It’s a new year, but so far, the job market looks a lot like 2011. Unemployment is still at 9.9 percent in Georgia, and companies don’t seem eager to hire or raise salaries. If you’re unemployed, underemployed or just need to generate more income, it’s time for a few new strategies.
“You first need to make a financial plan. Understand your assets, know what you have to pay, cut back on your spending and get a handle on your debt,” said Laurel Alberty, head of the financial planning division for the A.I. Group, an Alpharetta and Watkinsville employee benefits company.
Need help making a budget? Try the free self-help tools at sites such as www.bankrate.com and http://money.cnn.com. “I’m a huge proponent of www.mint.com, which will consolidate all your financial accounts on one page. You can see your whole net worth and what you’re spending daily, weekly or annually,” she said. “It’s easy to see where you need to cut back.”
If you need cash, spend first from your taxable checking or savings accounts, she advised. “You can also pull money from your contributions to a Roth account tax-free, but not from its growth,” said Alberty.
A home equity loan or taking a 72T distribution from your IRA also can generate stopgap income. “A 72T will let you take equal payments monthly without incurring the 10 percent tax penalty," Alberty said. "You can determine the amount you need and only take that out.”
Selling unwanted jewelry may seem drastic, but it could cover some expenses with gold selling at about $1,600 an ounce. “Call around for commission rates and find a jeweler you trust,” she said.
Creating multiple income streams will be necessary for many people in this economy, and having more than one source of income can give you greater peace of mind, said Robert J. Watkins, CEO of Conquer Consulting and author of “Never Chase a Paycheck Again” (Conquer Worldwide Publishers, 2010). When he couldn’t find a job 10 years ago in his field of mergers and acquisitions, entrepreneurship found him.
“Starting a company is scary, but I didn’t have a choice. I’ve been pulling people over to this side of the fence ever since. It’s very rewarding to help families get out of debt, improve their credit scores, start companies and make money by using the talents and skills they already have,” he said.
When clients need immediate financial relief, Watkins recommends the online employment platform, www.elance.com. “The jobs there allow people to leverage their experience and find opportunities right away,” Watkins said.
He also suggests low startup cost businesses, such as baby-sitting, tutoring, house sitting or house cleaning. A part-time job can boost income. “Parking cars on the weekend or waitressing can help you pay down debt and get your credit score up, which will improve your opportunities,” he said.
To start a business, Watkins says to follow the four pillars of financial success: do something that makes people wealthier, healthier, happier or makes their life easier. “Successful businesses solve problems,” he said.
The idea must come from within -- determining what you like to do and what you do well, and then figuring out how to turn your passion into paychecks. Do you like to help people? “One recession-proof field is senior care services," Watkins said. "As baby boomers age, they will need personal care aides, transportation to doctors’ appointments and other assistance.”
Startups can reach a global audience by creating a simple Web site (www.wix.com is one way) to advertise their services and products.
“Set competitive prices and offer different price points for different services to attract a wider range of customers,” Watkins said.
After more than 20 years in customer service and office management jobs, Celeste Smith wanted to work for herself, but the risk scared her. “Sometimes you just need someone to help you think things through and encourage you,” said Smith, who plans to open a dollar store with her husband in Fayette County this winter.
“Watkins helped us see that between us, we had all the skills we needed to run a business,” Smith said. “In this economy, you have to think outside the box. You need an alternative plan, because job security is a thing of the past. I hope more people will be inspired to look at themselves and take action.”
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