0 comments on “How to read your Paycheque”

How to read your Paycheque

Paycheque

Last Updated: 25th July, 2019

Before you dive into budgeting, saving, and investing, it’s important to make sure that you know how to read your paycheque. After all, you can only save and invest money that you’ve earned in the first place.

Here, we’ll dig into these key concepts:

  • Gross salary
  • Taxes
  • Deductions
  • Net salary (also known as take-home pay)

Gross Salary

When people talk about their annual salary (e.g., $40,000 per year) or hourly salary ($20 per hour), they are almost always talking about “gross salary”. This is the headline number that appears on your employment contract.

This figure is only a starting point.

Take Home Pay

Unfortunately, the money that appears in our bank account after each pay day is lower than what our gross salary would suggest. Think of your gross salary as the entire pie. After taking off slices for taxes and deductions (discussed below), the remainder is of the pie is what actually gets deposited into our bank account.

Taxes

It’s morbid but true: ’Tis impossible to be sure of any thing but death and taxes.

When you earn money from your job, your employer will automatically subtract taxes off of your gross salary (boo). Your employer sends this money to the government on your behalf.

The main form of tax taken off from your paycheque is income tax. The amount of income taxes you pay are based on the concept of “tax brackets”. As your income gets higher, the percentage of your income that you pay in tax increases — but only on the extra portion.

Here’s an overview of Canadian income tax brackets:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years.html

Side note #1: It’s a common misconception that you should try to stay below certain income levels, since shifting into a new tax bracket would reduce your overall take-home pay (i.e., higher salary but lower money coming into your bank account at the end of the day). This is absolutely NOT true.

When you move into a higher tax bracket, it’s only the money earned within that new bracket which is taxed a the higher rate, not your entire salary.

However, you may see a higher amount of tax withheld (see below) when you have a big, unusual paycheque (e.g. a bonus), because of the way tax withholding is calculated for paycheques.

Side note #2: The taxes taken off your paycheque are a “withholding” tax, meaning that they are just an estimate of the amount that you should owe. At the end of the year, the actual amount of taxes that you should have paid will be calculated on your tax return. The resulting difference between what you paid and what you should have paid will be settled at that point (either through a tax refund or additional taxes owed).

Keep this in mind if you see something odd happen with your taxes on your paycheque (for example, when you receive a bonus). You will always get “trued-up” at the end of the year.

The bottom line: the higher your income, the more tax you pay. However, making a higher income will always increase the pay that hits your bank account.

Deductions

Depending on what company you work for, you may have other deductions that are taken off of your paycheque. These could include contributions to an employer stock option plan, an employer pension / retirement savings plan, or an employer health plan.

When you were first hired, HR may have given you forms to sign up for an employer retirement savings plan (often known as a “Group RRSP” account in Canada). If you signed up, you’d be contributing a portion of your paycheque towards these savings plans (e.g., contributing 2% of each paycheque towards that account).

These amounts are deducted directly from your paycheque. As such, this money never arrives in your bank account. Instead, it’s held separately in a different account.

Net Salary (Take-Home Pay)

Gross salary is the full pie that we start with. After taking off a slice for taxes, and another slice for deductions, the amount of the pie remaining is what’s known as net pay or take-home pay. This is the amount of money that actually gets deposited into your bank account.

Your take-home pay is the most important number for you to know, since ultimately this is the money that you have control over. This is the money that pays the bills or gets saved for the future.

Knowing the amount of money that you take home each month will serve as a key input for your financial plan.

An Illustrative Example

Let’s take an example from a hypothetical Canadian paycheque:

Paycheque

  • For these two weeks, John earned a gross salary of $1,140 (regular pay plus overtime pay)
  • John paid total taxes of $239.97. This consisted of income tax, employment insurance (EI), and Canada Pension Plan (CPP) payments
  • John also had deductions of $104 for health insurance, registered pension plan, union dues, and Canada savings bonds
  • As a result, John had take-home pay of $796.03 for these two weeks ($1,140 minus taxes of $239.97 and minus deductions of $104)
  • John’s average tax rate was 21% for this paycheque (total taxes of $239.97 divided by gross pay of $1,140)
2 comments on “Top Passive Income Ideas, With minimal efforts and time (less than 52)”

Top Passive Income Ideas, With minimal efforts and time (less than 5%)

Last Updated: 22nd July, 2019

Ever wondered what could be the top passive income investments? There could be many passive income opportunities, however in this article our endevour is to highlight only the best passive income investments.

