Lock in $3.95 Stock Commissions

OptionsHouse just sent me an Email saying that they are raising their commissions for stock trades from $3.95 to $4.75 after October 1, 2013. However, existing customers and people who open a new account by 10/1/13 will still receive the old commission rate of $3.95 indefinitely. Unless you have a special deal with a broker, stock commissions don't get any better than at OptionsHouse.com.

So, if you are interested in locking this $3.95 rate, I would advise opening up an OptionsHouse account now before the price increase takes effect. You can also take advantage of their FREE Google Nexus Tablet or Free Kindle Fire HD offer.

As a favor, if you are not planning to take advantage of one of the OptionsHouse special offers, but still want to open an account, I would ask that you Email me (at the Email address in the sidebar). I have an OptionsHouse account, and they offer a commission to customers who refer new customers. Thanks!

PFS

Money Market Rates 8/13

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.85% American Express High Yield Savings
0.85% FNBO Direct Online Savings
0.84% Ally Bank Online Savings
0.80% Discover Bank Online Savings
0.75% Capital One 360 Savings (formerly ING Direct)
0.20% Western FCU Money Market
0.10% Chase Plus Savings
0.10% Citibank Savings Plus

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates. Rates are believed to be accurate as of 8/18/13. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks. Ally Bank Online Savings has dropped a couple of notches from the top position on this list. Also, ING Direct has been replaced by Capital One 360.

The frequent changes show how changeable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

Is Your Financial Information Safer Online Today Compared to 5 Years Ago?

There exist countless possibilities of loss of financial information during online transactions. With the internet the methods used to compromise data is ever changing. What identity thieves target when carrying out attacks aimed at collecting people’s confidential financial information, are internet systems that are widely being used. These usually include popular shopping carts, outdated coding schemes and database programs.

In order to address these security concerns, internet based systems that are especially meant to process confidential financial information should be designed with security being addressed from the initial design stages. Below is a list of some of the old infamous internet breaches that have been instrumental to the current security state of the internet.

List of old internet practices
Robert T. Morris develops the Internet worm in 1988
TCP spoofing attacks
The Melissa worm (very problematic to email systems)
VBScript worm like the "ILOVEYOU"
Flash worms (SQL Slammer worm)

Today’s tools/resources that make the internet safer to use compared to 5-10 years ago.
Some of the popular avenues being used by hackers and fraudsters to access privileged financial information are through: a web server, the link between a computer and the Merchant site and the consumer’s computer.

• Firewall systems designed for private network systems to stop unauthorized access to this system
• Data encryption, involves converting of data into a more secure form to prevent it from being accessed. This is fast becoming one of the most popular way to protective sensitive information
• Network Access Control, designed to keep hackers and malware out of a network.
• Password management systems meant to keep people restricted access only to information that is relevant to their role.
• Use of protected information Discovery Tools that are used to scan through computers to locating information that could facilitate identity theft, such information could either be credit cards, bank accounts, social security number or even driver’s license. This tool is used to seek out such sensitive information so that appropriate action can be taken to safeguard such information.
• Secure wireless networks providing the benefits of such a network without the security lapses such a network usually causes.
• Virtual private networks which are known to provide secured channels of communication even when a person is off the premises. This is enabled through use of a secured interface.
• Various virus protection tools installed on computers to prevent attacks by spyware and malware software
• Periodic vulnerability scans on computers to carry out risk assessment about information management loopholes that might exist.

The internet is filled with stories of how ordinary people have had their personal information accessed without their consent leading to fraudulent transactions being conducted in their names or worse still having their finances being accessed by fraudsters. Internet users are advised to be security cautious when submitting confidential information.

Even though the internet presents challenges in areas of financial information management. It is much safer today than it was 5-10 years to conduct business transactions over the internet. Due to increased internet security measures being applied, online transactions are increasingly gaining popularity especially among the younger generations.

Author Bio:
Blair Thomas is an online electronic payment expert, who loves all things finance and planning. He is also the co-founder of eMerchantBroker.com, the #1 High Risk processing company in the country.& If you would like to see what he's up to, add him to your Google+ circle.

Photo Credit: https://sites.google.com/a/jeffcoschools.us/jeffco-internet-safety-resources/

Money Market Rates 6/13

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.85% American Express High Yield Savings
0.85% FNBO Direct Online Savings
0.84% Ally Bank Online Savings
0.80% Discover Bank Online Savings
0.75% Capital One 360 Savings (formerly ING Direct)
0.20% Western FCU Money Market
0.10% Chase Plus Savings
0.10% Citibank Savings Plus

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 6/13/13. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

It seems Urban Partnership Bank no longer allows you to apply for a new Online Savings account.  So, I have dropped it from the list. Ally Bank Online Savings has dropped a couple of notches from the top position on this list. Also, ING Direct has been replaced by Capital One 360.

