If you are taking in less money than you spend, you have a budgetary shortfall. A deficit. A hole. You may not yet be going into debt; you may be using available savings.

A short-term budget shortfall is sometimes necessary. Perhaps your car broke down and you needed a repair. Washing machine stopped working. Got laid off.

Nevertheless, a prolonged shortfall can wreak havoc on your household. What do you do?

There are two things you have to do in a lengthy budget shortfall. The first, and I think it’s obvious, is to “tighten the belt.” Cut out unnecessary spending. That cable bill? You don’t need it. Cell phone? Cut your minutes, get a new, cheaper plan (pre-paid is a viable option). Netflix? Can it.

But companies that sell you this sort of stuff have gotten smarter. They tie you into contracts with early termination fees. Cell phone companies are especially adept at this.

You can only cut your expenses so much.

So you have to tackle the other part of the equation:

Income – Expenses = Cash Flow

Obviously, you want a positive cash flow. Once you’ve gotten your expenses down, there’s only one thing you can do to make your cash flow rise: Increase your income.

Today, with unemployment higher than it’s been in my short memory, you are likely facing a layoff or salary cut. No increases are in sight for “Average Joes” so you best think of another alternative.

Do you have a hobby? Can you convert your passion into cash? (By the way, my hobbies are generally expensive, so I face a dilimma – cut it out or turn it into income?)

Do you have unique skills (you do, you just have to find them and monetize them)?

Can you hold down a second (or a third) job for enough time to even out the income and expenses?

I have talked about this before here, here, and here.

I am convinced that the only sure thing nowadays is to own and operate your own online business. Become an “information marketer.” You know things other people don’t. If you have a penchant for writing, you can build a  “small reports fortune” by writing short (5-15 pages) reports about your area of expertise. You can often sell these for $5-$27!

If your writing isn’t great (it’s way better than you think – just write like you talk; people like that), start up a private label rights business. Here, you acquire (often for free, sometimes for a fee) pre-written reports that you can call your own and sell them. Two other great sources are PLRWholesaler and PLRSO Club.

You can set up blogs and websites with AdSense ads (you get a few pennies every time somebody clicks on an ad). I have posts with AdSense ads on this blog. While I don’t make a ton of money with ads, the money they generate adds up.

Another way to build up an online income is become an affiliate and sell other people’s products. Commission Junction, LinkShare, Google, and many others offer affiliate programs. All you do is sign up, put some affiliate links in your blog posts or web pages, and wait for the commissions to come in. It’s not exactly that easy, but it is that simple. Of course, the more smart effort you put into it, the more money you’ll generate.

The best part about all of this? Once you set it up, it’s all pretty automatic! Of course, your web site, whether it’s a blog or a more traditional site, has to be full of content that people want. It’s not good enough to throw up some feeble content and then let the site go. Constantly update it; keep it fresh. Keep people coming back for more.

Offer VALUE.

These are just a few examples of how you can create more income (out of virtual thin air). There are hundreds of ways to start a budding online business.

One of the best systems I’ve come across is the Internet Millions System. It’s a PLR product I bought, modified my way, and put together in a digital download. It shows you how to begin a Private Label Rights business – how to acquire product, promote it, get traffic to your web site, convert browsers into buyers, etc. Basically, everything is covered from start to finish.

If you are currently suffering a negative cash flow, I encourage you to act on the information you’ve read here. If you need any help, please contact me via the Comments.

Get a job!

Yeah, this is a big post. I haven’t written anything substantial in a while. As you may know, if you’re a subscriber or frequent reader, I work for a company that’s been — ahem — “acquired” and I’m going to be looking for a new job real soon. I could lament about the fact that it’s the 4th quarter, nobody’s hiring, the holidays are near, nobody’s hiring, I’m a single-income family, soon to be zero-income family, nobody’s hiring…but…

You didn’t come here for that!

