We're back in the action with another question, this on also asked by the so called "anonymous". Whether or not it's the same one, we have not yet found out.
Dear Munnybagz,
I have a question I have been trying to get an answer to with no success. Does it make sense to pay down my mortgage by making extra payments if I plan to sell the house in 5 years or less? I hope you can help.
Thanks,
Anonymous
Dear Anonymous,
Short answer no with an if, long answer yes with a but. Short answer first. You seriously should not pay extra on your mortgage if you have other higher interest debts. That would cost you more money than paying off your other debts. The long answer is yes. As long as you have extra money to put into a debt, and you are on track with all other debts, always pay off as much as you can. Because if you pay off your mortgage payments, thus getting rid of the interest, whatever you put into your mortgage goes directly into the debt, not interest. That way, (if you've read my How to Pay a Mortgage post, you'll know*) if you can pay an entire years worth of mortgage payments when you don't have to, you just cut a year off your mortgage. Even if you have only 5 years or one year left in the house, you'll get more money once you sell it and finish the mortgage up. Hope this answers your question.
Munnybagz
*Turn 8,000 Dollars into 20,000 Dollars!
1.30.2007
1.29.2007
The Talk Show Continues!
We have received a comment since our last show, regarding our last show! Let's answer Anonymous' question, shall we?
Anonymous:
Hey, I was just wondering how this method would work, When you are that far in debt (150,000) the bank usually does not allow you to take out a loan, let alone a second mortgage, Please answer my question!
Good question, anonymous! However, banks will allow you to take out a second mortgage. I do realize that they would question that you already have a mortgage along with your debt. In this case, you can show them your scenario being this:
Your house is worth 500,000 dollars, but your mortgage is still 200,000 dollars. Therefore, after selling your house and repaying your mortgage and your bad debt*, you still have 150,000 dollars in equity. So let's say you want to buy a house costing 400,000 dollars. If you get the mortgage and manage to pay off 50,000 dollars of it with rent before the tenants leave and none want to rent, you have two choices. Sell your first house, get rid of all your other debts and continue to pay your mortgage with your remaining 150,000, or sell your second house, (probably worth about 500,000 dollars by now) and pay off your second mortgage (350,000 dollars) along with your bad debt. That way you only have your mortgage to worry about!
That hopefully should answer your question, Anonymous. To sum it up, figure out a good scenario to present to the bank, along with proving you have equity, just in case.
Munnybagz
*Bad debt is when you borrowed to buy something that deteriorates in value, like a car, or fancy dinners, anything like that. Good debt is when you borrow to buy something that will increase in value, such as your home.
Anonymous:
Hey, I was just wondering how this method would work, When you are that far in debt (150,000) the bank usually does not allow you to take out a loan, let alone a second mortgage, Please answer my question!
Good question, anonymous! However, banks will allow you to take out a second mortgage. I do realize that they would question that you already have a mortgage along with your debt. In this case, you can show them your scenario being this:
Your house is worth 500,000 dollars, but your mortgage is still 200,000 dollars. Therefore, after selling your house and repaying your mortgage and your bad debt*, you still have 150,000 dollars in equity. So let's say you want to buy a house costing 400,000 dollars. If you get the mortgage and manage to pay off 50,000 dollars of it with rent before the tenants leave and none want to rent, you have two choices. Sell your first house, get rid of all your other debts and continue to pay your mortgage with your remaining 150,000, or sell your second house, (probably worth about 500,000 dollars by now) and pay off your second mortgage (350,000 dollars) along with your bad debt. That way you only have your mortgage to worry about!
That hopefully should answer your question, Anonymous. To sum it up, figure out a good scenario to present to the bank, along with proving you have equity, just in case.
Munnybagz
*Bad debt is when you borrowed to buy something that deteriorates in value, like a car, or fancy dinners, anything like that. Good debt is when you borrow to buy something that will increase in value, such as your home.
1.28.2007
Aaaaaaand... We're Back on Air!
Sorry about the delay, folks but we were having some technical difficulties. Let's get back to the show!
Caller 1, you're on the air!
Ya, hi, I'm over 150,000 in debt, not including my mortgage. I'm fearing that I'll have to give up my lifestyle and everything I own. Is there anything I can do?
Well, I do have one piece of very good advice, find a really tall building... No, I'm just kidding! but seriously, the one thing you can do to take evasive action on that kind of debt is to, hold your applause, go further into debt! Ya, as crazy as it sounds, if you go another 300,000 dollars in debt and buy a condo, you can rent it out and slowly pay of that debt, plus the mortgage with the rent. And once you're almost out of your financial rut, you can sell the condo for a profit and be completely debt free! But you'd have to show the loaner that you have a solid plan to repay both debts. But if you're looking for something more immediate, the only thing there is to do is work harder, spend less, or take the easy way out by borrowing money from someone that trusts you for no interest, then pay them off without worrying about growing debt from interest.