The frequent changes show how changeable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

Helicopter Money - Doing the Drop on Currency

Would you like to own a 100 trillion dollar bill at a cost of 1.5 U.S. dollars? However, the dollar bill is not issued by the central bank of a world reserve currency but by the Reserve Bank of Zimbabwe. When the government of Zimbabwe overspent on wars and employees’ salaries and swindled public money’s through corruption in the 2000s, the government decided to finance the deficit spending by printing new Zimbabwean dollars with expiration dates on the bills. The money velocity skyrocketed, leading to hyperinflation of more than 500 billion percent in 2008 and a complete loss in confidence of the currency’s future value. The helicopter money experience ended horribly as the Zimbabwean government abandoned its own currency and now uses foreign currencies with mostly the U.S. dollars.

What is helicopter money?
Helicopter money is a term used by the Monetarist economist Milton Friedman who advocated that price deflation can be saved by money falling out of a helicopter. It means that the government, not the central bank, sends free cash or cheques to its taxpayers in the hope that the inflation and money supply will rise, and the receivers will simply spend the money to increase the aggregate demand. Helicopter money is called for when the economy suffers a great contraction and deflation and is in a liquidity trap where monetary policy becomes impotent. Helicopter money is a fiscal policy and not a monetary policy tool. If there is a concern that funding the helicopter money spending through bond issuance will jack up interest rates, then the central bank can fund the deficits by holding the bonds in its own balance sheet and crediting the government’s account.

How is helicopter money different from quantitative easing?
Currently, quantitative easing (QE) has been widely used for monetary stimulus by global central banks. QE is the creation of money by the central banks to buy government bonds by creating excessive bank reserves in the banking system. However QE, unlike helicopter money, does not go directly to the pockets of the consumers and households but to the banking system that the central bank buys bonds from. If the banks decide not to lend out these excess reserves due to the fear of defaults and other reasons, the aggregate demand will not increase and the private economy remains stuck. QE is reversible while helicopter money is not. In the words of Financial Times’ Martin Wolf, helicopter money combines fiscal stimulus with monetary expansion.

Helicopter money and currency trend
Given the goal of the helicopter money is to resurrect deflation and drive up inflation, an economic consequence will be currency deprecation as inflation rises. If the helicopter is unloading too much money too quickly, hyperinflation will result, leading to massive damages in the economy and currency devaluations. To help its exports grow faster, every economy in the world currently would like to see its currency weaken. Therefore one country’s monetary easing policy leads to a competitive response by another country with the result of competitive devaluations. As one currency depreciates, another is forced to rise - the Japanese Yen during the 2008 financial crisis and the Euro/Dollar earlier this year, which will hinder the economic recovery.

Navigating using an online system
Helicopter money and quantitative easing are some of the macro themes that can have a tremendous impact on currency trends and developments and therefore your bottom line in currency trading. Forex traders should do enough homework to understand the macroeconomic policies and politics that influence the currency directions both in the short-term and the long-run. Using forex online trading that comes with free market insights, educational tools, a free demo account and charting resources is the best way for you to gain valuable knowledge of the forex market before dipping into the currency pairs with real capital.

Money Market Rates 4/13

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.85% American Express High Yield Savings
0.85% FNBO Direct Online Savings
0.84% Ally Bank Online Savings
0.80% Discover Bank Online Savings
0.75% Capital One 360 Savings (formerly ING Direct)
0.65% Urban Partnership Bank Online Savings
0.20% Western FCU Money Market
0.10% Chase Plus Savings
0.10% Citibank Savings Plus

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 4/15/13. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

It seems the Ally Bank Online Savings has dropped a couple of notches from the top position on this list. Also, ING Direct has been replaced by Capital One 360.

The frequent changes show how changeable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

Money Market Rates 3/13

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.85% American Express High Yield Savings
0.85% FNBO Direct Online Savings
0.84% Ally Bank Online Savings
0.80% Discover Bank Online Savings
0.75% Capital One 360 Savings (formerly ING Direct)
0.70% Urban Partnership Bank Online Savings
0.20% Western FCU Money Market
0.10% Chase Plus Savings
0.10% Citibank Savings Plus

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 3/11/13. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

It seems the Ally Bank Online Savings has dropped a couple of notches from the top position on this list. Also, ING Direct has been replaced by Capital One 360.

