Happy Halloween! Enjoy this video of Disney Villains singing about money. Money is scary. Disney villains are scary. Perfect for Halloween.

Happy Friday!

When you work from home as a freelancer or running a home business, there is always a chance that you could take a hit from the loss of work, business or a big client. This is a special concern during times of economic turmoil. Even though the recession is technically over, many home business owners are likely to continue to struggle for a little bit longer.

When you are your own boss, you need to make sure that your plan your finances so that you are prepared for a drastic drop in income. Here are some things you can do to protect yourself in the event that your home business can no longer provide the income you need:

* Save up: Have an emergency fund that you can build to help get you buy until you can replace the lost income.

* Find other revenue streams: Diversifying your income is a good way to provide protection from income loss. For example, you can participate in affiliate programs, look into dividend investing (but this comes with its own risks) or do work for sites that offer recurring revenue.

* Build in some contractual protection: One thing I like to do when entering into a long term arrangement is to require a notice of two weeks before the client can terminate an arrangement. While this isn’t always full-proof, in most cases it will at least give you a couple of weeks to find replacement income.

In the end, it is up to you to be prepared. You can’t rely on anyone else to look out for you, and protect you from a drop in home business income.

I’m not a particularly “crafty” person. My talents lie in other directions. However, I know plenty of people who enjoy making things. One of the advantages of the Internet is that you can use it to work from home by connecting you with buyers who might be interested in the fruits of your hobbies. This is something that my sister-in-law discovered when she had a surplus of items she had made for fun. “What do I do with all of these?” she asked. “Sell them online,” I replied.

And it’s true. You can make handmade items on your own schedule, and then sell them online. While you can sell them on eBay, a better choice might be to go to one of the sites that specializes in crafts. Here are three web sites to consider when selling handmade crafts:

1. Etsy.com: You can trade and sell crafts, vintage items and supplies on this site. You do have to pay a commission to the site, and 20 cents per item, but it’s not too bad.

2. LillysPlace.com: This is more of a place to go and create an online craft store. There is a setup fee, and then a monthly or annual fee. It doesn’t matter how many items you sell, and membership comes with a variety of tools, such as traffic data, coupon creation and newsletter templates.

3. CraftMall.com: This is a monthly rate program. The rate is based on the number of items you have to sell. If you have a lot of items up for sale, this can be a really good deal. You can also creative incentive programs and discounts for your customers.

In the end, what you choose depends on your volume of goods to sell, and your goals. You can also check with a tax professional to see what fees you pay in connection with selling your handmade crafts are eligible for a tax break.

One always wonders how to continually come up with content for blog posts. Indeed, when you are trying to find inspiration for your home business blog, it can be frustrating to draw a blank. The good news is that there are some places you can turn to find a little help in getting started. Some of the places I like to look include:

* News reader: This can collect up news and the latest posts and headlines from your favorite sites. News sites, industry sites and other blogs. It is easy to skim the news reader for good topics.

* Email alerts: You can receive alerts in your email inbox when something is published on a topic you have interest in. Email subscriptions to your favorite newsletters can serve the same purpose.

* Your life: Look at what is happening in your daily life, and use that for inspiration for blog posts. If you have giveaways and contests, that can also make a good subject for a blog post.

It you’re still stuck for blog post ideas, you can head to GregWolejko.com and see this list of lists containing blog post ideas.

If you are self-employed, you know that it requires a little more financial planning to make sure that everything is properly taken care of in terms of your cash flow. Budgeting when you work from home is a delicate exercise that requires that you plan for the future — especially if you earn different amounts of money from month to month.

David over at My Two Dollars has an interesting look at the way he arranges his finances so that he is prepared to cover all of his expenses (including estimated quarterly taxes!). Some of his tips for making sure that your budget is set for being self-employed:

* Direct all of your income to a central location.

* Pay yourself out of this central location.

* Charge businesses expenses to a single credit card to keep track of your business expenses.

This is some good advice. He recommends dividing what you need for the month by four so you can figure a “weekly paycheck”. I actually look at what I got the previous year and divide it by 12 to get an idea of my monthly income for the year. Of course, the numbers are different each month, but it gives me a rough idea. On months where I beat the average, I put the extra aside for the future, so that it can make up for months when there is a shortfall.

I also have two separate accounts. Since I am an LLC, I have a business checking account. All of the income goes there first (makes it easier for taxes, and in the event of an audit), and then I pay myself out of it by moving most of it to my personal checking to cover all of my expenses. I can move money from the personal account into savings and have some automatically withdrawn for the retirement account from there. I leave enough money in the business account to cover business expenses.

