How to Get Your 30,000 Miles

1. Sign up for the CitiBusiness/AAdvantage Visa card.
2. Make $750 in purchases in the first 4 months of being a cardmember.
3. The AAdvantage® miles will appear as a bonus in your AAdvantage® account within 8-10 weeks.

Citi/AAdvantage Terms and Conditions

• The $75 Annual Fee is waived for the first year of cardmembership.
• This offer is valid only for first-time CitiBusiness® / AAdvantage® cardmembers who apply pursuant to this offer for an account.
• The maximum number of American Airlines AAdvantage® miles you can earn from purchases using this card is 150,000 AAdvantage® miles per calendar year, although different AAdvantage statuses and bonus miles are excluded from the limit.
• Miles don’t expire provided that once every 18 months you (i) redeem American Airlines AAdvantage® miles or (ii) earn them on American Airlines carriers or (iii) earn AAdvantage® miles with an AAdvantage® participant.
• American Airlines has no restricted dates for award travel but seats for award travel are limited and may not be available on all flights.

More on AAdvantage

Multiple ways to earn miles. You can earn miles via purchases on the card, flights on American Airlines or their partners, purchases through the AAdvantage shopping mall and bonuses at partner hotels, car rentals, florists, etc.

Individual applicants. Don’t forget, you can use your individual name and select sole proprietorship as the type of business to qualify for a business card.

Redeeming miles. AAdvantage allows you to redeem miles for one-way flights, often for as low as 12,500 miles per leg. That means this bonus could earn you close to 3 one-way flights and save you at least $300!

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We had a fantastic time in Seattle, and I was pleased that the American Express SkyMiles card worked well to save on baggage fees.

So here I am on vacation again! I drove down with the boys earlier this week and Scott is flying down with our daughter today to join us for the long weekend.

It was the first long drive that I’ve done by myself with the kids, but we set up BuddyWay GPS tracking so Scott could keep an eye on us during our trip. It was pretty slick!

Of course, before we came down, I looked to see if the vacation home we were considering earlier this summer was still available… and the price was reduced by $10,000!

That makes it really tempting… however, since vacation season is wrapping up, I’m going to keep an eye on it and see if the price drops more over the winter and see how bad the seller need to unload it. Maybe we’ll be able to scoop it up for really cheap in March!

Retirement

• Withdrawing Money During Retirement
• 10 Guiding Principles For The “New Retirement”
• How To Find More Money for Your Retirement Account

Real Estate

• Is Home Ownership Still Part of the American Dream?
• Landlord-Tenant Relationship (A Tenant’s Perspective)
• How Much Mortgage Can I Afford?

By the Numbers

• 6 Strategies for Beating Inflation
• 20 Ways to Untie from Whatever Is Holding You Back
• 18 Great Reads That Changed My Life
• 5 Keys to Retire Overseas

And More!

• Things vs. Experiences
• I Want To Become a Minimalist, But I Could Never Give Up My…
• How to Become a Successful Consultant
• Emergency Preparedness: How Does Your Family Rate?
• MonaVie Blackmailing Me
• How A Second Income Stream Can Give You Some Financial Security
• Carnival of Personal Finance

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Given this, you would think that the government would not make you pay income tax on that money as well. However, you would be wrong; you do need to pay taxes on unemployment income. Well, wrong and right, depending on what year you were unemployed.

Unemployment Taxes: Pay Now or Pay Later

During my unemployment, I had failed to fill out a W-4V form indicating that I wanted income taxes withheld from my unemployment benefits. I reasoned that come April I would be making much more money and could afford to pay the tax bill at the end of the year; besides, I could use all the money I could get at the time to cover things like the rent, food, student loan payments, and gas bills that didn’t cease just because my job did. Because of my choice I took a tax jab in April 2007 to the tune of $450 which doesn’t sound like a lot, but was something I had failed to plan for.

When you file for unemployment, I would recommend choosing to withhold taxes on your unemployment compensation as you receive it, which means the government will automatically take out a flat 10% no matter how much your paycheck is.

