Lending Club—A peer to peer lending network that connects borrowers and lenders through social media. Borrowers put forth an initial fee of anywhere between 2.25 percent and 4.75 percent in order to create a listing that describes the type of loan they are looking for. On the other end, lenders can peruse through the different loan requests until they find one that sounds interesting to them. If they decide to lend money they will pay 1% of the borrower’s origination fee.

Pro: Provided you have a good credit score, the Lending Club offers better interest rates than banks.

Con: LC is highly selective and rejects 90% of borrowers who apply for loans.

Prosper.com—Lending Club’s biggest rival began like the mixture of eBay and an auction service but has since transformed into a more Lending Club-like business model. For lenders, Prosper.com currently offers seasoned returns of 10.46% and the ability to diversify their portfolio. For borrowers, Prosper starts their rates at 6.59% APR for unsecured loans. They also offer fixed loan rates ranging up to 35.84%.

Pro: Lower origination fees and the ability to make monthly payments

Con: Borrowers may not have as good of credit.

Zopa.com—Zopa is the leading UK-based lending network, although they are currently developing operations within Italy and Japan and has partnered with six US credit unions. The word stands for “zone of possible agreement.” The service itself is very similar to Lending Club and Prosper.com, with the principle difference being that it is more structured like an online auction.

Pro: Better interest for borrowers, better returns for lenders

Con: Has not expanded to the US yet.

These three peer-to-peer social lending networks are symbolic of the larger trend toward social media and crowd-funding, both of which are challenging banks. The trend appears to not have left entrepreneurs by the wayside. If you’re looking to borrow money or invest money and are somewhat suspicious of banks you should take a long hard look at networks like the Lending Club, Prosper.com and Zopa.com.

New car vs. old car repairs—This is an age-old question. Your old car needs some repairs, maybe a new transmission, that will end up costing you near and about the price of a new vehicle altogether. Many people think the responsible thing to do is to just buy a new car. But is that really the most responsible thing to do? Sure, the repairs on the new car may cost you a lot, but if your car is well insured and gets good gas mileage, why invest in a new vehicle with a brand new carbon footprint? View your new car over the span of ten years, when energy requirements may make it financially rewarding to get a hybrid or electric vehicle. Sometimes it’s better to stick with the old, until the new really is new.

New credit card with better interest vs. paying off old credit card—People are always feverishly looking for new credit cards with better interest rates, but in reality this plays right into the hands of the credit card companies, who are hungry for new customers and will offer anything in the short run in order to get your signature. Then, before you know it, they raise the rates right back up and now you’re stuck paying off two cards. Instead of looking for better rates, pay off your existing credit card debt and then pay for things with cash or debit!

Refinancing your home vs. investing in energy-efficient upgrades—With home prices at historic lows, many people are looking to cash in on the housing industry by refinancing their mortgages now. But perhaps that money would be better spend renovating your home and upgrading its features, including energy-efficient utilities, so that your home will grow in value.

These are examples of financial decisions that are like trick questions. You can think you’re making a shrewd choice until you consider how the finances of it will play out over the long-run. When planning your financial future, consider decisions like these as ways to balance short-term and long-term savings.

Declare bankruptcy

Many people mistakenly view bankruptcy itself as financial ruin, the end of the road. But the reality is that bankruptcy is simply the name given to legally divesting yourself of overwhelming debt at the hands of a failed business, unpaid bills, or countless other circumstances. While the declaration of bankruptcy will affect your credit score and may affect your ability to take out loans or start businesses, it will protect many of your assets from court proceedings and lawsuits. A bankruptcy lawyer will certainly be needed to walk you through the legalese.

Consolidate your debt

One way to reduce the monthly nightmare that is paying bills and protecting yourself from default is to apply for a debt consolidation loan that will bundle your collective debts together into a single monthly bill. The advantage of this is that it simplifies your payments and gets creditors off your back. The disadvantage is the interest you will have to pay.

Pay your taxes

In the short run, not paying your taxes may seem like your only option for avoiding debt. But it will always catch up with you and tarnish your credit report. Some people end up having to pay hefty fines and even serve prison time for their inability to pay state and federal taxes. Remember, only two things in this life are certain: death and taxes.

Raise your credit score

Outstanding bills, defaults, unpaid loans, and foreclosed properties are just a few of the financial factors that can send your credit score plummeting. And once it falls it’s very difficult to pick back up. It can take years to repair your credit score, but it’s necessary in order to acquire any kind of business loan, mortgage, or scholarship. If your credit score is low attempt to raise it by making your payments on time and managing several lines of credit.

Whether it’s deserved or not, financial ruin can strike anyone. All it takes is the right (or wrong) confluence of factors mixed with bad luck and poor planning, and you can find yourself struggling to stay afloat. If and when this happens, you should be prepared for how you are going to deal with it.

In today’s education system, finance or personal finance courses are not required in most schools. This leads to entire generations without the slightest idea of how to properly manage their money. To ensure their financial future and good spending, parents should be quick to teach their kids about good personal finance – even at a young age, just like they would good eating or personal hygiene habits. A few good ways every parent can teach their kids good personal finance include:

Practice Budget Creation

When you have to take the little ones with you to the store, don’t let them simply scour the aisles looking for their favorites cereals and snacks. Turn that time into a personal finance lesson. Before heading to the store, give each kid a set budget and a list with a few items from your list on it. Then tell them they must get what you need on the list within their budget. It’s a great way for them to learn to shop on a dime, and to not always reach for higher priced name brands.

Proper Allowance Management

For younger kids, teaching money management through allowance is a great way to mimic real life spending and savings. Their allowance is the real world equivalent to a paycheck, and they need to know how to properly earn and save their money. Make certain chores worth certain payouts, and teach your kids how to properly save parts of their allowance so they can make bigger more worthwhile purchases.

Open Checking and Savings Accounts

For older children, especially those interested in working outside of the home, you should encourage them to open both a checking and savings account with a local bank. Let them know about banking fees and interest rates, and encourage them to shop around for the bank that will be best suited for them.

There can be a strong difference between opening a savings account with a credit union and choosing a Discover savings account.  Kids need to learn at a young age how to make their bank accounts work for them, and having them shop around to find a great high interest savings account in a great way for them to learn.  Not only will they learn the importance of a higher interest rate, but they will learn about compound interest and how choosing that high interest savings account over a regular account will actually make their money work harder for them.

Prepaid Credit Cards

Whether you like it or not, there is a good chance that your kid is going to have to encounter credit cards if they wish to build and maintain good credit. So that they don’t sign up for the first credit card that offers a free pizza upon signing in college, teach them about credit cards and the interest rates and fees that are commonly associated with them.

A good way to do this is by giving them a prepaid or limited credit card while they are still under your roof. These cards essentially serve as practice cards and can enforce good spending habits without letting your kid get in over their head.

We all want the best for our kids, and although our focus is generally on getting them into a good school and insuring their health, parents also need to take the time to focus on proper financial education. Not only with teaching proper finance skills keep your kids from becoming a consumer debt statistic, but it will also allow them to achieve their future financial goals more easily.

- What to Sell

The simple answer is: pretty much anything.  Unlike Ebay, Craigslist does not have any associated selling or listing fees so even if something doesn’t sell you won’t lose money.  Another added benefit to using the big C-list is that everything is done locally, or at least it should be, so no shipping fees are necessary, and bigger items can be sold easily and conveniently with little to no effort at all.  By simply going on the site, you can check out the types of categories and items people in your area are currently selling.

- Beginning

Once you’re ready to sell, hop on craigslist.org and select your state and city or the closest city to your home.  Next, click on the “post to classifieds” link on the top left side of the page.  A menu of options will come up from which you can choose “for sale.”  Continue to follow the prompts until you get to the page that asks you for a posting title, price, specific location, email address, and a posting description/pictures.  In order to figure out what to place in most of these categories, it helps to go through the existing classified section to which you’ll be posting your item, and see how some others have formatted their similar items for sale.

- Write a Good, Concise Description

Aside from your title and pictures, your text description is a hugely important tool to rope prospective buyers in.  You want to give a detailed description of the item, but be as concise as possible – nobody wants to read three pages describing a toaster oven.  Relay the essentials: the overall shape the item is in, how old it is, why you’re selling it, measurements, and if there are any flaws – people will be angry if you falsely advertise an item, and they likely won’t buy it.  Include your phone number if you’re comfortable with it, and give a brief description of the best means/time for people to get ahold of you.

- Pictures

Taking bright, well-framed pictures of your items is the best way to get people interested in your goods.  You can upload four, so you should use them all.  Show various angles, and include a frame of reference like a standard 12-inch ruler if necessary.  Merely having pictures will increase your chances of selling on Craigslist about ten-fold – if you have good pictures, that will make it that much easier.

- Prices

Don’t be ridiculous with your pricing.  Check online to see what similar items are going for, and be prepared to negotiate.  Putting “OBO” (or best offer) in your description will often attract more potential buyers who are looking to get a good deal, although it’s entirely up to you.

- Activate/Remove Listings

Once you’re satisfied with your listing, you must activate it.  After you submit it, craigslist will send you an email with directions to activate the posting.  It will show you the posting as it will appear and offer you the option to make any edits.  Once you publish, the posting will appear on craigslist for the public to see, though you can always make edits through that original email.  After 48 hours, you can republish your post to get it back to the top of the listings, although you’ll need to rewrite it out again, so saving your initial posting somewhere is always a smart idea.  Once something has sold, it’s a wise idea to remove your posting, so you’re not receiving continuous calls or emails about an item that has already been sold.

- Safe Selling Habits

While Craigslist is usually a safe way to sell your goods, it’s smart to follow some simple guidelines to ensure your safety.

1. Only accept cash, absolutely no checks
2. Arrange to meet in a public area if possible
3. If an item can only be picked up at your home, give your address to a buyer only when they’re ready to come pick it up
4. Wait outside your home with the item, and don’t let the buyer in unless it’s necessary or you feel comfortable doing so
5. If possible, have a friend or neighbor nearby

Now, all you’ve got to do is hit the basement, garage, or wherever you’re keeping those old items to collect dust, grab your camera and computer, and get selling.  The sheer ease of craigslist is bound to have you coming back to sell more in no time.

But there’s some good news: medical expenses can be tax deductable. However, this possible deduction comes with a catch; before you can deduct one cent from your taxes, your total health expenses for the year need to exceed 7.5% of your gross income. This means that a person who earns $60,000 gross would need to incur at least $4,500 in medical costs before any tax savings can be realized. The IRS instituted this rule to insure that wealthy Americans would get deductions, but the high cut-off mark makes it difficult for many people to write off their medical care.

Fortunately, there are legal ways to inflate your healthcare expenses so as to hit the cut-off and get the deduction. Here are a few main tips for doing just that:

-Include core and peripheral costs. Almost every cost associated with medical care can be included in the total figure. This includes core expenses like surgeries, treatments, and doctor’s visits, but it also covers more peripheral costs such as gas spent to travel to a hospital, drug treatments, insurance plans, and items that a doctor suggested you purchase. In fact, there are few healthcare related costs that are not included. Foremost among these are certain health-related donations, such as a donation to a blood bank.

-Don’t forget dependents. Your total heath costs don’t simply compromise those expenses that were incurred in your name. Rather, they include any money you spent on healthcare for any person – you, your spouse, your children, your parents, etc. Don’t forget to include these costs if applicable.

-Rotate years. Medical expenses are usually unique in that they often cannot be anticipated or planned. But, if you have the ability to do so, concentrating your major medical expenses in rotating years can help you hit the cut-off 50% of the time.

These are just a few tips to keep in mind when trying to get a tax deduction for your medical costs. While the 7.5% cut-off may seem high, this does not mean that it’s insurmountable – especially when every single cost is taken into account.

- Paperless, Online Checking

Look into the paperless options for your bank or your future bank.  Going paperless not only helps the environment, it actually makes your life a lot easier.  Instead of receiving paper statements via snail mail, which takes time and man power, why not use the internet to keep tabs on your checking account?  This grants you instant access to see and track your spending, and also to see if you’re getting any bogus charges or fees each day.  Many people are also switching to internet banks in general these days, which offer some great perks, free checking accounts, and competitive credit rates worth looking into.

- Read the Fine Print

Literally two weeks ago I was checking my paperless online statement when I noticed a random $12 charge for a “monthly maintenance fee.”  After doing just ten minutes of research into the charge, I figured out that my particular checking account carried with it a minimum daily amount that I had to have in my account at all times.  If I failed to have at least that amount even just one day out of the month, then I was subject to a 12-dollar monthly fee.  How long this had been happening I didn’t even care to find out, but without diving too deep into my personal financial woes, let’s just say I wasn’t maintaining that daily minimum very often.

After doing just a bit more research, I found that by switching to a different account option with the same bank, I could completely eliminate these fees, get rid of paper statements which I never checked anyway, and save money with a unique change-saving service.  In two weeks, I’ve already saved roughly $40 with the new account.  So take it from me: read the fine print of your account specifics.  Know your options within your bank, but also….

- Compare Banks and Accounts      

While switching banks may seem like a lengthy, hassle-filled process, if it can save you money, it’s worth it.  First of all, there’s really no reason to be paying for checking services.  With all the free checking accounts out there, paying for one is a real waste.  There are plenty of sites out there that offer free account comparisons that you can easily look into.  Similarly, all major banks will have a list of the various types of accounts and the specifics of each, right on their website.  Take a little time to browse some of the major institutions, as well as some smaller ones, to see if any of them fit your needs.

Saving money with your checking account is something that often goes overlooked by bank users.  They often sign up for a checking account, throw their cash in there, and then forget about their options.  By taking just a little extra time out of your day to look into your particular account details, and compare with other existing offers out there, you could save yourself some serious money, and potentially help get out of debt much quicker.

So what do you do if you want to save money at the store and avoid the giant stockpile at home? Follow a few of these easy couponing tips:

Look for Generous Stores

Not all stores are created equal when it comes to coupons. Look for those that allow coupons to be doubled or tripled and also allow coupons to be stacked – meaning allowing the use of multiple coupons to be used at one time – for the best chances at savings. Generous stores will also gladly accept their competitors coupons giving you a better chance at savings.

Plan Ahead

Creating a stockpile room that rivals that of apocalypse fanatics is not what is meant my planning ahead. Planning ahead simply refers to creating your life of items you actually need, cutting coupons, and then finding the stores with sales going on to maximize your savings. You don’t need to buy more than you need, and sites like CouponMom.com can help you determine which stores will give you the most savings on the items on your list.

Sign Up for the Store Rewards Program

Most grocery stores offer reward programs customers can sign up for for free. This little piece of plastic can almost become as valuable as the coupons themselves as it can give you special savings with each additional dollar you spend, and may offer other discounts only members have allowing you to get incredibly discounted or free items.

We all like to save money, but there is no reason to get the entire family involved for hours of coupon clipping simply to save some money on groceries. With just a few easy tips and some adequate planning, you can get the groceries you want without jamming the aisles or tons of envelopes stuffed with coupons. Simply play it smart and purchase only what you need with the readily available coupons. You’ll have the pantry you want without having to sacrifice a room of your home and you’ll still save.

Biggest change looks to be the number of college graduates. That seems to be a huge boost to society. I wonder what things will look like 80yrs from now in 2090. Oh well, I will probably be dead anyways

Via: Home Insurance Guide

In these trying economic times, most of us are doing what we can to limit spending. Thanks to clever marketing, we also have a tendency to buy certain items when we see them displayed or have them suggested by a salesperson or agent. Convenience stores, for instance, make at least 60 percent of their profits on items that customers purchase on sight. In other markets, airports, rental agencies and other service industries increase their profit margins by “upselling” at the counter or online.

While there are sometimes valid reasons to buy these items, the sad truth is that many are simply a waste of money and they are purchased because you haven’t thoroughly thought through the purchase. Here are 5 terrible impulse buys that you’d be better off saying no to .

Rental Car Insurance: Here’s a great “upsale” example that’s often unnecessary. Sales associates at rental car agencies, and even the online rental applications, always offer insurance for the vehicle at what appears to be a reasonable price because they have an incentive to do so. The fact is that the “small” fee you pay for this coverage is usually as much as or more than a typical monthly auto insurance premium, for just a single day of coverage. Before you go to the rental counter or rent online, take the time to make a call to your current auto insurance provider. Chances are you’re already covered in the rental car, too and if not, adding the additional coverage for it will cost you a fraction of what you’ll pay when renting.

Timeshares: This is an especially terrible impulse purchase because it can end up costing you tens of thousands of dollars. Think about it — would you ever consider purchasing a timeshare except when being presented with this “opportunity” while on vacation? High pressure sales tactics are employed so that you don’t have time to thoroughly research the pros and cons to owning a timeshare, and many people find out that they can’t get rid of their timeshare after paying tens of thousands of dollars for it. As with all impulse items, if you haven’t thought the purchase through so that you know it’s exactly what you want, you are better off passing.

Any Gadgets in TV Commercials: If the guy on TV says you gotta’ have it, it must be true, right? Wrong. “Call in the next hour, and get a second one FREE!” How many times per day do we hear that sales pitch? Or my all-time favorite, “But wait, there’s more!” It’s easy to convince yourself that you need what they’re selling. In fact, that’s exactly what the commercial is designed to do — convince you that you can’t possibly live through another day without it. Take a deep breath, put down the phone and wait. If this item is worth buying, it will show up in the stores and then, you can at least judge the quality of the merchandise up close before you buy another gizmo that will sit in a drawer or end up in your next garage sale.

Car Upgrades: Cars are depreciating assets and as such, you should purchase only what you need. It’s going to go down in value the second you drive it off the lot so you want to keep your losses to a minimum. The car sales staff don’t make this easy for you to do this, however, because the good profit margins for them is selling you on upgrades. While the special alloy wheels, upgraded gadgets and other upgrades that you had not considered may seem appealing, they are costly and usually unnecessary. In fact, they can cost you even more down the road — special tires cost more to replace than standard ones when they wear out.

Items on the Shelves beside the Checkout Line: Candy bars, gum, soda, magazines — all these items and more are strategically placed within sight of those poor souls waiting to check out at the grocery store. Each has its own special way of screaming “Buy Me!” and most are unnecessary. Many are even bad for you and we know it when we purchase them, but the temptation is just too great. Don’t give in. You can grab a snack when you get home that won’t add inches to your waistline. The recipes in the magazine are probably available in the online version, too — for free. Do you really need more lip balm, or is there still a tube in your purse?

The basic rule to avoid impulse purchases is to have everything written down on a list of what you’re going to buy when entering a store. If it isn’t on the list or it is something that you hadn’t considered, chances are that it’s an unnecessary impulse buy. If you have any doubt, the best course of action is to delay the purchase until you are sure rather than paying out the cash.