• Invest $1,000 - $4,999 by December 31 and receive a 1% cash rebate into your Prosper account by January 22, 2010.
• If you invest $5000 or more, you will receive a 2% cash rebate into your Prosper account by January 22, 2010.

Taking advantage of the maximum rebate would net you a cool $100 and when compared with the current interest rates on savings accounts and CD's, it's definitely worth a look. To get more details about investing in notes at Prosper, click here.

Plenty of good money links out there this week.   Let's take a look.

• How Much to Budget for Car Maintenance @ Five Cent Nickel: Costly car repairs can throw a wrench into your finances, so it's best to so set money aside for the worst.
• October 2009 Unemployment Rate 10.20% - Chart of the Day @ The Sun's Financial Diary: Even though the recession appears to be over, the unemployment rate is going to get worse before it gets better.
• How to Earn Income for the Rest of Your Life: The Good, Bad and Ugly of Annuities @ GenX Finance: Even though that lump sum payment looks good now, getting it spread out may be the best course of action.
• Base Salary Isn't Everything @ Suburban Dollar: Don't forget that there are dozens of other ways to profit from a good job!
• Financial Literacy in Schools @ Financial Highway: Educating students about the financial responsibilities they will have in the future is key to making sure we don't get recession happy.
• Borrowing From Family and Friends - Bad Idea, Right? @ Debt Kid: Never have and hope I never have to. Probably best to consider the money gone the second you lend it out.
• What is Your Definition of Success? (A Tougher Question Than You Think) @ Wealth Pilgrim: Most people would equate money with success but there's a ton of other things that are also at the top of the list.
• Working Long Hours - Is It Worth It? @ Darwins Finance: Having a few recent jobs that I was regularly working 70+ hours a week, my vote is that long hours suck.  Definitely not worth it.

Hedge Against Inflation. Gold does not provide investors the return on investment its proponents, the gold bugs who have been bitten by the gold craze, would like you to believe.  According to the Motley Fool, “Across ten asset classes, over a near-40-year time horizon, and in increments of three, five, and 10 years, there is one investment vehicle that's been a total loser…gold!”  What is the most horrible inflation that we have seen in America?  It was the gas crisis of the 1970's.  How many gas stations do you remember taking gold coins or bullion as a form of payment back then?  That's right…none, zero, zip!  I even asked my mother to make sure. If gold is such a great investment to ward off inflation, a $1,000 price of gold in 1980 should have appreciated to $2,350 per ounce in 2009 just to have kept up with inflation. But, it hasn't done that, and that is why gold is a bad investment and hedge against inflation.

Gold is not the fall back medium of payment in the times of crisis that those guys that sell it on late night TV want you to believe.  What about emerging market countries such as Argentina and Mexico that had extremely high inflation in the past?  Do they abandon their pesos for gold when catastrophe strikes?  No.  What would we do if there was an Armageddon?  We would barter, maybe with gold, probably not though.  We would most likely barter with our labor like the father of economics Adam Smith suggested.

52-Week High: I hate buying stocks and other investments at their 52-week high values.  It goes against our fundamental rule as investors of buying low and selling high.  One recent report said, “Gold bugs have been dreaming of global financial disaster driving the gold price to $3,000 [per ounce]. But they have just had ‘their perfect storm’[in our recent recession], and it didn't happen.”

A return-chasing type of investment is what is driving this modern-day gold rush, and that chasing is exactly why you should be looking elsewhere for your investment returns.  Anyone who is chasing returns will most likely come late to the party.  Gold has already been above the $1,000 per ounce level twice before, only to fall back to lower levels each time.  In the late 1970's, the price of gold was much higher than its $1,000 price tag in real terms (today's dollars).  In 1980, the price of gold rose to $850 per ounce.  After that peak it fell very far below that level and stayed well below that for decades, bottoming at a low of about $250.

Hard To Liquidate: In times of uncertainty, people want to buy physical gold, bars and coins, and then keep them either at home or in a safety deposit box.  Buying gold coins on TV is just like buying the Magic Bullet or some other late night fare.  It is just a waste of your money.