Some states exempt unemployment compensation from state income tax, but many states, such as Massachusetts, Wisconsin, and New York, take their tax share of your unemployment as well at around 5%. Check with your state’s Department of Revenue for more specific information.  

Those Who Don’t Need to Pay Unemployment Taxes

With the unemployment rate hovering around 10%, the government took action to make the first $2400 of your unemployment compensation you received in 2009 excluded from taxation (if you are married and both spouses were unemployed in 2009, each spouse may exclude $2400 from taxation, totaling $4800). If you were unemployed in 2008, or are unemployed in 2010, you must still pay income tax on your earnings. Also, even if you are exempt from the federal income tax in 2009, be aware that your 2009 earnings may still be liable for state income tax.

To determine if you’ll need to pay taxes on other income you make during the year, you can see the guidelines for minimum income to file taxes.

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What is the Marriage Tax Penalty?

Ten years ago, married couples had to pay more than double the taxes they would if they were two single filers. Owing more tax as soon as you married became known as the marriage tax penalty.

The culprits of the marriage tax penalty were standard deductions and tax brackets that were only larger than, but not double, the single deductions and brackets.

Marriage Tax Penalty History

When the 2001 Bush tax cuts were put in place, the marriage penalty tax was eliminated for most taxpayers by doubling the single standard deduction for married taxpayers. The tax brackets were also aligned accordingly, so there wouldn’t be any additional taxes just for getting married.

Marriage Tax Penalty Returns

When the Bush tax cuts expire at the end of the year, the marriage tax penalty will return, increasing taxes for many married couples.

The amount of tax differences will vary based on your situation. You can use the 2011 Tax Calculator to try to predict how it will impact your family. To use it as a marriage penalty calculator, fill it out twice, once as single and once as married to see the differences.

Those taking the biggest hit will be couples with one large income and one smaller income. Right now, couples with very different incomes often see a marriage tax benefit, sometimes called a marriage tax credit, under the current rules.

Married Filing Separate

The marriage tax penalty is different than married filing separate, which is a popular way to file in some states. For example, in Ohio, it’s often beneficial for spouses to use the filing status married filing separate rather than to file joint as they have more tax savings.

When I do a tax return, I always run it both ways, joint and separate, to see which method will have the biggest tax savings.

If the marriage tax penalty returns, we’ll probably see some changes to the most beneficial filing status too, which will be something to keep in mind if you often file separately.

Action Plan

Now even if the marriage tax penalty returns, I’m not going to recommend divorces across the board. If you are like me, the benefits of family health insurance will more than outweigh the costs of the tax increase. But I will be putting on my thinking cap to try to get creative and maximize our tax savings with the new rules!

And of course, Congress is being encouraged to make a decision on the expiring tax cuts and marriage penalty relief… so we’ll have to wait and see what happens.

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Searching for Something New

I live in the greater DC metro area, which is a very expensive place to rent. I had a roommate for the first two years out of college, but have lived alone for the past year. I would be willing to share an apartment with a friend, but am not really willing to live with a stranger. Since all of my friends are locked into situations they’re happy with, I was once again searching for an affordable studio or 1 bedroom.

I found a newly converted basement apartment in a great location. All utilities and bills are included, down to cable and internet. I would be saving a total of 41% of my current housing and utility expenses. With the money I will save, I can likely pay off my student loan balance (my only outstanding debt) in the next 12 months – a full 11 years ahead of schedule. The cons: shared laundry with the homeowners and a kitchenette with only 2 burners and a convection oven. The apartment is probably 30% smaller than what I have now. The walk to work is longer, but the walk to public transportation is shorter.

Things to Consider

Before deciding whether to make this leap and sign a lease on this apartment, I came up with a list of major considerations:

• I spend most of my non-work time at home. It’s probably worth being comfortable!
• Housing is one area where it might make more sense to spend money up front to save money in the long run. With a reduction in kitchen size, I might be tempted to eat out more, thus erasing some of my savings.
• Paying off debt ahead of schedule is always preferable to the alternative.
• I’ve enjoyed living alone and would like to continue doing so.
• Since graduation I’ve lived in managed buildings with on-site maintenance, secure entries, pools and fitness centers. On the other hand, I’ve used the latter fairly irregularly, the basement is part of a house in a very safe neighborhood, and maintenance needs are likely to be minimal since the unit is brand new.

