Divvying Up Your Earnings

Making money is easy. Even in this economy. No matter where you find yourself, you can earn a wage using your own initiative. How you go about it is up to you.

I have seen people sitting in parking lots / carparks outside large box stores (Dunnes, Wal-Mart and the like) offering items for sale out of their vehicles. Although I declined to purchase the seller's "cheap" item that can be found at a higher price inside the big box store, including warranty and return policy, I have observed others buy an item from the trunk of a car without blinking an eye.

I can guess that some of those items for sale had walked out of a store on their own or "accidentally" fallen off the back of a delivery truck, couldn't you? But I'm not here to promote illegal sales. I'm only pointing out that people find ways to put food on their table without resorting to standing in line for unemployment benefits (or go on the dole, as they say).

So, if this economic downturn has put you on the street without a regular wage to call your own, what can you do?

I won't speak for everyone out there because the myriad ways one ends up without a living wage would require a book to describe how you ended up where you could sit and read this blog entry while wondering how you're going to pay your bills this month. Today, I will speak to those of you who've had the opportunity to earn a few years' wages and could have put a little money away for a rainy day.

Okay, so now it's a rainy day (as a matter of fact, right now the sky is falling outside my window as a rather large set of thunderstorms pass by overhead). You're sitting on the doorstep, deciding if you should hold your hand out while playing random tunes on a harmonica. [To be sure, you could earn a few coins an hour panhandling in that way and might even make yourself famous if you could park your body in front of a popular webcam. Never turn down the chance to make money and have fun at the same time.] What do you do?

Have you ever thought about an income based on company dividends? While all your friends are telling you to have a party because life sucks, look at the money you've put aside. Say, it's enough to pay a few months' rent. What do you do?

Well, I'm not your broker or your advisor, so don't expect me to have an insight into your financial goals. However, if I were you, I'd open a window on the Internet and see what my money could do for me. Perhaps I could start a small company, using the money to pay for fees and business licenses. Or I could buy a used van and put all my stuff inside, finding a free place to park down by the river. I could go down to the local bank and take out a loan using my money for collateral. Or I might just have to pay rent, after all. Certainly, I'd be looking for another job, calling up friend, coworkers and family to see what they had to offer. In the meantime, I suggest you look at your financial future.

This economic slump will not last forever, even if it will get worse. Therefore, now's the time to start looking at companies whose stock is very low yet they're stilling paying out quarterly dividends. Why should you care? Well, let's say that you and your friends all have the same amount of money to invest in your lives. Some of your friends will inevitably buy something to satisfy their need for instant gratification -- a boat, an RV, a second car, etc. In times like these, you can open the classified ads and find all sorts of bargain basement deals on motorbikes, SUVs and other items that looked good to someone when the economy was hopping but now are eating a hole in their wallet. So, while your friends are scrambling to find someone to buy their toys, what could you be doing? Instead of putting your money to instant use, why don't you invest your money in stocks that pay dividends? That way, once every three months, you have an income that you can use to buy more stocks or to pay household bills, instead of paying for a houseboat that you use a few months out of the year (of course, if your dividend income keeps growing, you could have both, but let's stick to the basics for a moment).

The point here is that you have a choice in what to do with your income -- before you find yourself on the street penniless, think about taking care of your future using today's paycheck. Sit down and determine what you're going to do with that 20% you promised you'd put aside every two weeks. Make sure some of it goes into dividend-paying company stocks. That way, when or if you end up without a regular paycheck, you have a little buffer built in that rewards you for your foresight. Then, when you're out of a job while sitting down looking at a small nest egg that will only cover a few months' rent, you know you can focus on the rent, and let your upcoming dividends pay for insurance or other bills you worked out to pay annually, semi-annually or quarterly. Better yet, if your dividends are working out well, you might even decide to take that nest egg and start your own Internet business.

Don't wait until you're out of work to say, "If only I saved up some money!" Your financial future starts now. Invest in it.