Simple Small in January

We've had an exciting first month of the new year!  Take a look at some of our top posts:

• A Smarter Savings Account
• Be Smart with Your Gift Cards
• Reader Story: Overdraft Protection
• Make Your Credit Cards Pay You
• Working Man's Lunch

That's for your support! If you haven't already, join the rapidly growing Simple Small community and subscribe today or get Simple Small delivered directly to your inbox.

Make Sure Your Promotion Makes Cents

Got an opportunity to make big bucks in another city?  Good for you, but be careful before signing the dotted line.  More money does not always mean more purchasing power.  Do your research--you might be surprised!

Stock Your New Computer...Free!

Buying a computer these days is like an a la carte menu...click a button get a wireless keyboard, new software suite, headset, etc. You came into get a new computer and you leave with $2,000+ worth of hardware and software bundles that you're probably never going to use.  Fortunately, there are lots of high-quality software alternatives available out there. Check out some of these before your next computer purchase:

Google Docs is free software as a service alternative to the traditional Microsoft Office Suite.  Currently it offers a word processor, spreadsheet/databases, web forms, presentations, and drawings.  The features are not quite as robust as the Office Suite just yet, but they are rapidly growing.  One of the great things about software as a service is everybody gets all updates, and in this case they're free! No more buying the newest edition every 6 months!  Google Docs also offers unique tools that integrate content from the web into your documents (ie YouTube videos, stocks/stats, data security, etc).  Open Office also provides a free option for folks who still want to download and install something on their machine.  This won't set you back any money and does a pretty darn good job, all things considered.

Pixlr is an extremely powerful web-based photo/graphics editor that competes pretty strongly against the likes of PhotoShop and Paint Shop Pro.  You can make quick edits in seconds without leaving the comfort of your browser.  You don't even need to log-in to use it, so if you haven't tried it check it out.  If you need to download something to put on the desktop, GIMP is an imagine manipulation platform that will give you most of the comfort of PhotoShop. Again, this should cover most of the average Joe's needs, so try it before forking over the big bucks.

Look at that! We just saved $400.  I could go on for pages about all of the different free software there is out there, but usually a Google search of "Free alternative to _______" will help you find a few options.  

What free software tools can you not live without?

Make Your Credit Cards Pay You

If you are a responsible user of credit cards, your credit cards can make you money. Just remember to pay off balances every month. Then find a credit card that has a cash rebate program. You can see your options at BankRate.com or other similar sites. I like the Chase Freedom and the American Express Blue Card, but there are several similar cards, like Discover and Capital One. Once you've got the plastic, use your cash back card for as many purchases as you can. The drawback to these cards is the high interest rate you have to pay if you carry a balance. The Bank is betting that you will slip up, so DON'T. Play by their rules and beat them at their own game. You must pay your balances in full each month!

Another way to make money from your credit cards is to take advantage of the 0% interest balance transfer programs offered by some banks. You must be selective and choose only those offers that have a reasonable upfront charge. If you pay 3% or 4% of your cash withdrawal as an upfront fee, you can't win. So look for offers that have a maximum fee of $50 or $75. These offers are not as widespread as they once were, but they are still available. How do you make money? Look for offers that have an interest free period of at least six months (one year is better) and will let you advance $10,000. Then if you have a Home Equity Line of Credit, pay down that balance and save interest costs there. At the end of the interest free period, withdraw the funds from your HELOC (or another balance transfer program) to pay off the credit card. If you have the funds for a one year period, but don't have a HELOC, invest the money in a  high-yield investment account. Currently, you  invest $10,000 in a 5 year CD at 2.4%. At the end of 12 months, cash in that 5 year CD and pay off the credit card with the proceeds. You will pay a 2 month penalty for cashing the CD early, but you will still earn $200 interest on the bank's money. These numbers will get better as interest rates rise. Even if you paid a $75 fee for the balance transfer, you still have enough profit for 300 pizzas! All you have invested is a few keystrokes.