Despite the recent run up in the stock market, the American economy is still in the doldrums.  We are still losing jobs by the hundreds of thousands every month, and our homes are still slowly sinking in value with no new significant levels of home buyers on the horizon.  People are scared and want to latch onto anything that has a feel of safety and security, and that is the main reasoning behind the overwhelming favoritism for gold right now.  But, over-weighting your investment portfolio in gold or any other precious metal for that matter is not the answer.

If you want to invest about 10% of your nest egg in commodities and precious metals such as gold, there are better alternatives out there than just buying gold off of late night television.  Buying shares in a gold mutual fund such as an exchange traded fund (ETF) which tracks the price of gold, gold processors, and miners and can be bought and sold relatively easily in the open market. And even buying gold in conjunction with a self-directed IRA is a much better option than buying physical gold.  Or, you can invest in gold stocks directly in firms such as gold miners and processors.

Bottom line: investing in gold because it is popular right now is the wrong thing to do for your financial future.  Investors often lose sight of gold’s poor longer-term historical results, especially during short time horizons with extreme volatility and market uncertainty.  Gold and precious metals should only be used for a small portion of your overall retirement and investment portfolio instead of the main component.  And, it should never be bought off of late night television.

This is a guest post from Hank who writes about personal finance and investing on his blog, Own The Dollar. You can also check out his RSS feed to see his latest posts or follow him on Twitter

Hans Peter Luhn patented an algorithm in 1954 which would forever be known as the Luhn algorithm. For those not familiar with the term, an algorithm is just a series of instructions used in mathematical applications to complete a task or problem.  Anyway, the Luhn algorithm is particularly fun because every credit card and debit card number in the US follows this set of rules.  The reason that every credit card Issuer uses this algorithm is not to prevent fraud or identity theft, but rather to identify accidental errors in manufacturing and distributing credit cards.

Using the credit card example below, let's take a look at how the Luhn algorithm works.

Here we have a basic credit card with a 16 digit number (note that the last four digits, 9123, are a little difficult to see).  In order to see if this card's number is real, we need to follow a few easy steps. First we identify the check digit, which is always the last digit on the credit card.  In this instance, the check digit is 3.  Then we double every other number, starting first with the number to the left of the check digit, which in the example above is 2 . Our new credit card number is as follows:

(10)4(2)2   (14)5(6)4   (10)6(14)8   (18)1(4)3

Any double digit number needs to have it's single digits added together to create it's own single digit number.  After completing this step we have a new number which reads:

1422   5564   1658   9143

If we add up all of these single digits, and the total is divisible by 10 (without a remainder) we have ourselves a valid credit card number.  Unfortunately for all you fraudsters out there, the number we have adds up to 66, which is not divisible by 10, making the credit card above, a fake.

Zecco: With Zecco, you get two options to earn a return on your uninvested cash. First, Zecco will credit your account with an interest rate currently set at 0.025% per year for balances over $500. This interest is paid monthly. If you'll have cash in your investment account for just a few days, this is probably fine. If you plan to hold some cash for a longer period of time, Zecco offers another option.

Zecco offers one of three money market funds where you can stash your case. In what are called sweep accounts, you can move your money into one of these funds when it's not being invested. When you're ready to move the money into the market, you can transfer it back to your brokerage account for trading. The three funds are the CAT Tax Exempt Portfolio, the CAT MM Portfolio, and the ICT Treasury Portfolio. The interest rate on the CAT Tax Exempt Portfolio is currently 0.87%, but check with Zecco as rates do change.

Scottrade: For arguably the most full featured of all the online discount brokers, Scottrade offers a rising rate based on the amount of cash you have in your account. At the low end, Scottrade pays just 0.05% for balances under $5,000. The rate increases to a high of 1.00% for balances of $1 million or greater. Perhaps not the best rates unless you have a lot of cash in your brokerage account, but at least it pays some interest. You can get more details and check the current rates on the Scottrade website.

E*Trade: Of all the online brokers, E*Trade is perhaps best known for its cash management features. In addition to stock brokerage services, E*Trade also offers banking services as E*Trade bank. With an E*Trade brokerage account, you get access to an online savings account. Funds can be easily and quickly transferred between accounts. E*Trade also allows you to set up an automatic savings plan. Currently, E*Trade's online savings accounts pays 0.50% interest. The E*Trade bank also offers online checking and CDs. Because these rates change frequently, you can get current rates and details about E*Trade's brokerage services on the E*Trade website.

TradeKing: For cash held in your brokerage account, TradeKing does not currently pay any interest. However, they do offer a sweep account that is FDIC insured and pays interest. There are several options for a sweep account, including money market funds. Presently, the highest paying option is just 0.05%. For more details, check out the TradeKing website.

However, just as my experience was excellent, there are plenty of people that have had miserable times purchasing a car or truck on eBay.  In 2008, eBay stated that they sold a vehicle every 51 seconds, which means there was plenty of opportunity for fraud.  It’s important to do your homework when making a purchase on eBay, just as you would do if you went to a dealer.  The only difference with eBay is, its a bit more homework.

Outlined below are 10 steps to help make your eBay auto buying experience a joyous one.  By no means will this guarantee your purchase to be a smart financial decision, but it will certainly minimize the chances that you are taken for a ride. (Pun intended)

1. Analyze the purchase history on eBay – One of the cool features that eBay provides to all members is the ability to review previous transactions.  This means that as a buyer, I have the ability to view all purchases made by other eBay members for up to 6 months.  Once I have picked out the vehicle I want to buy, I can see how much other people have paid for that type of vehicle, and based on the specifications in the auction, now decide how much I think the car or truck up for sale is worth.  Something is only worth what someone else will pay for it and this is the perfect way to figure that out.

To give you an idea of how this works, check out this list of completed auctions for the Acura MDX. Prices in red mean the car did not sell (the price is the highest bid), while prices in green mean the car did sell. You'll notice that on the bottom left of the eBay screen is a "Search Options" box with the item labeled "Completed Listings." Checking that box for any search will generate information on completed auctions over the last six months.

2. Investigate the seller: While a lot of the vehicles on eBay are sold from dealers, there are also a good chunk that are sold by individuals that have never done this before.  Making sure that these sellers are reputable can be a challenging task, especially if this is a first time sale for them on eBay.  Checking a seller’s feedback rating is the first step in looking at a reputation, but it’s not the only one.  Run an internet search for the sellers name or business name and make sure you do not pull up any rip off reports or negative information.  When it comes to making sure your seller is reputable, make sure you leave no stone unturned. Of course, you can always choose to buy only from dealers, but sometimes the best deals come from individuals who need to sell their car in a hurry.

Did you know that eBay Motors offers vehicle purchase protection of up to $50,000 against certain losses associated with some types of fraud. You can check out more details at eBay Motors by clicking here.

3. Research the car or truck for sale: Most reputable sellers will provide you a carfax vehicle report. But if they do not have one available, get one on your own.  A report generally costs $25, and even if you are not fortunate enough to win the auction, you are risking very little to save thousands if you find big problems.  This of course should only be purchased if you are serious about winning the eBay auction.

4. Call the seller: Any seller that refuses to discuss the auction over the phone is someone you do not want to do business with.  Sometimes, talking with someone can give you a good sense of the type of person they are.  In addition, this allows you to ask any questions you have about the vehicle including warranty, shipping costs and other financial add-ons that can be expected on the auction.

5. Don’t have an itchy trigger finger: Even when you find a car that you really like on eBay and have found the seller to be reputable, don’t go higher than the price you originally set.  Sometimes when you place your bid and then see that you are being outbid, you are compelled to get into a bidding war and may end up spending hundreds or even thousands more than you anticipated.  Stay disciplined. There will certainly be another opportunity on eBay to make the right purchase.

6. Waiting until the last second to bid is dangerous: An experienced eBayer will tell you to wait as long as you can to make a bid, which makes sure you are not allowing other people to outbid.  However, when making such a large and important purchase, you want to give yourself at least a little time to get the bid in.  Too often I have lost small ticket items because I was a few seconds late in trying to time the perfect bid. If you are lucky enough to find the vehicle you want at the price you want, don’t risk it.