The Big Decision

So my question for you is – how far would you go to save money? Does the answer differ depending on whether or not you have debt to pay off? What would you give up to eliminate your debt? Would you take a substantial decrease in your standard of living? Would you switch your diet to consist of slow cooker, one-pot, or microwaved meals? Would you give up cabinet space, closet space, and living space? Or would you suck it up and pay the money to keep what you are used to? Alternatively, would you live with a stranger in a nicer building?

I’m getting close to needing to make a decision, as my lease ends at the end of this month. I’d appreciate any help you all can offer before then!

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Social Lending Arbitrage

Its been six months since I first introduced my Social Lending Arbitrage method to the mydollarplan community, and Madison has asked me to provide an update on where I stand with my method.

To summarize the idea, this method basically plays an arbitrage game similar to the no-interest credit card arbitrage popular on the site but with a slightly different twist in that I’m borrowing money at a lower interest rate and lending it out at a higher interest rate — and pocketing the difference.

Social Lending Arbitrage Numbers

I borrowed $10k from lenders at the Lending Club website at an interest rate of 7.78% and turned around and invested that capital (minus some service fees taken out by Lending Club as a part of the loan) to other borrowers with a higher risk profile than myself. It is a method wherein I profit off of varying appetites of risk. I have a higher risk appetite with this money than other lenders and as such, I make a return off borrowed money (Note that I have enough cash held in reserve from other sources that I am able to cover my loan should the social arbitrage world end tomorrow, so my sense of risk is appropriately higher than someone who does not have that).

Metrics as follows:

• Amount Borrowed: $10,000
• Interest Rate: 7.78% (Or $1,245 over 3 years)
• Total Fees: 1.25% (note that this has since gone up to 2.25%) (Or $125)
• Total Cost of Capital (3 yrs): $1,370 (13.70%)

Loans:

• Amount Loaned: $9,875 ($10,000 minus $125)
• Loans filled ($25 per loan): 395
• Est. Default Rate: 2.5% ($247 in total)
• Net Invested: $9,628
• Average Annualized Return: 14.69%
• Service Charge: 1%
• Net Return: 13.69%

Total Return of Invested Capital (3 yrs): $2,166 (22.5%)

Arbitrage Gain (3 yrs): $797

Social Lending Details

I personally choose all 395 loans, which I feel was incredibly time-consuming, but also ended up being to my benefit, as the default rate is lower than normal (outlined in more detail below). I have not decided whether I would go that route should I do this again in the future, since it was more time-consuming than I was ok with.

The beauty of this system is that I have isolated all transactions related to this set up to one bank account which is fully automated — I don’t touch it month over month. My only real work after initial set up was to determine whether my default rate is staying below my forecasted rate of 2.5% (which I update quarterly).

I am 1 year into this plan and thus far, of the 395 loans I have funded, I have had 2 default (one with 3 payments made in total, the other with 6), which translates into a 1.50% default rate (assuming I will have another 2 default per year through the remaining 2 years). This equates into more of a return than I had originally forecasted. Happy day!

While it is next to impossible to determine which loans could potentially default in the future, I was highly surprised that of the sheer number of loans I have funded, 10 have had any late payments, and of those, only 2 have defaulted. My thought behind this is that barring unforeseen financial hardships that could occur to my borrowers, I would expect those that have been paying so far to continue to do so through the end of the loan term.

Selling Riskier Loans

I have kept a close eye on the credit scores on all my loans with a lower than B rating (the riskier loans in my portfolio) to see if they are getting “riskier” than they were when I originally funded the loan. Should any fall substantially far below their original rating (something at this point I consider subjective from both a rating perspective as well as my own viewpoint), I plan on selling the debt to someone with a higher risk appetite than myself.

