Your Money_ The Missing Manual - J. D. Roth [59]
Don't underestimate yourself
When you truly love something, your experience can give you skills and knowledge that you may take for granted. But just because you know all about growing orchids doesn't mean everyone else does. If you're an expert on a subject, think of ways to share it with others—for a fee.
Example: If you're passionate about cycling and want to help others learn the sport, start a bike-fitting service or open a part-time bike repair shop. Doing these things may seem simple to you, but others will gladly pay for the help.
Market yourself
To earn an income, you need customers. Many people are uncomfortable promoting themselves, but you have to if you hope to earn money from your hobby: People need to know you're available before they can hire you.
Example: There's no shame in discussing your money-making hobby with friends, family, and neighbors. You don't need to be pushy; just bring it up naturally in conversation. Eventually word will get out about what you do, and people will call for your services.
Hone your skills
You know the old mantra: Practice, practice, practice. The more time and energy you devote to your hobby, the better you'll get at it, which will improve your chances of earning money.
Example: Love photography? If you take a hundred shots a day and read up on how to compose images, you can improve your skills quickly. You may never become a professional photographer, but you might be able to sell images to stock photo agencies (like iStockPhoto.com) or enter (and win) photography contests.
Choose carefully
Not every hobby is a good source of income. Some—like collecting—can actually be huge drains on your budget. And remember: You probably won't get rich off your side business, but you can improve your cash flow, which will help you get out of debt and build wealth that much quicker.
Your Money And Your Life: Cash for Cupcakes
Jessie Smith graduated from college with an art degree and no firm career plans. When the economy tanked in 2008, she began to wonder what she could do with her degree. "There were all these articles about women losing their jobs," she says. "I read an article about a grandma who started her own peanut brittle company, selling it at farmers markets." This gave Jessie an idea.
With encouragement from friends and family, she started Confectionery (www.confectionerypdx.com), her own cupcake business. Jessie bakes and decorates cupcakes and sells them at local stores and farmers markets. "They're pretty elaborate and creative," she says. "I get satisfaction out of that." This isn't how she planned to use her art degree, but she's having fun while learning new skills.
Starting a small business is a scary prospect, but Jessie figured that at age 24, she could afford to take a chance: "When you're young, that's the time to make mistakes."
Jessie doesn't have any employees, and it's her own money at risk. Despite some bumps along the way, she still came close to breaking even her first year. Now she's taking a business class to help her with the non-creative side of the cupcake trade, and she believes she'll do much better in the future. She's found an outlet for her creativity and enjoys what she does, which is just frosting on the cake.
Other Ways to Make Money
Your career will always be your main source of income—but that doesn't mean it has to be your only source. There are lots of other ways to dig up dollars (without resorting to a life of crime). The next few pages are full of tips for turning clutter into cash and making money in your spare time.
Selling Stuff
Americans pay tons of money to store Stuff (The Tyranny of Stuff). According to the Self Storage Association (yes, that's a real organization), in 1984 there were fewer than 300 million square feet of self-storage space. By the end of 2008, that number had grown to 2.35 billion square feet. And just imagine how much Stuff is tucked away in garages, attics, and basements. Instead of letting your Stuff gather dust, why not sell it and make a little money?