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Looking Back At 2014

By Frugaling 5 Comments

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Fireworks photo by Scott Cresswell
Photo: Scott Cresswell/Flickr

This holiday I had the fortunate opportunity to celebrate Christmas with my family and New Year’s Eve with lots of old friends. I couldn’t have asked for a better few days. And now, with 2015 upon us, I wanted to take a quick look at the triumphs and highlights of 2014.

More visitors and pageviews

It was an incredible year for website traffic and visitors. There were over 330,000 visitors and nearly 500,000 pageviews. Incredibly, one of my articles went viral. I never really knew what that meant until I saw over 1,000 visitors on my site at one time. Frugaling became so busy that I couldn’t edit, visit, or change the site!

When I first started the website I questioned whether anyone would read it. And if anybody did, I wondered whether it would just be my mom and dad. In my first year, I constantly thought about my audience and building a following. In 2014, I shifted this priority to publishing regularly and meeting a certain journalistic standard.

It’s not that building a following isn’t important, but I realized I was concentrating in the wrong areas. The old adage of “Content is king” is true. By publishing thought-provoking articles and seeking debate, the traffic grew naturally.

More revenue, momentarily

At the beginning of the year I was making staggering amounts of money. Frankly, I wasn’t sure how to talk about it. In both January and February, I made over $5000 per month. With that kind of money, I was able to pay off my student loan debt in record time.

From the very beginning of Frugaling, I knew that I would try to make a little side income from the site. I never expected to make enough to pay off the loans. But it all came at an ethically dubious cost: hawking affiliate banking products. I never felt completely satisfied or confident in sharing about these products, as many suffer tremendously from easy credit opportunities. Credit debt can be nightmarish, and lead to the illusion of “success.”

Over time, the revenue began to fall. Affiliate companies reduced commissions until they were a small fraction of what they once were. Eventually, they pulled individual cards and requested that I constantly update marketing points. I felt tied to another job — one of updating and tidying up credit companies’ messages. The aftertaste was unsettling. Out of this discontent, I decided to pull the remaining articles about credit card companies. Maybe at some point later, I’ll revisit it, but with my debt paid off, I don’t feel desperate enough to be hawking these products.

Top articles from this year

I was repeatedly humbled by the amount and quality of visitors this year. People increasingly participated in the comments section and shared via social networking. It was a pleasure to be able to write with this audience in mind. The following are the top 5 most popular articles from Frugaling all year:

  1. Destroy The 40-Hour Workweek
  2. 5 Tricks To Save Money At Starbucks
  3. Too Poor To Protest: How Income Inequality Silences Your Voice
  4. Debt Is The Illusion Of Success
  5. 8 TED Talks That Will Inspire You To Become A Minimalist

Most popular referrers of traffic

When people start blogging and writing, they often ask me where traffic comes from. It’s both a simple and difficult question to answer, as visitors and readers come from all parts of the globe — finding your site in different ways. Sometimes word of mouth and personal recommendations lead to the most pageviews. Sometimes sites like Reddit and Facebook are best for viral sensations. The following are the top 5 referrers of traffic to Frugaling in 2014:

  1. Reddit
  2. Facebook
  3. Twitter
  4. Becoming Minimalist
  5. Hey It’s Free!

A special thanks to you, my reader!

2014 was a standout year for me. Graduate school has been challenging, but I’ve been able to keep writing articles and participating in the personal finance world. It’s been an honor to share my voice with you, and receive your support.

Thank you for making this an incredible year, and I hope you’ll follow along in 2015!

-Sam

Filed Under: Make Money Tagged With: 2014, annual review, articles of the year, Income, money, pageviews, Personal Finance, revenue, social networking, traffic, Visitors, Website

August 2014 – Blog Income Report

By Frugaling 10 Comments

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Important: Preamble before profits

Despite being a personal finance website and blog, I’ve hesitated to regularly provide specific earnings. Each time I’ve shared writing revenue — at 6 and 12 months — it’s taken me some time to deliberate whether I should. My revenue isn’t everything, and frankly, it’s been steadily declining since last summer. But while I made less revenue, I saw more traffic — the important metric to me.

Many personal finance blogs share their earnings on a regular, monthly basis with their readers. My fear in regularly doing so may come from an irrational place, but I worry that sharing this information is like eating junk food; the syrupy sweet taste goes down easily, but it has a vapid nutritional value. Last month, I decided to share those income stats and many readers liked seeing how the website was helping my financial goals. Hope these stats help in your own blogging/writing journey!

