I was recently contacted by the marketing rep at Complete Tax about hosting a giveaway of their software program to readers. Giveaways are a lot of fun, so I said sure, let’s do it! But before we give away any copies, let’s take a look under the hood and see what CompleteTax is all about.

CompleteTax Review

CompleteTax is a do-it-yourself tax software program along the lines of TurboTax and H&R Block at Home. They offer an easy to use interface that can handle some fairly complex tax situations, making it an ideal solution for someone who has investing income, small business income, income from real estate, estates or trusts, and other complex situations. There  is also a section to easily classify your deductions and tax credits, which will help shave your tax bill.

More CompleteTax features:

• Online Tax prep. No software to download.
• Free e-file. e-filing is fast, easy, and secure.
• Extensive resource list. Downloadable forms and worksheets, Tax Guide; Searchable FAQ section; Updated tax news; Tax and other financial calculators; state tax support; and more.
• Easy data import. Import W-2 information from leading payroll prep companies; Investors can import information from financial service firms, including Charles Schwab and Morgan Stanley, or from GainsKeeper to further simplify the Schedule D.

CompleteTax Versions

CompleteTax comes in several versions, with prices ranging from free to $49.95. Each higher version comes with all the features of the previous version, plus additional features. CompleteTax also handles state returns, which are $24.95 on all versions. Like most online tax prep software programs, you can start your return for free, and you only have to pay when you print or file your tax return. So if in doubt, start with a lower version of the software program and upgrade if necessary.

• Free: 1040EZ only, single or married filing jointly
• Basic ($9.95): Add child and dependent expenses; homeowner mortgage interest; education credits, tuition & fees; itemized charitable deductions
• Deluxe ($29.95): Add CharityDeductions calculator; Alternative motor vehicle credit; Stock/bond sale gains or losses
• Premium ($49.95): Add First-time homebuyer credit; Income from rental properties; Self-employment or contracting; Sole proprietorship and partnerships; K-1 income from S-Corporations; Royalties and stock dividends; Income from estates and trusts

The price for CompleteTax federal returns is comparable to the other major players in the online tax software industry and many reviews give CompleteTax flying colors, including TheStreet.com which named it the best tax software program due to its ability to handle complex tax returns with ease. Overall, I think CompleteTax competes well against TurboTax and H&R Block at Home, particularly if you have a more complex tax situation.

Complete Tax giveaway

I have 5 copies of CompleteTax to give to Cash Money Life readers. Each CompleteTax coupon code will be good for preparing and filing 1 federal and 1 state tax return, which has a value of roughly $75. Want to win a copy? All you need to do is leave a comment about one financial, small business, or career topic you would like to learn more about in the near future. Comments will be used to help guide future content here on Cash Money Life. Please leave your comment on this article by Midnight March 6. Winners will randomly be selected via a drawing by Random.org and announced March 7th. (one entry per person, void where prohibited, and all that jazz).

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You Need a Budget (YNAB) is one of the more popular budgeting software programs out there, and they recently released You Need a Budget 3, their newest version. YNAB 3 maintains the same methodology and easy to use programming that made the original and YNAB Pro versions so popular, but they have added even more features that have enhanced YNAB’s capabilities. Oh, and it now runs on Adobe Air, so it will run on Macs, PCs, Linux, etc.

You Need a Budget 3

The most important thing to know about YNAB 3 is what it is and what is is not. If you need to track every segment of your financial situation, including budget, income, outflows, debt, investments, rental property, small business, etc., then YNAB isn’t for you. There are a couple other software programs out there you may find more aligned with your needs, such as Quicken 2010. YNAB is also a desktop program, so if you prefer an online software program, there are other options to choose from. [Note: here is an article Comparing YNAB Pro and Quicken].

You Need a Budget’s target audience

If you are more concerned with creating a budget, managing cash flow, and getting out of debt, then YNAB is right up your ally. YNAB 3 is designed to track your income and expenses, analyze your cash flow, help you create a budget, and manage your financial goals, such as getting out of debt.

You Need a Budget 3 budgeting philosophy

The YNAB budgeting philosophy is centered on a zero based budgeting system, which works backwards by starting with your monthly income and assigning each dollar a job. Do you have irregular income and don’t know where to start? YNAB can actually help you plan for that too. Here are the 4 pillars of the YNAB budgeting methodology:

1. Stop living paycheck to paycheck
2. Give every dollar a job
3. Prepare for rain
4. Roll with the punches

If you follow the YNAB methodology, you will be able to analyze your income and expenses to help create a plan that can help you get out of the cycle of living paycheck to paycheck. This is one of the most important things you can do to improve your financial outlook – it only takes one large unexpected expense to set you back several months and put you into debt. Once you get out of the paycheck to paycheck cycle, YNAB will suggest creating a buffer of one month’s expenses, which is essential for planning.

The next step is to give every dollar a job. that doesn’t mean spend each dollar each month. It means give it a job, whether that be a fixed expense, paying off debt, padding you emergency fund, investing, or something else.

Preparing for rain and rolling with the punches go hand in hand. Preparing for rain is saving up for large expenses, whether they are regular expenses, irregular, or unexpected. Rolling with the punches means having a buffer that can give you financial flexibility to adapt to your current situation. This is great for people with irregular income.

YNAB 3 Features

Now to the good stuff – what You Need a Budget 3 can do for you and how it does it. You Need a Budget will look familiar to users of other financial programs such as Quicken, Mint.com, etc. It will give you the ability to:

Manage cash flow and track assets. YNAB 3 gives you the ability to track all income and expenses, and also track your other assets such as investments, retirement accounts, mortgages, and other assets to give you a big picture view of your overall financial situation. (note: YNAB is designed as a budgeting tool, not an investment tool and the investment tracking is designed to give you an overview, not in depth analysis).

Create a budget. YNAB helps you create a budget based on your needs and inputs, then helps you take the guesswork out of managing it. You can place transactions into master categories and sub categories to make it easier to create reports and visualize where your money is going. The reports are often the easiest way to find areas where you can make cutbacks.

Import and export data. YNAB 3 has the ability to import data from financial institutions, credit cards, Quicken, and other programs (csv format). In most cases you will need to download an output file from your bank to your computer, then import it into YNAB 3. The process only takes a few moments and gives you access to your transactions, which can be automatically put into categories. You can also export data to Excel and other programs.

Schedule transactions. Scheduling recurring transactions is one of the easiest ways to set your budget on auto-pilot. Once you have those out of the way, it makes it easier to work with your cash flow and prepare for irregular expenses.

Create reports. YNAB 3 has quite a few more reporting features than the previous versions of YNAB and can output graphs, line charts, pie charts, spreadsheets, trend reports, and other reports to help you better visualize and understand your financial situation.

Additional features. You can search for transactions or for the payee, a smart budgeting feature alerts if of possible errors between your listed transactions and those in your bank account or credit cards statements, and an easy to use interface makes it easy to tie everything together.

You Need a Budget customer service and support

The folks over at YNAB stand by their product more than many financial software companies. They offer free tutorials, video tutorials, a forums, a free 7 day trial of their program, and a real person will actually respond to your support e-mails, instead of an auto-responder sending you to a list of FAQs.

Overall impression of YNAB3

Overall, I’d say You Need a Budget 3 is a great tool for people looking to create a flexible zero based budget to help them manage their cash flow, create at least a one month buffer for expenses, track expenses, and ultimately improve their chances at achieving financial freedom.

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2. You Need a Budget Review
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I receive several book review requests each week, and I decline most of them – with a newborn, a full time job, and a small business, I simply don’t have the time to sit down and read many books. But I received the press release and advance copy of Your Money Ratios and it struck me as a good financial book to read. I am glad I did.

Your Money Ratios doesn’t just feature your typical “spend less than you earn” advice. It gives readers a series of tools (easy to compute ratios) to help people manage income, debt, savings, investments, insurance and other money management topics for every stage of their life.

Your Money Ratios – 8 Simple Tools for Financial Security

Your Money Ratios has one core concept – to transform people from the mindset of being a laborer to a capitalist. Now that doesn’t mean the author recommends you drop everything and become an entrepreneur – far from it. The target audience is primarily for people who are in the traditional workforce and are looking to increase their wealth and overall financial security. The main idea is to change your mindset from working for money to getting your money working for you by investing and protecting your assets.

Your Money Ratios is broken into 8 main sections, covering topics from income, to savings, to debt, to insurance. With each segment of the book, the author suggests you ask yourself a question:  “Will this financial decision help move me from being a laborer to being a capitalist?”

The 8 Money Ratios

1. Capital to Income Ratio. Identifies how much capital (savings) you should have at your age to help you stay on track for retirement.
2. Savings Ratio. Identifies how much you should be saving each year so that you can reach your desired Capital to Income Ratio each year.
3. Mortgage to Income Ratio. Identifies how much mortgage debt you could consider incurring and still leave enough room in the monthly budget to meet your Savings Ratio.
4. Education to Average Earnings Ratio. Identifies how much debt you could reasonably incur to obtain a college or advanced degree. Also applies to parents who are thinking of taking on debt to educate their children.
5. Investment Ratio. Helps you understand how to grow and protect the capital you have accumulated.
6. Disability Insurance Ratio. Helps you understand how much disability insurance you need at each age.
7. Life Insurance Ratio. Helps you understand how much life insurance you need at each age.
8. Long Term Care Ratio. Helps you understand whether you need long term care insurance, and if so, how much.

Applying Your Money Ratios

The one rule of thumb about rules of thumb is that one-size-doesn’t-always-fit-all. These ratios are created to be flexible based on some situations, but there may be factors the ratios don’t consider. But in my opinion, the point is to get your thinking about the concepts in each section, then using these principles to apply them to your situation. This book will only be as effective as you make it.

For example, many of the ratios depend on hard numbers – savings goals, retirement goals, etc. Without having a firm target number, you can’t apply the ratio to track your progress. The value from this book, and any other book, comes from not from reading and enjoying the book, but from applying the principles to your situation.

About Charles J. Farrell

Charles J. Ferrell is an investment adviser, author and columnist for the “Retirement Roadmap” column for the CBS Moneywatch site. You can visit his website at YourMoneyRatios.com.  The website features bonus material, including online calculators and reports based on the formulas found in Your Money Ratios. These bonus features are only available with a secret code found in the book.

My thoughts on Your Money Ratios

Your Money Ratios is a thought provoking book on several levels, and just plain common sense on other levels. Like most books there are sections that will apply to your more than other sections, and parts you will likely disagree with. The point is not whether this book can act as an exact blueprint for your financial life (most books cannot), but whether or not this book can help you improve your financial situation and better prepare for life’s emergencies and contingencies. These are areas in which Your Money Ratios excels. Should you buy it? I’m a big fan of using the library, but applying the principles in this book take time. If you decide to follow the ratios in this book, then you will want to keep a copy on hand as reference.

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After a long hiatus from the online DVD rental game, my wife and I signed up for a Netflix trial and became subscribers again. Why? Because they offer the best value of all the online DVD rental companies and make a great substitute for renting movies from a brick and mortar store, buying movies, subscribing to premium movie channels, or even dropping cable or satellite TV altogether.

Netflix Review

As I’m sure you already know, Netflix pioneered the DVD rental by mail business with unlimited DVD rentals and no late fees. Netflix now offers several new features and price packages which make their plans a better deal than ever. Perhaps the most unique feature is the ability to rent DVDs via mail and stream movies over the internet.

How Netflix works

Netflix is easy to use – simply sign up for an account and start adding movies, documentaries, and TV episodes to your movie queue. You will receive movies in the order they are selected, and you can make changes at any time. Netflix also offers unlimited online video streaming with certain plans. You pay a monthly fee based on the number of disks you want to rent at a time, with free shipping both ways, and no late fees.

Online video streaming and other Netflix features

Netflix offers several price options, all but one of which are unlimited plans, which offer you unlimited DVDs sent to your home and unlimited online movie rentals via streaming.

Online movie streaming. Movie streaming is one of the best “new” features to Netflix. I say “new,” but it has been around for awhile now, just not since I last used Netflix. You will need a fast internet connection to truly enjoy the movie streaming, otherwise the picture and sound may be choppy. But that would more likely be due to the connection, and not from the Netflix side of the house. A great feature with online video streaming is the ability to pause, rewind, fast forward, and pick up where you left off. The $8.99 monthly price plan features unlimited online movie streaming, which is an excellent deal if you watch a lot of movies. The biggest downside to the online video streaming is the limited number of online movie choices, as not all new releases are available for video streaming (however, the selection of TV shows, documentaries, and other media is excellent). When used in conjunction with the DVDs by mail and your queue, you can make sure you’ve got great movies any time you want them.

Video game console integration and Netflix players. Right now the Microsoft XBox gaming console and the Sony PlayStation 3 have the ability to stream Netflix movies, and there are rumors that the Nintendo Wii will begin offering this ability next year. You can also stream online movie rentals through TiVo, a Roku player, which plays movies from Netflix and Amazon Video On Demand, through some Blu-Ray players, or directly through your computer or TV if it is connected to the internet.

Other Netflix features:

• Blu-ray movies. Netflix offers a wide range of Blu-ray movies, and they are constantly adding more Blu-rays to their library. That’s good news if you have a Blu-ray player.
• More distribution centers than the competition. Netflix has several distribution centers throughout the US, which minimizes the time it takes to process and mail your movies. So you should have a better turn around time, resulting in more movie rentals per month. As a side note, some DVD companies have admitted to throttling, which is limiting the number of new DVD releases or premium rentals their top users receive in any given month, but I have never experienced this.
• Movie recommendations, reviews, and community. The Netflix software will automatically suggest movies based on your past movie rentals, and you can read ratings and reviews of each movie before adding it to your queue. The Netflix community allows you to share movie lists with other members, exchange e-mails, etc.
• Vacation plan. you can put your subscription on a vacation hold while you are away so you don’t pay for a service you aren’t going to use.
• No commitment. Netflix does not require an annual commitment – simply pay month to month and quit at any time.

Netflix Price Plans

Netflix pricing is actually very reasonable if you subscribe to the lower level plans, but it can get a little expensive with the higher tier plans. But let’s face it – with unlimited online streaming, most people won’t need to elect the higher plans if they have the components in place to stream online movies. The $4.99 price plan is the “Limited Plan,” which only offers 2 rentals per month and 2 hours of streaming – barely enough to watch average length films, and not long enough to watch many movies. That makes the $8.99 price plan the best value for most people. Here is a chart with the Netflix pricing plans.

*Blu-ray movies price plans. Netflix offers Blu-Ray movies for an added fee. Add $1 to the “limited plan,” and $2, $3, and $4 to each of the other plans. The Netflix Blu-ray inventory is continually growing, which is good news for those of you who prefer HD movies.

How Netflix compares to the competition

We chose Netflix for its convenience and variety of features. The main competitors fall in 3 categories: brick and mortar video rental stores (BlockBuster and Hollywood Video), online video rentals (BlockBuster Total Access), and one day DVD rentals from a kiosk (like RedBox and BlockBuster).

How Netflix compares:

• Brick and Mortar: Netflix is hands down the winner – unlimited dvd rentals for less than the price of 2 rentals at a store, plus the ability to set movies in a queue and stream movies online.
• Online DVD rentals: Netflix offers a wider variety of movie selections and online video streaming; BlockBuster offers in store trades (read full BlockBuster and Netflix comparison for more information).
• DVD from a box: RedBox, BlockBuster, and others offer DVDs for a $1 a day, but they are usually limited to new releases and a few select classics. I would only use these as a supplement to Netflix if the movie I want is buried in my queue and it might take awhile before I receive it. Otherwise the selection and online movie streaming make Netflix a clear winner.

Can you save money with Netflix?

If you subscribe to multiple premium movie channels for the movies and not for their exclusive content, then absolutely. If you rent multiple movies each month from BlockBuster or Hollywood Video, then the answer is also yes. You can also save money if you are the type of person who buys several movies each month, watches them once, then doesn’t watch them again for several months, if ever. The key to saving money with Netflix is to change those old habits and drop the extra movie channels, stop renting from the store, and stop buying movies you won’t watch often.

You probably won’t save money if you only watch a couple movies each month, or prefer to borrow movies from the library, regardless of which movies are available (I fell into this last category for a long time; it was great to catch up on movies I had missed, but I was missing out on all the new releases!). I’m not really saving money with Netflix because we used the library for a long time, but this is a small luxury I am willing to pay for.

Netflix Customer Service Information

Netflix Inc.
100 Winchester Circle
Los Gatos, CA 95032
Phone: 408-540-3700
Fax: 408-540-3737

Free Two Week Netflix Trial

Netflix offers new customers a free two week trial to their service. If you like it, then you continue with the pricing plan you signed up for, and get to watch movies at your leisure. If you decide it’s not for you, then you can cancel at any time within the free trial period and you won’t be charged. All you do is sign up at http://www.netflix.com.

Photo credit: Urthstripe.

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Last month, the banking division of GMAC Financial rebranded under the name Ally Bank. With GM going into bankruptcy, they decided to put some distance between themselves and the name GM. That doesn’t mean they are in trouble, though. The company is no longer owned by GM – they sold a majority share of GMAC financial several years ago. But with GM the auto company surrounded by bad press, they decided to rebrand under a positive note. Thankfully, Ally Bank is well financed and its accounts are fully backed by the FDIC, which means you can rest assured knowing your money is safe.

Ally Bank Review

So what has changed at Ally Bank? Besides changing their logo, Ally Bank has been busy seeking out new customers by increasing their interest rates to among the best in the nation, offering new services, and enhancing their customer service.

Ally Bank financial products

Ally Bank offers four main products: Online Savings Account, Money Market Account, Classic CD,  and No Penalty CD.

• Online Savings Account. Click to see current interest rate, among the highest in the nation (see additional high yield savings account rates). There are no minimum balances, no account opening minimums, and no maintenance fees.
• Money Market Account. Ally Bank Money Market Account holders have access to a check card with free ATM transactions, but there is a limit of 6 withdrawals per month (the Federal Reserve limits the number of transfers and withdrawals from a savings accounts to 6 per month).
• Classic CDs. Ally offers Certificates of Deposit (CDs) of varying lengths and interest rates. I recommend visiting the Ally Bank CD page for more information about current rates.
• No penalty CDs. One of the features that sets Ally Bank CDs apart from CDs at other banks is the no penalty CD. The no penalty CD allows you to lock in the interest rate while still having the option to withdraw your funds without any penalties. The downside is that the no penalty CD rates are slightly lower than the traditional CD rates. But they are also higher than the standard interest rates, so you have a chance to earn more interest than a savings account. This gives people flexibility in the event of an emergency or if they decide to withdraw their funds because rates rise and they can lock in a better rate.

Opening an account at Ally Bank

Opening an account at Ally Bank is a quick and relatively painless process (as painless as opening any financial account nowadays). Be prepared to have your personal information ready, and be aware that you will have to submit to a credit check when you apply. Unlike some banks, Ally Bank approves applications based on credit risk, so your credit worthiness may affect your ability to open an account. When you open your account you also have the option of simultaneously opening CDs or a Money market account, which is a nice feature.

Ally Bank customer service

I haven’t had to use Ally’s customer service yet, but their support availability is greater than most banks. Ally Bank offers online and 24 hour telephone customer service options:

• Ally Bank Telephone Number: 1-877-247-ALLY (2559) for 24/7 assistance
• Ally Bank Address: Ally Bank, P.O.Box 13625, Philadelphia, PA 19101
• Ally Bank E-mail: customercare@ally.com

Other features at Ally Bank

Ally Bank offers an easy to use user interface,

• Each Ally Bank account is FDIC insured to $250,000.
• Ally Bank supports Quicken, Quicken Online, Microsoft Money, and a host of other online money management tools.
• Ability to choose paper or electronic statements.
• Ability to create sub-accounts with different names and account numbers (great for targeted savings, or setting up a child’s account).
• High level of online security – if you try logging on from a computer that isn’t registered with Ally Bank they will send you an e-mail with a password good for one use (unless you wish to register the computer).

Conclusion

Ally Bank offers some of the highest interest rates in the nation and all accounts are FDIC insured. Add the no penalty CDs, money market account, lack of fees or minimums, high security ratings, and solid customer service, and you have the recipe for a good bank. If you are looking for a new bank or higher interest rates, Ally Bank is a worthy option.

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I recently published a review on You Need a Budget, and a reader asked me how YNAB compares to Quicken. YNAB and Quicken are both powerful and useful financial management tools, but they have different advantages and disadvantages. The key difference is that YNAB Pro is designed for making a budget and acting on it, and Quicken is designed primarily as a tracking tool.

You Need A Budget Pro

YNAB Pro is designed as a budgeting tool, and it does this job very well. The goal of YNAB is to track all of your income and your spending and “learn” your tendencies. After about 30 days or so, you should have a good idea of where your money is going and YNAB will make recommendations for where you can cut back on expenses and how you can better use your funds.

YNAB is a zero based budgeting system, which means every dollar is given a job. As you go through your monthly expenses, any funds that are left over will be assigned a job based on the priorities you assigned it when you set up your profile. The goal is to help you reach your financial goals more quickly and use a budget to your advantage.

Quicken

There are several different versions of Quicken which offer a similar core capability, but may have a specialized additions. The versions are Quicken Deluxe, Quicken Premier, Quicken Home & Business, and Quicken Rental Property Manager. If you don’t have specialized business or rental property needs, you should be fine with a copy of Quicken or Quicken Premier. You can compare Quicken products for more information.

Quicken is a more robust money management tool than YNAB. Quicken is designed to track income, expenses, net worth, taxes, investments, business transactions, rental property information, and even pay bills. But it is also a more complicated tool than YNAB Pro.

Quicken also offers a free online version, and Quicken Medical Expense Manager, which is designed specifically for tracking medical expenses, but does not have some of the other features.

Which is better – YNAB Pro or Quicken?

Quicken and YNAB are very different tools, so it depends on your needs. If you are simply looking for a budget or money management tool (as in cash flow and expenses), then I would recommend YNAB Pro over Quicken. YNAB Pro is much easier to set up, use, and navigate. And for most people, simpler is better.

Quicken can also be used as a budgeting tool, but it is better equipped for tracking expenses, not “giving every dollar a job” and making recommendations for your money. If you need a tool for tracking investments, net worth, assets, business income/expenses, rental properties, or other more advanced features, Quicken is a better option than YNAB.

Advantages of Quicken over YNAB Pro:

• Track investments, including basis price, asset allocation, etc.
• Some versions of Quicken allow you to manage specific financial situations, such as rental properties, medical expenses, small businesses, etc.
• Track net worth (all assets, including liquid assets, real estate, cars, and other property).

Advantages of YNAB Pro over Quicken:

• Simple and easy to set up, navigate, and use.
• Give every dollar a job.
• Get recommendations for how to spend and manage your money.

An easy way to look at the two software programs is this: Quicken does a better job at tracking the past and all your assets; YNAB Pro does a better job of helping you create a path forward.

Which is the better money management tool – Quicken or YNAB Pro?

My verdict is that if you have specialized needs such as tracking your investments – including cost basis, asset allocation, forecasting, etc., or want to track a home business, rental property, or specialized medical care, then I would recommend using Quicken. But if all you are focused on is creating a budget that works and maximizing your money management, then I would recommend YNAB Pro.

Related Articles:

• You Need a Budget Review.
• Quicken Online Review.
• Quicken Coupon Codes.
• YNAB Pro Coupon Codes.

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Pertuity Direct is the newest company to make a serious entry into the peer to peer lending market place. However, the Pertuity Direct business model is very different from Lending Club or Prosper, two of the current leaders in P2P lending.

The business model used by Lending Club and Prosper  starts when borrowers post their loan request, profile, and relevant financial information. Then lenders scour through the listings and decide who they want to lend money to. Pertuity Direct makes social lending more efficient and easier on everyone involved.

Pertuity Direct – Redefining the Peer to Peer lending market

Pertuity Direct handles the lending process differently than Prosper and Lending Club. With Prosper and Lending Club, borrowers enter their personal information and loan request, and lenders bid for portions of the loan until enough lenders agree to lend the amount of money the borrower requested. Pertuity Direct is a direct lender and handles the loan underwriting and pricing, then fills the loan from their available funds.

If Pertuity Direct funds the loans, where do the lenders come in? Lenders are actually a vital part of the lending process. They provide the money that Pertuity Direct uses to make loans. Lenders pool all their money into an SEC-registered mutual fund, called National Retail Fund (prospectus). All lender money goes into the fund, which buys the Pertuity Direct loans.

More information about the National Retail Fund. Like many other investments, peer to peer loans are not guaranteed, and there is associated risk. The risks are mitigated by requiring all borrowers to have a minimum FICO credit score of 660, and by diversifying the loans among all investors in the National Retail Fund. The National Retail Fund is registered with the SEC, but the Funds’ shares are not listed on a securities exchange and are not publicly traded. The National Retail Fund is independent of Pertuity Direct and because of the structure is considered bankruptcy remote from Pertuity Direct.

Lending Money with Pertuity Direct

As mentioned above, all lender money money is pooled into a “social lending mutual fund” where it is used to fund new loans. This creates an automatic diversification because you own a small percentage of every loan that is originated from that fund. Unlike lending with Prosper or Lending Club, lenders do not need to search through profiles and make independent assessments of who they want to lend to. This removes a much of the “social” aspect of peer to peer lending, and lenders take on more of a banker-like role.

Payment options. Lenders have the option of having their returns automatically paid out to their bank account, or they can have them automatically reinvested in the fund.

No subprime loans. Borrowers must have a minimum FICO Credit score of 660 to borrow money through Pertuity Direct.

Other important notes about lending with Pertuity Direct:

• Minimum investment: $250.
• Liquidity: You can withdraw your loans on a quarterly basis, however, there is a 2% penalty if you withdraw your funds within the first year.
• US residents only: Must be a US resident to lend or borrow money from Pertuity Direct.

Borrowing money with Pertuity Direct

Borrowing money from Pertuity Direct is a straightforward process. Borrowers simply need to fill out an online application and will receive a approval decision within minutes. Borrowers do not have to wait for loans to be filled from lenders who bid on loans. Once the borrower has received the loan approval and verified their bank information, their loan is immediately funded from Pertuity Direct’s available funds.

Privacy and convenience. The entire loan process is handled online, and Pertuity Direct maintains the privacy of their borrowers. Borrowers create a profile when they sign up for a loan, but their credit score, income, debt and payment history, and other personal financial information is never made public like it is on some other lending platforms. Each customer must complete a thorough identity verification process.

Additional information borrowing money from Pertuity Direct:

• FICO Credit score of 660+ required.
• Fixed rate loans from 8.9-17.9% (based on credit risk).
• Must be a US resident to lend or borrow money from Pertuity Direct.

The social aspects of Pertuity Direct

Pertuity Direct is a social lending platform, but the social aspect is much different than Lending Club and Prosper where lenders select who they want to lend to. With Pertuity Direct, lenders can view the borrower community and read their stories, but they don’t have to go through a lengthy selection process or need to fund multiple loans to get a true diversification on their loans.

Pertuity Bucks reward good borrowers. Lenders can send borrowers Pertuity Bucks, which will lower the borrower’s outstanding balance. Lenders receive Pertuity Bucks for free when they open a Pertuity Direct account, and they can award their Pertuity Bucks to any borrower. These Pertuity Bucks are applied toward the borrower’s loan. It’s a unique way to keep the social aspect of peer to peer lending going strong within the Pertuity Direct community.

Benefits and disadvantages of lending or borrowing Pertuity Direct compared with other P2P lending

Benefits and disadvantages of lending. Investors who lend with Pertuity Direct have greater access to their funds as they can withdraw their money at any time. Prosper and Lending Club both originate loans for 3 years. Lenders with Pertuity Direct automatically receive greater diversification of their funds; other P2P lending platforms require funding multiple loans to get diversification. The social aspects of lending through Pertuity Direct are much different and involve less “interaction” between the lender and the borrower. The minimum investment for lenders is $250 through Pertuity Direct, and it is $25 at Lending Club.

Benefits and disadvantages of borrowing. Borrowers can receive their money more quickly through Pertuity Direct because they do not have to wait for a loan to be filled before it is completed. Some borrowers may also receive Pertuity Bucks, which will help them repay their loans more quickly. I don’t see any major disadvantages to borrowing from Pertuity Direct as opposed to another social lending company.

Final thoughts on Pertuity Direct

I like the business model and I think it offers something good for borrowers and lenders alike. I am intrigued by the National Retail Fund and think it is a great way for lenders to automatically diversify their investments. If you want to borrow or lend through Pertuity Direct, you can sign up for an account at the Pertuity Direct website.

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1. What is Peer to Peer Lending?
2. Are Person to Person Loans Guaranteed?
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You Need a Budget, also affectionately known as YNAB, is one of the leading budgeting tools. I was recently given the opportunity to try the You Need a Budget budgeting software program, and let me tell you – I am impressed! YNAB is incredibly easy to use, powerful, and accurate.

What YNAB is and is not

You Need a Budget is a budgeting software program that will help you manage your money and cash flow. It uses a zero based budgeting system, which means budgeting every dollar of income that you receive. That doesn’t mean you need to spend all your money, it just means you need to give every dollar a job. If you have money left over at the end of the month, you can use it to pay down debt, apply it to your emergency fund, save it for a long term goal like a vacation, or anything else you want to do – you just need to give it a job.

You Need a Budget is not a full money management program like Quicken or MS Money. YNAB is great for setting budgets, tracking expenses, setting goals, and understanding where your money goes, but it is not designed for advanced money management like tracking investments, managing small business expenses, or detailing your rental property information, like some versions of Quicken are designed to do. But that’s OK, these software programs are designed for different demographics and one or the other may be perfect for your situation, while the other just isn’t right.

The YNAB Methodology

You Need a Budget simplifies budgeting down to a simple 4 step process:

1. Stop living paycheck to paycheck
2. Give every dollar a job
3. Prepare for rain
4. Roll with the punches

These four principles are all you need to get your financial house in order. The first step, stop living paycheck to paycheck, is one of the most important steps you can take. This is similar to what Dave Ramsey advocates in his 7 Baby Steps. The most important thing to do is to get current on your bills, then start getting ahead.

In the second step, Give every dollar a job, YNAB users are instructed to use each dollar of income. As I mentioned earlier, that could mean spending it, saving it, paying down debt, or something else. Just make it productive.

Step three, Prepare for Rain, is designed to spread out large, occasional expenses which can be anticipated. An example of this would be saving for your property taxes, a new set of tires, or an annual insurance payment. You know these expenses are coming, and they are much more manageable if you save a few dollars here and there instead of trying to make a huge payment all at once.

Finally, you’ve got to roll with the punches. Life does not always follow a script, and to pretend that you can prepare for every expense that will come your way is paramount to setting a date with disappointment. It can be as simple as spending too much on groceries, or it can be an unexpected expense such as a flat tire. Whatever the unexpected sends your way, you need a way to deal with it. Step Four is a way to pay yourself back for unexpected expenses and replenish your emergency fund or other savings.

You Need a Budget Software Options: YNAB and YNAB Pro

You Need a Budget offers two versions of its software – a standard version, YNAB, and YNAB Pro, a more advanced version. Both of these software programs follow the same methodology and offer a lot of value to users. Here is a little more information about the two versions:

YNAB. The standard version of YNAB is a spreadsheet based budgeting system that is compatible with Excel (Windows or Mac), Open Office, or Neo Office (Mac). YNAB is very capable and automates many of the functions in the spreadsheets to make your job much easier and more efficient than creating your own spreadsheet based budget. The biggest downfall is a lot of manual data entry. Thankfully, YNAB Pro eliminates most of those problems.

YNAB Price: $24.95 Buy it now!

Save 10% with coupon code: cashmoneylife

YNAB Pro. YNAB Pro is the big brother to YNAB, and offers users much more in terms of automation and flexibility. It allows users to import information from their bank, set up recurring expenses, offers unlimited user created categories, a variety of charts, graphs, and other reports, and more. The biggest advantage to YNAB pro is the automation – it eliminates much of the repetitive data entry. The biggest downfall to YNAB Pro is that it is not currently available for Macs, though you can run it on an emulator (YNAB 3 will be compatible with Macs – see below).

YNAB Pro Price: $49.95 Buy it now!

Save 10% with coupon code: cashmoneylife

Introducing YNAB 3 – now compatible with Macs

YNAB 3 is the next generation of You Need a Budget Software, which is being developed on the Adobe AIR platform, which means the same program is compatible with Windows and Macs! The new YNAB software will allow you to seamlessly import your data from previous versions of YNAB. YNAB 3 will also include updated features, including enhanced reporting, register searches, customizable fields, budgeting accounts vs. other accounts, and more. Overall it is a much more flexible version of You Need a Budget. Look for its release in mid – 2009.

You Need a Budget FREE Bonus Software

Right now, YNAB is offering 5 FREE bonus spreadsheets to people who purchase YNAB or YNAB Pro. The free spreadsheets cover a variety of personal finance topics and are a great value! The free bonus software includes:

• YNAB Debt Snowball. The debt snowball is a concept made popular by Dave Ramsey. This is a quick and proven way to get out of debt quickly.
• 2009 Income tax forecaster. This is a great tool to help you predetermine your income taxes for next year.
• YNAB Retirement Planner. The YNAB Retirement Planner spreadsheet can help you make investment decisions that will help you meet your retirement goals. You can also do “what-if” scenarios to investigate different investment and retirement options.
• YNAB Mortgage Analyzer. This will help you determine how long it will take to pay off your mortgage, and you can change the variables to see how much more quickly you can pay it off by refinancing to a lower rate or making additional payments.
• YNAB Car Maintenance Schedule. This will help you keep track of all your scheduled maintenance such as oil changes, tire rotations, filter changes, and other scheduled maintenance actions. A well-maintained vehicle can save you thousands of dollars and last years longer than a car that hasn’t been well maintained.

In my opinion the bonus software alone is worth the cost of the standard version of YNAB. $24.94 for 6 professionally built financial spreadsheets is a great deal. YNAB Pro is an even better deal because it automates much of the process for you, making your job easier in the long run.

Using YNAB Pro

Setting up YNAB Pro was quick and easy. The first step is to register your expenses in your YNAB software, or import a spreadsheet from YNAB. Be sure to enter this information accurately, or you will be cheating yourself and the software won’t have the correct information to work with.

The next step is to set up your bank account information if you want to link your data. Since this program runs on your desktop, there is no danger of your information going anywhere. Once you set up your basic budget, it is easy to import information from your banks, schedule payments and tasks, create charts, graphs, and other reports, and organize your finances.

YNAB Support

One of the things that most impressed me about YNAB is the level of support they offer.  YNAB offers online tutorials, a wiki, a user forum, an online user manual, a FAQ section, and even FREE online coaching via webinars. YNAB is passionate about budgeting!

Free YNAB trial and a 60 day guarantee

YNAB is so sure of their product that they offer a 60 day free trial version of YNAB Pro and they also offer a 60 day money back guarantee. That’s not an offer you would get from Quicken or MS Money!

YNAB Coupon Code – save 10% on YNAB and YNAB Pro!

The folks over at YNAB were kind enough to offer Cash Money Life readers a 10% off coupon code for both YNAB and YNAB Pro. All you need to do to take advantage of this special offer is to visit the YNAB website and enter in the coupon code “cashmoneylife“.

This coupon code is only good for 3 days, and expires at midnight on March 5, 2009. So act quickly to take advantage of this great offer!

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1. YNAB Pro Giveaway!
2. Battle of the Money Management Tools: Comparing YNAB Pro and Quicken
3. Happy Thanksgiving – Bonefish Grill Gift Card Winner and YNAB Pro Giveaway