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This is the 4^th in our 7 Ways To Make Extra Money based on The Richest Man In Babylon, (G.S. Clason). We focus on avoiding risky investments.

The bottom line for work from home careers

Those of us in work from home careers have usually done so to achieve a measure of financial freedom. The level of freedom is dependent on many factors, key ones being:

• time spent working on the business
• amount of money you have to initially invest
• your level of persistence and consistency

The bottom line is you are looking to make some extra money from your work from home careers. Even more importantly you need to ensure your savings are protected from loss.

The most common way to have your savings lose money is to invest in riskier investment vehicles before you know the basics of investing.

Home Internet businesses and emergency funds

People who are in a waged occupation are often advised to have at least three months in savings as soon as they can. So what should people in home Internet businesses do? Well actually it’s even more important you have an emergency fund.

An emergency fund is exactly what it sounds like, money you can use when something unexpected happens. You will normally have no sickness and holiday pay scheme. When you are financially free that means you will be a real business owner and you will be getting sufficient money from residual income to cover these period. Residual income is income from sources unrelated to your personal level of work.

It will take a period to get to that point so your emergency fund is your safety net along the way. Having stocks and shares or long term savings schemes is different from an emergency fund. The key features of an emergency fund are:

• You should make regular contributions to it until you have a level of cash that is equal to 3 months of your anticipated level of earnings
• You should be able to make immediate withdrawals from the fund
• You should never end up with less than the amount of money you paid in so this means it has to be a savings account of some kind
• Your money should be with a guaranteed banking institution of some kind, with some form of government guarantee scheme
• There should be no penalty for making as many withdrawals as you wish

You need to look for the best Interest Rate by doing research. Consider fixed rate accounts, however these have pro’s and con’s. At least if the interest rate is guaranteed you can project how long it will take to build up the fund. The downside is these funds often have penalties for more than X withdrawals a year. Make sure you get proper financial advice when setting up an emergency fund and take full advantage of any tax incentives.

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Tags: Andrew Peel, APeel Solutions, Direct Sales, part time careers, work at home job search, work from home australia, work from home canada, Work From Home Careers, work from home company, work from home on computer, work from home uk

This entry was posted on Friday, March 19th, 2010 at 11:49 pm and is filed under Work From Home Careers. You can follow any comments to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.