That's all the time we have today, but send in your problems and/or questions to munnybagz@yahoo.ca and we'll answer them tomorrow! (unless i don't get any questions to write about)
Caller 1, you're on the air!
Ya, hi, I'm over 150,000 in debt, not including my mortgage. I'm fearing that I'll have to give up my lifestyle and everything I own. Is there anything I can do?
Well, I do have one piece of very good advice, find a really tall building... No, I'm just kidding! but seriously, the one thing you can do to take evasive action on that kind of debt is to, hold your applause, go further into debt! Ya, as crazy as it sounds, if you go another 300,000 dollars in debt and buy a condo, you can rent it out and slowly pay of that debt, plus the mortgage with the rent. And once you're almost out of your financial rut, you can sell the condo for a profit and be completely debt free! But you'd have to show the loaner that you have a solid plan to repay both debts. But if you're looking for something more immediate, the only thing there is to do is work harder, spend less, or take the easy way out by borrowing money from someone that trusts you for no interest, then pay them off without worrying about growing debt from interest.
That's all the time we have today, but send in your problems and/or questions to munnybagz@yahoo.ca and we'll answer them tomorrow! (unless i don't get any questions to write about)
1.23.2007
My Mortgage Magic - Make the Money Appear Again!
No, no, this is not about how to get a rebate on your mortgage, but it is a clever little trick that really brings in the statement, " pay yourself first!". Well, what I've figured is that after 20 years, people are quite used to paying maybe 1,000 dollars a month on their mortgage. So what if they continued to do that into a savings account? That's an extra 12,000 dollars a year you're saving! So lets say that once you've paid off your mortgage, you were looking forward to opening up a little more cash flow. So let's say you only paid 10,000 dollars a year. If you continue to do this for 10 years, at a 10 percent return rate, here's what you would end up with.
The numbers, in order, are: year, annual investment, earnings and ending balance.
1 $10,000 $1,000 $11,000
2 $10,000 $2,100 $23,100
3 $10,000 $3,310 $36,410
4 $10,000 $4641 $51,051
5 $10,000 $6,105 $67,156
6 $10,000 $7,716 $84,872
7 $10,000 $9,487 $104,359
8 $10,000 $11,436 $125,795
9 $10,000 $13,579 $149,374
10$10,000 $15,937 $175,312
I could go on like this for I don't know how long, but I'm bored of making a chart with tabs and spaces, so I'll do it some other time. So there's the amazing ways of paying for a second mortgage without having a second home!
The numbers, in order, are: year, annual investment, earnings and ending balance.
1 $10,000 $1,000 $11,000
2 $10,000 $2,100 $23,100
3 $10,000 $3,310 $36,410
4 $10,000 $4641 $51,051
5 $10,000 $6,105 $67,156
6 $10,000 $7,716 $84,872
7 $10,000 $9,487 $104,359
8 $10,000 $11,436 $125,795
9 $10,000 $13,579 $149,374
10$10,000 $15,937 $175,312
I could go on like this for I don't know how long, but I'm bored of making a chart with tabs and spaces, so I'll do it some other time. So there's the amazing ways of paying for a second mortgage without having a second home!
1.20.2007
Lemonade Stand? Sour and Bland!
Never, ever, ever, set up a lemonade stand. It is a waste of time, and takes way too much effort. That is it, simply put, but here are some numbers to support my theory. Let’s say the day before I set up the stand, I go shopping for half an hour. The next day it takes me half an hour to set up the stand. For this part, I will use a record of one of my actual stands that I set up.
So far I’ve already spent an hour working on it, and I’ve spent 8 dollars and 35 cents on supplies. Then I sit there for 7 hours and I only make 14 dollars and 50 cents. Minus my expenses and charity, I earn an amazing 3 dollars and 15 cents! Instead of going through all that trouble, I could have just washed my mom’s car and made 5 bucks in half an hour! That’s making over 10 times what I was per hour on the lemonade stand!
So if you really want money, make sure you check all options such as raking, mowing, washing cars or absolutely anything before you open up a lemonade stand. I can make that much money in 10 minutes by rubbing my mom’s back!
So far I’ve already spent an hour working on it, and I’ve spent 8 dollars and 35 cents on supplies. Then I sit there for 7 hours and I only make 14 dollars and 50 cents. Minus my expenses and charity, I earn an amazing 3 dollars and 15 cents! Instead of going through all that trouble, I could have just washed my mom’s car and made 5 bucks in half an hour! That’s making over 10 times what I was per hour on the lemonade stand!
So if you really want money, make sure you check all options such as raking, mowing, washing cars or absolutely anything before you open up a lemonade stand. I can make that much money in 10 minutes by rubbing my mom’s back!
1.19.2007
How to Make a Killing off of a Blog!
A big reason that I started my blog is because my mom told me that people make revenue off of them. I still wasn’t sure about it, but then she said that some people actually live off of the revenue they’re making! Not to mention compiling their articles into books and who knows what that can lead to! It's a great way for kids to make money.
