Using Extra Income To Meet Your Goals
Great article recently on the Financially Fit section of Yahoo! Finance showing some examples of extreme savers. My favorite example was of an individual who was not only frugal and saving much of her income, but was also bringing in extra income. Here is an excerpt regarding her financial habits:
Tiffani Murray’s friends call her an extreme saver, but Murray prefers to call herself a smart saver. “From the time I was a kid, I liked to have money so if I wanted something I could buy it myself,” says Murray, who opened her first savings account at age 12. Twenty years later she regularly uses coupons, always files for rebates, buys plane tickets with credit-card points and earns free stays at hotels in exchange for writing reviews about the service as a mystery shopper. “I have found many ways to stretch a buck and still live the lifestyle I enjoy.”
Murray, who earns a six-figure salary, owns a three-bedroom home in Atlanta and drives a three-year old (recently paid off) Infiniti Coupe. “I could afford a bigger house or fancier car, but what I’ve got is just fine,” she says. What’s more important is her long-term goal of retiring by age 55.
You’ve heard all that before. My favorite part is the next part on earning extra income. Check it out:
To find more money to save, Murray turns her free time into extra cash. After work and on weekends, she writes freelance articles on career advice, retools résumés and even does event planning. This work she enjoys can add up to $25,000 a year in extra income. “I’d like to retire early and when I do, I won’t have to want for anything,” she says.
How about that! $25,000 a year. That’s more than $2,000 a month in extra income. As I’ve mentioned, I’m currently near $1,500 a month in extra income assuming it holds steady from here which equates to approximately $18,000 a year in extra income.
Murray uses extra income to hit her savings goals so she can retire early. The great part is that she can “retire” with less if she has side income businesses going that provides her with income after quitting her “regular job”. Who wouldn’t want such a scenario?
I love reading these examples of people doing this. If you have an example, forward it to me and I’ll post it.