— Robert Kiyosaki says, “The main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money…but never to have money work for them.”

The above quote is so true, but we hardly give it a thought. Let’s say when we have limited cash, we either think about

working more hours

Or

to ask for a raise so that we can turn our time into more money.

Right?

In this article, we will discuss about the other ways in which you can plant seeds so that your money grows in autopilot mode, i.e. even without actively putting your time & efforts to make money in the longer run.

Before discussing the ideas, let’s look at the difference between Linear vs Passive Income.

Linear Income:

This represents the people who trade Time for Money, for e.g employees or self-employed.

L-1.png

Now let’s understand what’s wrong with this approach.

First thing is your income is limited and will always be limited. Reason is — there’s only 24 hours in a day & 365 days in a year. As you are trading time for money, and since time is limited, so is the money.

Passive Income:

This represents the people who’s income doesn’t depend on their presence, for e.g. Business Owners and Investors. 

They would rather earn 1% off a 100 peoples efforts, than 100% of their own efforts.

L-2.png

This is how money works for you, because now you have created a system which is not time bound… Agree?

Now as we have covered the importance of passive income, we know that making money will not be easy and take a lot of hard work. Correct???

Below is a comprehensive list of Passive Income Ideas and depending upon your situation, you can work on any of them:

1. Invest in Crowdfunded Real Estate

Real estate can be a great way to make money while you sleep. However, because it costs so much to purchase a home, using a crowdfunding platform to invest in real estate debt can be a more affordable option.

If you want an easy, low-cost way to invest in real estate, consider using a company like Fundrise. You only need $500 to get started, and they have three main eREITs to choose from.

If you want more options, there is another company called Realty Mogul which has a minimum $1,000 investment.

Even though their minimum is higher than Fundrise, their annual fees tend to be much less since they are between .30% and .50% depending on the deal.

You can also consider checking out Realty Shares which is one of the largest crowdfunding companies around today.

While most deals require at least $5,000, they occasionally offer properties with a $1,000 minimum. The cool thing about Realty Shares is that you get to hand pick the property you invest in.

Want to invest in a specific hotel or a certain apartment complex? They allow you to do just that.

Right now you can use the promo code Partner100 to get $100 bonus for signing up.

Want to buy a rental property and save on Realtor fees? Check out Roofstock which is an online marketplace to buy and sell rental properties. They have a 30-day money-back guarantee, no questions asked.

Keep in mind that there are risks to investing. It is also worth noting that we do have an affiliate relationship with these companies.

2. Dividend Income

Dividend income is dividends paid to shareholders of stocks in the form of cash in your bank account. Dividend-paying stocks are especially enticing for those wanting to make a living with passive income, as they will get payouts each quarter or so. Even Warren Buffet historically is a fan of dividend-paying stocks.

If you are going to go this route, make sure that you educate yourself and pick solid stocks so that you can depend on your dividend income for years to come.

If you don’t have an investment account, check out Ally Invest because trades are as low as $3.95.

This low fee is awesome because most brokers charge around $10 per stock trade.

3. Peer-to-Peer Lending

Peer-to-peer lending is when you loan other people money who don’t qualify for traditional financing. With investment returns often in the 6-10% range, investing money with a company like Lending Club can get you much higher income results than a typical savings or money market account.

4. Get Out of Debt

The less money you’re paying in interest to creditors, the more money you have in your pocket each month. Talk about a simple form of passive income. Getting out of debt quickly can increase your income even more because you’re no longer paying interest to creditors each month.

So if you have high-interest debt that you want to get a lower interest rate on, check out Credible as that have rates as low as 4.99% for refinancing your credit card debt.

5. Open a High-Yield Account

Are you looking for a low-risk way to make passive income? Then look at opening a high-yield savings account with an online bank like CIT Bank that pays 22x more than traditional banks. The currently are paying 1.55% which is unreal.

The yields are much higher than most local banks but still come with FDIC insurance. While this won’t make you filthy rich, it will be a safer way to make consistent income and not lose your money since they are FDIC insured.

6. Write a book

Once the initial work of creating the book is done, and you’ve spent some time developing an effective marketing plan, selling books can be a great way to produce some serious residual income.

I wrote a book called You Can Retire Early and I get a 10% royalty for every book that gets sold.

Once your book is available on a site like Amazon, you could receive a check each month for doing absolutely nothing. Obviously, the more time you spend marketing your books, the more money you’ll make.

7. Rent out a Room in Your House

Do you have an extra room that you rarely use? Why not rent it out to someone looking for a short-term rental on Airbnb. There are millions of people using Airbnb to find a place to stay instead of staying at a hotel, sometimes even for months at a time.

While this is not entirely passive income, it can take a little upfront work but, the returns can be amazing. My friend Steve and his wife make over $1000 per month renting out their spare bedrooms.

If you end up giving this a shot, consider getting a maid service to minimize the amount of time you spend on transitioning from one guest to another.

8. Affiliate Marketing

If you have a website already then this is a no-brainer. Some people are making over $50,000 per month like Michelle who teaches others how to make money online with her course Making Sense of Affiliate Marketing.

If you don’t have a website, you can start one for less than $3/month. Click here to get special pricing of $2.95/month with Bluehost.

Affiliate marketing can be a great way to make passive income because when people click on the affiliate links on your site, you receive a commission at no additional cost to them when they purchase a product or service.

9. Get Cash Back on Shopping You Already Do

You have to shop anyway, so why not get cash back on things you’d normally buy in the first place? I use a site called Ebates that will pay you $10 just for signing up and, it is free.

With their double cash back specials, you can double your passive income earnings if the right items go on sale.

The key to shopping sites like this is to commit to buying only what you normally would purchase and not buy things just because they are on sale.

10. Create an Online Store with Drop Shipping

With the explosion of eCommerce, drop shipping has become very popular. Here’s how it works: you create an online store that offers products from certain manufacturers. A person visits your site, orders a product, and your system sends the order to the specific manufacturer. The manufacturer then completes the order by shipping it directly to the customer.

One of the cool things about this type of business is that you do NOT need to order inventory. The customer pays for the product; you collect the profits, and the manufacturer stores and ships the products to the customer. It’s as simple as that.

If you’re interested in starting a drop shipping business, consider using a platform like Shopify to build your online store.

They even have a 14-day free trial that you sign up for here.

11. Create an Online Course

Online courses can be a great source of passive income. Here’s how they work: you create a value-packed online course that helps solve a problem or fills a need.

The course can include videos, e-books, and emails with pertinent information. Customers sign up to purchase the course, and your system automatically emails them everything they need to access the materials.

You get money for the price of the course that you created and automation from a site like Teachable does all the heavy lifting for you.

12. Create YouTube Videos

Everyday regular people like you and me are making money on YouTube. Each time someone watches one of your videos, ads can appear, and you can make money from those ads. The key to becoming successful with YouTube is building a large enough subscriber and viewer base.

It can take a lot of time up front, but once your videos are live there is potential for you to make passive income from each video indefinitely.

Granted you probably will not make a living off of just a few videos, so be prepared to make over 100 videos if you really want this to take off.

13. Start a Business and Have Someone Else Run it

Owning a business can be a good passive income source, provided you’ve got the right people running the business for you. Whether it be through the purchase of an existing business or opening a new business, your great business idea can be a viable source of passive income.

For some creative small businesses that you can start for under 100 bucks, check out the $100 Startup by Chris Guillebeau. These are all verified businesses that grew to over six figures per year and started with very little money up front.

14. Buy a Vending Machine Business

A successful vending machine business can be a great way to make passive income. The key is to find the right places to install your vending machines. Check with smaller brick and mortar businesses that have over 100 workers in the building on a daily basis, and see if they need vending machines.

Another key to vending machine success? Ask those workers what items they prefer to have in the vending machine and then stock accordingly. Once again, if you want to reduce the amount of time that you are involved, consider hiring someone to stock the machines for you.

15. License Your Photos

Have you ever wondered how you could make money taking pictures? Do you have an eye when it comes to taking good photographs?

If so, check out a site like Shutterstock, Pixabay where you can send them your pictures and if approved, each time one of their clients downloads one of your photos you get a paid a royalty.

16. Create a Mobile App

If you are a bit techie and can come up with some unique ideas for mobile apps, or improve upon an existing app that will help people make their lives better, you may land yourself a great source of passive income.

Every app on your phone is making money for somebody, somewhere. For instance, Joel Comm made over $1Million from his iFart app.

We won’t even talk about the ridiculous money that Angry Birds brought in.

While these are the exceptions, there are plenty of people making thousands of dollars per month with their mobile apps.

17. Rent Your Car for Ad Space

How would you like to make money just for driving your car and not have to pick up any passengers? By allowing companies to place advertisements on your car windows, you can earn a few hundred dollars each month simply by driving your car around town.

Check out Wrapify to see how you might be able to make passive income by wrapping your car with an advertisement.

18. Buy an Existing Online Business

The beauty of an online business is that most will allow you to work from anywhere. Starting one from scratch can take a lot of time and resources, so why not consider buying an already established online business? Websites such as Biz Buy Sell have hundreds of online business listings that are for sale in varying price ranges.

Check to see if there is an online business for sale that is in line with your passions or hobbies. Because if you are going to be working, why not do something you actually enjoy doing.

19. Buy a Laundromat

Here’s another turnkey passive income business idea. Many cities have established laundromats that are available for sale.

Here is how it would work:

  1. Buy the already existing business
  2. Make sure that you have someone to manage the day-to-day operations,
  3. and then “soak up” the profits.

The reason why you would want to buy an existing one is that the startup costs are pretty high. Commercial washers and dryers are not cheap, so it makes a lot more financial sense to buy an already established laundromat than starting from scratch.

20. Open a Batting Cage

I am shocked by the lack of batting cage facilities. Baseball is one of the most popular sports for kids in America, yet, batting cages are hard to come by depending on where you live.

Something to be aware of though, is that these can require a lot of money up front. You will have to have a big facility, equipment, and someone to open and close.

So make sure to do your due diligence before you invest too much money in this endeavor.

21. Product Design

Another way you can make passive income is by designing t-shirts and other products even with no prior design skills. Some sites allow you to upload your witty design ideas and then create t-shirts, coffee mugs, laptop covers, etc.

Shoppers then visit the site, check out your products, and when they purchase one of your designs, Red Bubble will pay you a portion of the profits.

22. House or Pet Sitting

One of the easiest ways to literally make money while you sleep is by house and pet sitting. You have to live and sleep somewhere, so why not get paid to stay at someone else’s house and/or pet sit while they’re on vacation?

Provided there are no unreasonable home maintenance expectations, house or pet sitting can be a great way to put some extra income in your pocket. While not totally passive, it beats having to get a job and is pretty dang easy.

23. Bond / CD Laddering

Bond and CD laddering involves owning several different bonds and/or Certificates of Deposit that mature at several different times during the year and taking the profits from those investments as cash income during the year.

Although many CDs and bonds might not earn as much of a return as a Peer-to-Peer lending investment, bonds and CDs also generally come with little to no risk, ensuring a solid income source on a regular basis.

24. Rent Your Stuff

Thousands of people every day are looking to rent any variety of items. Craigslist can be a great place to advertise your items for rent. Here are some ideas of products that you could rent out: extension ladders, party tents, tables and chairs, utility trailers, log splitters, chainsaws, snowmobiles, and ATV’s.

You can even rent out your car when you are not using it with a company like Turo.

Just make sure that you have a proper rental agreement signed by both parties, get paid in cash beforehand, and get a current photo ID and secondary proof of address to protect the property you’re renting out. For extra peace of mind, consider requesting a security deposit as well.

As you can see there are a ton of ways that you can make passive income. Hopefully, this list has helped you narrow down which source of income is best for you. So if you’re tired of the traditional way of making money, implement a few of the passive income strategies above so you can start working less and making more money while you sleep today.

0 comments on “Amazon Mechanical Turk Reviews – 2019”

Amazon Mechanical Turk Reviews – 2019

Last Updated: 23rd July, 2019

Mechanical Turk ReviewMT

Work from home and make money online with Amazon Mechanical Turk (MTurk)

Yes, it’s one of the best crowdsourcing platforms.

When I first landed in Canada and started looking for a job, I was really frustrated! I think you guys already know the reason… why??? Earlier I was slogging for more than 8 hours during the weekdays in the corporate world and suddenly I had to leave my job, relocate to Canada and search for new opportunities. Honestly, I was not utilizing my time properly. So I thought why not start earning money from home. That was the time, I came across MTurk and thought about giving it a try.

I got to know that US and Indian citizens make the primary workforce and are making decent money online every day — working whenever and wherever they want — through this platform. As it was a platform provided by Amazon, I decided to put this flexible remote job opportunity to the test !

Rather than wasting valuable time, why not earn some extra bucks, or maybe learn something knew. I googled a bit and ensured that it is legitimate.


What is MTurk? 

Amazon Mechanical Turk is a crowdsourcing internet workplace. It’s based on the idea that there are still many jobs that humans do much effectively than computers, such as providing initial data to robots, identifying objects in a photo or video, performing data de-duplication, transcribing audio recordings, or performing surveys based on geolocations.


You know what, I earned 154.57 USD (~ 200 CAD) in a month (working only 1 – 1.5 hours per day) which is not great, however atleast I know I will be able to pay few of my current month’s bills.

MTurk MTurk Dashboard

Pros:

    • I averaged around an hourly rate of $5 which is way less than the minimum pay rate here in Canada, however good when it gives a flexibility to work from home.
  • Be your own boss, pick up tasks (HITs) you are interested in and work whenever you feel like.

Cons:

  • Many of the high paying microtasks / HITs (Human Intelligence Tasks) are only available for US location.
  • You can only transfer your earnings to an Amazon.com Gift Card. PayPal payments are only applicable to US & Indian Citizens.

You can find an entire community of MTurk workers on Reddit who share valuable tips/tricks to increase your earnings and to identify valuable HITs.

Increase Your mTurk Earnings

Be available.

The best paying HITs usually come up during business hours and on weekdays. That’s when most Requesters are online submitting their tasks, after all.

Join a forum.

There are some really helpful forums where Workers list good HITs available that day. MTurk Crowd is one such forum. Turker Nation is another.

Use a browser extension.

There are a few extensions and scripts that will add additional functionality to your browser as you browse the Mechanical Turk website. Turkopticon is an example that will allow you to see HIT feedback from other Workers and allow you to avoid those with a history of rejecting work. Tampermonkey extension (Chrome) or Greasemonkey extension (Firefox) are two more popular options. HIT Scraper can automatically refresh your browser to find good-paying HITs you qualify for. Keep in mind, there is a bit of a learning curve when dealing with scripts. However, it’s definitely worth your time to learn.

Get your numbers up.

While there are no required minimums to work on mTurk, there are some benefits to staying active. A lot of high paying Requesters only make their HITs available to experienced workers with 5,000 or 10,000 HITs under their belts.

Follow a subReddit.

If you aren’t yet familiar with Reddit, you are going to want to change that. The day’s best HITs are listed on subReddits like this one. Users let you know what’s hot and they’ll also let you know once the HIT is complete so you won’t waste your time trying to grab something that’s no longer available.

Get out of your comfort zone.

As with almost any type of work, the more skill involved, the higher the wage. Many of those reportedly happy with their part-time mTurk earnings are doing HITs like transcription.

Follow the directions.

HITs have to be approved by the Requester before you will get paid. In addition to the possibility of nonpayment for rejected work, this number also goes against your overall score. Most Requesters require Workers have an approval rate of 98-99%. Even though this is really flexible work without a lot of oversight, you still have to put your best foot forward if you want to keep the option open.

Qualify whenever possible.

You will come across many HITs that require Qualification. This may mean taking a test or performing a sample HIT before this type of HIT will become available to you. Take advantage of these opportunities. Also check your Qualifications tab to see what tests are available to you and what you have been approved for. Becoming “qualed” will also cut down on your competition for qual-required HITs.

Find your personal groove.

There are so many methods to this madness you can read about in the forums and r/mturk subReddit, but you will quickly find out there isn’t one way to do it to achieve the best results. Each Turker has found a rhythm and the HITs they most enjoy and can do quickly that allows them to achieve their goals. There will be a learning curve.

Question: Did you manage to make money online with MTurk or another platform? Would appreciate your comments below!