Dear Dave,

I’m starting a photography business on the side to help generate extra income. I have friends who’ve told me they’d like to use my services. However, I feel weird about charging them, because they’re friends. How do I get past that?

Daniel

Dear Daniel,

I understand how you might feel weird taking money from friends, yet you’re providing a service, and you’ve opened this business to make money. They’re going to pay another photographer if you don’t do the job, so why shouldn’t they have the fun of working with someone they already know and like?

There’s a psychology at work here. If you comp or discount them now, they may never see you as a true professional. But if you charge them a fair price, you’ll be establishing yourself as a pro.

Still uncomfortable? Tell them you’ll do the work free of charge this time if they’ll help you find six new clients. There’s nothing wrong with a trade, especially when you’re starting out. Just make sure you get something worthwhile in the deal!

- Dave

Dear Dave,

I make $60,000 a year, and I have two cars. One is paid for, and I owe $23,000 on the other. These are my only vehicles. I’d like to sell the one I still owe money on, but no one wants to pay that much. I have enough money in savings to cover the difference on one of the offers, but I was wondering if there’s a rule of thumb to determine whether to sell a car in this kind of situation?

Josh

Dear Josh,

Here’s how I look at it. If you really love the car, and by really focusing and saving like crazy you can pay off everything else in your life – except the house – in 18 to 24 months, then I’m okay with keeping the car. If you can’t, it’s time to sell!

It also may be time to sell if the if the total value of all your vehicles – cars, trucks, boats, jet skis, and their sisters – is equal to half, or more than half, of your annual income. These are things that depreciate like crazy. You don’t want half of your income wrapped up in things that are going down in value.

Josh, you can pay this thing off in two years or less if you haven’t got a bunch of other debt. But if you don’t like the car, or you don’t want to work that hard to keep it, then sell the thing and write a check for the difference. Then re-build your savings in a hurry by putting what would have gone for car payments into your bank account!

- Dave