Photo: MuseScore

One of the easiest ways to make money online is to take surveys. There’s little more to it than signing up, filling out a profile, and giving your opinion on ads, products, services and more.

The big question is just how much money can you make and how much work is involved. While you probably can’t make a full-time living taking online surveys, they can leverage your spare time to earn a bit of cash. Or, you might use surveys to get other perks, like free products.

Why Companies Pay for Surveys

You might think that getting paid to take a survey seems ridiculous. Why would anyone pay you for your opinion?

In truth, most companies rely on consumer feedback. Companies that don’t have a department to run consumer surveys and panels hire survey companies to do it for them.

Consumer feedback helps companies make more money by tweaking products and advertisements before they release them publicly. That’s why companies will pay you for your time when you take a survey. The information you give them is crucial to their success.

How It Works

Taking online surveys is simple, though getting started can take a bit of time. Here are the steps involved:

1. Find a company to sign up with. I’ve included a list below of companies to check out, but there are hundreds of legitimate companies out there.
2. Create and fill out a profile. You’ll need a separate profile for every company you do surveys for, and you’ll want to fill out each profile as completely as possible. Each survey is targeted to a particular demographic, so the company won’t send you a survey unless they can tell from your profile that you fit the demographic they want.
3. Get surveys. Most survey companies will notify you of available surveys by email. Some are immediately available for you to take. For others, you may have to spend a couple of minutes answering presurvey questions to ensure that you fit the demographic. If you do, you can go on to take the survey (and get the reward). Other times, you may get products in the mail that you’re meant to review.
4. Take surveys. Just answer questions. Sometimes it’s as simple as answering a few multiple choice questions. Other times, you may need to type out long-form answers to more specific questions.
5. Earn rewards. The rewards process varies dramatically from one company to the next. Some companies give you points, which you can redeem for cash or other rewards. Others transfer money immediately to your PayPal account, and still others enter your name into a sweepstakes drawing.

These steps vary from one survey company to the next, so be sure you understand how the process works when you sign up.

How Much You Can Make

Like I said, you’re not going to make a fortune taking surveys online, but you can make some extra money for fun, for paying off debt, or for investing. Monetary survey rewards vary from less than $1 to more than $20, though they’re usually on the lower end of that range, $1 to $5. If you can take several a day, you can earn quite a bit of money in a month.

Other companies don’t give you cash. But they may help you save money by offering you free products, often full-size products, that you need to test for the survey. Obviously, this can be a great way to get free household products, personal care products, diapers, and other things you use regularly.

Still other companies will enter you into a sweepstakes drawing when you take a survey. The more surveys you take, the more chances you have to win. These can be a little frustrating, since you don’t necessarily get a reward right away. But they can pay off with some great prizes, including gift cards, products and cash.

How much you can make depends on which companies you sign up with, how many surveys you take, and which demographic you fit. If you’re in an often-surveyed demographic, you may get more opportunities to make money, thus upping your survey earning potential.

Some companies, like Swagbucks, also offer prizes, points or cash for referring others to the service, so this is another aspect of survey-taking to check out.

The key is that you can use surveys to make money when you would otherwise not be doing anything. You’re certainly not required to take any surveys that land in your inbox, but you can do so if you find 10 or 15 minutes where you would otherwise be checking Facebook or Tweeting.

Spotting the Bad Apples

While there are lots of legitimate survey companies out there, this is also a good market for a scam. Some companies will sell your profile information, which can be quite personal, for profit.

So before you sign up, find the company’s privacy policy in their contract. If you can’t find the privacy policy, or if it says that the company is free to share your information, steer clear. You’ll just set yourself up for an inbox full of spam.

Also, never, ever pay a survey company up front. This is a scam designed to get to your money without giving you anything in return.

Remember, companies need the information they get from surveys, and they’re willing to pay to get it. So legitimate survey companies will share the wealth by paying you, not by asking to be paid.

Top Companies to Check Out

There are hundreds of survey companies that could be worth checking out. However, because different companies research different demographics, you may get different results out of different companies, so it’s worth your while to look around.

In fact, people who get the most from taking online surveys say it’s best to sign up for at least five to 10 companies, if you want to take surveys daily.

That said, here are some of the top companies:

SwagBucks: This is a good company because you can accumulate points, which you can cash in for prizes like gift cards and electronics. So even if you don’t qualify for a survey, you can get points that add up quickly.

LightSpeed Research: Because this company offers generous amounts of points for surveys, you can leverage your time here to get some great stuff. You can cash in your points for cash, gift certificates, music downloads, and lots of other stuff.

20/20 Research: This company does more specific surveys, so you may not pass many prescreens with them. However, if you do land a survey, you could get really great compensation, such as $100+ of gift cards and other rewards.

PineCone Research: This company pays $3 per survey taken, so they’re a good use of your time. They aren’t always accepting new panel members, but you should check back frequently to see when they are accepting sign-ups.

Valued Opinions: This company pays $1-$5 per completed survey, so these can quickly add up. You can also use surveys to earn rewards from various retailers.

Have you ever earned money from taking online surveys? Are there any online survey companies you recommend?

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Abby Hayes

Abby is a freelance copywriter and blogger who writes on everything from personal finance to health and wellness. She spends her spare time bargain hunting and meal planning for her family of three.