The frequent changes show how changeable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

Sponsor a Child: What to Expect

Most people give to charity one way or another. Some give up their time to help good causes, many routinely carry out acts of spontaneous charity for strangers, and most give money. And there’s a significant sector of charitable giving that opts for something very individual, involving and personal: sponsoring a child.

Sponsoring a child in need has been a part of the charity landscape for generations; the first scheme was inspired by the plight of children orphaned during the Spanish civil war of the 1930s. Since then, sponsoring a child has become a significant contributor, accounting for around US $3 billion annually channelled into changing lives.

At one level, sponsoring a child is like many other commitments to a charity: a monthly or annual payment goes from the donor’s account to the charity. There, the similarities end. This is a long-term commitment, usually lasting between ten and fifteen years, when the child is old enough to be independent. It’s worth considering this carefully before signing up.

Child sponsorships schemes vary and many are community-wide, which means the sponsored child and the community all benefit. The donor knows who the sponsored child is, where he lives and the challenges he and his community are facing, which helps to give context and a more complete picture of the child’s environment.

The sponsor and the child are in contact with one another, exchanging letters and photos and, in some cases, e-mails. Some schemes allow donors to send gifts, while other charities actively discourage this.

The sponsorship money is used in a variety of ways. Educating and raising the aspirations of the child is at the top of the list of priorities, as is his health and future opportunities. Some is invested in improving infrastructure, such as sanitation and agriculture, all of which ultimately benefit everyone in the community. Larger charities invest in the future of the community with training programmes, advocacy and economic development.

All donors receive regular updates on the child’s progress from the charity. This takes the form of school and health reports, news of events and developments in his community, and updates on the work of the charity.

A child will only have one sponsor, and it often happens that close bonds are formed between the sponsor and the child over many years, building a relationship and a real sense of connection and attachment. There are also some cases where the child’s expectations can be higher than the sponsor realises, so many charities advise sponsors to be aware of this.

Many happy and successful outcomes emerge from child sponsorships. Sponsoring a child takes commitment, and it’s as well to be prepared for more of an emotional rollercoaster than donating money to good causes in general. As in any relationship, there are rewards and pitfalls, but a good scheme is one that is run by well-trained professionals who will be happy to answer questions.

Charity is rarely out of the news, and it can be hard to see the human story behind the column inches and statistics that only tell a fraction of the story. This is charity with a human face, a name, and a life. Sponsoring a child is an opportunity to be a part of it.

Resources

• http://www.plan-uk.org/about-us/our-history/
• http://www.bbc.co.uk/news/world-13697855
• http://www.worldvision.com.au/OurWork/Solutions/SponsorAChild/FAQsChildSponsorship.aspx

About the Guest Author
Stacey is a freelance writer and is passionate about her family, two dogs, giving back to the community through volunteering for different charities and also about making a difference to young people's lives.

Ditch Your Rewards Credit Cards and Save Money

Choosing a rewards credit card can seem like a great idea when you sign up. After all, who doesn't want free stuff?

The problem is, a lot of the time it’s not free – and unless you are a BIG spender, or you are super-smart about using your credit card, you could be spending more on your credit card than you are getting back in rewards.

So, how do you know when you should keep your rewards card and when you should ditch it for something smarter?

Annual Fees
The first thing to look at on your credit card is the amount you are paying in annual fees. As friendly as credit card providers may appear, they are not here to be your friend, they are here to make money. This means they generally won’t give away free stuff.

Look at how much you are paying in annual fees and compare it to how much you are getting back in rewards. In order to make their money back on the rewards they give out, many card companies charge more in annual fees.

You have to make sure you get your money’s worth. This can sometimes be achieved by using your card for all your purchases – more spending means more rewards. Just be sure to pay off the balance in full each month, or you will lose out in interest payments.

Or, choose a rewards credit card that charges no annual fee. Not always easy to find, but they are there.

Interest
Similarly, card providers can charge more in interest on rewards cards than regular credit cards. If you carry a balance on your card each month, then you are probably paying out more in interest than you are getting back in rewards.

To avoid this, either pay your bill in full each month, or choose a rewards card with low-low-interest.

Rewards
As odd as it sounds, some people choose rewards credit cards and don’t know much about the rewards program. They like the idea of having a rewards card, but don’t actually need any of the rewards. If you are set on having a rewards card, make sure it offers rewards you will use. Or, if you don’t need rewards at all, choose a cheaper standard credit card and save yourself some money.

Expired Points
Some card providers have expiry dates on their rewards points. This would mean your reward points get deleted if you don’t redeem them within a certain time period. If you spend small on your credit card, then it probably means you earn points slowly. However, this may mean your points will expire before you ever get a chance to use them.

Ditch or Keep?

• If you are getting more back than you are paying on annual fees and interest: Keep.
• If you are paying out more than you get back: Ditch.
• If you are not getting the rewards you want: Ditch (or Switch to another card with a better rewards program).
• If you are losing your points before you can use them: Ditch.

Australian Charities and Organisations That Assist the Unemployed

[Editor's Note: The following guest post was provided by Richard from Simple Living Australia, a personal finance and lifestyle blog which helps readers make informed financial decisions.]

There are times in our lives due to the economic downturn where a little assistance can go a long way. When unemployment or an illness has taken away the primary income in the family; outside help may be required. Fortunately, there are many charitable organisations in Australia can help you out. Non-profit organisations and charities may not be what immediately come to mind when you need a hand, but they can really make a difference.

Major charities have annual revenues that can easily exceed $100 million, and a lot of them get support from churches, wealthy individuals, and other major enterprises that want to help the deprived. There are even certain specialist lenders that provide emergency unemployment loans. Let’s take a closer look at some the most significant Australian charities that want to assist the unemployed and have managed to really make a difference over the years.

Fitted for Work
Fitted for Work is an organisation aimed at women who are unemployed, who want to obtain a job, and ultimately manage to attain financial independence.  They sponsor professional dress and mock interviews.  They also have a transition to work program.  Read their success stories, they will inspire you.

Job Support
Jobsupport has been helping people with disabilities to get a job for nearly 20 years now. The organisation is one of the most important in Sydney, and they’re constantly struggling to make society understand that handicapped people have the right to work and add their share of contributions to the state.

Boys Town
BoysTown is an organisation that helps young people, children, and families overcome severe disadvantages such as long-term unemployment, abuse, mental illness, and homelessness. The charity is fully committed to enabling and inspiring people reach their potential and overcome financial difficulties. Some of the main services include crisis care, employment, counseling, parenting, social development, education, life skills, and more.

Dress for Success
Dress for Success is an organisation that appeals to women who haven’t worked in years. The main goal of the charity is to help the ladies re-enter the workforce. They want to make a difference, and therefore they’re trying to help women through various means that they can make it on this economy even if they lack experience.

The charitable sector in Australia is extremely large. Thankfully, they offer a plethora of services and products delivered by non-profit organisations and charities. There are nearly 60,000 non-profit organisations currently active in Australia. Most of them are focused on specific communities and they operate locally. However, some of them are so expansive; they are able to help a huge number of unemployed Australian citizens. Notable organisations such as the Salvation Army, the Australian Red Cross, and the Sydney City Mission have hundreds of volunteers and paid workers. Like the charities listed previously, the unemployed are in good hands when they use the services of these organisations.

Even though times are tough; there are many charitable organisations that are available to help you. Put your pride aside and let them help to plant your feet on solid ground. Who knows, some day you may be able to pay it forward and help someone else or at least point them to one of these amazing organisations.

About the Guest Post:
The opinion expressed is that of the guest author. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.

Money Market Rates 1/13

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.95% Ally Bank Online Savings
0.90% American Express High Yield Savings
0.85% FNBO Direct Online Savings
0.80% Discover Bank Online Savings
0.75% ING Direct Orange Savings
0.65% Urban Partnership Bank Online Savings
0.30% HSBC Advance Online Savings
0.20% Western FCU Money Market
0.10% Chase Plus Savings
0.10% Citibank Savings Plus

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 1/3/13. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

It seems the Ally Bank Online Savings is still at the top position on this list while increasing their interest rate to 0.95%.

The frequent changes show how changeable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

Car Insurance Tips for Younger Drivers

The day young people gain their driver’s licence is a big day, a license means increased independence, more freedom, and for many it’s the first major step on the road to the rest of their lives. But gaining a driver’s license also brings with it a large measure of responsibility, both to the driver and to other motorists. Being a licensed driver means adhering to road rules that protect lives. It means maintaining your vehicle so that it’s always in a safe state to travel. And it means having the right car insurance in case the worst should happen.



However, the issue of car insurance can be daunting for many younger drivers as there are many factors involved in insurance companies determining the type and level of cover they will provide you. So here is a quick guide to some key things young drivers should take notice of when seeking car insurance. Following these tips will help you get the lowest premium and the right cover for you.