August 2014 — Blog income report

August was a rough month for earnings. Unfortunately, the continued slump and decline in earnings has not stopped. At one point in January and February of this year, I was making over $5000 per month from the site. Now, I’m lucky to be making over $500. It’s definitely changed how I budget for the future, and I wish there was something I could do to change the situation. Thankfully, my traffic continues to stay strong, along with social media growth. I crossed over 1,400 followers on Twitter, which is a tremendous milestone for me.

Google Analytics Screenshot of Stats
Here’s what my traffic stats looked like this month.

LinkOffers Affiliates
$485 (Up $69 compared to last month)

Again, affiliate sales led for income. Buoyed by two credit cards, Barclaycard Arrival and US Airways, I saw a slight increase in earnings this month. Over the last few months, LinkOffers has steadily cut the commission on credit cards. Consequently, this is much of the reason why these numbers slumped since the beginning of the year. I have not been regularly advertising affiliate deals and links, which may also be contributing to the slide and stagnation of revenue. I have some work to do here.

Google AdSense
$40.47 (Down $207 compared to last month)

Last month I had a hugely viral article that brought in hundreds of thousands of visitors. It was unreal. That spike in traffic artificially cause Google AdSense revenue to expand. Now, it’s back to more realistic values. This value tends to track around $50 per month. For August, I ended up moving an ad space to the beginning of articles to try to keep ads highly visible. Thus far, I’m not seeing any major revenue boost from this switch.

Amazon Associates
$0.20 (Negligible change)

Somebody mentioned that Amazon’s Associates program may have taken a big dive due to the Smile program. This Amazon initiative encourages shoppers to choose a charity to support. By selecting one, a percentage of your purchases go to that charity. It’s a great program, but it looks like it may remove your referral link. This may be reducing any commission possibilities.

Total August 2014 Earnings: $525.55 (Down $139.53 compared to last month)

Forward-looking statements

Last month I mentioned that I’d like to begin reviewing books, films, and media that help diversify the conversation about personal finance. I decided to start with a super ambitious read called All the Presidents’ Bankers by Nomi Prins. I’m about halfway through this impressive tome of financial and banking history. Thus far, I’m loving it, and can’t wait to share it with you all! Likewise, I will be writing a review of a new documentary, Rich Hill. This film is about severe poverty in a small, midwestern town. Look forward to those soon.

As for revenue, I’m not working actively enough to change the financial situation each month. That’s something I need to work on. I’ll likely revamp and republish a couple articles on some of my favorite affiliate links.

Thanks for reading! If you’ve got questions, comments, or advice, I’d love to hear it below!

Filed Under: Make Money Tagged With: ads, August, Blog, Blogging, Google, Income, LinkOffers, money, Write, Writing

July 2014 — Monthly Income Report

By Frugaling 25 Comments

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Less is more. Incidental Comics.
Credit: Incidental Comics

Important: My preamble before profits

Despite being a personal finance website and blog, I’ve hesitated to regularly provide specific earnings. Each time I’ve shared writing revenue — at 6 and 12 months — it’s taken me some time to deliberate whether I should. My revenue isn’t everything, and frankly, it’s been steadily declining since last summer. But while I made less revenue, I saw more traffic — the important metric to me.

Many personal finance blogs share their earnings on a regular, monthly basis with their readers. My fear in regularly doing so may come from an irrational place, but I worry that sharing this information is like eating junk food; the syrupy sweet taste goes down easily, but it has a vapid nutritional value. Do public displays of revenue help those that follow this site? Would love your input!

While keeping these questions in mind, I’ve decided to write about last month’s earnings, analyze the data, and provide forward-looking goals. Hopefully, you can take this information and let it inspire you to reduce your debt and meet some of your own financial dreams. Maybe you’ll start a blog of your own!

July 2014 Income Report

This month I truly learned what it meant to have an article go viral. Shortly after publishing “Destroy The 40-Hour Workweek,” the site quickly received the most incredible response ever. Google Analytics data showed that there were over 221,000 pageviews because of this tremendous social networking surge. Obviously, the increased traffic affected my income for this month, too. Most of this is reflected in an incredible spike in Google AdSense earnings.

LinkOffers Affiliates
$416.00 (Down $200 compared to last month)

Affiliate sales led the way. My most popular articles that lead to commissioned sales are the Barclaycard Arrival and US Airways credit cards. Unfortunately, sales have steadily declined in recent months; likely, due to a combination of search engine optimization (SEO) problems that were caused by server problems. Also, referral rates have been in decline, which means that each sale equaled fewer commissions.

Google AdSense
$247.95 (Up $204.49 compared to last month)

As I mentioned earlier, Google AdSense had a huge spike in revenue that was largely attributable to my viral post. Click-through-rates did not change by much, but the surge led to more clicks and impressions. I recently added a couple videos to YouTube and used one of them in an article about moving from my old apartment. While miniscule, the ads on YouTube are contributing to my earnings.

Amazon Associates
$1.13 (Negligible change)

There’s not much to say here. Amazon Associates is one of the most flexible and user-friendly affiliate networks. Moreover, it pays a fair amount for each item sold. When I linked to TurboTax during the tax season, I actually made about $200. But since then, it’s been pretty stagnant.

Total July 2014 Earnings: $665.08

Forward-looking statements

My main goal in starting this site was always focused on building a network and traffic stream. Money wasn’t the main motivator. But revenue from this website has changed my life forever. It’s given me an incredible lift in mood and gives me an outlet to share my thoughts. I’m truly honored to have visitors and followers. Your contributions fueled me to write more than I ever thought would be possible.

Going forward, I want to build on my fundamental desire for traffic. I’d like to increase subscribers via email (please sign up!), more frequently engage with Twitter followers, and find ways to integrate Facebook with the site. Whatever money follows would be a wonderful thing, but hardly the sole, motivating factor to this site.

The other piece that I want to begin including on Frugaling are book reviews. Anything that has to do with money, finance, and stock markets, I want to review and share with you. Hopefully, it can be a quick way for you to stay informed about complicated financial matters and offer me an opportunity to do something I love: read.

Thanks for viewing my report. If you have any recommendations, questions, or comments, please leave them below. I love nothing more than helping another person make their goals come true! Best of luck!

Filed Under: Make Money Tagged With: ads, AdSense, Amazon, Blog, Blogging, Google, Income, LinkOffers, Make Money, Online, revenue, Writing

How To Use Dividends To Reduce Taxes And Protect Income

By Frugaling 6 Comments

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Dividends Photo
Photo: LendingMemo

Over the last few months, I developed plans to minimize my tax bill, earn more money, and invest in the stock market. Much of this financial planning is motivated by an upcoming tax burden that’s sure to sting.

The problem starts with self-employed earnings. These are filed under Schedule C of the U.S. tax code. Unfortunately, those earnings don’t include withheld funds that support Medicare and Social Security. To account for this, the federal government requests about 30% in self-employment taxes.

As someone who’s funneled as much cash as possible to swiftly pay off student loans, I don’t necessarily have a lot of liquidity or extra funds to pay this tax bill (yet). The U.S. government doesn’t adequately account for someone paying off student loans when asking for the tax bill at the end of the year (and this is just the tip of the iceberg for financial aid concerns).

With these worries in mind, I took time today to restrict my spending ability, increase my regular income, and provide a bit of a tax shelter. And it all starts with dividends.

One of the most contentious elements in our tax code has to do with capital gains and dividend taxes. Whereas normal income from work is taxed at steep, progressive rates, these stock-affiliated earnings receive an artificial discount. If you make over $406,750 as a single person, you pay only a 20% tax on dividend earnings. And if you hold stocks/assets for over one year, you also qualify for this reduced rate.

Dividend income
Only 20% of qualified dividends and long-term capital gains are taxed for those making over $406,750 per year.

For me, as a single filer with projected earnings of less than $36,900 for 2014, I’m looking at a brilliant tax rate of 0%! You heard me right: zero percent! That means for every stock that I hold onto for over one year or qualified dividend I receive, I should be able to keep the entirety of that income. Here’s where nifty financial planning will help lower my tax burden and increase the money in my pocket.

Today, I made a small (large for me, though) investment in Apple Inc. (AAPL). The stock is currently valued at $95.25, as of August 5, 2014. At that value, it is hardly one of the greatest income earners, but it pays a substantial 2% dividend yield. Simultaneously, Apple is still highly favorable among stock analysts — Yahoo Finance suggests that the collective price target is $104.79 within 1 year.

Based on stagnant yield growth, I should make about $31.96 per year from dividends. That’s all income that should receive a 0% tax due to those gains. Based on about a 10% (possible) appreciation in Apple for one year, any gains will be completely protected from taxation — even after I sell the stock. I will again have the 0% tax liability.

Long term capital gains and dividend income
This is the benefit! I’ll be paying nothing via qualified dividends and long-term capital gains taxes!

The political climate around changing capital gains taxes is terrible. The regulations should change — they need to stop benefiting the wealthy. Warren Buffett has frequently complained about this tax code inconsistency, and suggested that it unfairly rewards the wealthy. I think he knows a thing or two about investing, too! Until then, and as a low-income earner, I need to use this system to my advantage to reduce my tax liability and increase earnings.

Filed Under: Make Money Tagged With: Capital, Dividend, dividends, gains, Income, invest, Investments, stock, Stock Market, taxes, Warren Buffett

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