So you see, making a blog may seem hard, but it’s really not, and for the revenue you might be making off of it will make it all worthwhile. Let’s take me for example: I write for an average of 20 minutes a day, and I’m just about ready to put up ads. And by the end of the year? Who knows? Anyways, let’s say you’ve been going for a month and you’re getting 400 hits a day (by the way, you need 4000 impressions to get 1 dollar). And let’s say you have 6 ads, and every person who visits your site goes to 10 different sections. So that means that, since there’s a new 6ads per page, everyones is viewing 60 ads, or getting 60 impressions for you. So you’re getting 24,000 impressions a day, so you’re making 6 dollars a day! Every month you’ll be getting 180 dollars, just for this hobby!
That means that every year you get 2160 dollars! 3 and a half times more than what I get for an allowance, and much less work! And if you want me to get technical, saving that for ten years will get you a down payment on a house, not bad if you start when your 12. That saves a lot of savings, not to mention once you get more popular, say 4,000 hits a day, ’ be making 60 dollars a day, and will be able to live of your blog, albeit crappily!
So you see, making a blog may seem hard, but it’s really not, and for the revenue you might be making off of it will make it all worthwhile. Let’s take me for example: I write for an average of 20 minutes a day, and I’m just about ready to put up ads. And by the end of the year? Who knows? Anyways, let’s say you’ve been going for a month and you’re getting 400 hits a day (by the way, you need 4000 impressions to get 1 dollar). And let’s say you have 6 ads, and every person who visits your site goes to 10 different sections. So that means that, since there’s a new 6ads per page, everyones is viewing 60 ads, or getting 60 impressions for you. So you’re getting 24,000 impressions a day, so you’re making 6 dollars a day! Every month you’ll be getting 180 dollars, just for this hobby!
That means that every year you get 2160 dollars! 3 and a half times more than what I get for an allowance, and much less work! And if you want me to get technical, saving that for ten years will get you a down payment on a house, not bad if you start when your 12. That saves a lot of savings, not to mention once you get more popular, say 4,000 hits a day, ’ be making 60 dollars a day, and will be able to live of your blog, albeit crappily!
1.18.2007
Good news!
If you go to www.funnymunny.ca it will now take you to my website! Three cheers! And even better (for me, at least) is that I can now put ads on, thus earning revenue and allowing me to focus more on writing posts instead of actually labouring to make money! This leads nicely into today’s post: How to Make a Killing off a Blog!
And the other great news is I got my 12 dollar a week raise!
And the other great news is I got my 12 dollar a week raise!
1.17.2007
I Regret...
I’m just too tired to write a FunnyMunny post today, I’m sorry guys but tomorrow will be extra special!
1.16.2007
How To Monopolize in Monopoly!
Monopoly is a classic board game, but most people misunderstand it. Lots of people think that whoever buys every single property they land on wins, which is the exact opposite of the game. You have to be a careful buyer, and never waste your money on the properties on the first two sides of the board. Those nearly never pay off. Start off with the higher properties, and work your way down to the bad ones.
Another huge thing to do is to build hotels. You can’t pay off a property without a hotel. (well you can but it’s hard) For example, if you buy boardwalk and park place and buy a hotel for boardwalk, if someone lands on it, you’ve paid off everything. If you have 2 of the three deeds for one colour, buy the other one and build houses or hotels. It’s much more worth it.
And if you can, buy all the deeds on one side of the board and put hotels on all of them. There’s no way your opponent can bypass a death trap like that! And don’t be afraid to offer big for properties you need as long as you know it would do you good. A tricky way to offer for a deed is to take two of the worst deeds you own and say, ” I’ll trade you some money and TWO PROPERTIES for that!” And avoid showing them which ones they are specificly if you can.
But remember: never not spend money. You may have more money in the start, but we’ll see who is laughing when I have hotels on all my properties and you have to pay an average of 500 dollars a turn! Probably more…
Another huge thing to do is to build hotels. You can’t pay off a property without a hotel. (well you can but it’s hard) For example, if you buy boardwalk and park place and buy a hotel for boardwalk, if someone lands on it, you’ve paid off everything. If you have 2 of the three deeds for one colour, buy the other one and build houses or hotels. It’s much more worth it.
And if you can, buy all the deeds on one side of the board and put hotels on all of them. There’s no way your opponent can bypass a death trap like that! And don’t be afraid to offer big for properties you need as long as you know it would do you good. A tricky way to offer for a deed is to take two of the worst deeds you own and say, ” I’ll trade you some money and TWO PROPERTIES for that!” And avoid showing them which ones they are specificly if you can.
But remember: never not spend money. You may have more money in the start, but we’ll see who is laughing when I have hotels on all my properties and you have to pay an average of 500 dollars a turn! Probably more…
1.15.2007
The Toons go Head-to-Head in Fight for Best Rich Comic Character!
Welcome, ladies and gentlemen, to the annual Rich Person’s Awards! Tonight we have three candidates from four different comics, all going for the award of most loved rich cartoon character! Here they are folks!