First, ALWAYS tell insurance companies the truth about the state of your vehicle. If you have made any modifications to the engine or body that are likely to impact the road-worthiness or performance of the car then tell them from the outset. You may end up paying more in the short term via your insurance premiums, but it could save you thousands in the long term if you have an accident and your policy becomes void because you didn't inform them of the changes to your vehicle.

Second, many young people try to put someone else’s name (usually an older drivers) details down as the primary driver of their vehicle in order to gain insurance or to lower their insurance premium. However, as with the modifications issue mentioned above, this isn't a great idea as, if discovered, it can make your insurance void. So always put yourself down as the primary driver, but consider adding a second responsible driver to your policy as this may help your case.

Third, never forget that vehicle type impacts on insurance cost, so when you’re out and about shopping for your first car, put your ego aside and look for cars that insurance companies will favor. Cars with large engines driven by younger drivers pose a greater insurance risk than vehicles with smaller engines, as do high performance cars and older vehicles. Smaller cars can equal smaller risk.

Fourth and final point is to take the time to shop around when looking for car insurance. By comparing insurance provider’s policies side by side you can find the right level of cover that suits your budget and driving needs whilst also minimizing your risk. A few quick tips when considering a car insurance provider are to not assume that third party insurance is cheaper than comprehensive insurance, to check carefully how much you'd really be paying when you make a claim, and to consider the difference it would make to park your car in a secure location rather than on the street.

Image Credit
Image courtesy slgckgc / flickr.com

Tips for Saving for your Dream Holiday

Have you been delaying your dream family holiday due to a lack of funds? Are you in need of a vacation but don't want to risk racking up any debt? Taking family holidays are important because it gives the family time to relax and enjoy time together. What could be better than creating precious shared moments with loved ones safe in the knowledge that you're not breaking the bank to do so. With some personal budgeting and a plan to save up, your wait for a dream family holiday may be over sooner than you think.



Plan Out Your Vacation
Having a clear idea of the costs of a vacation is imperative. You will have to consider the costs of lodging, airfares, petrol, rental cars, food and drinks and any extra excursions. List out all the major items and think about a number of alternatives as well. Maybe to free up some money for fun family activities you can use your credit card award points or instead of staying at a hotel you could stay at a friend or relatives house or rent an apartment. Be thorough and list all the activities you want to do, assigning a cost to each. If you buy ticket passes online for places such as Dream World, look out for special discounts and reduced prices. Also, use aggregator websites to compare prices for flights and hotels.

Set Up a Regular Saving Schedule
Once you know the cost of your vacation and the time of year that you want to go, you can figure out how much per month you need to save towards your dream holiday. It is also a good idea to set up a separate savings account to collect the travel funds. This will allow you to save rain or shine if you have an automated transfer into this account. Should the monthly saving amount seem too much, you can delay your vacation or find more ingenuous ways to cut back on your expenses.

How to Save on Daily Expenses
To reach your monthly saving target, you will have to scrutinize your spending habits and probably make some sacrifices. Tell the family that everyone will need to chip in to pay to help save for the family holiday. Here are a few simple tips to save up:

• Cook your meals and avoid grabbing a coffee on the go. This is probably the most effective way to save money. Pack simple but healthy lunches for your kids rather than have them eat at the school cafeteria – you probably don’t like the ingredients the school uses anyway! Avoid the temptation of a coffee from your local barista and make your own.
• Plan your meals ahead. Try to plan out your meals a week ahead and if you can, match your meal plan with the items on the supermarket weekly specials. Buy seasonal fruits and vegetables and buy dry goods in bulk. Cut out and use your newspaper coupons even if they look crumpled.
• Cut down on some monthly luxuries. Look through your monthly bills and see if there is a recurring cost you can eliminate: For example, cut out your cable TV subscription and stream videos online instead. Limit yourself to eating out once a month instead of once a week.
• Have a yard sale. You must have a few lovely items in your closets you don’t need any more. Clothes, books, DVDs, and old toys can easily be sold at a local yard sale
• Stop buying for 6 months. What about necessities? Of course, buy those but nothing extra. Do not be tempted by sales and consider swapping items you need with friends and neighbours.

With a budget, a saving plan, some self-control and support from each family member, you can easily achieve your dream holiday. You can fully enjoy your holiday and be proud of the fact that you have not incurred any extra debt. The family not only shares some great holiday memories but also learns to save more regularly, helping you save towards your next vacation!

Image Credit
Image courtesy of phalinn / flickr.com

Win an iPad or Amazon GC

PFStock is giving away your choice of an Apple iPad mini or $300 Amazon gift card. Over the years, PFStock has given away coupons, Coke Rewards codes, USB flash drives, books, financial software, gift certificates, and copies of tax software. Now in order to thank my loyal readers, PFStock is holding its biggest giveaway ever: your choice of a new Apple iPad mini (16GB, WiFi version) or a $300 Amazon gift card!

Update: This giveaway is now over. A winner was selected and notified by Email. Please click on iPad Giveaway above for the latest contests. Thank you for your interest in PFStock.

If you have a problem leaving a comment or any other question, please Email me. Good luck to everyone!

DC

The Fiscal Cliff

The PR folks over at TurboTax (Intuit) recently sent me a message with information about the upcoming "Fiscal Cliff". I know that a lot of readers are concerned about how potential tax law changes will affect their taxes in the future. I have heard reports of people selling their stocks now (in 2012), so that they can "lock in" any gains they have at the current tax rates. The news is filled with stories about the "Fiscal Cliff" or of "Taxmaggedon".

But, the tax experts advise us not to panic. They have broken it down for you to understand how these tax law changes will affect your taxes. Here is an excerpt of what the experts at TurboTax have to say about the topic:

Let’s start with the facts.

Every year, a small portion of the IRS tax code expires, requiring Congress to pass laws to extend them.   This year is no exception. There are a handful of tax laws that will expire if they are not extended by December 31.

So what’s on the table?

Alternative Minimum Tax (AMT) Patch

The AMT was originally created as a special tax for the wealthiest taxpayers.  Today the AMT usually hits taxpayers who have a household income over $75K and are married with more than two kids.

This is where a lot of the hubbub is coming from because unless the AMT is patched by Congress by the end of the year, an estimated 26 million households will, for the first time, face the AMT, which threatens to add an average of $3,700 onto taxpayers’ bills for the current tax year.

But the reality is that, historically, Congress has patched the AMT every year, since 1969, without fail.

Tax Extenders

The “Tax Extenders” refer to a broad set of temporary tax laws.  Here is a short list of the higher-impact tax deductions and credits that are included in the “Tax Extenders” package currently on the table:

Tuition and Fees Deduction:  This tax deduction allowed some college students or parents to deduct education expenses related to schooling, including tuition, books and other supplies.   TurboTax data shows that about only 2% of our taxpayers claim this tax deduction.

Residential Energy Property Credit:  This tax credit increased the energy tax credit for homeowners who made certain energy efficient improvements to their existing homes.  TurboTax data reveals that only an estimated 4% of our taxpayers claim this tax credit.

Educator Expense Deduction:  This is a $250 tax deduction available to teachers K-12, who purchase classroom supplies.  TurboTax data shows that only about 3% of our taxpayers claim the Educator Expense Deduction.

While only a small percentage of TurboTax customers claim these tax deductions and credits, be assured that no matter what is decided, TurboTax will be fully up to date with the latest tax laws shortly after decisions are made.

Bush-era Tax Cuts

As the name implies, the “Bush Tax Cuts” were tax cuts first passed in 2001 under George W. Bush and then extended in December 2010 by President Obama

The tax deductions and credits included in the Bush Tax Cuts do not impact your 2012 taxes.  They won’t come into play for another year, when you file your 2013 taxes. What you could see next year is changes to your paycheck, starting in Jan. 2013, due to changes in 2013 tax brackets.

So when will we know for sure? No one knows. But it’s not uncommon for tax laws like these to not be extended until midnight on Dec. 31.

You can read the entire article on the TurboTax blog here:

Don’t Fear the “Fiscal Cliff”: TurboTax Gives You the Tax Law Facts

Note to Commenters: If you represent a company such as Intuit, H&R Block, Microsoft, etc., please leave your contact information or send me an Email (my Email address is listed in the sidebar) to let me know that you left a comment. If I cannot determine that your comment is authentic, it will be deleted.

The information in this article was provided by TurboTax (Intuit). PFStock does not provide tax or investment advice. I encourage readers to consult with a tax adviser if they have specific questions about their taxes.

PFS

Money Market Rates 10/12

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.95% Ally Bank Online Savings
0.90% American Express High Yield Savings
0.80% Discover Bank Online Savings
0.75% ING Direct Orange Savings
0.65% Urban Partnership Bank Online Savings
0.65% FNBO Direct Online Savings
0.40% HSBC Advance Online Savings
0.25% Western FCU Money Market
0.15% Chase Plus Savings
0.10% Citibank Savings Plus

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 10/11/12. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

It seems the Ally Bank Online Savings is still at the top position on this list while increasing their interest rate to 0.95%. This month, I am dropping Travis CU, Patelco CU, and E*TRADE from my list. These three institutions have been at the bottom of the list for several months, and I don't feel it is worthwhile to track them anymore.

The frequent changes show how changeable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

Money Market Rates 9/12

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.95% Ally Bank Online Savings
0.90% American Express High Yield Savings
0.80% Discover Bank Online Savings
0.80% ING Direct Orange Savings
0.70% Urban Partnership Bank Online Savings
0.65% FNBO Direct Online Savings
0.40% HSBC Advance Online Savings
0.25% Western FCU Money Market
0.15% Chase Plus Savings
0.10% Citibank Savings Plus
0.10% Travis CU Flexible Money Market
0.06% Patelco CU Money Market Account
0.05% E*TRADE Complete Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 9/3/12. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

It seems the Ally Bank Online Savings has regained the top position on this list while increasing their interest rate to 0.95%. Rounding out the bottom of this list are two credit unions, Travis CU, and Patelco CU, and E*TRADE. It seems that I've proven my point about these credit unions, and will likely drop them from future posts. I also wanted to comment on how far E*TRADE had fallen in the past few years. In January 2009, E*TRADE Complete Savings was at the very top of the list with a 3.01% rate. It has now fallen to the very bottom.

These frequent changes show how changeable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

8 Ways to Save Money on Things You Use Every Day

No one wants to spend more money than they have to on anything, but everyone wants to have enough money to spend on non-essentials every once in a while--or perhaps they're a little short of making a car payment or putting money down on that cool home security system. Paying the list price for anything should not be acceptable to today's consumer, and there is always a way to cut costs.

1. Cut down on prescription costs. Medications don't necessarily cost the same at every pharmacy. Big box stores like Costco and BJs have discounted pharmacy services that don't require membership. If you are uninsured or don't have enough to cover your prescription costs, ask your doctor about samples or coupons (many drug companies hand these out, especially for new drugs), or check to see if you qualify for prescription assistance.
2. Put coupons on your card. Many grocery stores post coupons on their websites. Sign up for an account using your store rewards card number, select the coupons you want to use, and when you check out at the brick and mortar store, the coupons will be applied when the cashier scans your card. Kroger is a major retailer that uses this system that also lets you accumulate points to save on gas.
3. Put coupons on your smartphone. If your keychain is getting crowded with store savings cards, there are apps to lighten the load. With an app like Cardstar, simply select the store from a list and enter your card number and redeem those digital coupons by having the cashier scan the card barcode from your smartphone's screen. To go beyond what the store offers, there are many coupon apps available. Be aware that some store scanners don't do a good job of reading barcodes on phones, so you may end up being more of an inconvenience to the people behind you in line than that shopper with the sack full of crumbled paper coupons.
4. Sign up for Amazon's Subscribe & Save. With discounts on Amazon's listed prices off of a long list of popular household items and free scheduled delivery, it's a no-brainer…except that you will need to use your brain when there is a need to change the schedule date or anything else about your order. Bonus: Save on gas and avoid impulse purchases (who can pass up a ShamWow and the latest Enquirer?) Fresh Direct and Peapod offer similar services.
5. Time your T.P. purchases. Most major grocery chains discount paper goods up to 40% around the 1st and 15th of each month. Time it right--you don't want to run out on the 2nd or 16th!
6. Make your own cleaning products. Makers of kitchen and bathroom cleaning sprays now brag that their products contain lemon or vinegar, and there is good reason to brag: Those two common household items have excellent cleaning and disinfecting properties. So why pay $6.99 for a bottle of water, vinegar, and blue coloring when you can make it yourself? A simple search for DIY cleaning products will save you money and keep even your most germ phobic guests happy.
7. Be persistent. Discount clothing stores like Marshall's and TJ Maxx are excellent places for finding genuine brand-name goods at deep discounts. If you don't see what you like, find out when new shipments come in and shop on those days, before the other savvy shoppers grab up all the good stuff.
8. Skimp only when necessary. For many essentials, a discount is always a good thing. There are some things in life, though, that should not be compromised. For example, getting the grain-heavy store-brand dog food will save you money at the grocery store, but it could cost you much more in veterinary bills. The cheapest toilet paper might seem like a bargain at checkout, but once your family starts complaining, you'll wish you'd spent those extra few dollars. Fresh produce that is grown locally and in-season is more nutritious than produce that has been treated with chemicals so that it merely survives shipping. Above all, don't cut back on your health and mortgage insurance; the money you put into those bills is always well-spent.

