What are the two words that people love most?  Oftentimes it’s  free and money!

Who doesn’t want to get free money? 

What’s amazing is the number of people who I run into on a regular basis who continue to leave money  on the table!

If you woke up this morning, got your cup of coffee and went to the front porch to get your paper and instead found a nice, crisp $100 bill – would you pick it up?

Of course you would!  You wouldn’t pick up your paper and say, “Oh a $100 bill” and turn and walk into your house, and yet thousands of people are doing just that.

One of the best feelings in the world is putting on a pair of pants or a jacket and reaching in the pocket only to pull out a crumpled $10 bill that you forgot about!  I love that! 

So, let’s find some free money: 

Company Match

The number of companies that are matching employees 401k contributions has gone down since the start of the Great Recession, but there are still plenty of employers that are matching.

It amazes me the sheer number of people I run into who are unsure of what their company matches or even if they are contributing enough to maximize the full matching potential of the employer.

If the company says, “we’ll match dollar for dollar up to five percent” and you’re only putting in three percent, that is just plain silly!

Review your company’s plan to determine if there are some matching opportunities that you’ve left on the table.

Rebates

How many of you bought a product with a nice little rebate only to forget to send in the form along with proof of purchase and receipt!? 

According to the National Consumers League, “only 2-3% of all those who buy a product with a rebate ever end up receiving the funds.”

Rebates are easy to forget, but worth remembering.  Every little bit counts towards getting free money!

Missing Money

So technically this doesn’t have to do with finding free money, but it does have to do with finding your own missing goods.

MissingMoney.com is a national database established by the National Association of Unclaimed Property Administrators (NAUPA).

MissingMoney.com enables owners to perform comprehensive searches for lost assets required by law to be turned over to the states. 

Just go to the site, type in your name and state and see if there is any unclaimed property waiting to be returned to its rightful owner. 

My coworker actually told me about this site after he found some goods on here that he was missing.

Not Joing a Rewards Program

I know there is hot debate over credit cards rewards programs.  I won’t get into that here. 

But, what I do know is that there are plenty of grocery stores, gas stations and the like that offer free ”rewards programs” or loyalty discounts if you sign up.

One example is the Speedy Rewards from Speedway Gas Stations.  This is not a credit card.  It is simply a loyalty rewards program where you can accrue points to spend on free items.

We have a lot of Speedway’s near us and yet my wife and I still haven’t signed up for their rewards program!  We have friends who tell us how great this program is, so we need to get signed up and start swiping at the pump!

Leaving Money in a Checking Account

This is basic, yet it’s amazing to me how many people leave large chunks of money in their checking accounts earning ZERO!

Even if you moved some of the money to a savings account that only earned 1/2% you’d be better off!  Every thousand dollars earning a half percent gets you $5!  No, it’s not great, but who wouldn’t take $5?

There are plenty of High Yield Savings accounts out there that can help earn an extra 1 or 2% as well.  You’re leaving free money on the table

Not Deducting Charitable Contributions

Maybe this is more common for Christians who think they shouldn’t deduct their charitable contributions because they are seeking a “heavenly reward” rather than an “earthly one”.

I think this is a silly argument.  Remember the parable of the talents?  The master was not pleased with the servant who just buried his talent and earned nothing.  He said, “you should’ve at least put it in the bank and earned some interest”.

Now, I’m not saying the context applies here, but the principle does.  Take advantage of opportunities to grow the money or receive free money that the IRS allows!

Why not get that money back on your taxes and give THAT away too!?

Other Ways to Find Free Money

What are some of the ways you’ve found free money?

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When you get right down to it, there are only two ways to get ahead financially – reduce expenses so you spend less than you make; or increase your income so you make more than you spend.  This post will look at the latter, specifically turning your hobby into a business. 

According to dictionary.com, a hobby is “an activity or interest pursued for pleasure and relaxation and not as a main occupation.”  Basically, a hobby is what you like to do in your spare time.  Some would describe a hobby as something you love to do and not necessarily have to do.  Many people don’t realize there are opportunities to turn what you love into a little extra side money. 

What Do You Like to Do?

The first place to start is knowing what you like to do.  Perhaps you like stamp collecting or scrapbooking or maybe you are into photography or writing.  It doesn’t matter if you like playing guitar or playing tennis, take a minute to think about what you enjoy doing.  Now, you’ll need to figure out if you can make some money at this.

Sell Your Expertise

Is there demand for your hobby?  If so, why not start selling your services?  My wife loves photography.  She has enjoyed taking pictures and creating scrapbooks ever since I’ve known her.  She especially loves capturing candid shots of children and infants.   A couple of years ago, we decided to buy her a nice camera, a good lens, some lights and a couple backdrops and let her start taking pictures out of our home.  Parents and grandparents are always wanting to capture little Johnny’s adorable smile on camera so the demand is there.  My wife has a very creative eye when it comes to photos and thankfully people have been willing to pay for her services. 

My wife no longer has time to spend creating the scrapbooks that she likes.  Although she still enjoys it, with two kids there just isn’t enough time.  What she decided to do was hire someone who turned their hobby of scrapbooking into a business.  Basically, Jen provides the pictures to her and she turns them into a beautiful scrapbook.  Both of these stories are examples of taking something you love to do and selling your expertise.

Teach What You Love

Most hobbyists know just about everything there is to know about that particular subject.  Even if you don’t know everything, but have a desire to see others learn, start teaching.  Turn that love for playing guitar or something else into lessons for others.  I have a couple nieces and nephews who did that very thing with their musical talents and it provided some nice extra spending money during high school.

Downside of Turning Your Hobby into a Business

The disadvantage of turning your hobby into a business is running the risk of burn out.  If your business starts growing and you must meet deadlines and answer to customers you may lose your love for that particular hobby.  Be willing to say “no” if you find yourself getting more stressed out in the process of trying to make a little cash.   

Tax Consequences

Of course, Uncle Sam has something to say about your hobby.  You cannot continually show and take a loss for your business year after year.  At some point, the IRS wants to see that you made a little money or you need to stop counting your hobby as a business loss.   In fact, the IRS says you must show a profit in three out of the last five years in order for your hobby to be considered a “for profit” business.

Final Thoughts

This list is by no means exhaustive; it’s purely meant to get you thinking outside the norm to consider the real possibility of using your hobby to earn a little extra cash to help pay off debt, be more generous and help achieve your financial goals.

What About You?

Have you started a business from your hobby or took something you loved and found a way to make a little extra money?  I’d love to hear your tips and stories!