How to do so? Luckily for me (and others), Lending Club and Prosper have provided their members the ability to sell the debt they own to other members on a trading website Folio Investing. This adds a degree of flexibility to lenders in case they want to pull out on one or many loans. It effectively provides me the ability to increase my liquidity should I need it (although there is the potential I would lose my return or even my principal should I have to firesale the debt). In my mind, the more options I have for worst-case scenarios, the better I can exit this position and minimize my losses should the worst happen.

Social Lending Projections

Using the updated default rate, my new forecast calls for me to earn approximately $835 over 3 years. This assumes I do not reinvest the return I make on new loans (which at this point I am not doing), so theoretically this return could be higher than that should I choose to do that (which I am considering, but have not had the time to properly research new loans). The idea that by reinvesting, I compound my return makes this plan all the more enticing! Not only am I receiving free money, I begin to see an even greater return as the free-money snowball gets larger over time.

I must reiterate that this investing method is definitely not for everyone. Every investment has a level of risk and while I feel this is easy enough for myself to earn a small return, others may not like the inherent risks of investing in a new vehicle such as social lending is. This is a relatively new type of investment and while the intent behind the system is very noble, some may consider the relative ease of borrowers’ ability to game the system to be riskier than worthwhile. Others may consider the return in actual dollars to be too small for some people to consider – this may be more work than worthwhile. Again, its a personal decision.

For myself, free money is free money, and is completely passive income, which in my mind makes the process worthwhile. What kind of free money returns do you have?

Lending Club is giving a sign up bonus to try out social lending for free. If you haven’t taken advantage of it yet, you can try it out at: Lending Club $25 Sign Up Bonus.

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Ironically, last week, I also refinanced our mortgage (again) to 3.625% at Penfed. It’s a little funny that they’re loaning money cheaper than they are borrowing it, but they’ve been known to do so, so it’s a double win for us.

They’re currently letting people reserve $240,000,000 worth of CDs at this rate; as of this morning, there was $207,000,000 left… and it usually goes fast!

How to Get a 5% CD

To reserve your CD, you need to login to your account. Select account actions, then select certificate options. On the right, you’ll see a certificate reservations box to reserve a CD.

The 5% APY CD rate is for the 10 year CD. They also have a 7 year for 4.25%, and a 5 year at 3.5%. However, going with the 10 year rate is probably going to be your best bet, no matter when you withdraw the money. The Bank Deals Guy put together a chart showing what percent you’ll get each year with the early withdrawal rates factored in.

How to Get the Promotion Box

The promotion is only supposed to work for select current CD holders. However, I discovered a glitch, and accidentally determined a way to become one of the selected few to qualify for the promotion.

Here’s what I did: If you don’t currently have a CD (which I didn’t), I set up a new CD, but stopped short of funding it. When I got to the funding part, I just hit cancel. Then I was able to login again to the certificate options and I saw the reservations promo on the right hand side! I got a confirmation email a little while later, so we’ll hope it works. Let me know if it works for you too!

The certificates will be funded in January, and you can change your mind anytime before that. Here’s what it looked like when I reserved my certificate yesterday:

Investing

• The Long-Term Prospects for Stocks: Game Over?
• Own Stocks For The Long Run
• Morningstar Admits Fund Expenses More Important Than Star Ratings

Debt

• How Much Fun Should You Have While in Debt
• The Switch: From Paying Interest to Earning It
• Communication Will Get You Out Of Debt

By the Numbers

• 7 Financial Tips for Your Kids Starting College
• 10 Ways to Make Money Online from Anywhere
• Home Mortgage Rates – 6 Key Factors
• 7 Tips to Help Manage Your Finances When Out of Work

And More!

• Could Your Lack Of Money Be Your Own Fault?
• Learn One Lesson: Who Is the Client?
• A Tale of Two Televisions
• How to Save Money when Eating Out
• My Financial Bucket List
• Carnival of Personal Finance

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It’s our double dose of early Free Money offers this week since both the Citi $50 Sign Up Bonus & 10% off AT&T Service and this offer expire on Friday!

WT Direct sent me an email with the following offer. If you are currently a WTDirect customer too, look for the offer in your email.