When making a shopping list, always keep the big picture in mind: A healthy, happy family is always your number one priority.

About the Guest Author
Al Natanagara is a writer, journalist, and blogger whose career includes stints with ZDNet, CNet, CBS, LexisNexis, and law enforcement. He is a husband and father who can't bring himself to pay full price for anything.
(image credit: Stock.xchng user ba1969)

7 Investing Mistakes That Make You Look Dumb

When you watch the anchors and analysts on TV business channels, you may tell yourself that you can be as smart as they are when it comes to investing. In truth, you should probably set a more modest goal: investing without doing anything really stupid. Because it's a lot easier to lose your fortune with a few ill-advised trades than it is to earn it back.



What is the best strategy? Keep your wits about you, stick to fundamentals, and avoid these seven dumb investing mistakes.

1. Putting all of your eggs in one basket. The first three rules of investing are diversify, diversify, and…oh yeah. Diversify! You'd think everyone would follow this advice, but you'd be wrong. Remember: Don't hold an inordinate amount of stock in your company or industry. And aim for between ten and twenty stocks in your portfolio.
2. Being impatient. Another rule that non-day trading investors tend to forget is to take the long view. In other words, patience tends to reward investors more so than reacting to every hiccup, feint, and swerve shown by the market. Resign yourself to the fact that you will probably have a bad day, week, month, or year - but panicking and making knee-jerk changes will hurt you in the long run.
3. Placing more importance on your losses than your gains. This one is actually a perfectly natural thing to do. Studies have shown that individuals tend to react more strongly to a loss of a certain amount of money than when they gain the same amount. This makes us "loss averse" investors, which isn't always a good thing. Be sure assign the same weight to your portfolio's ups as you do its downs.
4. Placing too much importance on weird market events. This one could also be called "Letting the specter of the 2008 market crash color your every investing decision." Though that was an unusual event, it's not likely to happen again anytime soon (especially across all sectors). So avoid the temptation to yank your money out at the first sign of bad economic news.
5. Ignoring "small" fees. You know all those tiny little expense ratios on your investments? Pay attention to them. Even a small difference can suck out thousands from your portfolio over a lifetime. So monitor your expense ratios constantly, do a few background checks on how much you're actually paying in fees, and don't be afraid to change funds or investment houses to keep costs low.
6. Thinking that you can consistently beat the market. It's okay to trade on a hunch once in a blue moon. But unless you're a data-intensive expert in a given type of fund or investment, you should probably stick to portfolios that follow market averages. The best investors are the ones who realize that they don't know everything
7. Getting greedy. Sure, a 15% to 20% rate of return sounds fabulous. If it were easy and risk-free, everyone would be doing it. But more often than not, you're shooting yourself in the foot if you try to achieve an ROI greater than the market average. That's because there's no such thing as a sure thing.

Image credit: articles.businessinsider.com

About the Guest Author
Chris Martin is a freelance writer who writes about topics ranging from auto insurance to consumer finance to home improvement.

Money Market Rates 6/12

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.85% American Express High Yield Savings
0.84% Ally Bank Online Savings
0.80% Discover Bank Online Savings
0.80% ING Direct Orange Savings
0.80% HSBC Advance Online Savings
0.70% Urban Partnership Bank Online Savings
0.65% FNBO Direct Online Savings
0.25% Western FCU Money Market
0.15% Chase Plus Savings
0.10% Citibank Savings Plus
0.10% Travis CU Flexible Money Market
0.06% Patelco CU Money Market Account
0.05% E*TRADE Complete Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 6/12/12. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

At the top of the list is now American Express High Yield, which has beat out Ally Bank Online Savings by only 0.01%. Rounding out the bottom of this list are two credit unions, Travis CU, and Patelco CU. I've questioned the motives of those who have encouraged others to transfer their money from banks to credit unions during Bank Transfer Day. The credit unions on my list are on par with Citibank, which is really the bottom of the heap, as far as banks are concerned.

While it seems that interest rates are still continuing to trend downward, all of the these interest rates have stayed the same since last month. I think that it is a good time for people to consider moving their money around if they are not happy with their current banking institution. But, based on this analysis, I won't be transferring my funds to a credit union.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC