Money Making Idea – Find a Roommate

Money Making Idea - Find a RoommateOur house has four bedrooms and two bathrooms, which is definitely a lot of space and room for just two people to be living in. We figured that the extra space was better utilized by renting it out.

We aren’t bringing in the big bucks by renting out a room in our home, but we are making a little profit on a room that would otherwise be empty.

Since we bought our home almost five years ago, we have had four people live with us. The first two were not for very long (one for around six months and the other for just a few days).

The longest person to live with us is my sister, and she’s been with us for a few years now. My sister has definitely been the best roommate so far. However, after she moves out this summer, we will not be looking for another roommate.

I still do think that it can be a great way to make some side money, but I plan on turning her bedroom into my home office and turning the other room upstairs (where my office currently is) into a nicer guest bedroom (our bedroom is upstairs as well, and the fourth bedroom is in the basement). I definitely think that renting out a room for around the past 5 years has been well worth it.

Below are different things to think about before you decide to get a roommate.

 

Will you actually make money?

I have seen people rent out a room in their home for something cheap – like $100 (and not splitting the utility bills). However, at $100, you might not even be making any money because your bills will go up, and there will also be additional wear and tear on your home.

You should try to find an amount that you think the room deserves, but you should also be realistic. If your monthly mortgage is $1,000, then asking for $900 for rent for one bedroom is probably not realistic.

We have always asked for around $250 a month for the room that my sister is currently in. We believe it’s a good price, and she even thought it was on the cheap side. I prefer for both sides to feel like they are getting a good deal!

$250 isn’t a lot of money, but it is better than nothing. We could rent out the other two bedrooms that we have as well (the last bedroom is for us, of course), but fitting more people into our house would make it feel a little cramped. The rent money we collect used to go towards student loans, but now it just goes towards other expenses that we have.

 

How do you determine what they should pay?

This is hard to say. Pick an amount that you think is fair. If you have four bedrooms, then something such as 25% of the total mortgage may be fair if you want to rent out one bedroom.

Also, you might think about splitting all utilities and other bills with your roommate. You never know if they may use a lot of water or a lot of electricity.

 

Are you allowed to have roommates?

If you don’t own the place where you live, then you may not be able to even rent a room out. Also, if you live in a neighborhood that has an HOA, then you might not be able to as well.

 

Who do you want to live with you?

You might think that you will be fine with just anyone living with you, but that is usually not the case. You should think long and hard about who the right person is, and you might even want to conduct some interviews.

For example, if you enjoy peace and quiet, then you probably do not want a constant partier living with you who will come and go at all hours of the night. Also, if you are a clean freak, then having an extremely dirty person living with you might drive you nuts. You will probably drive the other person nuts because you will probably be nagging them all the time.

 

Lay out the ground rules.

Since I’ve been public with my blogging, I have to refrain from bashing one person who used to live with us. They only lived with us for a few days, but it was an absolutely horrible experience. The person really needed a place to stay, so we weren’t doing it to make money, we were just trying to help the person out. We ended up paying him to leave because it was so horrible. Lets just say someone did something illegal (multiple times) in front of our house for all of our neighbors to see (our neighbors told us instead of calling the police) and we then realized how sketchy the person was. Oh yeah and there were other incidents as well that included peeing in our house multiple times (nope, not in a bathroom!), and inviting equally sketchy friends over.

If you decide to have roommates, you should always try to lay out the ground rules beforehand. Different things that you might want to discuss include:

  • Are parties allowed?
  • Are they allowed to have guests? What about overnight guests?
  • Who buys toiletries?
  • How does the cleaning situation go?
  • When is rent due?
  • What happens if they break something?
  • What rooms are they allowed to go in? Are they only renting their bedroom, or do they have access to the whole house?
  • Are pets allowed?

Have you ever rented out a room in your home? Why or why not?

 

Ready, Set, Protect! Your Financial Future Relies On YOU

After working to build your personal wealth and establishing different forms of stability, it can be easy to forget about the risk that may be involved when the unexpected occurs. Between identity theft to potential burglaries or thefts, there are many ways that your assets and personal information are not protected. To secure your financial future, it’s crucial to take advantage of a number of resources that are readily available.

Take Home Security Measures

To prevent break-ins from occurring within your home, it’s important to secure your property to reduce the risk of theft. Important documents, bank statements, and passports can easily be stolen during a burglary, making it crucial to install a home security system with visible signs in the yard. Add motion-sensor lights to the outdoor property and consider owning a guard dog. Place all confidential documents in a safe in a discreet area in the home.

Utilize Identity Fraud Protection

Secure your identity by shredding all old documents that contain your credit card number and any credit card offers. Avoid carrying all of your credit cards in your wallet, which can increase your risk if your purse or wallet ever stolen. Limit it down to one or two credit cards that you have on you at one time.

An extra measure to take is to stay current on your credit score to ensure that all of the information is correct. Your credit score is free to access through a variety of companies or websites.

Purchase Life Insurance

Life insurance will work to protect your family and the wealth that you’ve built to ensure that they’re able to maintain their lifestyle should you pass. Your policy can work to provide a portion or all of your income and can even cover the costs of funeral expenses. Whole life insurance will even offer to pay for life events, which includes weddings, college, or buying a home for your family.

Create an Exit Strategy with Your Investments

Experts suggest having an exit strategy if the market begins to suffer. If you take a major loss five years before or after your retirement, it could gravely affect your stability. The exit strategy is even more important than diversifying your portfolio and will prevent extreme loss.

You should consider the loss and risk involved with the strategy, as well as where you will want to get out.

Keep Your Credit Card Debt to a Minimum

You may be tempted to pay off all your debt, but by maintaining 20 percent utilization of your credit, you’ll be able to keep your credit score stable without paying hefty fees with interest rates. The more that you use of your cards, the higher your fees will be, making it important to avoid using more than 20 percent on each account.

By planning for the future now, you’ll be able to secure the future for both you and your family for viable ways of preparing for the worst. The unexpected can often occur with life, making it important to have the necessary plans in place to ensure you stay afloat in the event of loss, a poor economy, or identity theft.

Six Months Of Being Self-Employed

Six Months Of Being Self-EmployedMy last day at my day job was in the beginning of October of 2013, so it has officially been 6 months since I made the life-changing switch to self-employment.

Can you believe that?

It does not feel like it’s been six months at all.

I still remember when I first told my employer that I was leaving. I was dreading the day. I was extremely nervous about what they would say, and I kept saying to myself “Six months from now all of this will be long forgotten.”

Well, that day has finally come! I can say that I have no regret from the decision that I made, and I’m so glad that I left my day job.

Self-employment has been going very well. I won’t lie though, I thought I would be able to increase my business income more. My income is still at the same level as when I had my day job, which is crazy to think about since I have so much more time to dedicate to work.

I guess I’m just enjoying myself a lot more these days! Nothing wrong with that, right?

Below is my update after being self-employed for six months.

 

Not being in an office hasn’t fazed me yet.

I still get the “I would be so lonely working at home” line all the time, but I actually prefer it this way. I don’t feel lonely at all! I know others feel differently, but I like being in the comfort of my home and spending time (probably too much time) with my fur children.

Like I said last time – At my day job, I worked in an office, but I still worked independently. I worked in an industry filled with older men (everyone was at least twice my age, but most were three times my age), so it’s not like I was being swarmed with office friends and conversations every single day.

 

I’m getting better at putting on “real” clothes.

I now have a rule where I have to put on real clothes after I eat breakfast. Nothing fancy, I usually just put on workout clothes even if I don’t plan on working out! Haha.

This has led me to save money as well. My closet is the emptiest it’s been in a while, mainly because I don’t really need a lot of clothes now since I’m always at home.

 

I still enjoy what I’m doing.

When I was in the process of making the switch to self-employment, many people told me that I would probably not enjoy the business anymore since it would no longer be a hobby. Well, they were wrong!

It’s been 6 months and I’m still as motivated and happy about everything that has happened since Day 1.

I don’t think there’s a single thing that I could say I don’t enjoy. Everything is going very well.

I wake up each morning more motivated than the previous morning. I don’t have “weekend dread,” and I also enjoy the community that I am in.

 

I do need to start working harder. 

I am definitely still spending way too much time relaxing.

And I’m spending too much time planning the wedding. It is crazy to think that I have been planning something for almost a year and the actual wedding day will be less than 8 hours long. AHH What was I thinking?

This is probably why people think brides are insane.

Once the wedding is over, I will have no more excuses. I have a long list of things that I would like to tackle before the summer is over.

 

What else do you want to know about my four months being self-employed?

How is self-employment treating you?