7. Schedule to pick up the vehicle yourself: Depending on the location of the seller, this may be a difficult step for some. But seeing the car in person before you have paid for it is very important, and you can save money by driving the car home yourself.  The cheapest delivery method is generally a minimum of $, the costs of a round trip ticket and gas to drive the car home is usually much cheaper.  I say round trip ticket for two reasons.  First, you should always have a method home because you may not like what you see when you go to pick up the car. And second, a round-trip ticket can be the same price or sometimes cheaper than a one way ticket.

8. Negotiate a way to return the car if you don’t like what you see: Some people may be compelled to pay for a car they have doubts about even if they don’t like what they see.  Even though you are obligated to pay for an auction you won online, you are not obligated to pay for the vehicle if you find problems you never saw listed in the auction.  Don’t be intimidated and be prepared to walk away if you have serious doubts.

9. Make sure to leave with all paperwork in order: All reports, receipts and documents should be in your possession when you leave the seller to return home.  Some of the largest problems in buying a car on eBay is retaining the title from the seller, which is an extremely important document needed to prove ownership.  If a seller tells you they will mail it to you later, you have to wonder if they have it at all, which might mean the car is not theirs to sell.  Above average sellers will even offer to have the title re-written which can save you a little time and money. Make sure the last thing you do is pay for the vehicle, preferably with a cashiers check so you have a documented record of it.

10. Have the car inspected before you return home: I’m no mechanic, and I have no idea what to look for when inspecting a vehicle. So when I purchased my car on eBay, I called a mechanic in the sellers area who agreed to do a general inspection of the car the same day I picked it up.  An inspection is a cost effective way of letting you know if you have a lemon under the hood. The last thing you need is to be on the highway when you’re engine gives, 500 miles away from home.

Armed with these tips, buying your next car or truck on eBay Motors may just save you a bundle.

Then I got to thinking.  I remember when movie tickets were just a few bucks and a matinee was even cheaper.  Now, taking your family to the movies can cost a family of four $50, just for the tickets.  When you add up overpriced candy, popcorn and drinks, the night can easily add up to $100.  So why does it seem like movie ticket prices continue to increase far beyond inflation, and more importantly, where does that money go?

The general breakdown for a Hollywood movie gives the movie theater 45% of every ticket sold and the studio that created the movie 55%.  This means if a movie ticket is $10, the theater that shows the movie receives $4.50 and the studio, lets say Paramount, receives $5.50.  For the theater, the $4.50 pays for employees, maintenance, food and drink and other various costs while for the studio, the $5.50 can be further divided into the sub-categories below.

Advertising and Marketing: $2.11 – Usually, a high profile movie has a high profile marketing budget upwards of $100 million.  TV commercials, newspaper and radio ads, Internet ads and billboards are used to drive future ticket sales. When market research and preview trailers are factored in, a studio breeze through it’s budget.

Production: - $1.71 – This amount includes almost every cost other than the actors salaries.  Sets, costumes, permits, insurance, employee salaries and other various fees fall into this category. Almost every movie goes over-budget in this category as some movie scenes cost millions of dollars and need to be done more than once.

Movie Distribution: $1.00 - 10% of every ticket goes for distribution of the movie reels.  Seems a little steep simply to pay thousands of dollars per movie reel but sometimes these movies are so sought after they have to be shipped with an escort.

Actors and Actresses: $0.68 – This percentage varies from movie to movie and $0.68 represents a big cast film.  If a movie does not spend as much on actors and actresses, additional percentages are added to the other three categories.

The theater chain sets movie ticket prices, not the studios that create the movie. When costs rise for a theater, it is twice as difficult for them to increase revenue because they lose 55% of every ticket. The end result means an increased ticket price of more than it actually needs to be.  The average movie ticket price in 2008 was $7.18. While a 30 cent increase from year to year is expected, the average ticket cost in 2009 looks to be around $8.50. If you’re lucky enough to have a theater near you that charges less than $10 per ticket, take advantage now because it won't last that way for very long.

And of course, you can always skip the movie theater and use Netflix or Blockbuster Online instead.

Nikon D70

Canon PowerShot SD780IS

Canon PowerShot SD780IS

On Amazon the camera has about a 4 1/2 out of 5 star rating based on user reviews.

Sony Cyber-Shot

Sony Cybershot DSC-HX1

The camera can shoot up to 10 frames per second. And when set to manual mode, you can set the aperture, shutter speed, and white balance. One of the things I like best about this camera is the 3 inch display.

Sony Cybershot 3

The Sony Cybershot normally sells for $499.99, but is regularly on sale at Amazon.

Panasonic Lumix

Panasonic Lumix DMC-ZS3

The other nice features is the 3 inch LCD display, which is a nice tough on such a compact device. The camera retails for about $350, but you can check out Amazon sales by clicking here.

Nikon D3000

Nikon D3000

One of the really cool fetures of the D3000 that I don't have on the older D70 is in-camera image editing. You can actually edit the picture without the need for a computer. The Retouch Menu offers 13 editing functions, including trim, red-eye correction and soft filter. The D3000 is available from Amazon for about $530.

• Keep track of due dates for bill payments
• Review all of your spending across multiple bank and investment accounts
• Consolidate rewards statements for hotel and frequent flyer points
• Calculate your total net worth
• Set email alerts for almost anything

The personal finance management space has become extremely competitive lately. The American Express Money Manager distinguishes itself by offering a free online tool that can manager all of your accounts (not just your Amex cards) and investments in one place. Of course, the tool is just for those who carry an American Express card. For a deeper look, press play on this neat video:

Now let's dive in to some of the best money articles from the past week.

• 22 Reasons Why You Should NOT Go Out and Buy Windows 7 @ Enemy of Debt: Have you ever wondered who the Jones' were and why people wanted to keep up with them?
• The Cost of Being a Dude @ Budgets are Sexy: Looks like us guys have it easy doesn't it?
• How Much Can You Save By Negotiating On Craigslist? @ No Debt Plan: The art of negotiating is a tricky one.  Make sure you have a game plan going in.
• Which is Better For You:  Term or Whole Life Insurance? @ Own The Dollar:  I guess the bottom line is whether or not you plan to die now or later.
• What The Movie Wall Street Can Teach Us About Greed @ Bible Money Matters: I think the real Wall Street has taught us something about greed over the last 12 months.
• Are We Qualified to Invest on Our Own? @ The Oblivious Investor: A very interesting point made ... just make sure not to take it personally.
• How Much Should Unbiased Financial Advice Cost? @ The Finance Buff: Maybe it's time you look for a newer and cheaper financial advisor?
• How To Keep a Customer Happy @ Brip Blap: Happy customers means more money, and more money means happier you!

100 Free Trades from OptionsHouse: Follow this link to OptionsHouse and use the promo code FREE100 when you open a new account. With this promotion code, you'll get 100 commission-free trades.

$100 ACAT Transfer Rebate: If you are transferring brokerage accounts to OptionsHouse, you can get up to $100 rebated by OptionsHouse for ACAT transfer fees. When you sign up for OptionsHouse, use the promotion code ACAT100REFUND.

$25 Wire Transfer Rebate: The fastest way to fund a new account is with a wire transfer. If that's how you intend to fund a new account, OptionsHouse will credit your account with $25. Here are the details:

For initial funding only - minimum of $1,000 for a cash account, $2,000 for a margin account. You must apply for the fee reimbursement offer by inputting promotion code WIRE25REFUND when opening the account or by using this code when speaking with an OptionsHouse customer service representative. Reimbursement will be made to your account via a credit within 60 days.

Refer-a-Friend for $50 or 10 Free Trades: Once you become an OptionsHouse account holder, you can refer friends to OptionsHouse and get either $50 or 10 free trades. There's some fine print on this one:

All OptionsHouse customers with a valid funded account are eligible. Each "friend" can be referred only once. New accounts must be opened within three months of referral and funded with at least $1,000 for a cash account and $2,000 for a margin account (according to OptionsHouse policy). You will be eligible for a credit of $50 (or 10 free trades) after your friend has opened and funded his or her account. If you choose the 10 free trades option, you will have up to six months to earn these free trade commissions. Bonus only valid if referred friend is not already an OptionsHouse account holder. Account holders receive a free trade commission, up to a maximum of 10 free trades, for each stock or option trade executed within six months of the referred friend funding his or her account. Account holders pay the applicable commission rate (and any related regulatory fees and transaction charges) on all trades at the time of the trade, and accounts will be credited with the commission within 60 days of the expiration of the six-month period or completion of 10 trades. Account holders will not receive cash compensation for any unused free trade commissions. Offer excludes employees of OptionsHouse, LLC or its affiliates. OptionsHouse, LLC customers may trade up to 50,000 shares or 4,000 options contracts per order; trades in excess of these parameters require multiple order tickets and will be billed as separate orders. Flat commissions may not apply outside certain risk parameters. OptionsHouse reserves the right to restrict or revoke this offer at any time. Additional restrictions may apply.

There's no limit on the amount of money you can earn by referring friends to OptionsHouse.

Please keep in mind that promotion codes can and do change without notice, so make sure to verify these offers on the OptionsHouse website. Also, if you know of another OptionsHouse promotion code, please let us know in the comments below.

If you are still undecided, read our review of OptionsHouse or our comparison of the top online brokers.

It seemed to me that applying for any credit card would lower your credit score, at least initially. Credit card companies pull an applicant's credit history, and such inquiries are a negative factor tending to lower a FICO score. A card issuer may not pull your credit history from each of the three major credit bureaus, so the negative impact on a credit score may only occur with one of the agencies. On the other hand, I recently applied for a Capital One business credit card, and Cap One pulled my credit from all three! But whether the credit history is pulled from one, two or all three bureaus, it will weigh on a credit score.

And with balance transfer offers, there is one more factor that could result in a lower score--high balances. When we get a balance transfer card, we typically max out the credit limit on the transfer. This makes sense as we want to take full advantage of the 0% introductory offer. But maxing out on a card is also a negative factor when calculating a credit score. As the card is paid down, the extra available credit may in the long run actually improve your credit score, but in the short run, it would seem to lower your score. On a positive note, if we are using the new card to transfer other credit card debt, our total debt is not increasing.

But the big question for me was whether there was a way to predict just how much a new balance transfer credit card would affect my credit score. It turns out there is, and the results really surprised me. Both MyFICO and Equifax offer a credit score simulator. These tools allow you to predict what your future credit score will be if you take certain actions such as maxing out or paying off your credit cards, applying for a mortgage, or getting a car loan. One of the simulations offered is what impact applying for a balance transfer offer will have on your score.

Balance Transfer & Credit Score Simulator

My current credit card debt is about $20,000. It's that high because I took advantage of a 0% balance transfer offer last December that had no balance transfer fee (the offer is no longer available). I transferred about $20,000 from my home equity line of credit that I had used for a home renovation project. So I entered that into both the MyFICO and Equifax simulators. Now keep in mind that my FICO score is slightly different with each, largely having to do with the timing of when I pulled my last score report with each. Anyway, here were the results of the simulation:

Equifax: My current score of 749 would change to a score somewhere in the range of 734 to 764.

MyFICO: My current score of 768 wold change to a score somewhere in the range of 763 to 803.

I was surprised to see that the worst case scenario was a loss of just a few points. Of course, the effect of applying for a new balance transfer offer will certainly vary from one person to the next, as both MyFICO and Equifax make clear:

In today's market, many consumers take advantage of credit offers with lower interest rates and transfer balances between accounts in order to benefit from these lower rates. The impact of this strategy on your FICO® score will vary depending on your current profile.

As a result of opening a new account, a new credit account (and possible inquiry) will be posted on your credit report -- this can impact your score. In addition, the information on your revolving accounts will change, which could raise or lower your score, depending on your profile.

This simulation is based on your applying for and receiving a new credit card with a limit of at least $20,000 and then transferring balances to it.

Bottom Line: The effects of credit card balance transfers are unique for each individual. This is because there are many factors to consider, including the terms of the transfer as well as other relevant information on your credit profile.

If you'd like to try out these simulators, they are available with the free score watch programs at both MyFICO and Equifax.