How to Get Your $200 Bonus

1. Find your email from WT Direct with the offer in it. Here’s what mine was titled so you can search for it: “WTDirect – Earn More Interest and up to $200 Cash!” I got the email on August 12.
2. Build your savings by August 27, maintain it through November 27 according to the chart below.
3. Get your bonus on or about December 10, 2010.

WTDirect Terms and Conditions

• This offer is available to the recipient only and is not transferable.
• Deposits must be made via electronic (ACH) transfer received by 8/27/10.
• Bonus is determined by the account balance on 8/27/10, and that balance cannot decline through the end of the promotional period.

If you don’t have a WTDirect account yet, but want to open one so you can take advantage of future offers, you can open one at: WT Direct.

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Note from Madison: You’ll have to hurry, this offer expires this Friday… so we’re changing the schedule this week and running back-to-back free money offers early to make sure you get a chance to get in on them!

How to Get Your Statement Credit

1. Sign up for the AT&T Universal Card by August 27, 2010.
2. Make $50 in purchases in your first 3 months.
3. Receive a $50 statement credit within 8 weeks of the end of the promotion period.

Citi Terms and Conditions

• The credit can only be earned by new AT&T Universal Savings and Rewards cardmembers.
• Fees, cash advances, balance transfers and interest charges do not qualify as a purchase.
• The only eligible transactions for which you earn savings are AT&T consumer products and/or services purchased directly from AT&T, billed to your Card Account. AT&T consumer products and services must be purchased from www.att.com, www.telephones.att.com, AT&T owned stores or AT&T customer service centers.

More on AT&T Universal Card

AT&T Discounts. If you use AT&T for wireless service, Internet connection, or digital TV, for the first 12 months, save 10% with your card on the AT&T products & services up to $350 per calendar year. Just make sure you make at least the same amount in other, non-AT&T purchases.

ThankYou Points. The AT&T Universal card also earns you Citi ThankYou Points – 1 point per dollar spent.

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The Tax Foundation has a 2011 tax calculator that helps you project your 2011 income taxes based on all the options Congress is considering.

2011 Tax Calculator

The 2011 tax calculator has 4 scenarios based on what Congress decides to do:

1. Bush tax cuts expire in 2010.
2. Bush tax cuts are extended into 2011, supported by Republicans.
3. Obama tax cuts based on President Obama’s budget extending tax cuts for families making under $250k ($200k for individuals) and limits on itemized deductions.
4. Modified Democrat tax cuts based on Obama’s plan without limits on itemized deductions introduced last week.

Tax Calculator Inputs

The tax foundation outlines all of the tax parameters used to build the calculator so you can see where they make their inferences.

It includes 2011 tax scenarios for capital gains tax rates and many of the items included in the expiring Bush tax cuts.

You can check out the calculator at www.MyTaxBurden.org for your income tax 2011 planning.

2011 Tax Planning

We’re currently planning for 2011 taxes with various scenarios based on whether or not the Bush tax cuts expire.

With the 2011 tax calculator available, it should simplify some of the calculations, like when you should pay taxes on your 2010 Roth conversion.

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The TradeKing sign up bonus, which was very popular last time they offered it, is back. You’ll have to act quickly, this one expires at the end of the month!

How to Get Your $50 Sign Up Bonus

1. Visit TradeKing and open an account by August 31, 2010.
2. Fund your account with at least $2,500 within 30 days of opening it.
3. Execute one trade within 180 days of opening your account.
4. Get your $50 deposited into your account.

Terms and Conditions

• One offer per household.
• U.S. residents only.
• You must keep your account at a minimum of $2,500 (minus trading losses) for 6 months or your bonus may be surrendered.

Benefits

Low Fees. TradeKing charges $4.95 per trade plus 65 cents per option contract. For stocks priced less than $1.00, they add $0.01 per share on the entire order.

No Account Minimum. An account minimum applies for this promotion but not for the account in general.

Free Trading Tools. TradeKing has tools like a Profit + Loss Calculator, Probability Calculator, Technical Analysis Tool, and Scanning Tools that work for your individual options and complete option strategies.