Give a round of applause to candidate number one, the star of Richie Rich Comics, Richie Rich! His family has their own police force, they’re so rich! Not to mention a money dam, almost having their own subway system, and relatives that are all rich! Proclaimed to be the richest kid in the world, Richie Rich is guessed to be a zillionaire!
Our second contestant, and possibly the most well known, Veronica Lodge! Not the richest person in the world, however, but possibly the most spoiled and flashy. As one of the star characters in the Archie Digests, she has her own spa which she uses every day, and has caviar as a midnight snack! Her father, Hiram Lodge, is possibly one of the most serious and old-fashioned fathers there is, but is a pushover when it comes to his daughter, leaving Veronica with anything she could ever want.
Now for our third contestant, with no doubt being the richest duck in the world, Scrooge McDuck! The Scrooge comics are a huge hit, as every episode he obtains a new fortune. Having beaten his arch rival, who obtains money in ill-gotten ways, in a most-money contest by a single dime, Scrooge McDuck shows that he is a force to be reckoned with when it comes to protecting his money. Starting out as a prospector, he has earned every penny he owns. Now, audience, we leave it up to you to decide who the best rich cartoon character is!
Please post your vote!
Veronica Lodge: 3
Scrooge McDuck: 5
Richie Rich: 2
Give a round of applause to candidate number one, the star of Richie Rich Comics, Richie Rich! His family has their own police force, they’re so rich! Not to mention a money dam, almost having their own subway system, and relatives that are all rich! Proclaimed to be the richest kid in the world, Richie Rich is guessed to be a zillionaire!
Our second contestant, and possibly the most well known, Veronica Lodge! Not the richest person in the world, however, but possibly the most spoiled and flashy. As one of the star characters in the Archie Digests, she has her own spa which she uses every day, and has caviar as a midnight snack! Her father, Hiram Lodge, is possibly one of the most serious and old-fashioned fathers there is, but is a pushover when it comes to his daughter, leaving Veronica with anything she could ever want.
Now for our third contestant, with no doubt being the richest duck in the world, Scrooge McDuck! The Scrooge comics are a huge hit, as every episode he obtains a new fortune. Having beaten his arch rival, who obtains money in ill-gotten ways, in a most-money contest by a single dime, Scrooge McDuck shows that he is a force to be reckoned with when it comes to protecting his money. Starting out as a prospector, he has earned every penny he owns. Now, audience, we leave it up to you to decide who the best rich cartoon character is!
Please post your vote!
Veronica Lodge: 3
Scrooge McDuck: 5
Richie Rich: 2
1.14.2007
Getting Your Business out of the Suburbs and You Into a Mansion
Do you know how many restaurants there are in Vancouver? Or how many restaurants there are that have food that tastes just the same as the Mongolie Grill’s? (I didn’t bother to count, but we’re pretty sure there’s at least 5) So what keeps the customers coming back? Even the fact that it’s a buffet style, cooked-on-a-hunk-of-metal style meal, lots of places do that. But there is one thing they have that others don’t. If you guess how much your meal costs, you get it for free. (I was once a penny off, so i got half price) This is what is called a gimmick. It makes people compelled to go to certain restaurants because they’re so unique. Another example is the “Come here a certain number of times and buy something and you get something free” gimmick. Or something I personally enjoy, those Safeway Bingo ™ cards they give you after you buy groceries there. But anyways, back to the point.
If your business is failing due to competition, or no one knows you, add a gimmick. A really easy one to do would be, say you own a restaurant, then start a competition in which the competitors try and eat a really big meal in a certain amount of time. If they don’t, they have to pay double the fee. A lot of people might turn up to watch, and sitting for an hour watching people eat makes me fairly hungry. Make it something annual and you might even get a lot of free publicity.
Here’s a story that I personally really like about someone who turned a failing business around using a gimmick. Lisa Renshaw, 21 years old, bought a parking garage. She realized that someone needed to be there 24/7 to maximize the profits. So she moved in. Then she created fliers saying that if you came to her garage and parked there five times she’d - wait for it… - wash your car. It’s that simple. But what is she doing today? She owns over 50 garages and is a multimillionaire. Visit her site at www.pennparking.com.
There are many ways to jump-start a business. But a gimmick is easy, fun for both you and the customer, and can make you famous.
If your business is failing due to competition, or no one knows you, add a gimmick. A really easy one to do would be, say you own a restaurant, then start a competition in which the competitors try and eat a really big meal in a certain amount of time. If they don’t, they have to pay double the fee. A lot of people might turn up to watch, and sitting for an hour watching people eat makes me fairly hungry. Make it something annual and you might even get a lot of free publicity.
Here’s a story that I personally really like about someone who turned a failing business around using a gimmick. Lisa Renshaw, 21 years old, bought a parking garage. She realized that someone needed to be there 24/7 to maximize the profits. So she moved in. Then she created fliers saying that if you came to her garage and parked there five times she’d - wait for it… - wash your car. It’s that simple. But what is she doing today? She owns over 50 garages and is a multimillionaire. Visit her site at www.pennparking.com.
