Paid off My College Loan with eHow Earnings!

We're one step closer to being debt free -- I paid off the last of my my college loan in one payment using a portion of my eHow earnings last month. My final statement showed that I paid the debt off about 18 months early, saving me a good bit in interest (it was a private loan at 10% APR).

I had a grace period at the beginning of the loan for working in a non-profit sector after graduation, but otherwise have been making those monthly payments for years. Being free of that payment is a great feeling and makes a difference financially as well -- I've taken the amount I used to pay to the loan each month and am using it toward my next debt.

Thanks to my residual income through revenue sharing sites, my eHow ebook, my niche websites, affiliate marketing and miscellaneous sources, my family is becoming debt free much more quickly than we thought possible. In fact, we will probably pay off our debt about 2-3 years earlier than originally projected. Next month, I plan to put nearly all of my eHow earnings toward my next debt, a credit card balance at 5% interest that needs to be eliminated.

While we've had setbacks due to job loss, real estate (a house that didn't sell), and life's ups and downs, we've managed to stay the course and not take on new debt since we took Dave Ramsey's Financial Peace University course almost two years ago. We've cut our debt down by a third, and are now on track to pay off the remaining 2/3 in less than a year, if all goes as planned.

Having a steady source of residual income thanks to my online writing has been a key element in our progress and our success to date. As my husband builds his new career, my income is back in a supportive role and working harder than ever to help us become debt free. I can't wait!

Are you using online earnings to become debt free or in a better posisiton financially? What role does residual income play in your personal finances?

Pro Blogging, Here I Come!

I'm now a blog manager for the new Blog-Island Blog Channel. My flagship blog is Financial-Tip.com. I'm in training to become a Blog Editor and oversee more blogs as time goes on. For now, handling this blog as well as my Demand Studios work is keeping me quite busy.

Niche blogs often do quite well, attracting large, diverse readerships and making some money at the same time. I'll let you know how this goes. I hope my blog will be a help to families struggling with finances during this economy.

Personal Finance as a Work at Home Mom

Many personal finance sites tend to focus on one end of the money equation: how you spend and save it. But in my blog, I'm focusing mostly on the other end of the equation, earning money. Specifically, I write about earning money as a stay at home mom and the unique challenges this situation presents.

When looking at a tight budget, there are two things you can do to improve the wiggle room and find money for underfunded categories (whether it be your blow money or your debt reduction).

1. Make more money.

2. Spend less money.

Really, it is that simple. You can do one or the other, or both, but those are your only options. (a huge inheritance just isn't practical for most people, and not something you can control in any case... well, let's just not go there.)

There comes a point for many people when it is easier to do the first than the second, and this is certainly true in my case. With two mortgage payments,a home equity loan payment, student loans and more, much of our monthly income is eaten up by set bills that we can't change (unless our house finally sells, but that's another post for another day).

We are very frugal with our so-called disposable income. We buy natural food in bulk, bake our own bread, plant a garden, drive old paid-for vehicles, shop at thrift stores whenever possible, and don't have TV, cable, or other entertainment extras.

To supplement my husband's income and pay for my children's Atrium class, among other things, I spend part of my day working from home, as an English grader and a freelance writer. There are many other ways to earn extra money. Here are a couple short articles with ideas for you:

How to Earn Extra Money & How to Earn Extra Money at Home on a Computer.