SmartMoney also touts TradeKing’s great customer service. See for yourself or check out our TradeKing review.

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My Unemployment Story

I never thought that I would find myself laid off, especially at my first job out of college. Five years ago I began work as an International Sales and Marketing Specialist for a start-up company. The offer came in during the last weeks of my undergraduate education, and was just too tempting to turn down: a $40,000 base salary and a title for a soon-to-be college grad that, while I knew I would have to grow into, gave me the sort of instantaneous definition I desperately needed in a rapidly transitioning time.

Hired on a one-year grant to promote international sales of agricultural-based food products, my task became painfully clear in the first weeks of work: to convince companies in other countries to sell our products with no history of success, no travel budget, and no clue as to how to begin.

After almost a year’s worth of hard work, one morning my international title came out of hibernation and I received my first order from a large food distributor in Taiwan. I presented the deal to our board, detailing how I was going to execute all of the logistics. To make this happen, I needed to be a salesman, a freight forwarder, a project manager, and a quality control expert rolled into one.

The end result? The order was a disaster nearly every step of the way with the sort of kinks that happen for every start-up company’s first export: our shipment was late leaving the factory, resulting in extra costs at the dock. Our plant manager gave me the P.O. address of the factory instead of the street address, which resulted in an overhaul of all documentation. The client had not understood that our manufacturing facility was in a different state from our office location, and almost canceled the order entirely.

And yet the order shipped, so I thought everything was okay. Unfortunately, what I did not focus my attention on was my time within the one year grant whittling away. One $27,000 shipment, even with the promise of future business, was not enough to justify an international department. Two weeks later is when I found myself sitting across from my boss, being asked to pack up my things and leave.

Have you found yourself among the growing number of unemployed in the U.S.? If so, What to Expect When You File for Unemployment will help you apply for benefits and pay your bills while you and our economy work on redefining yourselves.

Do you have an unemployment story? If so, we’d love to hear about it.

Real Estate and Investing

• The Myth of Positive Cash Flow
• FHA Loans vs Conventional Loans
• Should You Invest in the Top Fund of the Decade?
• What Wall Street Reform Holds For You

By the Numbers

• 7 Good Jobs that Do Not Require a College Degree
• 5 Ways Social Media Can Cost You Money
• 6 Online Resources Every Freelancer Should Use

And More!

• When NOT to Splurge
• Beyond the Emergency Fund: The Frugal Pantry Project
• How to Develop Good Habits
• Where Are The High Paying Jobs?
• How To Set Up A Bullet Proof Family Budget
• Carnival of Personal Finance

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Each Thursday night after working at my first job out of college I would rush home, change, then head 1.5 hours away to Washington D.C., park my car at my Aunt Anita’s house in Chevy Chase, MD, then walk half a mile to a subway station, change trains at Union Station, walk another half a mile, and enter a classroom that whisked me away to the foreign tongues of Japan. When I lived in Palm Beach Gardens, Florida, I signed up for another class with a professional chef that had me leaving work half an hour early on Wednesdays and driving 45 minutes down to Ft. Lauderdale to a community college kitchen. Learning is a lifelong love affair of mine.

Something that makes learning an obstacle for me and for others is the oftentimes high price tag. According to the College Board, the average tuition cost for 2009-2010 for private school is $26,273, and for public schools is $7,020. Even signing up for a 12-week course in Yoga can cost you several hundred dollars. One cooking class can run you upwards of $200 all by itself.

I encourage lifelong learning despite the high price tag, and have found many ways to get around paying full price. Below is a list of several resources so that you can find a way to continually increase your knowledge without paying a small fortune.

1. Adult Community Classes

Many community colleges offer continuing education classes at nights and on the weekends, and we are not just talking about biology and algebra. If you are looking for a class in cooking, instead of searching the internet and finding overpriced, stuffy classes with Grade A chefs, look to your local community college. I was able to snag an 8-week course in cooking which included all of the ingredients and a free meal each night for $100. What a steal! You can also find classes on knitting, cooking, languages, or really anything else you are interested in.