You, like me and thousands of others, either are looking for new jobs or soon will be. The economy tanking, the government doing its best impersonation of Sergeant Schultz (“I see nuuuthing!!!”), and companies increasingly getting by with less have all lead to higher numbers of unemployed, and an almost-never-uttered underemployed. That is to say, there are thousands, maybe millions, of people who have full-time jobs that don’t pay much or they have several part-time jobs that — again — don’t pay well. In any event, neither group is making ends meet nor are they counted amongst the unemployed (if you’re not looking for a job, you don’t count).

This post will cover three ways of earning an income. Mix and match, go solo, or do all three — it’s completely up to you. There’s the “traditional” way, the “alternative” way, and the “passive” way. First, the traditional way. But with some unconventional twists.

Traditional

Most of us want a “job” where we trade our time and knowledge (otherwise known as “work”) for money. We produce a product, sell a service, build a bridge, write a book, etc., all in return for a paycheck that either comes once a week, twice a month, or once a month.

Millions of people — the majority, in fact — who consider themselves “employed” (as opposed to unemployed or self-employed) have jobs. It’s supposed to be — and usually is — a symbiotic relationship, in that both the employer and employee gain something from the relationship.

I’ve had lots of jobs. Too many in fact! If there’s one thing I know how to do, it’s how to get a job! And I’ve had many different kinds of jobs. Here’s a short list:

• Concession stand salesman
• Yellow pages seller
• Retail store manager and salesperson
• School teacher
• IT help desk
• Systems Analyst
• Auditor
• Manager, credit card operations
• CEO, computer consultancy
• Print press operator

(not in chronological order)

With each job, save for one, I boosted my income considerably from one job to the next. However, that one set back killed my income growth for 3-4 years!

Nevertheless, here’s what you need to do to get a job. It’s a long list. The short list will come later.

• Make yourself employable. This means get a college degree if the job you want requires it, the technical certification if the job requires it, the law degree and BAR exam passage if you want to be a lawyer, the credential if you want to be a teacher, etc. This step requires the most planning, patience, and time. But short-cuts abound.
• Get a long list of references together. Get names, phone numbers, addresses, and emails. Get letters of recommendation. In short, network!
• Speaking of networking, sign up for LinkedIn. There are a whole host of things you can do here. Check out Guy Kawasaki’s blog post about using LinkedIn to its fullest. Get LI “endorsements.”
• Keep in touch with all of your classmates, teachers, co-workers, and employers (past and present). Talk to them long before you need to, lest your calls be labeled what they are — job calls.
• Seek out companies you want to work for. Research them. Find out things about them that is not common knowledge (but make sure it’s objective and flattering). Put together a list of companies that you want to target for job opportunities. Find out who works there (using LinkedIn or other resources). Talk to them!
• Be especially mindful of the Human Resources department where you currently work or worked. Use the recruiters there to find recruiters at other companies or headhunters / job search firms (they all talk to each other). If you’re currently in school, utilize your Employment Opportunities folks. Turn an internship into a job!
• Open accounts at Monster.com, HotJobs.com, and CareerBuilder.com. Submit resumes and create cover letters. Update daily.
• Find local job and resume boards and post your resume there. 
• Use Craigslist.com for job opps. Post a “jobs wanted” ad (free) listing, using it as an announcement that you are available. It’s another form of broadcasting your resume.
• Network!
• Be on the lookout for opportunities at companies that you didn’t target. For example, you may prescribe a solution to a company that takes a real liking to you. Don’t forget that the CEO of Craigslist got his job by posting his resume on Craigslist. Obviously not a common occurrence, but if him, why not you? Luck = Preparation + Opportunity
• Network!
• Don’t be afraid to “go home.” If you liked a job but left out of frustration or the need to explore other opportunities, go back if that’s what your heart desires. We all get caught up in “you can’t go back home -itis” but you can. It’s your life. Do what makes you happy. Swallowing pride is not that hard if the outcome is what you truly want.
• Did I mention networking?

The short list: