having your cards automatically linked to the app, it takes away from using your brain to see where all of your money is going (which I think you should manually track for a month when first starting out).
Visual Budget
This is my favourite app that I’ve been using for over 5 years. It costs $7 after your first 10 transactions but is worth every penny. The design is sleek, and the overview of your income vs. expenses on both a monthly and yearly basis is a great feature to track your overall spending. It takes a little bit of time to organize your expenses when you first download it, but once you’ve customized it to fit your lifestyle, you’re off to the races. Another great thing about this app is that you have to input each transaction manually. Although some would see this as annoying, it’s a great feature for those who are just starting out and need to rewire their brain to understand where all of the money is going. Spending a few dollars here and there can add up quickly when you don’t think about it, and this app forces you to think about it. You can learn more about it on their website.
Other reputable budgeting apps
You Need a Budget (YNAB): $50/Year
Wally: Free
Level Money: Free
BUDGT: $1.99 (IPhone Only)
There are so many more apps out there and you really have to do a bit of research to find which one works best for you. Some of them cost money, while others take more time to manage. But if you’re serious about getting your finances on track, I highly recommend making the jump and using something to track your daily/monthly/yearly spending. You’ll notice that you’ll think differently once you start, and you’ll be able to reduce your mindless spending so you can begin to start saving for that emergency fund or any future financial goals you may have.
Did we miss any of the best budgeting apps? Share them in the comment section.
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Growing up, my grandparents always gave me Israeli Savings Bonds for birthdays and holidays instead of physical presents. I never understood why – until I hit 18. Around my 18th birthday, all of the bonds had matured, and I was presented with a cheque for $10,000. I couldn’t believe my eyes when I saw all of those zeros! I kept thinking about all of the things that I could buy with that money, but my mom had another plan in place for me. I’m so glad that I listened to her advice.
She took me to TD and had me open a Tax Free Savings Account (TFSA) where all of the money was invested into Index Funds. At this time, I had NO idea what any of these words meant. I just thought that there was a savings account and a chequing account. If you also don’t know what these financial terms mean, you can check out my blog The Budget Babes for a more in depth explanation.
For the entire year after, I didn’t think about or look at the TFSA. I just let it sit there and allowed the market to take its course. One day, I decided to take a peek and see what was happening. I had made just over $800! And I literally did nothing all year with that money. It just sat in the account, made a 7.5% return, and compounded interest while invested in these Index Funds. Seeing the $800 return sparked my interest in investing. I had a conversation with my dad about the money I had made, and about investing in general. He told me to “make your money work for you, and don’t work so hard for it”. That saying has stuck with me to this day.
I recently turned 30 on May 23, and hit a huge financial milestone. I currently have just over $100,000 in my savings account and investment portfolio. What’s the secret you ask? I’ll tell you how I did it. Keep in mind that I don’t own a home or a car, and don’t have kids or pets.
Image: Flickr/MorboKat
Set goals for yourself and work hard.
After that first year of investing, it became a personal goal to max out my RRSP and TFSA every year. And I can happily say that I’ve completed this financial goal since the age of 19. I’ve worked in freelance within the entertainment industry, and have worked in the restaurant industry to produce an income.
Pay yourself first, and have fun after.
I know that I have a different mentality about money than other people my age do. I don’t spend a lot on material things. I go out for dinners and drinks with friends, rent a great apartment in Toronto, and bike almost everywhere I can. I spend the majority of my money on experiences, food, and travel. I have the mentality that I need to pay myself first by maxing out my RRSP and TFSA, and then I can have fun afterwards. Knowing that I have that “emergency” account makes me sleep easy at night.
Educate yourself and invest!
I know that I wouldn’t be where I am now without investing. Learn the basics, take a course, and put some money into safer investments so you can begin to understand the principles. It doesn’t need to be a lot! Start with $10/week or open up a high interest savings account to start learning about interest payments. A majority of my portfolio is invested in TD e-series Index Funds, but I hold blue chip stocks that pay out a dividend. I also hold some riskier investments, but I’d suggest staying away from “penny stocks” unless you know what you’re doing. I once lost $2000 in one day on one investment, but then made it back a few years later on another investment. So now I stick to what I know and mostly contribute to Index Funds.
Budget, budget, budget.
This is so important and will be the basis of your financial plan. Once you have a budget in place, you will see where your income is coming from, and what you’re spending money on. And if you have any “leftovers,” you can start putting them into your savings account. I am so gung-ho about budgeting that I created The Budget Babes blog to teach others the basics of personal finance. I write self-published articles outlining the basic principles that we should have been taught in school, and also offer one-on-one budgeting consultations to set individuals up on their own plan. If you’re interested in hearing more, you can email me at alanna.abramsky@gmail.com.
Featured Image: Flickr/MorboKat
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It became apparent to me that I had a gift with saving money after traveling to South America and Southeast Asia for 6 months without having to go into any kind of debt. I’ve always been good with putting money into a savings account, but I never realized how diligent and strict I could be. In the year leading up to my travels, I had a goal and a plan in place. And I stuck with that plan which allowed me to save $20,000 in one year while living in Toronto.
After talking to friends and family about my ability to save this amount of money, I realized that there was a lack of education surrounding the world of money and how to properly budget/save for short and/or long term goals. So in January 2017, I created a blog called The Budget Babes where I teach 18-40 year olds the basics of personal finance, and how to manage your own personal finances through budgeting. Think of me as a personal trainer for your bank account.
So — want to know how I saved all of that money?
I’ll break it down for you.
Step 1: Get a Job. In 2015, I spent the first quarter of the year working as a server, and the remainder of the year working in freelance – mostly in the live event industry. I hustled hard, worked long hours, and made decent money. I took home $50,000 after taxes.
Step 2: Budget. This is the most important thing that you’ll need in order to start saving. Take your income, and then organize your fixed, variable, and irregular expenses. Are you spending more than you’re making? I used an app called Visual Budget to track where every dollar was coming from and going to. I advise everyone to track their spending for at least one month to get a sense of where your money is going.
Step 3: Look at the Alternatives. When you have an idea of your financial goals, it’s important to start thinking about alternate ways to achieve a similar lifestyle. Do you go out for lunch every day? Daily Starbucks drinker?
Let’s do some math: $4 Coffee x 5 Days/Week x 52 Weeks/Year = $1040/year. That’s a full month’s rent for some people — and you’re spending this on coffee!
How about this?
Find a French press, make whatever coffee you want during the week, and treat yourself to that Starbucks once a week. The money you’ll save on those daily $4 coffees can go right into your savings account.
Step 4: Open a no-fee high-interest saving account.
Once your daily spending is under control, start putting that extra money into a no-fee high-interest savings account. I’ve been banking with PC Financial for 13 years because they have a no-fee chequing account and a high-interest savings account. Most of my friends are paying anywhere between $10-$15/month ($120-$180/year) for their bank accounts. Watch your savings grow faster by making the switch.
Step 5: Find a credit card with no annual fee that has a cash/points incentive.
I swear that I am not affiliated with PC Financial but I do love banking with them. I use their World Elite PC MasterCard, which gives me reward incentives towards PC products. We all love free groceries, don’t we? And when saving, every little bit helps! Keep in mind that I won’t buy something if I don’t have the money sitting in my bank account. I purchase everything on my credit card for the points, but I also pay off my balance in full every month. Some of the highest interest loan rates in Canada live in credit card land, so try to stay far away from credit card debt it if you can.
Step 6: Learn the basics of investing and pay yourself first.
Since the age of 18, I’ve made it a personal goal to max out my TFSA and RRSP every year. What can I say? I’m an investing nerd! Seeing my money grow tax-free has made me recognize the importance of investing. I want my money to work for me, as opposed to me working for it. I now have very little cash sitting in my day-to-day bank account, and invest most of my income in dividend paying blue chip stocks and index funds because it provides me with a bigger return.
The most important thing that I’ve learned from experience is to have a plan and create a budget (which is why I created The Budget Babes). This will ensure that you’re staying on track and aren’t spending more than you’re making. It’s all about making saving a priority, and having fun after you’ve stored some money aside. You can do it! But it does take a plan, some guidance, and the right mentality.
Do you have any questions about budgeting? Ask them in the comment section!
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