You know that your blog requires search optimization. You realize that a little SEO could yield some decent traffic to your blog/landing page. You blog on the side. You really don’t want to spend hours reading about the exciting world of SEO (believe me, I purchased a Search Engine Optimization textbook from school and it took me a few months to go over it). The question now becomes, should you pay for search engine optimization services?

First of all– SEO depends on your business/blog monetization model.

If you are attempting to sell a product on your website or if you want to strictly monetize your blog with Google Adsense then you may need to improve the SEO on your blog. Whether you pay for it or work on improving your SEO on your own is your prerogative. If you feel that working on your own SEO would be too time consuming, then consider the following information before you pay for SEO services:

How much are you willing to spend?

There are SEO consultants and service providers that can provide extensive SEO– but you will pay some heavy coin for this. It’s not a matter of being tight with your money, but how much is SEO really worth on your tiny blog or new business site? Sure it could help. The problem is that you need to decide if SEO services are really the best way to invest money into your online business.

What’s the reason for the SEO services?

Are you planning on releasing a product? Perhaps you’re looking to spread the word about your new business or blog? Either way there should be a reason for you feeling that you need to pay for SEO services. I’ve personally considered it myself. The deciding factor for me has always been that I don’t want Google Adsense to be my number 1 bread winner. That plus the fact that I don’t sell anything on my blog.

However, if you do plan on releasing a new product or running a blog that earns money strictly off Google Adsense, then an investment in SEO services could be the best thing for your business model.

Remember: the Search engine optimization consultant must show quantitative value. You need to know how they will justify their cost and provide you with a solid ROI.

Can you spread the word in other ways?

I would love to spend a few hundred dollars on SEO services and then watch my blog traffic/income skyrocket. Unfortunately, this isn’t what happens. For me there is no guarantee that an increase in on-blog post search engine optimization will bring in more income. It could bring in more traffic in theory, but not the kind of traffic that I would like to have. I would rather build a community of link minded folks that want to discuss and heatedly debate personal finance topics.

There are also many other ways that one can spread the word about their blog or new product for free:

1. Guest posting. Absolutely free. The catch is that you’re going to have to build relationships with key people in your niche. Once you do, hopefully they allow you to guest post on their blogs (assuming that the post is worth it).

2. Social media. Twitter, Facebook, Digg, etc. have been known to bring a small blog infront of a large audience. Twitter provides the potential to get in touch with key people (and really busy people) in your niche. Facebook allows you to amass a following of like-minded people that share interests with you. Then sites like Digg and StumbleUpon allow you to promote your best content to the rest of the internet.

For the sake of this post I’ve simplified the above options. In application, they could either be a lot easier or perhaps more difficult for you to implement. However, both are viable options to consider for promotion before you pay someone to boost your SEO rankings.

SEO tips from other bloggers:

SEO Doesn’t Matter @ The Simple Dollar

Optimize a Single Post on your Blog @ Pro Blogger

8 First Step Tips for Beginner Bloggers @ Pro Blogger

We’ve all heard the old adage of– “rent is simply paying off a mortgage for someone else.” or– “if you want to make some good money, buy some real estate, throw some tenants in there, and collect the rent.”

Well I’ve learned and researched a lot about real estate over the last few years. I’ve found out that it’s possible to make a decent passive income from real estate investments. On the flip side, there’s also a dark side to real estate investing.

What is the problem with using real estate as a passive income investment?

Expensive fees.

Mortgage fees, maintenance fees, property taxes, local taxes, rental insurance, and lack of tenant down periods. I could give you a whole list of fees and really depress you, but I don’t want to do that. Instead I just wanted any potential real estate investors to consider all of the costs instead of only looking at the monthly cash flow that comes from tenants. There is way more fees involved than a simple rent collection at the end of the month.

Collecting rent.

Sure showing up at the end of every month to collect your cash flow sounds easy, and even somewhat fun. I have to share the bad news with you that there have been many horror stories in regards to collecting rent. You can potentially experience tenants that want to avoid paying, tenants with a sad story every month, or tenants that flat out don’t pay their rent.

Okay I know a little hassle here and there isn’t so bad. Maybe I should stop being such a cry baby, right?

The thing is that the capital you invest in real estate can be invested in other areas that are more hassle-free and less hands on.

Tenants screwing you over.

Where I live there is a law where you can NOT evict a tenant between the months of October and March. What does this mean? Well it means that you’re stuck with a tenant living in your property that is not either not paying their rent on time or at all.

What if a tenant damages your property? You’ll have to take them to court. This is time taken away from your already busy schedule. You also run the risk of not winning the case or not getting the full value of the damages done.

