Dollars From Pennies

Now, let me explain my site and the project I’m undertaking.

For the last year, I’ve been reading about the money that people are making via blogs. Of course, that led to an interest in SEO. And of course, that led to interest in various ad networks. And finally, that led me to try my hand at really trying to make a go of things with a blog. But, there is more than my own overwhelming greed on the table. I want to learn!

In my career, I play a role in driving technology decisions in a large company. I have to be an expert on a variety of internet topics. Further, I’m a programmer and a web “hobbyist”. So it seems natural that I engage in a game or challenge of some sort to force me to grow and achieve. I’ll be a better person, a better programmer, and a better Internet Technologist.

Quickly I decided what to do. Since I have an interest in finances and investing, I found a cool domain that I liked. Dollars From Pennies is exactly the right challenge for me. I invested pennies in this website (heck, you can tell that’s the case, eh?). I’m starting with just my lovable personality and the drive to write and develop good content. Some people say that is enough in itself. I think I have to add something of actual value to the internet in order to expect any returns (visitors, or money). So I plan to.

Enough rambling. I’m going to take this site, brand new domain, from Zero dollars in revenue to $100.00 a month in revenue. And I’m going to be there in 4 months. I’m also going to build a community of like minded people, interested in finance and money. I want to have an active readership. I want comments. I want a community here of people with good ideas, debate, and advice.

I’m looking at you, internets! To be sure, I already need some help. I grabbed this awesome template called ProSense, which I like a lot. However, I don’t like the brown. I don’t like the header. I’m not sure I like the ad block at the top of the page. What do you think? Are there other SEO optimized themes out there that are a little more pleasing on the eyes, or do I need to roll one myself?

Also, does my honest confession of wanting to monetize the site hurt my ability to get you as a reader? Or, if the content is good, will you come here regardless of the ads?

Thanks to anyone who wants to drop me some feedback. I’ll work hard to make this a good place to visit. Please come back!

Popularity: 52% [?]

A second revenue stream.

These are important words. This is an important idea. In fact, let me make those words even more relevant and meaningful.

Multiple revenue streams.

Now we’re cooking with grease! In an uncertain world, during an uncertain time in our economy, you need to hedge your bets. If your only source of income is from a single job, at a single employer, then you are not setting yourself up to be fail proof. Think about it for a minute. Let’s say your boss calls you into the office in the morning, and tells you “sorry, but we have to make some cutbacks.” Pink slip slides across the desk. A feeling of doom and gloom comes over you. Are you prepared to thank him/her, and then exit gracefully? Can you leave that office feeling like you are safe and secure for at least six months, if not years?

The only way to rid yourself of the burden of knowing you are at the mercy of your employer is to set yourself free. You just need a couple of things in place to help you make the change from total dependent to Free Human Being. You need adequate, liquid savings and you need additional sources of income.

Let’s talk about the savings first. How much money do you have in the bank? Do you have enough money to pay your rent or mortgage for six months, fuel your car for six months, and buy yourself groceries for six months? What about your utilities? Insurance payments? If you are shaking your head no, then you need to get on the stick and make a change. There are tons of great articles out there about getting on a budget, and starting a savings plan. Go check one out, and then come back here for the next bit.

If you have your savings in place, then it’s time to start getting additional income streams. There are several ways to go about this. I’m going to list a few, some of which I have no personal experience with, others that I do.

First, there are stocks out there that pay dividends. This does require that you put some money in, and the returns aren’t often glamorous, but over time you could build up a decent paycheck on dividends. The market is risky, and this isn’t your most lucrative avenue. But, it can create a stream of income.

The next item on the agenda is rental properties. Again, this stream of income requires a certain personality and certain bank account to get into. You have to purchase a property, do the work needed to make it livable, and then put renters in it. Oh, but then, if the toilet jams up - off you go to unjam it. There are management firms who will take care of this for you, but they will do so at a significant burden to your profit margin. And here I say it again; it doesn’t sound glamorous, but it is another stream of income.

How about blogging for money? Here is a not so novel idea. If you have some web savvy, this could be an avenue for you to explore. Buy yourself a domain name (<$10), get yourself some hosting (<$10/month at first), and grab a copy ofWordPress (Free!). If you can get some fundamental skills and know how in place (hint - read up on SEO , AdSense and have a good topic to focus on) you could easily turn $10-$15 a month per site in revenue. If you are crafty, skilled, and have real knowledge in a field - you can make $5k a month per site. No joke. This isn’t me,btw. I evidently am neither crafty nor skilled.

Another good trick is work at a second job. Are you a Web Designer by day? Why not be a Web Designer in the evenings as well? Are you a toaster repair man in the toaster repair shop? Guess what, you could repair a few toasters in your off time. Don’t go into looking to totally replace your day job (unless you are very, very serious about it) - but do use it as a way to generate some amount of side income.

There you go. A few ideas for you. If you have some of your own, drop me a comment! I’d love to hear from you.

Popularity: 58% [?]

One of our top goals here at Dollars From Pennies is to actively demonstrate how you can take a few bucks (pennies, really) and turn them into good solid money! We’ll be starting a project soon where we start at the ground floor with minimal investment, and try to create a thriving resource that produces residual income.

Stay tuned!

Popularity: 40% [?]

The threat of a recession is looming, if not very much upon us. The weak dollar, trade deficit, sub-prime lending nightmare, and poor performance from some of America’s largest banks all lead to us checking our accounts hourly, palms sweating and brow furrowed. But have no fear, there are some things you can do during this volatile time to not only protect yourself, but also possibly make a few bucks. Sound good? Then read on!

1) First, it’s vital that you not panic. DO NOT PANIC! At this point, if you are heavy into stocks, you have already felt much of the fury of the times. You’ve lost big, seen a big correction, lost big again…what a week! Do not empty your accounts! Do not stop your 401k deposits! Remember, you and I aren’t smart enough to know when the low is the real bottom, or when the high is the best it’s going to get. So, my first nugget of advice is to sit tight.

2) Start building a solid cash reserve. If this is a real recession, there is a risk of layoffs. Assuming you are 100% secure in your job is foolhardy at best. You rely on your employer for the majority of your income, but don’t hedge your future against a constant flow of paychecks. Try to build cash reserves that can keep you afloat for 6 months. And start doing it years ago! Or today, if you aren’t a time traveler.

3) Buy Stocks! This sounds insane, but the entire premise of stock trading is buy low, sell high. When the market is down, your 401k contribution goes a lot further. Keep it going!

4) Gold. Gold has been doing very well recently. You can buy “into” gold via several services, or you can buy actual gold an keep it in your home. If you want to start stockpiling gold at the house, go to a coin dealer and pick up some American Eagles. This is the ultimate in protection; if the dollar goes so far south that there are lines for bread, you still have something of international value to barter with.

5) If you have debt, move to resolve it quickly. Unless your debt is “good” debt - this would be a mortgage with a good fixed rate, or a college loan with good terms. Otherwise, debt is bad. You should remember that a percentage you owe every month is fighting against and percentages you make…the idea is to keep your debt to income ratio at the smallest possible level.

Hopefully, this advice will be of some help to you. I know it can seem scary sometimes when you are planning for your future. But you have taken the first step - plan! Without a plan, recession or not, you won’t get very far.

The author is not a financial adviser and is merely expressing his own opinions. Any decisions you make about your money are your own, as is the risk. We try to give good advice, but we are not liable for you taking it (or failing to take it!).

Popularity: 72% [?]