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With identity theft on the rise, more people are looking at ways to protect their identities. Options like identity theft protection and simple credit monitoring can certainly help. But what if you want to take more drastic measures?

One drastic measure you can take is to freeze your credit. Basically, a credit freeze places a hold on your credit file with any of the three major credit reporting bureaus: Equifax, Experian and TransUnion.

Once your credit file is frozen, inquiries into your file will be denied. Because potential lenders need to pull your credit file to see if you qualify for a loan, they won’t issue a loan to someone with your Social Security number when they can’t pull your credit file.

(Note: You’ll have to freeze credit files separately with each bureau.)

The main difference between credit monitoring and a credit freeze is that a credit freeze can keep thieves from taking out credit in your name. Credit monitoring catches them after the fact and can sometimes remedy the situation quickly.

Is freezing your credit right for you? If so, how do you go about freezing your credit? Here’s what you need to know.

Pros and Cons of a Credit Freeze

Like every financial decision you’ll make, freezing your credit has pros and cons.

Pro

• Nearly always stops identity thieves from taking out credit in your name;
• Remains in effect until you decide to “thaw” your credit;
• Provides more protection and usually costs less than a credit monitoring service;
• Doesn’t affect your credit score;
• Usually free if you’ve been a victim of identity theft.

Cons

• Can be expensive to place a freeze and to lift it again;
• Blocks you from taking out new credit in your name until you remove or temporarily lift the freeze;
• May need to pay to freeze and/or unfreeze credit or temporarily lift the freeze;
• Can take up to three business days to lift the freeze, which can delay your credit application;
• Does not protect existing bank or credit accounts from fraud.

Whether a credit freeze is right for you depends on many factors. If you’ve been a victim of identity theft, getting your credit frozen may be easier and will almost certainly be cheaper. Plus, if you think your stolen ID may be floating around out there, a credit freeze can protect you from the hassle of dealing with more fraudulent accounts.

If you haven’t been the victim of ID theft, a credit freeze can give you peace of mind. If you don’t apply for credit often and have no plans to apply for new credit any time soon, a credit freeze may be cheaper for you than a monthly credit monitoring service.

Carefully look at the pros and cons of freezing your credit to ensure you make the right choice for your financial and personal situation.

Steps to Freezing Your Credit

If you decide to freeze your credit, one great thing is that the process has gotten easier in recent years. As identity theft and credit fraud has become more common, credit reporting bureaus have made the process of freezing and lifting freezes on your credit files easier.

Here are the steps to take if you decide to freeze your credit:

1. Find out your state’s fees. Each state sets its own laws for fees that credit bureaus can charge for placing and lifting a credit freeze. You can find Equifax’s helpful state-by-state list here.
2. Gather your personal information. To fill out online credit freeze forms, you’ll need personal information like your Social Security number, birth date and, possibly, driver’s license number.
3. Fill out credit freeze forms for each of the three major credit reporting bureaus. Click the linked bureau names to be taken directly to their credit freeze applications: Equifax, Experian, TransUnion
4. Pay attention to instructions in the application for how to lift a credit freeze. Be sure to keep a secure file with your application PIN and other credit freeze information, so you can lift the freeze when necessary.
5. Relax. Your credit is now safe until you should decide to lift the freeze.

Author information

Abby Hayes

Abby is a freelance copywriter and blogger who writes on everything from personal finance to health and wellness. She spends her spare time bargain hunting and meal planning for her family of three.

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LinkedIn, which was founded in 2002 and launched in 2003, reported an increase in users last year. As of January 2013, the social networking site for professionals had 200 million registered users. It may not be in the league of social media giants Facebook and Twitter, but there’s nothing quite like LinkedIn, which is considered the best professional social network we have today.

Individuals who sign up with LinkedIn can connect with business colleagues, classmates and people who share the same professional background. Job-seekers and employers make up a good number of the site’s users. Employers can post jobs or projects and search for people who may qualify for them. Job-seekers can view job openings and employer profiles. Additionally, users can follow groups and companies signed up with LinkedIn. The groups are classified mostly according to a common interest or skill (like journalism or SEO). Likewise, there are tools that can open up opportunities for connecting with a diverse group of people.

These features are why LinkedIn is a good tool for recent college graduates. Like the most popular social networking sites, it is a good way to meet people. And building connections with professionals is what new graduates need to do to establish a personal brand, plan a career and improve job opportunities.

To get the best out of LinkedIn, there are things you need to do. Here are 25 tips new graduates can use to leverage their account and achieve superb professional goals.

Your Profile

1. Don’t just create a profile; create a profile that dishes the most impressive things about you. You should be willing to give information about yourself, specifically your preferences, achievements and interests, that will help you connect with others. If you skimp on your self-descriptions, LinkedIn users may not find enough reasons to connect with you.

2. Open your profile to the public. If you keep your profile private, you won’t be able to find people to connect with. If you’re concerned about your privacy and safety online, you don’t need to shut out the LinkedIn world, but you do have to practice caution and choose what you share.

3. Put a face to your profile. Choose a professional-looking photo. People want to know what you look like. Be sure to use a shot of just yourself, not a group or family photo. Make sure it’s a clear one.

Building Connections

4. Connect with as many people as possible. Even if LinkedIn is a professional social network, you should reach out to former classmates and schoolmates – especially your fellow graduates. Many of you will be in the same boat, searching for job opportunities, so connecting with them will help you. You can discuss professional goals and share job-hunting stories.

5. Aside from the people in your school, you should reach out to former professors and fellow alumni. Your professors can advise you as you move about LinkedIn and try to network with as many people as possible.

6. If you have previous work experience, connect with past employers and co-workers. Of course, choose only the ones you know will give you a good review. You’ll never know how helpful they can be in the future.

These connections can post recommendations about you and your skills. Once people know where you excel, they’ll start considering you for certain jobs or projects.

7. Look for people you can connect with, even those you barely know and maybe met through LinkedIn. Choose those who share your interests and passion. They might have connections that can benefit you later. Additionally, you should act as a connector. That is, connect two or more people in your list by introducing them to each other. Do this only if you are sure they share the same professional ideals, interests and goals.

8. Get into Groups. One way of expanding your connections on LinkedIn is by joining Groups. This is the best thing to do if you want to meet people who move in the same world you move in. Group members constantly update each other with the latest job opportunities. Likewise, many also use Groups to share developments about the industry they are in, as well as offer some tips, tricks and career advice. Find the right group by identifying your interests and the niche that you like the most (example: WordPress theme development, online marketing, telecommunications, banking, among others).

9. When asking someone to connect with you, be sure to add a personal note. Don’t simply send a template-like invitation that says “I’d like to add you to my professional network.” Give your potential connection a note that describes who you are and what makes you think the two of your should be connected on LinkedIn. In other words, customize your invitation.

Introductions

10. Use introductions to meet people. LinkedIn’s Introduction feature will help you find an individual, group, organization or company that interests you. Between you and this individual or company, you’ll find other connections that can help expand your network. Use the Introduction feature to communicate with others outside of your network.

Recommendations

11. Throw aside all feelings of shyness and ask your connections for recommendations. Get in touch or connect with school or college classmates, former professors and mentors, former work colleagues and previous employers. Ask them to give you a recommendation based on the professional skills you indicated in your profile. Recommendations will help make your profile more interesting and your chances of attracting an employer will greatly increase. Think of Recommendations as testimonials from your network.

Content and Frequency of Use

12. Use your LinkedIn account regularly. Think of it as the Facebook that can give you a job. As much as possible, log in and update your account every day. There’s always somebody new to connect with; something new to discuss with your Groups and there’s always a new company or group to discover. LinkedIn also has tons of self-help articles (in the areas of career, family, business, technology, spirituality, among others) you can read every day. Prominent gurus such as Richard Branson, Deepak Chopra and Tony Robbins all have posts that will keep you visiting the website regularly. If you’re not on LinkedIn as often as you should be, you’ll never be able to reach the goal you desire.

13. Post new content every day – or at least every time that you log in. This will keep your connections glued to your updates. Share news about the industry or niche you move in. Post some interesting trivia that your groups might find interesting. Repost or share relevant blogs, especially posts you own or were written by you. Share your thoughts, ideas and experiences. Just like any other social media platforms, content is king.

14. Use keywords in the best and most natural way when posting. Add keywords to your profile or use interesting, relevant key phrases in your posts and comments. This will make it easier for people to find you. Be sure the keywords you use are relevant to who you are and what you are offering. Keyword stuffing or spamming is a big no-no.

Use LinkedIn’s Answers Tool

15. LinkedIn has an Answers Tool. Use this to establish yourself as somebody who can be trusted in your area of interest. This will also help show potential employers or clients how dedicated and reliable you are. The Answers Tools can show off your potential. It will make you an authority on your selected niche. Be sure that you don’t overdo it and appear too boastful. Potential employers don’t like a know-it-all.

Other Tips and Resources

16. LinkedIn has resources especially made for fresh graduates looking to score a significant job offer. Use these resources to the best of your ability. Personalize your profile so you can list all of your accomplishments, honors and awards, the courses you finished, as well as other experiences that might give you some points.

17. When writing your profile and posting updates and comments, exercise professionalism. Use the right words and correct grammar. Avoid using slang or writing in phrases. Text speak should be avoided.

Employers look for people who know how to express themselves in complete sentences. If you’re not sure about a certain word or spelling, use a dictionary or online thesaurus. Look at other people’s profiles to get an idea of what you should do.

18. Make sure your LinkedIn connections can also be your friends. As much as possible, get to know them in person (if you do not know each other yet) and spend some time with them. You can invite them to coffee or socialize at a conference. This will help strengthen your connection and give you the chance to exchange stories, tips, goals and experiences.

Groups You Should Join

As I mentioned earlier, LinkedIn Groups can help expand your connections. Here are some Groups you should consider joining. They are specifically for new grads. Be sure to check with your Groups regularly, because there will be updates, news and tips. And, of course, you wouldn’t want to miss the latest job openings and opportunities, would you?

19. Your College Alumni Group. If your college doesn’t have one on LinkedIn, you can start it and connect with your fellow graduates and classmates.

20. If you want useful discussions and tips for job-seekers, including tips for nailing job interviews, the New Grad Life Group is an excellent choice.

21. Another group with a similar concept is the College Graduate Job Hunters Group.

22. You can always search for a professional group focused in your interests and skills, like a Fashion Designers Group or a Creative Writers Group. You can use the Search feature to look for the Group you want to join.

23. The Student and New Grads Group is perfect because it will connect you with people who can share tips about getting into entry-level jobs.

Finally, Use LinkedIn Tools

24. The Creative Portfolio Display can give connections an idea of your work. They’ll get a peek at what you’re capable of doing. It’s an online portfolio of your best work.

25. LinkedIn Student Jobs is a tool that helps new graduates find entry-level jobs. Companies looking for fresh faces and new graduates abound in this tool. So be sure to make the most of it.

These are just some of the tools that new graduates like you can use to make as many connections as possible on LinkedIn. If you have a keen desire to get on top of things and find what you want or need, get the best tools and put them to good use. They’re all over LinkedIn and easy to find. All you need to do is search.

There are many more things you can do to make good use of your LinkedIn account for your job-hunting needs. However, the most important thing to keep in mind is: build connections and make these connections work for you. Make potential employers believe that you are what they want; that you have what it takes to help their business achieve their goals. All in all, what LinkedIn is all about is selling your best professional skills and assets. So before jumping onto the LinkedIn bandwagon, learn how to market yourself. If you do this, you’re in for a lot of wonderful professional surprises.

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Michael Gabriel Sumastre

Michael is an experienced freelance writer and blogger. With a degree in computer science, he enjoys programming and building websites. A techpreneur, he writes about the intersection of technology and personal finance.

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It’s easy to commit a faux pas at a job interview. You’re nervous and tense, so you make mistakes. But the more prepared you are when you go in, the less likely you are to do something stupid – like ask a question that will shoot down your chances of being hired.

Wondering what questions you should avoid? Here are 15 questions best asked, if at all, after you get the offer:

1. Do you run drug tests?

Obviously, you shouldn’t be asking about drug tests. You should be clean so you don’t have to worry about this possibility.

2. Will you check my credit report?

Many employers check credit reports for potential employees, but you’ll have to sign a release first. If you’re concerned about negative information on your report, talk to the hiring manager only after you’ve been given this form to sign.

3. Can I date co-workers here?

This is another no-brainer. You can learn about company policies after you’re offered a job. Until then, don’t seek a relationship with a current company employee.

4. How long do I have to wait before I can use sick days?

This question will leave the employer wondering how quickly you plan to get sick, and how often you plan to use sick days.

5. How much time off do I get?

If you’re more concerned during an interview about what a company will do for you than what you can do for a company, you’re not going to get hired.

6. What about telecommuting?

This can sometimes be a legitimate option, especially if telecommuting is listed in the job description. But unless the job description or interviewer says something about telecommuting, leave that negotiation for after you have an offer in hand.

7. How often can I expect a raise?

It’s great to show an interviewer that you’re interested in advancing in the company, but putting it this way will only make you look self-centered and shallow.

8. Would I have to relocate for the job?

If you’re absolutely not willing to relocate, you might feel around for this possibility. But otherwise, leave this question off the table.

9. Is there a possibility of job sharing?

When you want part-time work, you should be applying only for part-time jobs. Asking about job-sharing at an interview for a full-time job will likely ensure that you aren’t hired.

10. What’s your disciplinary process like?

Asking about this may indicate that you’re familiar with disciplinary processes at other businesses, and that you plan to test the system at this one.

11. Can I see the break room?

The break room definitely shouldn’t be your main concern. Ask about any other area of the company that would have to do with your actual work, but not about the break room.

12. Do you offer bonuses?

You may want to ask how a company rewards employees for excellent performance, but not in such a direct manner.

13. What’s your health care plan like?

This is one of those details better left until after you have a job offer.

14. Who are your main clients?

You should do enough research into a potential employer that you understand its products, services and clients. Asking basic questions like this show an interviewer that you haven’t taken time to do your homework.

15. No questions at all

While there are lots of stupid questions you shouldn’t ask during a job interview, you shouldn’t clam up, either. Prepare a few relevant, helpful and intelligent questions you’d like to ask an interviewer, and ask when you’re given a chance.

As you can see, this list includes some questions that it would be stupid to ask at all, while others are things you might legitimately be concerned about. But remember: your main focus during a job interview is showing an interviewer what you can bring to a company.

After you have a job offer in hand, you can get to the nitty-gritty of what the job and company will add to your life.

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Abby Hayes

Abby is a freelance copywriter and blogger who writes on everything from personal finance to health and wellness. She spends her spare time bargain hunting and meal planning for her family of three.

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Last weekend my wife, daughter and I flew to Omaha for the annual Berkshire Hathaway shareholder meeting. While it may seem like an odd trip for the family, we had a blast. For me, I found the experience inspirational. I came back from the trip hyper focused on building a great business and investing with purpose. I wrote about one aspect of the trip, dividend investing, for the On Retirement blog over at U.S. News–The Case Against Dividends for Retirees.

Here was our view from the top:

If you missed the meeting this year, here are some good articles that recap the event:

Warren Buffett Takes Center Stage Again After Shareholders’ Meeting by Jason Cunningham.

What Warren Buffett Said at the Berkshire Hathaway Shareholder Meeting by Diane Alter.

Berkshire Hathaway Shareholder Meeting: Blog Recap by Antoine Gara.

Now on to our weekly roundup–

Investing

Does a Bond Fund’s Yield Tell You Its Level of Risk? by Mike Piper.

Funds That (Still) Buy Like Buffett, 2013 by David Kathman, CFA.

IRA Investment Options: How to Choose Investments for Your IRA by David Weliver.

How NOT to Invest in Real Estate… A Case Study by Jason Hull.

Personal Finance

David Foster Wallace “This is Water” Commencement Speech by Jonathan Ping.

Carnival of Personal Finance – Happy Days Are Here Again Edition! by Neal Frankle.

Elizabeth Warren: Students Should Get the Same Rate as the Bankers by Kayla Webly. Note: At first I thought this was fake news from the Onion. But alas, Sen. Warren is actually proposing that school loan interest rates be set at the same rate banks pay for secured loans borrowed from the Federal Reserve’s “discount window.” Apparently, the current rate of 3.4% on student loans is just too onerous, and I guess we can throw the vastly different risk profiles between banks and college students right out the window.

14 Traffic Tickets That Can Raise Insurance Rates by Angela Colley.

Blogging

How to Shift From Guest Posting to Content Marketing in 6 Basic Steps by Eric Enge.

My April 2013 Monthly Income Report by Pat Flynn.

The Ultimate Guide to Making an Affiliate Income from Your Blog by Glenn at ViperChill.

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Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

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I’m still amazed when I read a news report lambasting prepaid debit cards. The main beef with these banking alternatives is high fees. Five years ago that was a legitimate complaint. But today, there are a number of low fee prepaid cards.

I’ve written about a number of these cards in the past. Today I thought I’d share one with you that I’m betting you’ve never heard of–the KAIKU® Visa® Prepaid Card. It has some of the lowest fees available in a prepaid debit card.

Fees

With any prepaid card, there are four main fees to watch out for: (1) activation fee, (2) monthly maintenance fee, (3) transaction fees, and (4) ATM fees. Of these, the activation fee is the least important, in my view, because you only pay it once. The other fees, if there are any, occur every month. So how does the KAIKU Visa Prepaid Card stack up?

• Activation Fee: None
• Monthly Fee: $1.95
• Transaction Fees: None
• ATM Fees: None for in-network ATMs

And in case you’re wondering, KAIKU has about 50,000 ATM locations in its network. It’s part of the Allpoint ATM network. I live in Northern Virginia and there are dozens of Allpoint ATMs within a few miles of my home.

So at $1.95 for the core features of the prepaid card, KAIKU is very competitive with other low-fee prepaid cards and even most checking accounts.

Features

Like any prepaid card, the KAIKU Visa Prepaid Card works much like a bank debit card. Beyond the basics of using the card for purchases and ATM withdrawals, however, it does offer some additional features.

For example, you can have your paycheck or benefits check deposited directly onto the card for free. Money can be transferred from one KAIKU card to another for free. You can receive free text alerts when money is deposited onto the card or your balance is running low.

If you want family members to have a card, you can get up to three additional cards for just a $2 fee per card. And you can call customer service for free. That may seem like a given, but many prepaid cards actually charge you for calls to customer service.

Mobile

Finally, you can access your account with your smartphone. The KAIKU Visa Prepaid Card has an app for the iPhone, Android, and Blackberry smartphones. The apps let you load money from your bank account, send money to any KAIKU cardholder, check your balance and transaction history, or find surcharge-free ATMs.

For more information or to get a card, visit the KAIKU website.

Author information

Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

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Photo: Tulane Public Relations

Whether you’re in college or just graduating, chances are you don’t have much credit history. And that’s not a bad thing. You haven’t needed credit up to this point, and this is the time when most people start worrying about things like credit scores and credit cards.

But now that you’re in your 20s, it’s time to think about building credit. What this doesn’t mean is applying for all 50 of the credit card offers you get in the mail this week. Avoid that, and take these steps instead:

Why Worry About Credit?

Your credit score has more to do with your life in general than you might think. Sure, your parents probably co-signed for your student loans, but you don’t want mom and dad to have to co-sign for you forever, do you?

Besides, avoiding long-term reliance on your parents’ credit and building a good credit history helps you in other ways. Consider:

• Building a credit history allows you to get credit when you need it, such as when you buy a car or a home.
• Landlords will run credit checks before renting to you to ensure you’re financially responsible.
• Potential employers may pull a credit report, using it to gauge your personal responsibility.
• A high credit score will save you money by getting you lower interest rates on the loans you take out.

What Goes Into Your Credit Score

The first step to building credit is to understand what goes into your credit score. There are a lot of myths out there about what does or does not affect your credit score. (Like the myth that your income has something to do with your credit score. It doesn’t.)

The FICO score, the most commonly used credit scoring model, uses a weighted model. That means that some components are more important than others. The breakdown of a FICO score is:

• 35 percent payment history
• 30 percent amounts owed
• 15 percent length of credit history
• 10 percent new credit
• 10 percent types of credit used

In short, this means that paying debts on time is the most important thing you can do to keep your credit score up. Next is to keep your balances low compared with your credit limits. (i.e., you don’t want to carry a balance of more than 50 percent of a credit card’s limit, and lower is better.)

Your credit history will naturally lengthen with time, and you can avoid dings on your credit by not applying for new credit when you don’t need it. In other words, don’t take every store credit card offer that comes your way.

With that said, you still need some specific steps to building your credit. Here’s what you can do to begin building your credit.

Student Loans Help Build Credit

Because federal student loans don’t require a credit check, you can get these loans based on financial need without any credit history. And if you start paying them back promptly after graduation, they’re also a great way to begin building your credit history.

Whether you consolidate your student loans or not, paying on time will help build your credit. Remember that even one late payment can ding your credit score, so make those payments a priority.