When I was thinking about pursuing a graduate degree in psychology, I went to my local community college and signed up for a beginner’s course to test the waters and see if it was something I really wanted to do. Total cost was $250 (and that included the registration fee to become a student at the college). Not only did I get access to a great class, but as a student, I had access to their library, gym/pool and all other amenities on campus. That is less than what I would pay for a gym membership!

In addition, the new student loan forgiveness program also allocates a large chunk of money to help community colleges, which will in turn help students save money.

2. Give Your Time in Exchange for Knowledge

If you are able to donate some of your time, then you can be trained in a variety of fields. AARP has a program that does free tax returns for low-income citizens. If you want to volunteer your time, then you will be trained in basic tax and accounting. Volunteer at a local farm or farmer’s market, and you can walk away with gardening skills and cooking tips. Volunteer at the zoo and learn about an array of animals. If you’ve got the time, the sky is the limit.

3. No Loan Colleges and Free Tuition for Low Income Students

Many colleges out there offer No Loan programs, meaning that they eliminate loans from financial aid packages for low income students.  Some of these colleges include Princeton, Rice University, UNC Chapel Hill, University of Virginia, and the University of Pennsylvania. Check out this resource for more information (scroll down for a chart of many different colleges that have reduced tuition offerings).

And income does not have to be all that low to get free tuition; Harvard gives out free tuition to students whose parents make below $60,000.

4. Download Free Classes from Top Universities

Universities such as MIT, Stanford, and Yale are making class lectures and notes publicly accessible. You can take a course in literature on your laptop, or download a biology lecture onto your iPod. Taking a trip to France? Why not take a free course in the French language before you go. The sky is the limit here, and you now have access to information others are paying a boatload to get.

5. Leisure Learning Classes

Check out your community centers and do a google search for leisure learning or adult learning classes. Most cities and towns offer adult classes at very good prices in an array of fields. In Houston, we have the Leisure Learning company, which has hundreds of new classes twice a year in subjects as varied as beer making, Microsoft Access, and horseback riding. These courses are taught by experts, professionals, or perhaps your neighbor who learned a great skill and wants to earn some extra money on the side.

6. Look to Businesses

Many companies and retailers offer free classes to draw in potential customers. You can take a cooking class at a grocery store or farmer’s market, brush up on some computer skills by a major firm looking to launch a new product or take a free wine tasting class at a local winery.

7. Tuition Assistance through Your Job

I was surprised to learn—after being at my job for over a year—that one of my benefits is up to $1,000 in free courses at an approved University. The course needs to be in my field (environmental), and I have to cover tuition up front until I can prove a passing grade at the end. But what a great resource! Check out your own benefits package to see if a similar deal is being offered. If you are up for a raise but your company cannot give you one due to economic hardship, suggest that instead they offer to reimburse the cost of one or two classes you are dying to take—make sure to include how your new knowledge will help the company in your proposal.

What educational resources have you found that were great deals? I’d love to hear about them!

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And shouldn’t we? With all of the rewards programs out there—and there are some really interesting ones—why should we spend our money just to get the product itself?

Reward Programs for All Your Purchases

Below is a taste of the free rewards programs available. Peruse and sign up for some!

• Diapers: There is Huggies Enjoy the Ride Rewards Program, and Pampers Gift to Grow Rewards Program. Rewards include magazine subscriptions, coupons for more diapers, baby items, and movie theater tickets. Check out Money Saving Mom’s website as she often posts free codes for you to enter into your account.
• Coca Cola: Paul and I are part of the MyCokeRewards program, and have so far cashed in our points for 4 movie theater tickets, and two years worth of subscriptions to the Oprah O Magazine.
• Electronics: Like electronics, DVDs, etc.? Best Buy has the Reward Zone program where you earn one point for every dollar spent in their store and redeem the points for gift certificates to spend at the store. Sony also has a rewards program.  
• Hardware: True Value Rewards Program allows you to earn points for purchases made that you can redeem for gift certificates on your future purchases. Ace Hardware has a rewards program as well.
• Movies: Earn points for purchasing Disney Movies as well as watching them in the movie theater. AMC MovieWatcher, Cobb Theater MovieGoer, Regal Crown Club are all movie theater rewards programs that help you earn free tickets, which is great since movie theater tickets are so pricey.
• Office Supplies: Staples rewards program, Office Depot’s Worklife Rewards and Office Max’s MaxPerks are all programs to help you score free office supplies.
• Coffee: My Starbucks Rewards, and Dunkin’ Donuts DDPerks will help to make sure your coffee addiction (or doughnut, for that matter) rewards you back.
• Chocolate: Godiva has a rewards program where you get one free piece of Godiva chocolate per month in-store.
• Credit Cards: Rewards credit cards let you earn points for all your purchases. In addition, many offer bonus rewards on certain categories like gas and hotels with cards like the Chase Freedom.
• Books: Borders Rewards Program allows you to earn points towards in-store redeemable gift certificates, as well as signs you up for weekly coupons (my favorites are the 40% off any book).
• Orange Juice: Tropicana Juicy Rewards will reward you with experiences for purchasing their product.
• Yogurt: Join My Stonyfield Rewards Program and earn points to spend on more Stonyfield products.
• Airfare: Various airlines let you earn points to redeem for free travel.
• Toys: Toys’R’Us has the Rewards’R’Us program where you get a $5 gift certificate to spend in store for each $150 in purchases made. GameStop PowerUp rewards will help you earn money towards new video games and equipment. GamersGate offers a rewards program as well.
• Vitamins: NatureMade’s reward program helps you earn points towards coupons for future purchases, yoga equipment, and other wellness items.
• Department Stores: Join JCPenney’s rewards program to earn gift certifications to use in store with each purchase. This one is also great because they periodically send you $10 off $10 or more purchase coupons that can score you some really cheap stuff! Accumulate points using FamousFootwear’s rewards program to earn free shoes.
• Yarn: Jimmy Beans Bucks offers knitters a way to earn cash back on their purchases, as well as one free shipping coupon at the end of each quarter.  

What are some of your favorite rewards programs?

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Definitions

First of all, you should be aware that there are actually two different types of money market accounts: money market deposit accounts and money market mutual funds. Money market deposit accounts function more like bank savings accounts while money market mutual funds are a type of (very safe) investment.

Account Differences

• Providers: Almost all banks offer savings accounts as a compliment to their regular checking accounts and many online banks offer savings accounts exclusively. Many banks also offer money market deposit accounts, which may require a higher initial deposit/minimum balance and also pay a higher interest rate. By contrast, money market mutual funds are investments and thus offered by investment companies such as Vanguard.
• Insurance: Savings accounts and money market deposit accounts are FDIC insured – now up to $250,000. Money market mutual funds are technically not, although they are regulated by the SEC and largely considered risk-free.
• Deposits: Money market deposit accounts and money market mutual funds may require a minimum deposit of as much as $10,000, whereas savings accounts can usually be opened with as little as $1.00. All three accounts may require you to keep a minimum balance to avoid fees.
• Withdrawals: Money market accounts usually come with check writing privileges. Savings accounts do not allow check writing but do allow withdrawals or transfers to checking accounts. Both types of accounts may limit the number of withdrawals to 6 per month.
• Interest rates: Traditional bank savings accounts generally pay less than 0.5% interest, while high interest savings accounts can offer as much as 1.5% right now. Money market mutual funds offer 1-3% traditionally, but are trending closer to the lower end of the range since interest rates are currently so low; some of the highest money market interest rates available right now are through the EverBank $75 Sign Up Bonus.
• Taxation: All three accounts are taxable. However, some types of money market mutual funds may invest in federal or municipal securities and thus be tax exempt for either state or federal purposes.

Bottom Line

In times of higher interest rates, both types of money market accounts may offer more interest than a savings account. In today’s interest rate environment, that difference is negligible unless you are talking about a very large amount of money or a money market sign up bonus. While money market mutual funds are technically the “least” safe of the three accounts we’ve talked about, all three are very safe options that also offer a good deal of liquidity.

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