Thanks, Mr. S for the tip!

$20 Amazon.com Gift Card for $10

Deal repost from livingsocial.com 

What's rarer than spotting a snow leopard, Halley's Comet, and Mark Wahlberg with a shirt on? Answer: Today's once-in-a-lifetime deal. Pay just $10 and get a $20 gift card to use at Amazon.com, the largest online retailer. Whether you are looking for something usual, like a book, or unusual, like a Borat-style mankini, you'll find it among the millions of products listed on the site. Or, if you're hankering for something that really stands out, put your 50%-off gift card toward the revolutionary and bestselling Amazon Kindle device. Just be sure to act fast, because deals like this only happen once in a blue moon.

The Little Details

Limit 1 per person, no gifting allowed

• Amazon.com Gift Card does not expire
• Voucher purchase is valid for US-based customers only
• LivingSocial Terms and Conditions apply
• The Amazon.com terms and conditions set forth below are deal specific terms that supersede any inconsistent terms in the LivingSocial terms and conditions

Buy Now

With no expiration date...this is as good as cash as far as I'm concerned.

Don't pay for an advance on your tax refund

It's that time of year when a lot of us are planning our taxes and, hopefully, estimating how big of a tax refund is coming our way.  Though I'm always one to encourage you to learn to do your own taxes, it's completely understandable that a lot of folks find tremendous value in having somebody else do them.  We've all got busy lives--it's completely understandable.  
What I don't support is getting a cash advance from your tax services company, in lieu of waiting 6-8 weeks for the IRS to send you a check.  Most of them will offer to give you a cash refund in 24 hours for a small $50 administrative fee and then some charge on top of that.  These costs end up totaling $100-$300 and sometimes more.
Just for the sake of simple calculation, let's say your total refund is $1,000, and your advance fee total is $100.  You're getting charged 10% interest for a 6-8 week loan.  That's 60% annually, and a big no-no.  These guys are not doing you any favors by giving you an advance...they're taking your hard earned money!  My recommendation would be to go ahead and get your taxes done early. That way you can get a refund check from the IRS early and move on with your life.  

Take a small amount of the refund and treat yourself to something simple, but try to save as much of that refund as you can and start thinking about next years deductions.

A smarter savings account

A lot of folks use a checking account to handle the day-to-day cash flow and use a savings account to accumulate wealth and generate interest.  Unfortunately savings rates these days are trivial...oftentimes lower than 1%.  The alternative might be to put the money in a mutual fund, money market account, or a certificate of deposit...something a little less accessible.  Most folks don't like this option as their savings are also their 'rainy day' fund.  If you're one of those folks, here's how to keep your money close while getting a better interest rate:

Ally Bank's high-yield CDs have terms from 3-months to 5-years.  What catches my attention is the 5-yr 2.39% APY account (rates in the post as of 1/15/2011).  Though 2.39% may not seem great for such a long term, it is steady, reliable, and it's better than the 0.3% you're making now...7 times better, in fact!  I know, nobody wants to tie their money up for such a long time period...well here's the deal:

Ally's CD early termination policy is 60 days of interest...that's it.  If you're confident you can keep your money in there for longer than two months, it's probably worth considering.  If you can keep it in there for 12-months, you're netting a 2% return (much nicer than the 1.29%; 1-yr CD).  For a lot of folks...the 'rainy day' never comes, and money sits in these low-yielding savings accounts for years.  That could be hundreds or thousands of dollars lost over the years!  Consider a high-yield CD with a simple, low-cost early termination penalty.

Ally's just one option. Visit www.bankrate.com to compare current market rates. Do your homework, and don't be afraid to call and have a customer service rep explain the details of your new account.

Moving forward...keep an eye on your accounts and current market rates.  If 12 months from now you can get a 4% CD, it might be worth moving your money around again. You are in charge of your money.  Don't let rain day fears keep you from earning interest on money...get a smarter savings account today!