There’s also the chance that you’re tenant just leaves the property due to a medical issue or goes out of the country (I know there should be a clause in your contract, but it’s going to be difficult to chase someone in a different country). You will be stuck without a cash flow for an undetermined period of time. Can you live without this cash flow? How will you cover the mortgage payments?

That’s all for me…What problems do you see with real estate as an investment?

Aside: Good thing for Passive Income Now and blogging, because without this I would have nowhere else to write about my infatuation for real estate.

Before you begin to work on your real estate investment business plan (primary residence or one to landlord) you need to know about all of the relevant fees. On the surface, real estate investments are amazing– you buy a property, you find a tenant, the tenant pays your mortgage, and best of all you have a positive monthly cash flow.

There’s only one slight problem. There are many real estate investment fees that the average investor is not aware of. Let’s take a look, shall we?

1. Mortgage insurance.

If you don’t put down a large enough down payment on your real estate property you’ll have to pay a premium known as, “mortgage insurance.”

2. Home insurance.

If you have anything valuable in your home that you want to protect or you want to protect the whole property, you’ll need home insurance. If you decide to find a tenant for your real estate investment, you’re going to need renter’s insurance.

3. Lawyer costs.

Your Real Estate Lawyer may be very helpful and more than willing to help you out. But when the time comes to pay you won’t be too happy with the bill. A lawyer will charge at least $1,000 for all of the legal paper work and documentation to be completed.

4. Closings costs.

From regional to national taxes to real estate agent fees. Closing a real estate property is not cheap by any means. You should have at least $5,000 saved to deal with the closing fees. If the closing fees come as a surprise to you then you’ll find that your real estate investment isn’t as lucrative any more.

5. Moving costs.

If you plan on renting out the property then you won’t have to worry about moving. If you move into the piece of real estate, you’ll soon find out how expensive and time consuming the move can be.

6. Cost of consumption.

It seems like the expenses never end with a real estate investment.

If you decide to treat the real estate investment as your principal residence, you’ll have to deal with:

• Home purchases. Anything from a new couch to a lawnmower will have to be purchased when you move into your new place.
• Home maintenance. Let’s say your furnace breaks or you accidentally break one of the windows, it becomes another expense that comes along with home ownership.

Now let’s pretend you rent out the property, what will the costs be like now?

• Everything. Anything that breaks is on you. You have to pay for everything. Unless your tenants deliberately break something, you’ll have to pay for it. Let me say that again– as a Landlord of a real estate property YOU HAVE TO PAY FOR EVERYTHING.

7. Opportunity cost.

The capital that you’ve put towards your real estate investment is money that you could’ve invest in other ways. You could’ve invested this money in stocks, bonds, mutual funds or many other investment vehicles (including retirement). Investments aside, this is also money you could’ve put towards enjoying your life. You could’ve travelled the world, bought a new car, or gone to visit family. With the capital tied up in real estate, it becomes money you can no longer access.

Welcome to the 102nd Money Hacks Carnival: The Building a New Blog Edition.

Let’s not beat around the bush here. Many of you reading this are thinking wtf is Passive Income Now? Most of you have probably never heard of PIN. It’s all good. This is the fun part. Growing a blog/audience from the ground up.

I hope you all enjoy today’s theme about building a new blog.

Editor’s Picks:

debt kid presents What Is A Debt Snowball posted at Debt Kid.
GLBL presents Famous quotes about money posted at Gather Little by Little.
Kyle C. presents Can you Build a Credit History Without Getting a Credit Card posted at Suburban Dollar: Personal Finance Blog from a Suburbanite’s Perspective.
Jeff Rose presents 10 Tips for Budgeting in the New Year posted at Jeff Rose.

Economy: Getting new readers.

Arguably the most funnest and most difficult part. This is the part that involves social media, networking, and lots of guest posting. It seems like every day a new personal finance blog enters the blogosphere. Not only does this make it more challenging to find new readers, but it facilitates creativity.

Bucksome presents Do Baby Boomers Know How to Find A Job? posted at Buck$ome Boomer’s Journey to Retirement.
jim presents S&P500 Dividend Aristocrats posted at Blueprint for Financial Prosperity.
20smoney presents Long Term Outlook For Wal-Mart Is Excellent posted at 20s Money.

Income: When will the money come?

I’m not worried about the income yet. I find that too many new bloggers immerse themselves in the whole blog monetization system that they forget about their readers.  Not PIN. Priority number one is to build an audience. Once PIN begins to add value to the readers and builds a community, money will be thought about. For now it’s time to just enjoy the ride.