There are many ways to jump-start a business. But a gimmick is easy, fun for both you and the customer, and can make you famous.
1.13.2007
Sorry for the Inconvience - This Will Have to do Today.
I’m sorry everyone, but I can’t write a long FunnyMunny post today. However, there is good news. The reason is, I was busy working on my personally owned website! The reason I want my own domain is because of one thing… ads! Here I am, telling you how to make money, the entire time waiting to make money of this site! Well, the time has finally come! When the website is ready to unveil, the new URL will be www.funnymunny.ca!
If any of you are wanting to own your very own domain, I have found a very inexpensive way to do it. The normal rates for a domain can go up to 8 USD a month. That would be 96 USD a year, or 112 CD a year. But, with the help of the easy-to-use and inexpensive www.lowcostdomains.ca, I am only paying 17.45 a year! I’m saving almost 100 dollars. But, anyways, when the site comes up and the ads work, if you are at all interested in them, please click away as I get only 0.25 cents for 1,000 impressions, but 1 cent per click!
If any of you are wanting to own your very own domain, I have found a very inexpensive way to do it. The normal rates for a domain can go up to 8 USD a month. That would be 96 USD a year, or 112 CD a year. But, with the help of the easy-to-use and inexpensive www.lowcostdomains.ca, I am only paying 17.45 a year! I’m saving almost 100 dollars. But, anyways, when the site comes up and the ads work, if you are at all interested in them, please click away as I get only 0.25 cents for 1,000 impressions, but 1 cent per click!
1.12.2007
It’s my Business to Fund Your Business
It’s always good to give back to the community/world, especially if you’re very successful. There are many ways to give back, but I would have to say, my all-time favourite would have to be the World Vision catalogue, because you get to buy gifts for people in third-world countries. There are gifts in there such as vitamins, or food, but there is a saying that goes: Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime. So, naturally, being the businessboy I am, I bought someone a home business. A bee farm kit with a hive, in fact! The perfect gift that keeps on giving. Stings, that is! No, I’m just kidding. But there are also some things in there that cost a lot of money, such as the 15,000 dollar well that will provide a village with water for all of eternity!
So if you feel you need to prepare yourself for the business world and take some responsibility, start a fund-raising campaign in your school and try to buy a well for a village, or even a school for a village! (which also costs 15,000 dollars) If you want to watch an inspirational story about a 7-year-old boy who decided to do just that, rent the movie called Ryan’s Well. It’s a very good story. Now go donate!
So if you feel you need to prepare yourself for the business world and take some responsibility, start a fund-raising campaign in your school and try to buy a well for a village, or even a school for a village! (which also costs 15,000 dollars) If you want to watch an inspirational story about a 7-year-old boy who decided to do just that, rent the movie called Ryan’s Well. It’s a very good story. Now go donate!
1.11.2007
Our Investments - Magic of the Day is How to Turn Wine Into Money!
Here is a plan that I’ve been wanting to try for a really long time. I personally haven’t tried it, but I know people who have. What you do is buy newly bottled wine, but make sure it’s a good kind. Do a little bit of research on the different brands of wine, what awards they’ve won, how much the older bottles sell for, stuff like that. If you can get a good cabernet for 150 dollars each, try to buy at least 100 bottles. If you hold on to that wine for about 20 years, you can sell it at anywhere from 5,000 dollars to 10,000 dollars - a bottle!
My great uncle used to work as a financial planner down in California. He liked to collect wine, and bought about 1,000 bottles at bargain prices from 8 to 12 dollars each! Later, he sold each one and probably made a few million dollars! Or you could just buy 40 dollar bottles of wine and end up selling those for about 500 dollars each.
My great uncle used to work as a financial planner down in California. He liked to collect wine, and bought about 1,000 bottles at bargain prices from 8 to 12 dollars each! Later, he sold each one and probably made a few million dollars! Or you could just buy 40 dollar bottles of wine and end up selling those for about 500 dollars each.
1.10.2007
Guest Post: How to make money on the internet
Hello FunnyMunny fans. Munnybagz has been stuck in traffic for the last three hours, with about one more to go, so he asked me to write for him tonight. He wanted me to write about ways for kids to make money on the internet. Well, there are lots of ways to do that, here are just a few ideas:
1. Sell stuff on Craigslist. Craiglist is a free buy and sell service, so selling things you don’t want anymore costs you nothing. If you don’t have anything to sell, you can ask friends and family if you can sell things for them for a commission. Perhaps 10%? Maybe 20%.
2. You can buy things on the internet and save money, which is another way of making money. See the previous post Saving Money for Hot Spenders. You can save hundreds of dollars by shopping around online before buying anything at a store.
3. Start a newsletter, blog, or website. Once you have lots of subscribers or visitors, you can get sponsors and advertisers for it. For instance, you can start your own blog, like this one (but about a different subject you are interested in) and place Google Adsense on it.
There are lots of other good creative money making ideas for kids too, but beware of the many ”get rich quick” schemes being promoted on the internet. Be careful that you don’t fall into a trap and get scammed.
If you have any other great ideas for how kids can make money on the internet, please leave a comment.
That’s it for tonight folks. Stay tuned for the return of Munnybagz tomorrow.
1. Sell stuff on Craigslist. Craiglist is a free buy and sell service, so selling things you don’t want anymore costs you nothing. If you don’t have anything to sell, you can ask friends and family if you can sell things for them for a commission. Perhaps 10%? Maybe 20%.
2. You can buy things on the internet and save money, which is another way of making money. See the previous post Saving Money for Hot Spenders. You can save hundreds of dollars by shopping around online before buying anything at a store.
3. Start a newsletter, blog, or website. Once you have lots of subscribers or visitors, you can get sponsors and advertisers for it. For instance, you can start your own blog, like this one (but about a different subject you are interested in) and place Google Adsense on it.
There are lots of other good creative money making ideas for kids too, but beware of the many ”get rich quick” schemes being promoted on the internet. Be careful that you don’t fall into a trap and get scammed.
If you have any other great ideas for how kids can make money on the internet, please leave a comment.
That’s it for tonight folks. Stay tuned for the return of Munnybagz tomorrow.
1.09.2007
Hey Kids- Do You Still Want a Credit Card?
Aren’t we in such a wonderful age? Quickly pay for things with a credit card! Never again will you need to save to get something. Now you can buy it and THEN pay for it! Right? Wrong! Credit cards are the real thieves of the money world! People who don’t understand credit cards can go over 100,000 dollars in debt! You need to understand that one thing a credit card is not is free money. And they are also the jewel in the sand! When it comes to interest rates, that is.
Did you realize that credit cards can charge up to 28 percent interest? If you have 100,000 dollars in debt, thats 28,000 dollars you’re paying to the bank just because of your wild spending habits! Now I know that some people out there have good spending habits. Only buying things when they know they have the money. But it’s just plain old unfair for those who save before they spend. With all these rewards you get for using your credit cards, like air miles, or don’t pay until 2008. What rewards do people get for saving their money that aren’t self-earned? It’s kind of like how someone gets praised for quitting smoking, whereas the person who should be getting praised is the one who never started.
If you’re about to give a kid a credit card, you’ll be damned if you charge it to you’re account. As long as it’s not their money they’re spending, they don’t really care how much they spend, or how much more you have to pay then what they bought costs.
Did you realize that credit cards can charge up to 28 percent interest? If you have 100,000 dollars in debt, thats 28,000 dollars you’re paying to the bank just because of your wild spending habits! Now I know that some people out there have good spending habits. Only buying things when they know they have the money. But it’s just plain old unfair for those who save before they spend. With all these rewards you get for using your credit cards, like air miles, or don’t pay until 2008. What rewards do people get for saving their money that aren’t self-earned? It’s kind of like how someone gets praised for quitting smoking, whereas the person who should be getting praised is the one who never started.
If you’re about to give a kid a credit card, you’ll be damned if you charge it to you’re account. As long as it’s not their money they’re spending, they don’t really care how much they spend, or how much more you have to pay then what they bought costs.
1.08.2007
Turn 8,000 Dollars Into 20,000 Dollars!
So here we are again with John. Now John has just purchased a new house. He wants to pay off the mortgage quickly and effectively. What should he do? First off, check in advance to see how much money a year you would be able to spare on your mortgage. Then, according to that, see what plan you could handle. Remember, the fewer years possible, the better! Next, take out the mortgage for the house and purchase it. But before you buy a house, ALWAYS have a down payment of at least 10 percent. The more the merrier! But anyways, John manages to pay off 20,000 dollars a year. But unfortunately, mortgages accumulate so much interest that only 8,000 of that goes into the mortgage. The other 12,000 pays off his interest. But, lucky John wins 8,000 dollars in a lottery! Lucky John! He decides that money should go into his mortgage, although he’s already payed his 20,000 dollars. But wait- John has already payed off all his interest! That means that 8,000 dollars goes into paying off his house! So John just saved himself an entire year of mortgage tyrrany! So by managing to pay off that 8,000 dollars in the same year he already payed his interest, he just saved himself from paying 20,000 dollars in another year! Just call me Mr. Magician! So don’t buy that used car that you’ve been eyeing. Do yourself a favour, and buy a 20,000 dollar car instead when your mortgage is gone!
1.07.2007
Kids- Earn up to 17 Dollars a Week in Allowance!
Hi there! I just made a power-point presentation to my allowance-givers, requesting that I get a raise from 5 dollars a week to an amazing 12 dollars a week! Pshh, you say. But they almost agreed! They’re still thinking about it though… It just required a little planning and a lot of know-how. Here are some extreme factors that you should use in your allowance pitch. Look around you at other kids allowances and see what chores they have to do to get it and what expenses they have to cover (buy there own presents and toys, or maybe their own clothes).
But remember, when talking about what other kids got, only use people who get a better deal than you! (VERY important) The new “hip” thing is to get an allowance that’s equal to your age. I can vouch for that that, along with my behind-the-scene buddy, Michael, and all his pals, except for the ones who get way more than that. And when asking for a raise, shoot higher than you want, and slowly work your way down. But it’s always nice if you get more than you want, too! Act professional, as in I did a power point presentation after doing a lot of research. Plan out what you’re going to do with your money. My friend said he’d bank 7 dollars a week and save 5 for expenditures. Also, it’s good to make a contract, so that way you’re parents can’t get out of it. But the MOST important thing to remember… DON’T SHOW THIS TO YOUR PARENTS!!!
But remember, when talking about what other kids got, only use people who get a better deal than you! (VERY important) The new “hip” thing is to get an allowance that’s equal to your age. I can vouch for that that, along with my behind-the-scene buddy, Michael, and all his pals, except for the ones who get way more than that. And when asking for a raise, shoot higher than you want, and slowly work your way down. But it’s always nice if you get more than you want, too! Act professional, as in I did a power point presentation after doing a lot of research. Plan out what you’re going to do with your money. My friend said he’d bank 7 dollars a week and save 5 for expenditures. Also, it’s good to make a contract, so that way you’re parents can’t get out of it. But the MOST important thing to remember… DON’T SHOW THIS TO YOUR PARENTS!!!
1.06.2007
Rare Coins- How to Fill up Your Bank by Emptying Your Pockets
The amazing thing about rare coins is that there’s only one way they can go- up. It’s not like the age of them can be reversed. And the only thing you have to do is empty your pockets and study your coins! I once was looking through my brother’s change and found an American penny that had the design on the tail side different from the current one. I believe it’s 69 years old. I can sell that penny for at least 5.00! That’s 500 times it’s value! Now if you can get any type of coin that the mint doesn’t make anymore, such as a half-penny from 1699 is worth up to 200 dollars! 40,000 times it actual value! If you have a coin that’s at least 50 years old, hold on to it! If you have a coin that’s at least 100 years old, check up on how much it’s worth. If you have a coin they don’t mint anymore, sell it or hang on to it and pass it through the family. A 318 year old 10 ducat gold coin from Romania was starting at 25,000 dollars. The estimated value? Up to 1,000,000 USD! If only you Romanians had passed your coins on through the generations… But anyways, if you don’t have an old coin, you can always sell a set of quarters or something like that. Just remember, you don’t have to find old coins. They find you.
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I know that if you subscribe to FunnyMunny it says when I post, but if you subscribe personally, I’ll give you a few details on my latest post. If you want to personally subscribe, just email munnybagz@yahoo.ca and I’ll put you in my address book.
1.05.2007
Brokers for the Unaware
Brokers are trying to put up an image of themselves as people who will help you with your stock investments at a cheap price. Only some brokers can actually identify with this description. Most brokers have hidden fees, make selections so they benefit more than you, and have terrible customer service. (this isn’t just an annoyance, it can cost you your fortune) One thing you really have to watch out for in a broker is whether or not they’re in the business to make as much money as possible, or to help people out to their fullest extent. There have been countless reports of brokers not following direct orders just so they can get that new car they’ve been eyeing. In the first place, I wouldn’t invest large amounts of money in stocks because it’s so risky. And if you really need a broker, make yourself clear that you want to check over all of his ideas before he carries them through. Otherwise you could end up with a ton of stocks that are obviously going to fail, with your broker being completely oblivious. Also, when you’re not in constant access to your portfolio and your broker, give them some instructions in case of emergencies. What if you go on vacation only to come back in the middle of a crash and your fortune gone, all because your broker just couldn’t push a few buttons?
1.04.2007
Contact me! Finally…
I now have an up-and-running email address for FunnyMunny. If you have any questions about how kids can make money you want to be answered or topics you want me to write about, feel free to send it all to: munnybagz@yahoo.ca.
1.03.2007
Banks- Gaining Interest Rather Then 10 Cents
I remember a time when i had a mere 85 dollars in my bank account, and every month, when i would collect interest, I would get 1 cent every month. Now I obviously have a lot more money in my account, but I’m still getting very low interest. I know a bank that would give me a much better return, but I’m just too lazy to go there. There’s no excuse for you not having enough time. If i had taken an hour or two to get a better account, i would have gotten at least 10 percent of my money in interest. So even if you’re quite happy with your current bank, it’s always a good idea to look around for some that pay better interest. And before you open an account, make sure you check for any fees whatsoever! Some banks can actually have you LOSING money in a savings account! Check out all your options for an account to hold money. GIC’s are really good for kids who don’t want to spend their money and are only interested in making more. They give a lot more interest in a much shorter period of time. But if you want constant access to your money, a GIC is not the option for you. They have a minimum amount of time until you can take your money out, which is normally 6 months. And if you’re just a kid with not much money or you’re looking for an account to hold your only money and you can’t afford to lose it, don’t put it into an account with a risk factor, no matter how low it is. Remember, taking loans out of banks is a sin unless mandatory. Rates on bank loans can cause blindness, paralysis, or even, in extreme cases, death! (just kidding) Banks don’t make money by giving it away. The loans they make interest off of need to make more interest then they are paying to customers!
10 Percent is More Than 10 Percent
If you want to have a successful retirement, it’s always good to have multiple sources of income. Not only do you want to have a few income-generating investments and a pension plan, it’s always good to have the ten percent you’re saving as a backup, or “fun fund”. That way, if you live longer then your pension, you can still have money!
1.02.2007
Saving Money for Hot Spenders
There probably is a phrase out there that states, in some way, that saving money is earning money. I’ts not. Earning money is where you work and new money comes into your hand to reward you for your efforts. Saving money is where you prevent money that you are already in possession of from being thrown away. The easiest way to save money, in my opinion, is to not spend it. But, alas, we all get an itchy credit-card hand once in a while, but you can still save money while spending money. Here are some tips. Don’t get trapped in a fad. People spend hundreds of dollars on the latest collectibles or playing cards, only for them to go out of fad a year later. If you must take part in a fad, think about whether or not you’ll be able to get your money back by doing something like selling it on eBay. Don’t buy thing you know you’ll never use. I remember an Archie comic where Jughead walks in carrying a yacht steering-wheel with his parents saying they don’t even have a yacht. To which Jughead says, “I know, but it was such a bargain!”. Don’t be daunted by the task of looking around for a few hours to find the best deals. You think that it would be better to spend an extra 150 dollars on golf clubs and work overtime for 3 hours instead of looking around for golf clubs for 3 hours and saving 150 dollars? Look at it this way. If you earn 60 dollars an hour working overtime, that means that you’d make 180 dollars in 3 hours, right? Thats 30 dollars more than 150 dollars in 3 hours. But wait! There’s more! Minus taxes that only is about 45 dollars an hour. That makes 135 dollars. 15 dollars less than the saved money. You may have new money in your circulation, but you have taken out more old money then new.
1.01.2007
Real Estate With $500,000
If you are ready to buy a house without needing a mortgage, then this is for you! If you aren’t, then refer to my other articles. A good reason to invest in real estate is that you can double your money in less than 5 years! Then buy a new house and sell it, then buy 1 or 2 houses and sell them, then eventually move on to new and bigger things such as Mansions, summer homes, apartment buidlings, and eventually even golf courses! The cool thing about investing in an apartment building is that you generate income while you’re letting your land become more valuable! If you think that this is a slow and tedious process, and just doesn’t pay off enough, you just have to play your cards right. Donald Trump did, and it’s thanks to real estate that he’s a billionaire! Also, to save money, you could constantly move and live in your current investment house. A good way to pick a good investment spot is to look for places that were residential, turned commercial, and are starting to or about to develop into high-rises.
Mutual Funds- They put the “Fun” in Funds!
Mutual funds are amazing in their own way. The only problems with them are that that have a risk factor and it’s better to be putting money into it weekly, bi-weekly, or monthly. Lets say you are putting 50 dollars in it every week. The first week, the stocks are selling for 10 dollars each so you buy 5. The second week they’re selling for 5 dollars each. Then they even out to 7.50 dollars each, but you don’t buy any. So how much money have you made? Nothing, right? WRONG! You bought 15 shares, and selling them for 7.50 each, that would be 112.50! 12.50 cents profit out of investing 100 dollars for only 2 weeks! Not bad! Mutual funds are great for holding your 10 percent fund. If in the beggining it goes really low, don’t worry. It just means that you’re buying up lots of shares, so once it raises in price, you’ll make lots of profit. The best way to get the most out of your mutual fund is to wait until you’re going to retire in a few years, then wait for it to raise in price. As soon as it rises, sell it and don’t risk leaving your retirement fund being worth little when you’re retired!
Money Names- Don’t Question Them!
$1,000,000,000-Bill $1,000,000-Mill, a k of ks, thousand thousands $1,000-k, g, grand $100-large $1-big one Money in general- frog skins, biscuit, beans, spondoolicks, spinach, wampum, small potatoes, dinero, mucho dinero, payola, cookies, bread, do re mi, greenbacks, paper, big bucks, dough, almighty dollar, loot, mint leaves, throw money, washers, red cent, the mother’s milk of politics, geech, juice, black money, trading stamps, bait, dead president, pazoza, peanuts, handsome ransom, wad, glory roll, lettuce, chicken feed, moolah, clams, smackeroos, peso, c-note, simoleons, buck, cold cash, cheddar, rhino, stretch, cake, cha-ching, love, gingerbread, freshmaker, . How to ask if you can borrow money- "Can I squeeze your nuts?”
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