Ways to Find Extra Cash

With the economy the way it is, I thought I'd suggest some ways to find extra money when jobs are being lost and salaries are being frozen. Usually, I say that there are 3 ways to find extra money:

1. Make more money - Would require another job, a better job, or a raise.
2. Sell Stuff - Clean out the garage or basement and have a sale.
3. Spend Less - Create a budget and control cash outflow.

In this economy, making more money may not be an option. However selling some stuff and spending less are always an option to explore. No matter what, having a strict budget in place for expenditures is helpful to control cash outflow. Clip coupons for groceries. Cancel luxury services like cable TV and Cell Phone or home phone. Eat out less. Brown bag lunch. Have an emergency fund for unexpected/unplanned expenses.

If there's a need for extra cash right away, selling stuff is a quick way to get it. It's only stuff. When times are better, stuff can be replaced. Right now the market for good, used stuff is as good as it's ever been. So, here are my suggestions:

1. Search closets, basments, garages - Anything that's been sitting for a year or more is available for sale. Clothes, sporting goods, electronics, tools, furniture, etc.
2. Use Ebay or Craig's List to sell it. With Ebay there is the benefit of the auction process to drive the price higer, but there is a fee for using the service and the cost and hassle of shipping the stuff. With Craig's there is the benefit of local buyers and no cost, but the auction benefit for price isn't available.
3. Don't forget about old or unused jewelry. Gold and silver are trading at all time highs. Even if jewelry is broken, it can still be sold for the gold or silver content at a relatively high price to a local jeweler or gold dealer.
4. Selling blood plasma is an option for those who don't mind needles.
5. Sell services - Mowing, painting, cleaning, etc. Start with family and friends.

This isn't an exhaustive list, but it's a start. Any other suggestions for finding extra money in a tough economy?

Give Yourself a Raise

In my last post I wrote about how a lot of companies are freezing salaries this year. In this post, I'd like to suggest that you might be able to give yourself a raise.

Every year at tax time I have conversations with people who tell me what they are going to do with their tax refund. They are going to go on vacation or pay off debt or buy a TV. After I cringe while trying to appear not to, I think, "Do they think that's free money that appeared out of nowhere?"; "Don't they know that's their money they loaned to the government for free for a year?"; "What could they have done or avoided if they had kept that money in their paycheck?"; "Did they let their credit card balance increase at 18% while loaning their pay out at 0%?"

Tax refunds seem to be a replacement for regular saving or a safegaurd against a large tax bill. Unfortunately, its a poor savings plan. Most people laugh at passbook savings rates, but don't mind loaning their money to the IRS for free. Additionally, most people aren't in danger of large tax bills at the end of the year if they fill out their W-4 correctly. Some exceptions would be dual income families, families with large amounts of investment income, and families that have 1099 MISC income.

So, if you got a large refund this year (I'd say $300 or more), check the exemptions on your W-4. Without any of the exceptions noted above, you should be able to complete it as prescribed and get a raise in your paycheck. You can then use it to meet your monthly bills, pay off debt, or save for an emergency. Even If you're worried about a large tax bill, at least keep the money and put it in an emergency fund that you could use to pay your taxes. Better in your pocket than the IRS.

Enjoy your raise.

Spring Is Coming but Salaries are Frozen

According to this article one in four companies has frozen salaries for 2009. It also suggests that some companies are cutting salaries. Our auditors said they've seen a lot of companies freezing or reducing salaries this year.

Potential New Financial Statement Format

Have you heard about the new financial statement format that the Financial Accounting Standards Board (FASB) and the Internation Accounting Standards Board (IASB) is considering? I first heard about this concept at a CPE class I attended in December.


If not, this article will introduce the concept. I'm not sure if it will apply to Churches. My guess is that it will.


I haven't formed an opinion on it yet. I think it's going to be a big change to get used to. Balance sheets that don't balance like they do now; categorized balance sheet, income statement, and cash flow statement; and a cash flow statement prepared using the direct method.


Read the article and let me know what you think.

New Payroll Withholding Tables for Making Work Pay Credit

The IRS has published the new tax withholding tables for the Making Work Pay Credit which is part of the American Recovery and Reinvestment Act of 2009. The related article with additional information is here.

Specific & Practical Help for Churches & Leaders

The latest addition of our WiredChurches Specific & Practical Magazine is available as an Ezine. You can find it here.

Lots of helpful articles from GCC Leaders like Mark, Tim, Kem, Rob, and Butch along with information about 2009 WiredChurches Workshops and Conferences.

Check it out. It's FREE!

What's in Cyberspace stays in Cyberspace

Loved this post by Tim about how companies are searching Blogs, Facebook, and Twitter to get a feel for who a potential job candidate is. Tim also suggested that the same could be done when considering a ministry candidate or volunteer. Pretty good advice.

Who Needs to be on the Dave Ramsey Plan?

I was listening to Dave Ramsey's podcast today. He read a twitter post from Congressman John Culberson from Texas. The post said that this economy needs "Americans to get on the Dave Ramsey Plan".

Although Dave was flattered by the compliment and agreed that Americans need to get on the Dave Ramsey plan, he also said that Americans need Congress to get on the Dave Ramsey plan not Congress telling Americans to do it. Later he said that the Congress that is spending out of control needs to change and chanted, "I want term limits" over and over again as he went to break.

I couldn't agree more Dave. I couldn't agree more.

It's Audit Time

Our independent audit firm is here this week auditing our 2008 financial statements. We have them come in every year and audit our books. Yes, we hire them to do it. Most people think that's like beating yourself up for lunch money.

I'm glad we do it. It provides our church, bank, staff, and donors with some assurance that we're accounting for our resources properly. It also gives me an opportunity to get some independent feedback on our internal control, processes, and business practices.