Tom @ Canadian Finance Blog presents How To Protect Your Online Banking Info posted at Canadian Finance Blog.
PT presents Tax Deductions Commonly Overlooked posted at PT Money.
Patrick @ Cash Money Life presents How Marginal Taxes Work posted at Cash Money Life.
Consumer Boomer presents Roth IRA Conversion Calculators: Should You Convert? posted at Consumer Boomer.
Wealth Pilgrim presents How To Increase Your Widow or Widower?s Benefits posted at Wealth Pilgrim: Money Management Advice, Financial Stress Management, & Resources.
Four Pillars presents 2010 Income Tax Deadline for 2009 Taxes posted at Quest For Four Pillars.

Frugality & Saving Money: What to write about?

Everyone always talks about how content is king, you need quality content to attract readers, and that a majority of your time should be spent on writing content. Here’s the problem though- what do you write about? I really don’t know the answer to this but I’m willing to work at it until I find out.

B Simple presents Simple Personal Financial Tip: Know your Score posted at Simple Financial Lifestyle.
Adam Williams presents 5 Reasons people don’t like free or discounted goods posted at RabbitFunds.com.
Fanny Seto presents How NOT to Pay Off Debt posted at Living Richly on a Budget.
The Financial Blogger presents Gathering $31,000 in 2010 posted at The Financial Blogger.
Laura presents Planning and Saving for Short Term Goals posted at Move to Portugal.
freefrombroke presents Where will you be financially in the next decade? posted at Free From Broke.
2 Cents presents How to Make a Budget: Your One-Stop Shop posted at Balance Junkie.
FIRE Finance presents A Simple Budget That Works? posted at FIRE Finance.
MatthewPaulson presents Tips for Breaking Your Spending Habit posted at Fine Tuned Finances.

Other: Spreading the word.

Hosting a blog carnival is a good way to get your name out there. Guest posts are also an amazing way to build brand awareness. But I want to know– how have you guys spread the word about your blog?

LeanLifeCoach presents If You Believe You Can Achieve! posted at Eliminate The Muda!.
David R. Lampsen presents The Best Free Budget Worksheets on the Internet posted at Personal Finance Analyst.
Craig Ford presents A Frugal Way to Train For Your First Half or Full Marathon posted at Money Help For Christians.

Check out the Money Hacks Carnival homepage for more updates!

As I work on researching possible post topics for this blog, I have NOT been enamored with the information that is out there on making money online. I make a few dollars online so I’m clearly in no position to judge. But the fact that I do work online and spend a majority of my time working on my blog, I feel that I’ve learned a thing or two about making money online.

Let’s tear apart some of the common BS that goes around about making money online:

The simplicity of following your passions.

Yes you can make money follow your passions. No it’s not simple. Too often do “online money making experts” write about how you should follow your passions and that the money will simply follow. The money won’t follow. You need to make things happen. You need to ensure that you’re in a field with a decent following. You also need to ensure that you’re not in an over saturated niche.

Worrying about money before the time is right.

Guilty as charged. To make money you need readers. To get readers you need to provide something of substance. Many of us that are new to whole world of making money online become infatuated with the idea that we can make money from being on the internet. The sad truth is that this constant quest for high monetization dilutes our focus and ends up hurting our income in the long run.

Google Adsense placement does NOT matter for the first few months.
Selling affiliate products will not happen at the start of things.
Writing articles with only SEO in mind will not go over well with our readers (or lack of readers).

The ability to work less hours.

Okay I read the 4-Hour Workweek (you know, the Tim Ferriss book) and I know that you can automate your online revenue streams and eventually turn them into passive income. This isn’t going to happen right off the bat.

I certainly do NOT under any means work less hours online. I find myself working on my blogs almost all of the time. I’m pretty sure that my girlfriend is going to kick my ass soon because every time a post idea hits me, I whip out my iPhone to start making notes.

I’m sure that you can eventually automate everything, but at the very start you’re going to work harder than you ever have in your life. Once you put up an eBook for sell/create a subscription website you can cut back on your duties. BUT- chances are that you’re going to want to work more. This is your thing. Your very own creation. Why would you not want to work on your online revenue streams?

This is only the beginning. This blog is a place where we can all share our thoughts on passive income and everything that surrounds. As the blog grows I will address more common myths about making money online.

What is passive income?

Any income that is sustained long after you have put in the necessary effort.

Boring!

Better definition:

A passive income opportunity is any source of money that you get long after you’ve been the bulk of the work.

Sure it is difficult to put in effort into a project when you don’t see any immediate results. This is the major caveat about passive income. You are putting in work TODAY in hopes of seeing results tomorrow.

