by Mrs Money
For years now I’ve been “self employed” as a freelance writer. The business has changed a lot over the past few years, and honestly, when I started I never imagined I’d still be doing it this long! I enjoy it, and mainly for the fact that I can be my own boss. Now that we have Penny, it would be hard for me to go back to work and it be worth it. If I made the same salary as when I worked at the bank, after daycare costs, transportation, etc. I would be left with not a lot of money. I’ve thought about going back to work but I don’t think it would be a wise decision.
I love being able to make my own hours. With a very active almost 22 month old, I spend a lot of my day chasing her, doing laundry, cooking, cleaning, and running errands. If I had a job with set hours I know I’d be a lot more stressed. I’m very thankful that I can choose to work when I want and as much as I want. It’s awesome! Also, with being able to work from home, I don’t have to worry about putting Penny in daycare or hiring a babysitter and that is great. It saves me a lot of money, as child care is very expensive.
Being self employed can have it’s challenges though. I have to make sure I set enough money aside for taxes because they aren’t taken out of my pay. Sometimes I am crunched for time and I’m not able to do as much work as I’d like to. Because I don’t have a “business” it can feel like I’m not really working. A lot of people that do freelance work even create an LLC to be more official. As a business, the importance of business loans can’t be stressed enough if you’re short on cash. I’m thankful that with freelance writing I don’t need business loans and can do everything on my own.
I enjoy writing and having the flexibility that it offers. I’ve tried different things over the years to make extra money but this is the most consistent and makes it worth my time. For instance, I’ve tried selling things on eBay or Craigslist and I don’t generally have a lot of success. I’ve thought about making soap and selling it, but the profit margin on it is very slim and I’d have to sell tons of soap to make it worth my time. Sometimes I get wild ideas where I’m going to start making things and selling them online but I haven’t found anything that I’d really love to do.
Writing has been my favorite activity to make extra money and I’m very thankful that I’ve had this opportunity over the years to be able to do this. I think a lot of people have different “side hustles” and this is one that works very well for me!
Do you have any side hustles? How do you make extra money?
by Mrs Money
So back in 2011 I was looking for fee free IRAs. Mr. Money and I both had IRAs at a brokerage firm and the $40 annual fee was eating into our accounts, especially mine that contained around $400. I said I was going to either move it to a new brokerage firm that had no or low annual fees or move it to ING where it could sit in an IRA savings account. At least if I did that, I’d be avoiding the $40 annual fee.
Well that didn’t happen.
Penny was born, life got crazy and I didn’t even think about that IRA after that. Until last month when I got another bill for $40. Doh. And now the account balance was roughly $379, since they took out the $40 annual fee for last year. So I called them up, asked about closing it and moving it over to Capital One 360 so I would avoid penalties and they reminded me of the $75 closing fee. Yay. So now I’m down to $264 after the annual fee and closing fee.
I am really disappointed because I thought my account was in mutual funds, but it turns out that it was sitting in cash. Like I’m going to make any money with it not being invested. I ended up opening a ROTH IRA with Capital One 360 as a place to park the money. Even if I leave it there and never add any more money, at least it won’t be eaten by annual fees. Plus, there is no closing fee in the event that I decide to roll it into an IRA with another institution.
The paperwork is in the mail and I’m just waiting for them to take care of it. I’m annoyed at myself that I didn’t get it taken care of earlier but what can I do now? One of my most annoying habits is when I’m intimidated by something (like the thought of rolling over IRAs, researching investments, and possibly screwing up retirement funds) I put it off. I’ve got to learn to be better about that. I feel so much better when I just get things done!
We’re planning on leaving Mr. Money’s IRA at the brokerage firm because even with the $40 annual fee he still comes out ahead in his account. I’m really going to sit down and look at Vanguard and see about rolling my 401k from my old job there. What concerns me is that part of it is in a traditional 401k and part of it is in a ROTH 401k, so I don’t know how they’d go about rolling that over. Of course, they’re the experts so I probably should give them a call
I think once all of our retirement funds are all together I’ll feel a lot better about it. We’re fairly young and need to get that money working for us!
I was so aggravated that I let this happen but then I realized that it’s already done and all I can do is learn from it and move on. Have you made any money mistakes lately?