How do you organize your work from home income?

I love The Simpsons. But I haven’t seen a lot of the earlier episodes because I was nine when it came out, and my mom didn’t like the subversive content. So it’s been interesting to see some of the early stuff, and I came across this, about the money jar.

Happy Friday!

Today I slept in. I find that when I don’t get up and get going on my work, my motivation suffers. And, in fact, I’ve been sort of petering out today — and my day’s just begun! One of the hardest things about having a home business and being responsible for your own schedule is that you have to motivate yourself. It’s really easy to just say that you can do something later. Procrastination can be a real problem.

The good news is that there are some things you can do to help keep you motivated — at least enough to power through your day. Here are some ideas for motivation when you work from home:

1. Build breaks into your schedule so that you feel as though you are getting a little refreshment. I plan a short morning break, and a longer break for lunch. It helps me feel as though I’m not just sitting at the desk all day. Plus the food gives me a little boost. Bonus points when I choose a health snack/lunch.

2. Break down your goals so that they are manageable. I like to be able to check things off my list. When I see that I am accomplishing something, it helps keep me interested in pushing forward, rather than giving up.

3. Take care of yourself with some daily exercise and rest. It’s amazing what doing a little exercise each day, and making it a point to relax at some point, can do for your mood and your motivation. You don’t have to spend hours and hours on this, but I find if I take a half hour for some exercise, as well as take some time to read a book or meditate, I feel refreshed and energized.

While money can be a motivator, I find that it isn’t always the best motivator. Indeed, sometimes it’s just about feeling better and wanting to do something.

What helps you keep your motivation level high?

When you work from home as a freelancer, it is vital to look for opportunities. If you want more opportunities, you might want to look in more places. Laura Spencer, at Freelance Folder, has some great suggestions for increasing your chances of finding more freelancing opportunities:

* Follow instructions: You are more likely to get a look if you follow the instructions on the job posting.

* Be first: You want to be one of the first to respond to a job posting. Spencer says that Monday morning is the best time to look for freelancing opportunities.

* Consider the source: Instead of going to a job aggregator site, look at the original posting site. You might get a jump on things before the job is aggregrated — and seen by more people.

* Use social media: It sounds funny, but it’s true. An active social media presence can help you find freelancing opportunities. I have received gigs via LinkedIn, Twitter and StumbleUpon.

* Have a web site: A web site allows you to be found more easily, and provides contact information and a resume. You can also have a blog on your web site to draw even more traffic.

With Twitter getting so much play these days, it isn’t surprising to find that some think that blogging is dead. However, your home business should probably still have a blog. Adam Singer, at The Future Buzz, points out that a blog can be very helpful to a small business. He reports the following numbers from Technorati’s annual report on what’s going on in the blogosphere, in terms of professionals who have blogs:

1. Those with blogs have 71% greater visibility in their industry.

2. 63% of businesses claim that clients purchases products and services after being drawn to the site by the blog.

3. More than half (56%) of small businesses say that their companies are considered thought leaders now that they have blogs.

4. 40% of business owners with blogs have been asked to speak at conferences.

One of the biggest advantages to having a blog for your home business — especially one that is frequently updated with useful and well-written content — is visibility. You are easier to find, and it provides you with a professional image, and with the reputation as an expert in your field. And you can use blogging as an effective communication tool. So, while business blogging may take an investment of time and even a little money, in the end, the dividends it pays can be pretty substantial.

One of the things that I love about freelancing as a lifestyle is that I get to set my own schedule. It is true that sometimes I have tight deadlines, and I’m not entirely who’s really the boss, but most of the time I am firmly in control of my schedule, and I have a pretty good idea of what has to be done, as well as what can wait. And that gives me a lot of advantages when it comes to scheduling. Some of the things that I get to do, since I work from home, include:

* Volunteer at my son’s school.

* Swim laps at the pool.

* Run errands at more convenient times.

* Take my son to piano lessons (and help him practice at home).

* Go out to lunch with my husband (who is a student and can set his own schedule as well).

* Be available to watch my niece in a pinch.

The ability to arrange my work from home schedule around my life helps me be more relaxed, generally less stressed and have a more fulfilling than I would otherwise have. However, it is important to keep all these other activities in check. Sometimes, I just have to strap in there and get my work done. After all, I wouldn’t be able to afford this freelance lifestyle if I never got anything done!

Are there some advantages you see in working from home?