Time for the latest Carnival of Debt Reduction.
Some great tips on savings and reducing debt.
US Economy Going South?
Note: The following post will depress you, unless your sense of humor is based on schadenfreude.
I've been maintaining my belief that we're going to see a pretty bad recession for over a year now. Until very recently, the newspapers were all cheerleadering the economy and how everything was just peachy. Even Ben Stein and other economists said everything's great last November.
CNN Money has started a new featured series called American Money, where everyday Americans recount the financial hardships they're facing in the current economic environment.
Nearly all of them focus on how the real estate meltdown has adversely affected them. A few of them bought a new home thinking that their old home would sell off fast. Unfortunately it didn't and they got burnt (and almost divorced) trying to manage two mortgages. One young man got a subprime loan that resets in a few years, and quite a number of people lost their jobs or found jobs that paid a lot less than what they were used to.
One family has a daughter who's ready for college but they've blown through their savings and can no longer afford to put her through college. Another mom has used up all her savings, 401k and even her kids college education 529 plan in her efforts to stay afloat.
One 62 year old had been in the mortgage business for 20 years has been reduced to working as a store clerk and part-time surfing instructor to get by. He's even managed to ruin his credit by co-signing a home loan for his son, who's in a similar situation. He's also managed to run up $35,000 in debt. I doubt he'll be able to pay it off on his minimum wage jobs and he seems to think the same way. He's decided he's going to just walk away from all his debts.
There are currently nearly a dozen stories of financial hardship with people using their credit cards, and maybe even payday loans just to pay the rent and put food on the table. I read it and really felt quite depressed. There was also a family that felt spending $250 a month on gas for the commute was breaking their budget.
In fact an underlying theme I caught here and there was that gas prices were too high and aggravating their misfortunes. If you don't have an extra $150 a month and its breaking your budget, that's really sad. You really need to cut back on all your expenses and/or move to a cheaper place.
Hopefully, the government will channel some of the $3 billion/week its spending on Iraq towards creating real employment in the US.
I've been maintaining my belief that we're going to see a pretty bad recession for over a year now. Until very recently, the newspapers were all cheerleadering the economy and how everything was just peachy. Even Ben Stein and other economists said everything's great last November.
CNN Money has started a new featured series called American Money, where everyday Americans recount the financial hardships they're facing in the current economic environment.
Nearly all of them focus on how the real estate meltdown has adversely affected them. A few of them bought a new home thinking that their old home would sell off fast. Unfortunately it didn't and they got burnt (and almost divorced) trying to manage two mortgages. One young man got a subprime loan that resets in a few years, and quite a number of people lost their jobs or found jobs that paid a lot less than what they were used to.
One family has a daughter who's ready for college but they've blown through their savings and can no longer afford to put her through college. Another mom has used up all her savings, 401k and even her kids college education 529 plan in her efforts to stay afloat.
One 62 year old had been in the mortgage business for 20 years has been reduced to working as a store clerk and part-time surfing instructor to get by. He's even managed to ruin his credit by co-signing a home loan for his son, who's in a similar situation. He's also managed to run up $35,000 in debt. I doubt he'll be able to pay it off on his minimum wage jobs and he seems to think the same way. He's decided he's going to just walk away from all his debts.
There are currently nearly a dozen stories of financial hardship with people using their credit cards, and maybe even payday loans just to pay the rent and put food on the table. I read it and really felt quite depressed. There was also a family that felt spending $250 a month on gas for the commute was breaking their budget.
In fact an underlying theme I caught here and there was that gas prices were too high and aggravating their misfortunes. If you don't have an extra $150 a month and its breaking your budget, that's really sad. You really need to cut back on all your expenses and/or move to a cheaper place.
Hopefully, the government will channel some of the $3 billion/week its spending on Iraq towards creating real employment in the US.
$1,400 In Monthly Online Income
February 2008 was a record-breaking month. I achieved over $550 in stock and canroy dividends, ~$275 in oil revenue and ~$1400 in online income.
Here's the breakdown:
I made $100 in referrals fees from Prosper. If you've been thinking of lending or borrowing money on Prosper, now is a good time to do it. They're still offering a $25 incentive to new members.
A majority of the dividend income is from Canroys, and is post-tax income. The Canadian government takes its 15% tax on the dividends from Canroys, so the income is after-tax. You get a tax credit for this amount in the US so there's no double taxation.
I'm also getting affiliate referral income from Linkworth.com. For every person that signs up, they give 5% of the income they earn for life! The $200 that I got in February was actually the income I earned in January. For February, I've actually earned $410.98, of which most of it is referrral income. However, since I won't get paid until March, I'm going to count that next month. Linkworth will probably be the largest income stream next month. Its a great way to boost your site's revenue and I strongly recommend you sign up.
My Kontera income dropped significantly from the prior month. Its down almost 50%. I haven't spent much time analyzing that so I'm not sure what happend. Overall traffic is up so I'd expect the kontera revenue to also increase, but the opposite occurred. I guess it is correlated with the type of posts. I've seen that posts related to gold pay very well for PayPerClick advertising. A lot of clicks are $0.99 and some are even over $1 each. Focusing on investment-related content makes for good income!
As I mentioned last month, my real estate trust deed has defaulted. Luckily, the oil drilling programs have started to kick-in and have almost replaced that income.
Overall, I'm quite pleased with the results. Hopefully, I'll be able to break the $3,000/month barrier pretty soon.
Here's the breakdown:
- Online Income: $$1399.29
- Adsense: $416.22
- Linkworth: $221.99
- TLA: $95.87
- Kontera: $51.36
- Affiliate: $83.85
- Prosper Referrals: $100
- Direct Ads: $430
- Savings Accounts: $138.43
- Real Estate Trust Deed: $0
- Direct Oil Drilling Investment: $277
- Dividends from Canroys: $509.11
- Other Dividends: $59.72
I made $100 in referrals fees from Prosper. If you've been thinking of lending or borrowing money on Prosper, now is a good time to do it. They're still offering a $25 incentive to new members.
A majority of the dividend income is from Canroys, and is post-tax income. The Canadian government takes its 15% tax on the dividends from Canroys, so the income is after-tax. You get a tax credit for this amount in the US so there's no double taxation.
I'm also getting affiliate referral income from Linkworth.com. For every person that signs up, they give 5% of the income they earn for life! The $200 that I got in February was actually the income I earned in January. For February, I've actually earned $410.98, of which most of it is referrral income. However, since I won't get paid until March, I'm going to count that next month. Linkworth will probably be the largest income stream next month. Its a great way to boost your site's revenue and I strongly recommend you sign up.
My Kontera income dropped significantly from the prior month. Its down almost 50%. I haven't spent much time analyzing that so I'm not sure what happend. Overall traffic is up so I'd expect the kontera revenue to also increase, but the opposite occurred. I guess it is correlated with the type of posts. I've seen that posts related to gold pay very well for PayPerClick advertising. A lot of clicks are $0.99 and some are even over $1 each. Focusing on investment-related content makes for good income!
As I mentioned last month, my real estate trust deed has defaulted. Luckily, the oil drilling programs have started to kick-in and have almost replaced that income.
Overall, I'm quite pleased with the results. Hopefully, I'll be able to break the $3,000/month barrier pretty soon.
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