Personal Finance Blog by Money Ning

4 Tips for Avoiding Extra Spending Just Because You Have a Coupon

Michelle — Tue, 10 Nov 2009 13:00:39 +0000

Coupons, coupons, coupons. Gotta love those savings… right?

It’s a safe bet that most of us who read this blog love coupons. We routinely check our newspapers for special offers, and we refuse to make purchases without searching for discounts because we are very careful with our personal finance. I like coupons and saving as much as the next guy, but lately I have been feeling the effects of coupon invasion.

It’s actually a pretty ingenious move on the part of the retailers: give the customer a coupon at checkout for their next purchase and you can almost guarantee that they’ll be back. Even better, ask for their email and mailing addresses and send them MORE coupons. With so many excuses to return to the store, the casual visitor becomes a regular customer in no time.

The problem is, we don’t always need to spend. However, we tend to feel great if we think we are saving, and we tend to feel terrible if we think we are wasting, which is precisely why we find it hard to let a bonus coupon go unused, no matter how little intention we had of buying anything in the first place.

Can you tell I’m trying to make myself feel better by using the collective “we” instead of admitting that this is an “I-me-mine” problem? But I’m sure there must be others out there who have fallen into the cycle of coupons and found themselves returning to the store three weeks later to buy a second sweater just because they could save 30% on it. So, I offer the following tips for avoiding extra spending when you really don’t need anything else:

Throw the coupon away.
If throwing it away is too hard because you can’t stomach the idea of throwing away savings, give the coupon to a friend (but only if your friend really needs it, of course!).
If you know that you’ll be too tempted by the coupons that arrive in your e-mail or mailbox, don’t give the store your contact information. You’ll still be able to seek out coupons if you really want them, and you might like having less junk mail.
Remember your budget. In the three weeks between now and the time you can use the second coupon, you’ll have plenty of time to study your budget and determine whether or not this is a purchase that you really need to make.

I’m confident that all of us (myself included) will do a great job of avoiding overspending due to extra coupons as long as we stop and think about what we are doing. If after some consideration and we can still use that bonus coupon, we can truly jump for joy. Yay for frugality!

---
Related Articles at Personal Finance Blog by Money Ning:

The More You Try, The More You Succeed

MoneyNing — Mon, 09 Nov 2009 13:00:05 +0000

Even a broken clock is right twice a day.

Oh I bet you heard that before, but imagine with me for a second that you are paid every time that broken clock shows the correct time. Now, let’s also say that you are able to hit a button to randomize the time on that clock as many times as you want and when it hits the correct time, you get money.

What would you do?

Wouldn’t you try to hit that button as many times as you could, assuming that the time it takes to do so is worth your while?

I would. In fact, I have proof, because this is pretty much how real life works and I have been known to experiment. I never know whether I will be rewarded for my actions, but we are all ultimately paid according to the results that we achieve. There are some consequences of failure, but for the most part, more actions leads to more positive results.

No one ever knows for sure whether success will come out of every project he/she gets involved in, but that shouldn’t be an obstacle. Even if I jump into something new and don’t get the desired result, I have gained a great deal of knowledge. Now, that’s power.

My boss used to love asking me to do everything because I almost never say no. At some level, one can argue that I was being taken advantaged of but it also gave me incredible exposure. Exposure that led to experiences few receive, especially considering my age. I mean, who would ever get a chance to help design an interior of a business building from the ground up, be in a a pressurized sales position handling multimillion dollar accounts, run an IT team and negotiate with its vendors at the same company? As I hopped within the company from job to job, it was insanely difficult but everything I did helped me so much. Negotiation? Check, relationship building? Check. Operational and technical skills? More checks.

It’s not how much you read. It’s how much you have done and know.

Sometimes, you have to say no to stay focus, but there’s incredible power with taking action and telling yourself yes.

Yes, you can do it.
Yes, you should do it.
Yes, you need to do it.

Get started. From career to family to personal finance. Get off your a** and do something about it.

---
Related Articles at Personal Finance Blog by Money Ning:

No related posts

Dealing with Diapers and Baby Supplies on a Budget

Guest Contributor — Sun, 08 Nov 2009 13:00:58 +0000

If there is anything more beautiful than the sight of a mother holding her newborn, I don’t know what it is. For many years I worked as a labor and delivery coach, and one thing I heard all the time was “How do I manage all the diapers and baby supplies without spending a fortune?”

When couples make a decision to have a baby, they rarely realize just how expensive this kind of stuff will be. As the pregnancy progresses, they start stocking up on some items and the sticker shock is palpable. Luckily, there are ways to get everything you need and not spend a fortune.

Free, Nearly Free, and Cheap

Thank goodness for the environmental movement, since it has lead to wonderful resources like Freecycle.org. This is a website where you can acquire just about anything for free, as long as you are willing to go get it. You can get whole bagfuls of baby clothes someone else no longer needs without spending a dime.

Garage sales are a great place to pick up things like onesies for a few cents a piece. While it may offend your sensibilities at first, realize that those faint stains are no big deal, as your child will add to them very soon. Why pay a dollar a piece or more at the store when you can get six for a dollar elsewhere? Avoid picking up a car seat at a garage sale though; you don’t know what it has been through.

Cheap options exist for things like cribs, changing tables, and other big ticket items if you head to thrift shops. Give them a good going over with some diluted bleach and you are ready to welcome baby home. You can also beg, borrow, or steal some of these items, like a swing, from friends who have toddlers.

Diapers

How is it that a container for waste has become such a controversial topic? We have all heard the arguments; disposable diapers are environmentally unsound, cloth diapers are a nuisance. The fact is both are expensive, it is just a matter of degree.

With cloth diapers you will spend more up front, but if you have your own washing machine, the overall cost is much lower, even more so if you have several children. This is one thing worth investing in; good wraps make all the difference. Wool wraps are generally regarded as the best for both baby and clothing. Finding then second hand is easy on auction sites. You won’t need more than half a dozen per size.

Using a diaper service is convenient, but generally expensive, ask a relative to give you this as a gift for the first few months if you want to try it out.

Disposable diapers are the most expensive option over the two to four years it takes to get a child toilet trained. The best place to purchase these is at a grocery warehouse. Name brands mean nothing; get the cheapest diaper you can find that works for your child. Working means they don’t leak material out the back or leg openings and can hold a night’s worth of urine without soaking the bedding.

No matter what, try to remember that in comparison to the total expense of raising a child and getting them through college, these expenses are petty cash. Enjoy your baby, save where you can, and expect the unexpected.

Never heard read this before? This is an excerpt from the free “How to Save Money on Everything” email, which every free newsletter subscriber already got. Just click here to go to the subscription page and learn more.

---
Related Articles at Personal Finance Blog by Money Ning:

6 Ways the Recession Has Changed Consumer Spending in Australia & the USA

Guest Contributor — Sat, 07 Nov 2009 12:52:57 +0000

Sometimes, it’s difficult to get a sense of what people in other countries have to deal with. Luckily, the guest post today addresses this, even in a very small scale.

A massive stimulus plan, reduced consumer spending, increased unemployment – we aren’t just talking about the United States here. The effects of the American financial crisis have stretched worldwide, and Australia has not been left unscathed. The current recession’s sticky tentacles have managed to drag down with them many economies that before 2008 were functioning and growing quite well. Unfortunately, Australia is one of those countries and here’s several first hand effects that I noticed.