Before I get too off topic, let’s look at some popular passive income opportunities to see what’s out there:

Create & sell a product online

You can try some simple sources of passive income. Metcafe allows you to create videos and you will be paid if the videos are viewed by a major portion of the visitors. You can also create products with Cafepress and Zazzle. The products range from keychains to coffee mugs and other small items.

If you don’t want to sell an actual physical product online then you can turn to an ebook. Ebooks are gaining more traction as time goes on. Depending on your niche market and your topic, you can pump out a solid ebook that will earn you some decent money over time. Pat from SPI created an ebook and he highlights his journey in great detail on his blog.

Write a book

With a book you will receive about two separate paychecks for an advance payment. Once the book is available on book shelves or through an online distributor (depends on if you self-publish or go with a big company) you will start receiving royalty payments. These little payments will act as passive income for years to come. The more books you write the higher your royalties will be.

Over time the payments could potentially get smaller and smaller but it is an income coming from work that you put in a long time ago.

Purchase an investment that pays dividends/steady cash flows

Stocks pay dividends. Real estate holdings pay rent. Whichever option you decide to go with you will find yourself receiving a steady positive cash flow.

Aside from a little effort and the occasional maintenance, both are valid sources of long term passive income. The greatest benefit of both of these passive income sources is that when you decide to sell you will most likely be returned your principal amount in full.

Of course I could not discuss real estate and stocks without telling you that this is the most dangerous form of passive income. For one it requires a heavy investment of your hard earned money. You also run the risk of loosing the majority of your money.

Which passive income opportunity do you have on your mind?

Note: I will go into detail on all of these passive income/income generating opportunities as this blog continues to grow.

This is the introduction to how I will help you make extra money online. Actually let me correct that, I will also learn how to make money online through the help of you guys, the PIN community!

There are many ways to make money online.

As a matter of fact I’m willing to be $100 that there are just as many ways to make money online as there are ways to lose weight. I already covered 5 legit ways to make money online if you want a brief overview as to how you can make extra money online. I have tried a few of these methods and have had some very minor success. Going forward I would love to make more money online but I simply need to dedicate more time to my online endeavors. What can you do to improve your online money making potential?

Make money online for free without purchasing any get rich quick system.

Yes I know how you can pay certain internet marketers a couple of hundred dollars and they will show you how to make money online. Has this ever worked? I have never met a real internet entrepreneur that made money through paying someone to learn some complex system. It was all done through a great idea and hard work. Sure you can pay a consultant to offer you tips on how to make money online or you could try to follow in your steps, but you should never pay for a system that promises to get you rich.

Make money online guaranteed is ridiculous.

When some “internet entrepreneur expert” tells me about how to make guaranteed money online I find it to be probably the mos funniest statement I have ever heard in my life. There is no such system or formula to make money online guaranteed. It just like making money at every other facet in life. You have to work hard, beat your competition, have a unique selling proposition, add value, and be willing to work long hours with potential low payoffs.

If you are committed to making money online and putting in the work, then please join us on our passive income journey!

Are you ready for retirement?? Why would anyone below the age of 60 and full head of hair care about planning for retirement?

Is I was perusing through the internet I caught an interesting survey that came out on the topic of retirement and financial planning.

A 2009 National Consumer Survey on Personal Finance conducted by the Certified Financial Planner Board of Standards, Inc. is responsible for yielding the following results:

64 % of Americans have no financial strategy at all.

This includes: no plans to pay off debt, no goals to increase mortgage payment by $100 a month, no set age to retire at, no plans at all. I will be the first to admit that planning of any kind sucks- especially planning for retirement, something that won’t happen for another couple of decades. The thing is though, do you want to be that 60-something that is working just to pay the bills? It’s one thing if you love your job but what if you despise it?

Only 17% of American citizens have a written financial plan that is updated regularly.

This is the really tricky part. Many “financially conscious” people will write down a clear budget and set financial goals- once a year. I’m guilty of this myself. I will write out a detailed financial strategy but will seldom update it. If you want to be ready for retirement at a specific age, your financial plan needs to be updated meticulously and often. Yes often.

Setup a financial plan, unlike most people

The whole point of this blog is to help myself and the readers earn more passive income. Passive income is directly relating to financial planning because it is additional income that you can put towards you savings goals, retirement plans, credit card debt, mortgage, personal loans, etc. Through the process of increasing your passive income and having a clear financial plan, you will be better prepared for retirement than most Americans.

Have concrete goals that have a direct plan

I would recommend outlining clear girls that are directly related to a concise financial plan. It’s easy to say that you want to be debt free (pay off mortgage) by age 40 or retire by age 60, but how will you get there? What are your goals? What is your financial plan?

Why are you not planning for retirement?

At the end of the day you need to push all of the excuses aside and ask yourself why you really have not been planning for retirement? Maybe it’s because you are afraid of death. Maybe you are afraid of getting old and what will happen. Maybe you love your job so much that you can not fathom leaving it. Whatever the reason is, it’s important to pinpoint why you have not yet begun the process for planning for retirement.

Now I must ask you again- are you ready for retirement?

If your employer is currently matching all of your 401 (k) contributions then by all means stick with them. This however does not mean that you should not consider the traditional IRA. The traditional IRA is an amazing investment tool that I have discussed here in the past and plan on elaborating on further in the near future.

IRA Contribution Limits For 2010

All individuals under the age of 50 are allowed to contribute a maximum of $5,000 to their traditional IRA account in 2010. $5,000 a year but may a lot of extra income to put towards your income and it will require you to dig deep with your finances. For some it is extremely difficult to squeeze an extra $5,000 of of their respective budget, so you should try to match your maximum IRA contribution by as much as possible. If you are over 50 years old then the IRS allows you to deposit an additional $1,000 towards your traditional IRA retirement account.

Traditional IRA Compared To 401(k)

I have already compare the traditional IRA to the 401(k) in the past but there can never be too many comparisons when deciding on your retirement investment tool. If you leave your employer after you turn 55 years old then you are eligible to take all of your 401(k) retirement contributions with you without an penalties attached to it. Once you cover the taxes on the 401(k) there will not be an additional penalties.

You have the opportunity borrow money from your traditional IRA account whenever you may need it for a major purchase (home, wedding) or for an emergency situation (break down, medical bills). The traditional IRA offers a penalty-free $10,000 withdrawal for the first time you decide you make a home purchase. There is to penalty to this IRA withdrawal but there is taxes that you will of course have to pay. What exactly is a “new home?” According to the IRS it means that you have either never owned a home or been the sole owner of your main residence for the last two years. The best part of this penalty-free withdrawal is that you can use it to help a relative (child, grandchild, etc.). Another penalty-free IRA withdrawal applies when you take money to pay for an education (once again either for yourself or for a family member.)

The IRA also has much lower costs associated with it than a 4o1(k) retirement plan. Due to the fact that the IRA has very few restrictions on investment vehicles you are able to investment in many low costs index funds. For those of you that are curious- index fund fees can be as low as less than 1% which is nothing compare to the exorbitant fees that may come with some 401(k) investments. The 401(k) costs are not only expensive but also can very confusing for the average person. You have to take care of both management fees and the individual investments fees that come along with it.

Many Passive Income Now readers are very serious about their finances and are always looking for ways to improve their investment portfolios. Sometimes it makes more sense to manage your own money. There are also times where managing your money is not an endeavor you wish to engage in.

If you do choose to take the route of hiring a financial planner than you will probably be a little nervous at first. Here are a  few important questions that you need to ask your financial planner:

1. What is my true financial situation?

It’s essential that you know whether you are pretty much financially screwed or not. Once the certified financial planners you have asked to look into your financial situation get a chance to look around it’s imperative that they answer this question. No matter where your certified financial planner tells you the good news is that this really is a new day. As corny as that may sound it’s true. If you’re on the right track financially then congratulations. If your financial situation requires some improvement then it’s time to step it up!

2. How should I be thinking about risk in this environment?

Hey guys did you hear about recession?

Okay let’s be completely honest here- all of us have panicked about this recession at one point or another. That’s okay. The problem is that some people panic with their money and decide to sell of their investments. The worth thing you can do in a bear market is to sell everything. Apart of the financial planner fee pretty much requires them to test out how risk adverse you are. Take advantage of this. Pick an investment portfolio that is right for you.

3. Do I need to change my time frame?

Are you investments too short term heavy? Perhaps you are too young to be so conservative. Your certified financial planner needs to sit down with you and help you determine if you are on the right track. Perhaps you might have to work a few years longer? Maybe you can retire early if you invest more aggressively?

4. How do changes in my personal life affect my financial situation?

Has your internet entrepreneurship venture greatly impacted your income? Are you earning way more money than ever before? If this is the case then maybe it’s time you took a few more calculated risks.

Then there is the other side of the spectrum. Perhaps your wife just had a baby and had to quit work. What’s going to happen to your investments now. Perhaps you are going to have to become more conservative.

5. When will I be ready for retirement?

Yes the big question. This is the whole point of life. You work to pay everything off and then one day you retire. What if your nest egg isn’t quite ready for freedom 55? Hopefully your financial planner can help you determine at what age you will be ready to call it quits and lay on the beach in Mexico all day.