If you don’t have enough money to make payments, look into alternative repayment options before you miss a payment. Talk to your lender about which option will work best for your needs.

Consider a Student Credit Card

While you certainly don’t want to graduate with student loan debt and credit card debt, using a student credit card wisely is a great way to quickly build your credit. Having a revolving line of credit, such as a credit card, adds to your account mix and gives you more fuel to feed your rising credit score.

The keys are to choose the right student credit card for your needs and to make all your payments on time. Know all the details of your credit card, including late fees, balance transfer fees and APR, and stay on top of your billing statements.

You can really give your burgeoning credit score a boost by keeping your credit card balance low or even zero. Use the card for a few purchases throughout the month and pay it off promptly. In this way, you won’t pay any interest and you’ll boost the “amounts owed” portion of your credit score.

Paying Rent May Help

Chances are that you’re not going to move straight from college into homeownership. And because you’re still building your credit score, that’s not a bad thing.

But why not make what you have work for you? You can do this by trying to have your rent reported in your credit score. Two credit reporting bureaus, TransUnion and Experian, have a way for renters to include on-time payments in their credit reports.

As long as you have a good history of on-time rent payments, those payments can help boost your credit score. Even if you’re still in college and paying rent (in your own name, not your parents’), you may be able to add your on-time payments to your credit report to boost your score.

Pay Your Bills On Time

I can’t stress enough how important this is to building and maintaining good credit. A single late payment can wreck your credit score and take months to come back from.

Whether you have to write all your due dates down on a calendar, use a tool for automating your finances or eat nothing but Ramen for a week, do what you must to pay your bills on time.

Stay On Top of Your Credit Score

Finally, as you’re building your credit score, take time to manage it. Some places, like myFICO.com, have paid services that allow you to keep a constant check on your credit score. If you’re broke, you don’t have to pay monthly, but you should check your credit report every few months and your actual score a couple of times a year.

Checking your credit report, in particular, can help you spot reporting mistakes, which are very common, before they cause serious damage to your credit.

Resources

Now that you know the basics of building your credit score while in college, check out these resources for further information:

AnnualCreditReport.com: You can use this site to obtain a free copy of your credit report. You’re legally entitled to one free copy per reporting bureau per year.

MyMoney.Gov: This is a resource site with all sorts of information on budgeting, mortgages and, of course, credit and debt.

Information on Credit Bureaus and Credit Scoring: Learn about the major credit bureaus and the laws of credit scoring from a trustworthy government site.

Fair and Accurate Credit Transactions Act: Learn more about your legal rights as a consumer from this FDIC page.

Check Your FICO Score: Use this site to check your official FICO score for free.

myFICO.com’s Credit Basics: Learn about the basics of credit reporting and credit scores from myFICO.

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Abby Hayes

Abby is a freelance copywriter and blogger who writes on everything from personal finance to health and wellness. She spends her spare time bargain hunting and meal planning for her family of three.

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As I write this, shares of Tesla Motors Inc. (NASDAQ:TSLA) are on a tear. Up over 20% on news of its first quarter results, the market is doing what the market does–go crazy.

I spent all of about 60 seconds looking at Tesla’s 2012 year end financial statements and its first quarter 2013 results. That’s all it took to know that the market will eventually feel some pain from Tesla stock. Tesla is a perfect example of the difference between a great company and a great investment. Here’s why.

Financial Condition

When evaluating any company, the first place I go is to the balance sheet. Yes, the income statement gets all the news, but it’s the balance sheet that keeps score. For Tesla, I don’t like what I see.

Its 2012 balance sheet reports that its current liabilities (debt due within 12 months) actually exceed its current assets (ones that will be converted to cash within 12 months). As of December 31, 2012, the company reported about $525 million in current assets, compared to nearly $540 in current liabilities. That gives Tesla a Current Ratio (current assets / current liabilities) of less than 1. Ideally, I look for a current ratio of at least 2.

In a CNN article, Peter Valdes-Dapena reported that Tesla is “financially healthy thanks to good sales of the Model S plus deals it’s reached to supply components to major automakers like Toyota and Daimler as well as sales of electric car credits, earned under California regulations, to other automakers that sell fewer electric cars.” While these deals may prove profitable, I’m not ready to declare the company “financially healthy” just yet.

First Quarter 2013 Results

In a letter to shareholders disclosed yesterday, Tesla Chairman & CEO Elan Musk and CFO Deepak Ahuja cheered the company’s results:

Tesla reached profitability in the first quarter of 2013 for the first time in our ten year history. We exceeded our own targets for deliveries, significantly expanded gross margin, and improved execution throughout the company. Excluding non-cash warrant and stock option items, we generated a profit of $15 million. Including those factors, our GAAP profit was $11 million. Importantly, we achieved profitability despite the benefit of a one-time accounting gain related to the DOE warrant.

More than anything, this description of the company’s results concerns me. Here’s what the above doesn’t tell you (you have to dig into the letter to get these details):

• Tesla actually lost money last quarter from operations. $5.5 million to be exact.
• While it’s true that the company did turn a profit even without the gain related to the DOE warrant, they didn’t turn a profit if you also exclude the “$6.4 million favorable foreign currency exchange impact.”
• Finally, I wonder how much of its net income benefited from deferred tax assets resulting from past losses.

Tesla had a good quarter as compared to prior period results. But it still lost money from operations, and I would have preferred management to have acknowledged this up front. Such candor would have given me more confidence in management.

Stock Options

While I’ve not performed a detailed analysis, I’m concerned about the stock options and stock-based compensation the company is issuing. When a company treats its stock as a piggy bank for employees, public shareholders suffer as their ownership stake gets diluted. I’m not suggesting Tesla has gone overboard, but it did have this to say in its 2012 Form 10-K:

A majority of our total outstanding shares are held by insiders and may be sold in the near future. The large number of shares eligible for public sale or subject to rights requiring us to register them for public sale could depress the market price of our common stock.

It reported 25 million options as of December 31, 2012. If these were to be exercised, the impact on share price would be significant.

It’s Worth How Much?

Tesla reported net worth as of March 31, 2013 of about $168 million. If you exclude property and equipment, the company’s net worth is wiped out and then some. Yet at current prices, Tesla is valued at more than $7 billion (yes, billion with a ‘b’).

We’ve seen this story before, and it doesn’t end well for investors.

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Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

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I‘ve been investing in the stock market for more than 20 years. During that time I’ve never hired an investment adviser to manage my portfolio. The primary reason is cost. A close second reason is that I enjoy investing.

But if I’ve learned one thing from running this website it’s that how I handle my investments is not always the best approach for everybody. If you’re ready to start investing but don’t know where to begin, you might think about hiring an investment specialist to help you.

Like most financial decisions, there are pros and cons to seeking help with your investments that you should consider before making your decision.

Pros

Professional Insight

Obviously, when you hire an investment specialist, you’re looking for professional knowledge and experience. Investing can be complex, especially when you’re creating your long-term investment goals and game plan. Having some guidance can be helpful.

Objective Advice

When it comes to financial planning, many of us make decisions based on emotions, such as fear about the future. This can lead to bad investing decisions that can really hurt. A third-party adviser doesn’t have as much to lose from your investment decisions, and such a big-picture, objective view can help you make better investing choices.

Multiple Options

Some investment advisers are linked to particular companies, investments, insurances, etc. But others are independent and can give you a host of investing options to choose from. Of course, you could choose among these options on your own, but, again, having some guidance can be helpful for many of us.

Time

Managing investments personally can take a great deal of time. You need to research your investments and potential investments, decide when to buy and sell, and educate yourself about the market. When you hire an investment specialist that you trust, you can leave much of the time-consuming research to that person.

Cons

Potentially Expensive

Complicated fee structures can make it hard to discern what an investment specialist is costing you, but expect these services to be expensive. Specialists may charge by the hour, by a flat fee, or by a percentage of assets managed. Either way, these services can cost a chunk of change.

May Operate on Commission

Here’s something to look out for: free or cheap investment advice. Investment advisers have to make a living, and many who don’t charge much instead make their living through commissions on the products they sell. This can lead the adviser to recommend investments that don’t suit your needs and goals just to get the commission.

Risky

Any investment is risky, and investments made at the recommendation of specialists are no less risky. Hiring an investment specialist may give you a false sense of security that your money will be invested well, but you should always understand the risks you’re taking whenever you invest your money.

Choosing the Right Investment Specialist for Your Needs

If you do decide to hire an investment specialist, here’s what you need to look for to find the right one:

• Type of Specialist: Most licensed financial planners are investment specialists, but not all investment specialists are financial planners. If you deal with complicated taxes, want to plan for retirement, need estate planning help, and want help investing, a financial planner (with significant investing experience) is what you need. If you’re looking only for help with investments, an experienced investment specialist is a better option.
• Licensing: Investment advisers must at least be registered with their state’s securities agency, but if they manage $100 million or more, they have to be registered with the SEC. Ask about this registration and see if your potential adviser has further credentials, such as a Certified Financial Planner certificate.
• Fee Structure: You may want to avoid commission-based investment specialists because they may push you into unsuitable investments. But no matter who you hire, you need to make sure you understand — and can afford — a specialist before making your final choice.
• Demeanor: This is perhaps one of the most important aspects of choosing a financial planner or investment specialist. Here at Dough Roller, we believe it’s vital that you actually understand what you’re doing with your money. (Which is why we have an entire section on the ins and outs of investing.) The right investment specialist is one who will make sure you understand the choices you’re making, rather than bulldoze you into making choices as quickly as possible.

Whether you decide to hire an investment specialist, you should still understand the basics of making wise investments that will pay off in the long run. Educate yourself about your money, and you’ll be equipped to make better financial decisions.

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Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

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So you just graduated from college, and you have no idea where to start when it comes to managing your personal finances. Or maybe you’re fairly good at budgeting, but you need to know about investing. Either way, this list of resources will more than cover all your financial questions, from budgeting basics to buying a home to landing a great-paying career.

Financial Basics

1. CNN’s Money 101

Learn about everything from setting financial priorities to investing in a 401(k) with this basic money guide. It’s divided by topic, so it’s particularly easy to navigate to the financial issue you’re facing today.

2. The Money Book for the Young, Fabulous, and Broke by Suze Orman

Suze Orman is famous for giving financial advice to women, but here she answers your biggest financial questions – from dealing with credit card and student loan debt to buying a home.

3. Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner Shaw

This book of basics helps you set financial goals, pay down debt, choose the right bank, start investing for retirement, and buy your first home.

4. The Wealthy Barber: Everyone’s Commonsense Guide to Becoming Financially Independent by David Chilton

If you’re bored stiff by the straightforward style of most personal finance books, this one might keep you awake. It imparts basic financial advice for young adults (and everyone else, really) in the form of a novel.

5. Life After School Explained by The Cap and Compass Team

If you want real-world advice from people who have been there, this guide is for you. Authored by a team of recent graduates, this book explains everything from HMOs to auto insurance with wit and personal stories.

6. I Will Teach You To Be Rich by Ramit Sethi

This guide written for 20-35-year-olds takes the form of a six-week program that will not only teach you about financial concepts but will give you solid direction for building a financial future.

7. Rich By Thirty: A Young Adult’s Guide to Financial Success by Lesley Scorgie

If you want to build some serious wealth, learn the basics of financial success here. This book features a helpful glossary of money terms, as well as worksheets you can use to get a handle on your finances.

8. Please Send Money, 2E: A Financial Survival Guide for Young Adults on Their Own by Dara Duguay

While some of the other books here focus on wealth building, “Please Send Money” is a bit more about financial survival. Learn about essentials like money management, career preparation and debt.

9. Debt-Free by 30: Practical Advice for the Young, Broke, and Upwardly Mobile by Jason Anthony and Karl Cluck

Written by two self-proclaimed financial misfits, “Debt-Free by 30″ explores what to do if you’re in financial straits in your 20s. It helps you find ways to save so you can pay down debt early on.

Investing

10. The Bogleheads’ Guide to Investing by Taylor Larimore, Mel Lindauer and Michael LeBoeuf

While this investing book isn’t written solely for young adults, it has a fresher tone than most books in this niche. Also, it starts at the very beginning with finance and investing basics.

11. Generation Earn: The Young Professional’s Guide to Spending, Investing, and Giving Back by Kimberly Palmer

This book brings a fresh outlook to young-adult finance because it focuses on the earning and spending power that this generation has like no other generation before it. Of special interest is its section on changing the world by spending green, giving back and even starting a nonprofit.

12. The Motley Fool Investment Guide for Teens: 8 Steps to Having More Money Than Your Parents Ever Dreamed Of by David Gardner, Tom Gardner and Selena Maranijian

Yes, it’s written for teens. But that doesn’t mean that this Motley Fool investment guide wouldn’t be helpful for you. If you know next to nothing about investing, this guide is a good place to start.

13. Saving for Retirement (Without Living Like a Pauper or Winning the Lottery) by Gail Marks-Jarvis

If you know nothing about the basics of saving for retirement, here’s a good place to start.

Budget Living

14. You’re So Money: Live Rich, Even When You’re Not by Farnoosh Torabi

Use this book to learn to live beyond your means without actually living beyond your means. Author Farnoosh Torabi helps you learn to dress and accessorize well, have a social life, and meet financial goals – all by spending in the right places.

15. Brass Blog

The Brass Blog, part of brass magazine, is written for high school students. But they also deal with college student and 20-something topics, including credit and debt, budgeting and career.

16. Wise Bread New Graduate Help Center

Wise Bread is a great go-to site for all things savings and frugal living. Their New Graduate Help Center is replete with articles on saving money, getting a job, creating a budget and more.

17. Bargaineering’s Frugal Living Column

Bargaineering is a great money site in general, but the frugal living section is a fabulous place to learn about various ways to save in your daily life.

Career Decisions

18. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future by Chris Guillebeau

Thirty-something Chris Guillebeau is practicing what he preaches in this interesting book, as he lives a life of adventure traveling around the world. If a non-traditional career path appeals to you, pick up this volume before you start a 9-to-5.

19. Dough Roller’s Extra Income Section

It’s never too early (or too late) to start making money on the side. Though it’s not specifically for young adults, this section of the Dough roller site could give you some great information on bringing in a side income as you start your career.

20. Quitter: Closing The Gap Between Your Day Job and Your Dream Job by Jon Acuff

If you don’t want to end up in the corporate world forever, this is a good resource to help you take off with your dream job while you keep your day job to support you in the meantime.

21. JobSmarts for Twentysomethings by Bradley G. Richardson

How do you plan for career success in the new world of work? Learn how from this helpful guide.

22. The Back Door Guide to Short-Term Job Adventures: Internships, Extraordinary Experiences, Seasonal Jobs, Volunteering, and Working Abroad by Michael Landes

Gain more experience – or just have some adventure before you settle down – while still making money with short-term or seasonal jobs and adventures.

23. From Graduation to Corporation: The Practical Guide to Climbing the Corporate Ladder One Rung at a Time by Andy Teach

The title pretty much explains this guide to finding a career, staying organized, office politics and more.

24. Never Eat Alone: And Other Secrets to Success, One Relationship at a Time by Keith Ferrazzi

Networking is an ever more important part of the work environment for many of us – entrepreneurs and corporate workers alike. Learn networking tips that work from a pro in this bestselling book.

25. Getting from College to Career: Your Essential Guide to Succeeding in the Real World by Lindsey Pollak

This beginning career guide starts with basics like understanding who you are and what you want and goes on to teach recent grads about everything from emailing like a professional to creating a resume.

Author information

Abby Hayes

Abby is a freelance copywriter and blogger who writes on everything from personal finance to health and wellness. She spends her spare time bargain hunting and meal planning for her family of three.

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