Consumers Buying Less
With credit restricted in both the US and Australia, consumers are tightening their belts when it comes to purchases. A ‘Cash for Clunkers’ vehicle trade-in program in America paired with a nearly trillion dollar stimulus package, tends to overshadow a 26.5 billion (USD) Australian package, but for a country like Australia that is used to running a budget surplus and with a proportionately smaller economy, such numbers come as a shock. With no promises being made on either side that these plans will fix the economy and unemployment still rising in both countries, expectations are being tempered, leaving consumers wary as to whether they should dip their toes back into the spending waters. It is worth noting however, that consumer confidence is rising in Australia and has recently hit a two-year high.
Buying Better & Smarter
One of the benefits to the consumers of both nations during the financial crisis fallout has been a reawakening to the art of the deal. For many consumers used to paying sticker prices for vehicles, appliances, and electronics, the sudden abundance of great deals and lower prices have provided those who have money to spend the chance to buy the best products at a fraction of what they were offered at just a year or two ago. Lower housing prices, retail discounts, and government assistance programs such as the Cash for Clunkers program and first time homebuyer’s tax credit in the US or the Australian stimulus package’s cash to low income families, have somewhat helped to ease the strain on consumers, but have far from mitigated the consequences to retailers and manufacturers during the recession.
Eating Out Less
Unfortunately, there is a downside to certain instances of consumers spending less on products, more so than just the effects on economic growth. While the differences in the foreclosure status between the two countries are significant, it doesn’t mean Australia hasn’t been affected by the ripples of the credit crisis. The Australian banking system hasn’t been affected as adversely as in the US, however; rather than shutting off available credit to consumers as has largely been the case in the US, Australian banks have upped the ante when it comes to borrowing, tending to continue to offer credit to consumers and businesses but at higher interest rates. The effects on both sides of the Pacific result in tighter credit, which in turn affects consumer spending all the way down to the food they eat.

Credit constraints, paired with rising job loss in both countries and fear regarding the future, leaves many families with less to spend on food products and often looking for cheaper alternatives at the grocery store. Lower prices typically does not equate to healthier food either. Often, sale or discounted foods offer lower nutritional values and benefits when compared to more costly food products, and therefore promote less healthy eating during times of economic distress.
Increased Saving: A Positive Aspect of Recession
On the positive side of the recession’s effects upon consumers is increased saving. People around the world, have learned the valuable lesson of preparing for the future and unforeseen events through increased personal savings. Nowhere has this lesson hit home harder than in the United States where personal savings levels dipped into the negative just several years ago. The recession has awakened consumers to the benefits of saving and has pushed personal savings levels back into the black, moving to nearly seven percent in the US this year. Conversely, as saving levels increase, spending decreases, which means consumers are tightening their belts when it comes to larger purchases.

It’s yet to be seen as how the recession will affect Australian personal savings rates as statistics aren’t readily available, but anecdotal evidence points to increased savings down under too. While savings rates have steadily been declining since the mid-80s, with higher interest rates available and consumer spending down, it may be assumed that Australian personal savings rates will increase slightly, at least temporarily, as people hunker down for the short term.
Lower Consumer Spending Hits Small Businesses Hard
The changes in consumer spending mean a shift in the way many businesses interact with and meet consumer needs. While nearly all businesses have been adversely affected by the recession, small businesses in particular have taken a hard hit due to their lack of recourses and available cash flow to ride out a prolonged economic downturn. Again, rising interest rates in Australia and lack of available credit in the US has made it difficult for businesses to tap sources of credit for continued cash flow. This negative impact on small businesses leaves their owners and employees less willing to spend, and thus results in a snowball effect that minimizes consumer spending.
Even Optimists are Wary
While stock markets around the world are on the rise, and there is now a glimmer of hope for a worldwide recovery, many consumers are still hesitant to resume there previous spending levels. While many in the US and Australia are hopeful that within the next year more signs of a recovery will become evident, few expect things to return to where they were just years ago anytime soon. It certainly appears that Australian consumers will most likely be feeling the effects of a recovery sooner than those in America. However, even the most optimistic consumer on either continent must have inklings of the acute possibility that such a crisis could occur again, whether due to looming mortgage resets in the US, continued restricted and pricey credit, or a still unforeseen event that could act to alter the way in which we spend our money.

About The Author

Kris writes about personal finance for an Australian credit card comparison website offering a range of cash back credit cards that help everyone save money. You can read more of his writing on The Credit Letter.

---
Related Articles at Personal Finance Blog by Money Ning:

12 Surprisingly Simple Ways to Get More Done

MoneyNing — Fri, 06 Nov 2009 13:00:50 +0000

There are a ton of things going on with my business, and people are often surprised to find that I’m still doing practically everything by myself. A question I often get asked is “How do you do it all?”

The Secret is Written on the Wall

There is no secret. I get more done because I work longer hours than most of you. Everyone sees me out and about during the week and people are always jealous, but they never realize the time I put in every single night when they are watching TV, and all the hours I put in during every single weekend when everyone else is doing anything but work.

Productivity is Still Important

Having said that, there are a few little things I learned along the way that makes me more efficient. After all, when I get more done with less time, I can choose to a) relax more or b) make more money by taking on more. Let me share them with you today.

Stop Believing the Damn Lie that Multitasking is Good – No one can possibly multi-task. We can handle multiple tasks and prioritize, but no one can ever do two things at once. Stop distracting yourself with multiple projects and get one thing done, then move on to the next.
Stop Checking Your Email/Twitter/Facebook Account Constantly – I love technology, but all these alerts and Blackberrys only slow down the time it takes to finish whatever you are doing. Turn them off.
And When You Read Them, Respond Right Away – We all do this. Whenever we read an email, many of us never respond right away. Then, we spend more time looking at the subject title again and again, and when we do respond, we have to re-read the email again. How efficient is that? Read it, respond, or send it to the trash can.
Be Ready Early – Prepare for your calls and meetings a day early, and then set your meeting reminders to 5 minutes before the actual event. There’s no need for a 15 minute warning just so you can click on snooze many more times than once.
Write Down What You Will Do Next – If you have blank out every once in a while, just write down what you are doing on a piece of paper so you can remind yourself when you stare at the screen and forget. This happens to people often when they are trying to multitask. Stop.
Wear a Headphone – If you are in a noisy environment, or have a gossipy neighbor, you may want to check with your boss to see if you can wear a headphone. Office rumors are interesting, but they won’t be your coworkers anymore if you cannot get your work done and get fired./li>
Learn to Say No – Tell them you are busy. It’s okay. Everyone needs to learn to respect your time.
Sit Away from Hot Spots – Or at least move your monitor so you don’t see Joe and Jessica every time they walk by to the coffee area.
Software Could Help – I use a software that turns the whole screen black when I write call Writeroom. It’s for Mac but they also have a Windows equivalent called Darkroom. At the very least, turn off all programs that sends out alerts when you are working.
Turn Off the Freaking Phone – If you hear this message, it means that unlike you, I’m actually working. You can leave a message if you’d like but wouldn’t it have been easier for the both of us if you sent me an email instead?
Set a Schedule – You can’t possibly work 24/7, so block out a time where you can be interrupted by doing tasks that don’t need much concentration.
Clean Up Your Desk – Everyone who can’t keep their desks clean always say that they know exactly where everything is. Sure, but they also spend countless minutes looking over them every time they need to find anything. A clean desk offers less distractions, guaranteed.

There are a ton more ideas obviously. How do you stay focus and get more done?

---
Related Articles at Personal Finance Blog by Money Ning:

How to Get Your Wife to Invest

MoneyNing — Thu, 05 Nov 2009 13:00:37 +0000

Do you find that your money philosophy is different than your wife’s (significant other)? Well, I do.

Steve recently sent in an email with the following question:

I recently got married. My wife and I are working on our future finances. I am aggressive and she is conservative when it comes to investing.

Example: Her money is in a savings account and her 401k is making nothing (also not losing anything). My money is in stocks and my 401k is in stocks (fluctuating).

We do not have plans to co mingle our money at this time which I feel is best. However, I want to get her money working for her even if it is more conservative than mine. What do you think?

First of all, be mindful of the fact that you should attempt to guide, not dictate. Respect that she should be entitled to do whatever she wants with, as you put it, her money.

Our Own Situation

Actually, Emma and I are in the exact same boat. I’m pretty aggressive with our investments, but Emma likes to keep her money in a safe place. I don’t mind the volatility at all and believe that the market usually wins in the long run. But instead of trying to take over what she feels is safe, here’s what I have done.

Adjust Accordingly – No matter how separated your finances are in reality, they are combined by law unless you have a separate contract that says otherwise. What is my money is Emma’s and vice versa. It’s perfectly okay that Emma wants to put all her money into a certificate of deposit, because I can be just adjust and be more aggressive with my investments to even out our overall family portfolio. At the end, it achieves the same objective without the extra potential tension.
Selling Your Ideas – If you believe that your investment philosophies are sound, then there should be no problem trying to take a more long term view to sell your idea to your spouse. Every time you come across a situation where your suggestions worked out better, you should mention them. Be proud and vocal of your results, and everyone around you will eventually see it your way.
Be Credible – It helps Emma feel comfortable to at least give my opinions and suggestions serious consideration because everyone knows I’m thinking and talking about personal finance topics on a daily basis.
While you may not want to start a site about money issues, you can show your significant other that you really care about your finances by example. It’s really tough to take dieting advice from someone who’s overweight, and the same idea applies to investing advices.
Forget the Ego – Know the true reasons why you want her to invest. If you truly care about her and her future, your concern will naturally carry out in your tone. It’s much easier for Emma to accept my ideas when she feels that I’m trying to look out for her. Conversely, it would be impossible for her to listen to my suggestions if all she can sense is my desire for her to act one way. Take a step back and figure out why you want to give her advice first.

Everything I’m doing seems like a roundabout way to reach the goal, but with a delicate manner such as finances and marriage, who can afford to screw it up?

Any suggestions for Steve (or myself for that matter)? Your ideas are welcome and appreciated!

---
Related Articles at Personal Finance Blog by Money Ning:

Three Easy Steps to Determine Your Financial Priorities

Miranda Marquit — Wed, 04 Nov 2009 13:00:25 +0000

When you are trying to make a financial plan, or reach a certain financial goal, it is important to have an idea of your financial priorities. After all, without priorities, it is impossible to decide what you should do with your money — not to mention figure out what actions you need to take to reach your financial goals. Determining your financial priorities can take a little bit of time, and it requires some introspection. The good news is that once you figure out what your priorities are, it is a little easier get your finances on track.

First, Decide What’s Important to You

Your financial priorities will be heavily influenced by what’s important to you. This means that you need to honestly look at yourself and your financial situation, and decide what you want. Your spending habits will give you a good place to start. You can get an idea of what is important to you by reviewing your spending over the last few months. This will give you a general idea of what your actions say is important. If you are disappointed by what you see, then you can make changes so that your spending comes in line with what you want to accomplish. Even if you are satisfied by what you see, you can use your past to supply you with ideas for your priorities.

Next, you need to look to the future. What do you want to accomplish? What would you like to do with your money? Be specific. You need to create measurable goals that can be accomplished. Narrow your wide vision down. If one of your priorities is to “save more money”, then say “save six months of expenses in an emergency fund” or “save enough to generate $4,000 a month after I retire”. This way, you can make an actual plan to reach your goals, and express your priorities in a more tangible way.

Do your spending habits line up with what you want to do in the future? If not, perhaps it is time to rethink what you are doing. Setting financial priorities can help you make the changes necessary to get to where you want to be.

Second, Focus On What’s Important

After you have determined what’s important to you, and set some specific goals, it’s time to focus on what’s most important. You have immediate needs and obligations that have to be taken care of. These items obviously have high priority. But once you get those items out of the way, you need to decide what else is important, and rank your priorities according to the big picture. You may want to save for your child’s college and pay for retirement, but which is most important to you? If paying for retirement is more important (and it should be), then you need to make sure that you are putting more more money into your 401k than you are putting into a 529.

Third, Stay On Track

Once you have ordered your priorities, and chosen to focus on the most important aspects of your financial life, it becomes vital to stay on track. Consult your priorities list often, and look at your goals. Before you spend money — especially on something big — reflect on whether or not it is helping you meet any of your priorities. If it is not, perhaps you should consider doing something else with the money. Your financial decisions should help you reach your goals and reflect your priorities.

Sometimes you may change your priorities as life circumstances change, and as you change. Reviewing your situation and your priorities periodically can help you remain in touch with yourself, and help keep you focused so that your money is being used in a way that satisfies you.

David’s Note: This is a contribution from Miranda Marquit, who will be dropping by from time to time to give us another perspective on our pursuit to financial freedom. Please help me welcome her and let her know what you think by commenting below.

---
Related Articles at Personal Finance Blog by Money Ning:

Three Economic Indicators You Ought to Know How to Read

Ritu Agrawal — Tue, 03 Nov 2009 13:00:41 +0000

The announcements of economic indicators like the Consumer Confidence Index and Personal Income were blamed for market ups and downs in the past week. Economists at large institutional investment firms such as hedge funds keenly watch these indicators and act upon them. Indicators are very important data to them because they act as guideposts in developing and testing their “macroeconomic thesis”, a fancy term for their view of where the economy is headed. It is essential for such large investors to get their macroeconomic thesis right, because it is the foundation for their investment strategy.

As an individual investor, you do not have a professional economist guiding your investments but luckily, economic indicators are available to you easily and for free. Here is a list of a few highly-followed indicators and what they mean for you:

Consumer Confidence Index:

What It Is: This index is not as touchy-feely as it sounds. It measures how consumers are “feeling” about the economy, but it does so in very concrete ways. For instance, it asks consumers questions such as “Are you buying or refinancing a home?” or “Are you planning a large purchase?” to determine if consumer spending is likely to provide a boost to the economy in the coming months. Since consumer spending accounts for about 60% of the US economy, this is one of the most watched indicators. Also, this is a Leading Indicator, which means it helps predict where the economy is headed rather than where it currently is. In early 2007 when the stock market was going strong and GDP numbers were looking good, consumer confidence was already starting to decline, signaling that the average American was uneasy about the economy. Over the next few months, the worst recession in decades unfolded.

How To React: Invest in consumer-driven companies such as retailers, restaurant chains, makers of household goods, home builders, credit card companies etc. when the index rises. Stay away from them if the index is lukewarm or negative. If you own a small business, prepare for declining revenues by controlling your costs and putting off expansion plans.

Consumer Price Index (CPI):

What It Is: The price of a basket of common goods (such as groceries, clothes, movie tickets etc.) purchased by most consumers. This indicator is a direct reflection of inflation in the economy, and if it rises, it can really spook markets.

How To React: An increase in CPI is bad for companies that are in a competitive market or are otherwise unable to raise the price of their product to pass on the higher costs of raw materials to their customers. Think of manufacturers of branded household cleaners. If they raise prices, consumers will move to the generic store brand, so they have to swallow the cost increase, which cuts into their profits. Cut exposure to stocks of such companies. Bonds will also lose value because inflation takes a bigger bite out of their fixed returns. High CPI numbers are often countered by the Federal Reserve with an increase in interest rates. This means you should wait before you lock your money in CDs to see if you can get a better rate after the Fed hikes rates. Also, rents are likely to go up when inflation rises, so lock in a longer lease term if you can.

Treasury Yield:

What It Is: The rate that treasury bond buyers are willing to receive from the government in return for their investment in treasury bonds. A low treasury yield signifies that investors are unwilling to invest in riskier investments such as stocks or corporate bonds and are instead accepting a very low rate of return in exchange for lending to the government, which is a super-safe investment.

How To React: When treasury yields start to rise, mortgage rates are sure to follow. If you have to refinance your mortgage, do it before yields rise any further. If you are planning on buying a house but are wondering if you should wait, watch the trend in treasury yields.

In uncertain economic times, the stock market gets a lot of news coverage. But stocks are not the only thing that you need to watch in order to understand where the economy is going. Economic indicators are often a better guide to the future and can help you make smart financial moves.

I would love to hear about other economic indicators that you watch before making personal financial decisions.

This is a post from Ritu Agrawal, who learned a whole lot about the technical side of investing at JPMorgan Chase. Read more about her at her bio page.

---
Related Articles at Personal Finance Blog by Money Ning:

Best of MoneyNing Personal Finance – Oct 2009

MoneyNing — Mon, 02 Nov 2009 13:00:14 +0000

Time seems to speed up as you age.

Emma is already five months pregnant and before you know it, we will be watching her grow into an individual with her own thoughts and desires. This is the biggest news of our family by far and also the biggest step I’ve taken in my life. I’m happy that you you are here for me to share all the good news with you and once again, thank you for your support.

Site Happenings

Some of you already know but I’m quietly putting together the biggest money saving ebook ever created – How to Save Money on Everything. I say biggest because I plan to continue adding to it until our computers start screaming that the file is too big. At current count, it’s 42 pages of one money tip after another. If you want to pay for it, you can always contact me but you can get it for free by signing up for the free frugal newsletter as well by filling out the form below.

The Best Personal Finance Articles of the Past Month

For those that missed these, check out some of the best written articles during the last month!

---
Related Articles at Personal Finance Blog by Money Ning:

Should I Grab Those Online Broker Sign Up Bonuses?

MoneyNing — Sun, 01 Nov 2009 15:45:45 +0000

Lately, it seems like even stock brokers are getting into the holiday spirit because like a retailer, they are having their version of a sales event in all those sign up bonuses.

TradeKing is giving everyone who signs up through a special link $50 if they fund their account with $2,500 and make at least one trade
OptionsHouse is giving out 100 commission free trades for any new account owner.

However, unlike buying a product, most of us already use an online broker and have no reason to sign up for another. Is it really worth the hassle?

Margaret sent me an email last night asking this very question:

Have you signed up for a TradeKing account to take advantage of the free $50 [they are giving away]? I’m undecided, since it seems redundant to have two different accounts….what do you think?

Margaret, I already own a TradeKing account so I would not be eligible for this promotion. But if I were in the same situation, I would only take advantage if I’m interested in seeing what TradeKing has to offer. $50 for free is always good, but remember that you have to make a trade and fund the account with $2,500 which is a commitment of time and money. The funds are still yours (it’s not like you are giving it away or something) but never let $50 persuade you to make a move if you weren’t considering TradeKing in the first place. Do it because:

You already heard of the online broker and you want to see if switching over to them is beneficial.
Have the time to really look into what the online broker has to offer.
Be willing to make an investment as if you didn’t have an incentive.
Have the funds to meet the requirement (in TradeKing’s case, it’s $2,500)

Don’t do it if:

You just want the money.
You don’t plan on even considering the online broker.
You don’t have a plan on how to fund the account BEFORE you sign up because chances are good that you never will.

In short, these sign up bonuses are icing on the cake if you were going to check them out anyway. Otherwise, it’s a big waste of time and money for yourself as well as the online broker in question.

Additional Information on the Sign Up Bonuses

TradeKing $50 – Sign up for an account and get $50 as long as you fund the account with $2,500 and make at least one trade within 30 days of account opening. It’s only available through this following special promotional page (Get $50 when You Open a TradeKing Account Today)
OptionHouse 100 Free Commission Trades – New customers can get up to 100 free trades during the first 60 days after they fund it with a minimum of $3,000. Account owner must enter promotion code FREE100 in the sign up process available through to the following link (Click Here to the Signup Page) to be eligible.

---
Related Articles at Personal Finance Blog by Money Ning: