Upgrade thy income

If you find yourself lacking in the income department, don’t despair.

It may not feel like it at times, but your income is actually much more within your control than most people think. Partly, it goes back to the victim mentality; if you see yourself as a victim, and without power to change anything, then that’s exactly what you will be. Things will continue to suck. Making exciting things happen with your income has more to to with attitude and creativity than anything else.

Let me give you a few bullet-points to get your thought process rolling on ways to boost your income. Then, I’m going to direct you to a few resources I’ve used that were highly useful and encouraging.

  • Work more hours– step it up to full time if you’re not there already.
  • Submit a thoughtful proposal for a raise at your current job.
  • Get a second job– this has been most of my solution so far. Options are endless.
  • Shop around to ensure your current wage is competitive. If not, get a new job.
  • Sell on eBay. You’d be surprised how easy it is (and fun).
  • Start a business. Find a way to get paid for doing what you love.

If you’d like to become more valuable, and get paid for it, here are a few of the best resources I’ve found so far:

  • Dan Miller is America’s premier authority on finding work that you love. His material has changed my view on business completely.
  • The Four-Hour Work Week was a landmark book by Tim Ferris, describing how to design your work to suit the lifestyle you dream of.
  • Thou Shall Prosper is definitely one of my top 4 books of all time. Daniel Lapin breaks down the ten ‘commandments’ of earning well.
  • Free Agent Academy is a course of interactive study that aims to draw on your own dreams and personality, and birth a business that suits you perfectly inside and out.

Plus, if you’re fighting off an ugly student loan, like Sallie Mae, then pumping up your income could have some exciting possibilities for you. So…what’s stopping you?

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Battling student loan fatigue

To be really honest, right now I feel pretty demotivated. I’ve been working two jobs for most of a year in order to pay off my Sallie Mae student loan faster, and recently have gotten side-tracked by a few other things.

Thing 1. My wife and I have tried to always keep an emergency fund of $5,000. This is specifically in case I need to fly from Australia back to the US for a family emergency, and it gives us both peace of mind. The way I see it, it’s part of having migrated overseas. Anyway, we’ve been trying to build that back up to $5k after electing to use it late last year. That means instead of using my incomes to attack the student loan, I’m topping up the emergency fund. Right now it’s at $4,000 and should be full in about a month.

Thing 2. There’s a big car repair we’ve been putting off. It will cost $2,000. However, we’d rather do the maintenance on it now than wait until the problem causes a breakdown or gets more expensive. After the emergency fund is full, this is what we’re saving for next.

Thing 3. We have plans to do some domestic holidays this year–nothing too fancy, just a bit of a needed break. We try to get out of town twice a year at least. We may spend $5,000-$10,000 but this year will likely be on the lower end of the scale because we’re dialing back our lifestyle a bit at the moment. We’d like to put some deposits on flights and accommodation for later this year, and may have to fund this once the emergency fund and car repair are funded. So, you see? The next few months I feel like I won’t be able to focus on my loan like I planned to.

Bottom line: I took a second job in order to attack my student loan, and with these other competing goals, I feel like my efforts are getting redirected. It’s not that these things aren’t important, but I just want to turn myself loose on the loan for a period of time and forget about distractions. It’s frustrating. Plus, because I’m not financially focused on my student loan at the moment, I feel like I have less authority to write about the process for you.

Argh. Have you been here? Do you have any wisdom to share?

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Why you should never use direct debits

Yesterday, I had a heated phone call with my internet provider, Dodo.

I recently cancelled all my direct debits to start making my own payments and have more control of my money. This month, Dodo direct debited my account $9.50 for supposed ‘late’ payment. After 15 minutes of arguing, the rep on the phone agreed to check with his supervisor about waiving the fee. Here’s why: my bill was due on the 17th, and guess when my payment was made? On the 17th, but later in the day. Dodo, true to their namesake, declared my payment late. This is frequently the level of intelligence you’re dealing with among large companies, and a classic reason why I loathe direct debits.

Last month, another provider, for my health insurance, direct debited me $287 after I’d already made the payment for that month! Plus I’d previously revoked direct debit authority from them as well. The nerve!! Caught with their “hand in the cookie jar”.

In 8 years with Sallie Mae, I’ve never given them electronic access to my checking account, for similar reasons above. If you need more convincing, run a Twitter search for #salliemae, and within 1 hour, I promise you’ll see a tweet from some unfortunate graduate whose account has been cleaned out by a Sallie Mae direct debit.

Here are my 3 iron-clad arguments why you should avoid direct debits like the plague.

  1. Do you really trust Sallie Mae (or any organization) with the entire contents of your checking account? I don’t. Even if it’s a mistake, you still lose the time getting it fixed.
  2. Direct debits give you less control. In the world of personal finance, that’s not a good thing. Which leads me to point three.
  3. Direct debits cause you to get lazy and pay less attention to your bank accounts. If you’re too lazy to look after your own finances on a regular basis, then maybe you should move back in with your parents.

I’ll leave you with this tweet from Friday, 3 Feb from a Twitterer who shall remain nameless:

“SallieMae js raped my bank acct.” -@Twitter User

Has this ever happened to you?

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