OSAWatch

What are the top high interest online savings accounts?

blenheimeducation — 2009-02-17T21:48:18-08:00

Since there are so many reputable, customer-friendly banks now offering high interest online checking and savings account deals, there's simply no point in not signing up at one of the best online savings account banks. Here are the best offers out there currently:

Tools for Investing

raj dash — 2007-03-25T10:07:42-07:00

I know this site is more about saving than investing, but Ask the Advisor has a nice "toolset" article listing 57 web resources for investing. The sections are:

Learning Tools - check out Morningstar classroom, with nearly 200 courses.
Investment Blogs
Fantasy Investment Sites
Investment News Sites
Research Tools
Investment Brokers
Investment Message Boards
Free Trading Sites - check out Zecco, which gives you 10 free stock trades per day, and Bank of America, which gives you up to 30 free trades per month.
Free Advice
Everything Else - just a round up of some sites that don't fit the above categories.

The article doesn't mention many web2.0 applications, but the Advisor archives has a number of other articles worth checking out, including a list of 25 web2.0 apps for money, finance and investment. There are a couple of applications in that list that look great for money management. One of the standouts is Wesabe, which not only let's you managing your finances but you can actually pay bills online by attaching bank accounts.

What'd be really nice to see is similar tools from some of the financial institutions that offer online savings accounts. Obviously, people like convenience. I'd really like to have a single website access point for my bank accounts, mutual funds, online savings accounts, bill payments, and investing. Or maybe that's a security risk?

Turning The Tables On Credit Card Companies

raj dash — 2007-02-17T16:57:35-08:00

Credit card companies are currently fighting amongst each other to get your debt. That's because personal debt in North America is at an all time high. The result is loads of 0% APR credit card offers applicable to balance transfers. So, if you have debt elsewhere, they want it. That way, when your 0% offer runs out, you'll be paying them interest, not someone else.

But if you have very little or no credit card debt and good credit, you can use it to your advantage with a technique called balance transfer arbitrage. Balance transfer arbitrage is the act of using all those 0% APR credit card offers to earn money. The basic principle is to deposit each balance transfer check issued to you into a relatively high-interest online savings account or other liquid investment, such as a CD (Certificate of Deposit).

For example, say you received a credit card offer for 0% APR, 12 months, $10,000 limit. You have the card activated and receive a balance transfer check for the full amount. You then deposit the check into something like the Emigrant Direct American Dream Savings Account, which is currently at 5.05% APY.

That's roughly $500 in interest earned on $10,000 over 12 months. (Though you don't want to cut things that close. Only deposit for 11 months so that you don't miss the deadline to pay back your credit.) You could also get a CD, which usually earns at a higher rate. You just have to be able to cash out your investment before the credit line comes due.

You can read more about the ten golden rules of balance transfers at Your Credit Advisor.

Bootstrapping Your Business

raj dash — 2007-02-17T16:26:11-08:00

Growing a young business is obviously a critical step to success. If you have a business or are starting one, you probably know the statistics. Something like 80-90% of all new businesses fail in the first year. (I might be making that up, but it really is very high.) And of those that remain, a huge percentage fail in the 2nd year. Get past that, you'll probably do fine.

The primary reason for failure? Well, I'm guessing it's one of two things:

Poor planning.
Rapid growth.

The second comes from being so successful that you hit a cash crunch. Your accounts payable increase rapidly but your accounts receivable are slow to be satisfied.

Well, fixing the first problem can help deflect the effects of the second problem. Obviously, the more money you start with, the longer your business will last. Here are a few steps that could help save your small business from becoming a statistic:

Be frugal.
While planning for a new business, spend money on functional needs.
Be really frugal.
If you don't need $600 chairs when $300 will do, then don't. Chairs for $75 are even better, provided they'll last.
Use the web.
Don't spend money on software if you don't have. Aviva Directory has an article entitled The entrepreneur's guide to web 2.0: top 25 apps to grow your business. All of these applications work in a web browser. The bulk of them are free, and many replace standard paid "Office" software and are compatible with Microsoft Office applications. You could save thousands of dollars.
Cut corners.
But in a good way. Make a full list of everywhere you might save money without skimping. What good is a purchase if it doesn't last long enough to give you value.
Invest your savings.
Given that you could save a few thousand upfront, you should deposit this "found" capital into a liquid investment such as a short-term CD (Certificate of Deposit) or an online savings account.

Pay particular attention to step 3 and 5. In today's world, computer assets are usually important to even a small business, and software is expensive. Step 5 leverages your upfront savings and gives you a bit extra capital to work with.

Only remove the money when you really need it, particularly at the end of the first year, when business is picking up but cash flow, well, isn't flowing just yet. If you've planned well and don't need it until year two, even better.

The plus side is that if you do have some extra money saved away, when you need additional business capital, you'll show the lender that you have enough discipline to plan and save. You become less of a credit risk, and are more likely to get the loan.

Can You Live On $12,000 Per Year? 20 Tips Towards Frugality

raj dash — 2007-02-04T13:50:30-08:00

Time was when you could actually work a minimum wage job full-time and get by. Two jobs, and you could raise a family. Nowadays, it's nearly impossible, but some people seem to be making an attempt at living under the median line. The movie The Pursuit of Happyness is an example of what persistence can do to move you from having nearly nothing towards being such a success that someone makes a film about you.

I'm not sure if someone will make a movie about Donna Freedman, but people are writing about her decision to intentionally live on $12,000 per year. She seems to be not only coping but in control. Is it really possible? As someone who did it on about $10,000 a few years ago, for about 3 years, I'd say it was possible then, and still might be so today, but only in some cities. You'd have to give up anything that wasn't absolutely essential. It's not necessarily enjoyable, to be honest, but if you eat properly, you can at least maintain your health.

Here are some tips, if you find yourself in a similar position or just want to save money for a trip or investment or what have you.

Immerse yourself in frugal-mindedness.
Screw people who call you cheap (you know who you are). This is the only way to cope. If you can't achieve this state of mind, forget about living on the cheap.
Mend clothes and reuse, or wear layers.
At home, I wear longjohns/ thermal underwear with ripped jeans. Why not? The pants are still wearable and no one is going to see me except family and the dogs and cats. The #1 rule of frugality: use what you have for as long as possible.
Be a coupon clipper.
Master the art of coupon clipping, but only save coupons for items you actually use. Don't start buying something different just to "save" money. If you can't find the regular weekly flyer, ask a store/ supermarket clerk, as there's usually a stack on hand somewhere. Rule #2: save whever you can, but only buy what you need.
Buy only on sale and double up.
I used to buy quality oxford shoe knockoffs at $32 apiece when department stores sold pretty much the same for $50-90. I would buy 3-5 pair and alternate their use. They'd last years like that because they had time to breathe after a day of use. Had I not, I probably would have had to buy 6-7 or more in the same time. It's a small savings, but it does add up when you're on a budget.
Give up meat or reduce quantities.
I'm not proselytizing on being a vegetarian (I used to be one, but am not currently). Meat protein is generally more expensive than vegetable protein. Though you'll have to learn some new recipes. The two most suitable cuisines are East Indian and Chinese, and combinations inbetween. Food and rent are likely your two biggest expenditures. When you're budgeting $12,000/yr, obviously every dollar counts.
Buy from the farmer's market.
I've been to big ones and small ones and they always have prices to beat supermarkets. Sometimes, at the end of the business day, vendors will take offers on what's left. Freeze any portion you don't need. I also find some Asian markets to be very affordable. I lived in an area where there was a new Farmer's Market 30 feet from an Asian market. Every Saturday morning, I'd take my Friday night tips and buy all my groceries for the week, then make dishes that would last a few days and thus reduce the cost per meal (as well as prep time).
Go to the food bank.
Or if that troubles you, if you have a weekday where you can help out, volunteer in a soul/soup kitchen. You can do some good and a get a free meal at the same time. Some soul kitchens are also food banks, and you could take a few canned or dry goods at the end of your volunteer shift.
Share a dwelling.
Sometimes, that's not an option, but if you can sub-lease part of your living space, you could save close to half your rent. It's either share, or live in an infested place in some cities. Or move in with a family member. I prefer living on my own, so I had given up my cable TV and cell phone for a while. I didn't need them, and the Employent Centre down the street offered free voice mail and 1 hour of Internet access daily. Now, of course, I must have my Internet.
Make it yourself.
Need a bookshelf? Many hardware/ lumber stores have scraps that they will not only cut to your measurements but also deliver to your home. You just need a measuring tape, some good nails, glue, a hammer, and maybe a few small clamps. At the least, hammer, nails and tape. You can also by perfboard kits for shelving which are easy to put together. Not as fashionable, but you're being frugal.
Haggle.
In some countries, it's expected. Not so much in the USA, but you can sometimes get away with it. The worse that can happen is that the seller will say "no". They might also look at you funny. See tip #1. Haggling for smaller prices works at flea markets and garage sales. You develop a sense for where you can haggle.
Go to flea markets.
You can find a lot of "gently used" items in great condition at large flea markets. Beg a friend to drive you and go early. If you also find some bargains that you can fix up, it's worth it. (You could even fix and resell.)
Use VoIP.
Why pay for long distance when you can make some calls either for free or for a lot less than with your regular phone company? If you have access to a computer and the Internet, some options to explore are Skype, SightSpeed, Jajah, and Gizmo Project/ GizmoCall. Some of these only require a computer to register; you can use a regular telephone after that.
Watch TV online.
Can't afford/ don't want to buy both a TV and computer? Depending on where you live, you might be able to watch most of your fave TV shows online. There's also free IPTV (Internet TV) software like Joost and Babelgum, which are not yet available to the general public, but will be.
Take free courses.
Donna Freedman mentioned that she chose her current situation and went back to school. But why pay for courses when they're free at the Open Courseware Consortium and at various universities.
Double up on laundry.
Buy a few extra items of clothes (on sale or at bargain stores of course) and take longer between laundry sessions. Remember, every dollar counts.
Get the most for your money.
This weblog IS about online savings accounts, so I always include such a recommendation. It may be unlikely that you are saving much at your income level, but if you've become frugal-minded, you might find you can squirrel away 5% into an online savings account. Removing it from easy access means you're less likely to spend it. Remember: compound interest!

Of course, these tips haven't taken into account that you might have a dependant, in which case you might want to budget some life insurance. Now just because you are getting by on a budget doesn't mean you can't earn some extra money once in a while. Here are a few ways to earn a bit extra that are ideal for a frugal mind:

Make it yourself and sell it.
One artist I knew would bang together special tray-like art frames with 1x4" pieces of used wood and make "found art" with various objects and glue. I doubt she spent much money on them, and her pieces were between $150-350 each. She was very good at what she did, employing a skill similar to scrapbooking. She did sell a few pieces per year, after local cafes displayed her work. Making found art is also considered a therapeutic activity.
Start a blog.
If you have reasonably good communication skills and access to the Internet, consider starting a weblog. Be somewhat focused. By doing so, once your site has been established sufficiently, you may qualify for services such as PayPerPost, ReviewMe , SponsoredReviews or LoudLaunch to get paid for reviewing an advertiser's product or service. A frugal-minded person is often an ideal candidate for writing consumer reviews. Some people are earning as much as $1,000/month with such opportunities, though most people probably don't. Your blog could even be a pf (personal finance) blog and you could slap on some Google AdSense or Chitika ads for possible future revenue.
Be an online tutor/ advisor/ personal coach.
Sites like Tutors Without Limits offer a great framework for earning a bit extra by tutoring students around the world. You set up your profile on their site and use the free Skype VoIP software to hold audio/ video tutorial sessions with one or more students. Payment is with PayPal, though not all countries are represented yet. A similar service is through Bitwine, which is an addon (plugin) for Skype, though it's not just for tutoring. If you don't have regular access to a computer, you might consider Ether.
Mystery shopper.
Some stores hire people to shop and report back on the behavior of store clerks as well as scan for shoplifters. The frugal-minded shopper will likely enjoy this. I can't pretend to know where you start to find this sort of work, but I suggest you ask around at large department stores.