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.

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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Related Articles:

1. Blockbuster vs. Netflix
2. Netflix Free Trial Coupon Code
3. Netflix Free Trial Offer

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. Currently offering 1.64% interest rate (as of 11/20/09), 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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Related Articles:

1. Alternatives to High Yield Savings Accounts
2. High Yield Savings Account Rates – Updated Oct. 2, 2009
3. The Best Online High Yield Savings Accounts

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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1. Quicken 2010 Review and Quicken WillMaker Free with Purchase of Quicken 2010
2. Quicken Online Review – Now Available Free
3. FREE Online Money Management Tools

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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Related Articles:

1. What is Peer to Peer Lending?
2. Are Person to Person Loans Guaranteed?
3. Is Person to Person Lending Safe?

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. Free Stock Trades, Bonus Money, and Discounts

I was surfing Amazon the other day and I noticed that Amazon just released the Kindle 2. I never used the original Kindle or even put much thought into getting one. But after looking at all the features of the Kindle 2, I can see why there is so much fuss about it. The Kindle is a sweet piece of technology and the new version has some nice upgrades over the initial release. But is it worth the price?

I am not usually an early adopter of technology. There isn’t much out there that I feel I “need” right away. But the Kindle is giving me second thoughts. It’s basically an iPod for people who like to read books, magazines, newspapers, and blogs. Here are some of the features:

Amazon Kindle 2 Features

The Amazon Kindle 2 is a wireless reading device. It is like a small hand held computer that you can use to read books, magazines, newspapers, blogs, and other reading materials. The Kindle 2 has a lot of improved features over the previous version, including:

• Smaller – 1/3 of an inch, or about the thickness of a pencil
• Lighter – at 10 oz it weighs less than most paperbacks
• More storage – Store up to 1,500 books
• Less Expensive – List price of $359 is $40 cheaper than the previous edition
• Improved display
• Longer battery life – 25% more
• Read out loud feature – not available on the previous model
• Larger library, and still growing – over 230,000 books, plus newspapers, magazines, and blogs
• Free 3G wireless anywhere in the US that there is cell phone service.
• Download a book in less than 60 seconds.
• Listen to MP3s

Those features really make me think about getting a Kindle. The size is great, and that would mean no more lugging a couple books on a flight or vacation,  you can charge it via a USB cable, store over a thousand books, the battery lasts for days of reading, and you can access the internet with the free wireless connection. It’s basically a library that you can fit into your backpack, briefcase, or purse.

Is the Amazon Kindle 2 a Good value?

The Amazon Kindle 2 looks like it is a great product. At a list price of $359, it isn’t prohibitively expensive, and it offers a lot of great features for people who like to read often. I have no doubt that the Kindle 2 delivers on every promise it makes and I have no doubt that I would enjoy owning and using one. However, I’m not sure if I will get one or not. Why? The price.

As I mentioned earlier, the Kindle 2 is much like an iPod, but for reading. With the iPod you no longer need to carry around a stack of CD cases, or cassettes, or those large flat disks… what were those called? With the Kindle, you no longer need to carry around a stack of heavy books and magazines. But that is where the similarities end.

You see, with the iPod, I can transfer all of my current music into MP3 format and then onto my iPod. You can’t do that with books you currently own. I have a few favorites that I would hate to have to purchase again. The price of books also ins’t cheap. New releases cost about $10 each, but many older books are in the $15 range. This may be cheaper than some new hardcover releases, but I often borrow books from our library at no cost. Which brings up another point: the Kindle limits borrowing. In addition to borrowing books from our local library, I also lend books to friends and family and borrow from them in return. If you let someone borrow your Kindle, you just gave them your entire library – good luck getting that back!

To be fair there are a lot of free books available in Kindle format on the web – many of these are older books that are no longer covered by international copyright laws. You can download free books for the Amazon Kindle at Amazon and other websites.

The Kindle isn’t for me – yet

I understand the appeal of the Kindle, and actually think it delivers on the value it promises. If you are someone who reads a lot or travels a lot, then the Kindle may be an excellent value for you. It eliminates a lot of wasted space – both in your carry on luggage, and at home on your bookshelves. It’s not for me at this time, but I can see the value there. Maybe it’s just a matter of time.

If you think it might be for you, then check out the Kindle 2 on Amazon.

~$~

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The recent rate cuts by the fed caused many banks to lower their interest rates, including ING Direct which lowered their rates to less than 1.45%. I’m a big fan of ING and have held an account there for a few years. But there are plenty of other options out there that are offering much higher interest rates. So after looking at my options, I decided to open an account with WTDirect, the online branch of Wilmington Trust. They have a history of success dating back over 100 years and currently offer a savings rate of 1.76% (rate update March 31, 2009).

WTDirect Review – What makes WTDirect so attractive?

There are two things that caught my eye when I decided to sign up for a WTDirect account. The first thing that obviously got my attention when screening for a new bank is the 1.76% interest rate (rate update March 31, 2009). Interest rates have been repeatedly slashed in the last few months!

No subprime loans in their portfolio. When I dug deeper I discovered something more important – Wilmington Trust did not participate in subprime mortgage lending and there are no subprime mortgage-backed securities in their investment portfolio. Too much exposure to the subprime mortgage market caused several established banks to fail recently, so I place added importance on how well a bank is capitalized and the strength of their holdings. WTDirect is well insulated from those problems.

Note: There are several banks with a similar or higher APY to WTDirect, some of which require a lower minimum balance to maintain the high interest rates. I chose to open an account with WTDirect due to their stability and lack of exposure to the subprime market. E*Trade currently offers an interest rate of 1.45% and HSBC Direct currently offers 1.65%.

FDIC coverage. WTDirect is covered by FDIC insurance, up to the new $250,000 insurance limits. FDIC insurance is a must have for any bank – I wouldn’t sign up for a bank that doesn’t offer it.

Low minimum required balance and no service fees. WTDirect only requires that account holders maintain $1.00 in their accounts, and does not charge service charges to your account for a low balance. *It is important to note that the 1.76% interest rate applies to all accounts for the first 60 days, then only to accounts with $10,000 or more after that.

Ease of use, interface, and functionality. WTDirect offers a user interface that is intuitive and easy to use. WTDirect is similar to many other online banks that offer high interest rates – they cut costs by cutting the overhead, and pass the savings to you. When you sign up for WTDirect you will notice that they only offer statements by email or online. This saves them a ton of money on printing and shipping thousands of statements that would only end up in the shredder.

Great customer support. I forgot my user ID shortly after signing up for the account and the CSR was great in helping me get everything situated. She also answered a few other questions I had about WTDirect. I’ll give them an A+ in that department.

How to sign up for a WTDirect Savings Account

Signing up for a WDirect online savings account is easy and only takes 10 minutes. The steps are similar to most other online banks – you will need to enter your personal information, verify your identity, provide your funding information, then read the disclosures and confirm your account.

Funding your WTDirect account. You can fund your account via an ACH transfer, check, or by wiring funds. I chose to do an ACH transfer because it is free and easy. The minimum required deposit to open an account is $1.00, which is the amount I transferred from my ING Direct account. I will transfer the rest of my funds from ING as soon as everything is up and running with WTDirect.

Verify your linked account. To verify your linked account, WTDirect will make two small deposits within 3 business days, which you will then need to verify (the deposit description is WTSVNGTD).

No hard credit check when you apply for a WTDirect Savings Account. WTDirect does not perform a hard credit check when you apply for your account, which can be important if you are trying to improve your credit score.

Instant account approval. The approval process took about 15 seconds once I clicked submit. All in all, a very easy process.

WTDirect Savings Account makes the grade

Overall, I would give the WTDirect Savings Account a 9 out of 10. The pluses are some of the highest interest rates in the country, strong capitalization, solid online security, excellent customer service, and an intuitive user interface. There are only a few features WTDirect doesn’t offer, such as multiple accounts within an account (like ING Direct offers) or 24 hour online customer support. But those aren’t deal breakers for me. WTDirect is a great bank to stash your emergency fund and I would recommend WTDirect to anyone who has a sizable amount of money they want to park in a safe place.

~$~

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Intuit announced last week that Quicken Online is now free (it previously cost $2.99 per month). Quicken Online now joins a host of other free online money applications, including Mint, Wesabe, Geezeo, Yodlee, and a few others. These other applications are all fairly similar in scope. One difference of note is that these other applications are ad driven, and make money by recommending financial products to users. Quicken does not do that at this time.

Quicken Online is different from the desktop version of Quicken. The desktop version is designed to be a comprehensive tool, while Quicken Online is designed to help people manage their bills and recurring payments. Quicken Online gives users a snapshot of savings, checking, credit cards, and other loans. Quicken Online functions well as a money management and budgeting tool as opposed to a tool for tracking investments and other financial accounts.

Why should you use Quicken Online?

Track all your accounts in one place. With Quicken Online, you input your account information into the system and it automatically scrapes your data from your other online accounts. This allows you to track all your accounts in one place – credit cards, checking and savings, even PayPal.

Quick sign up if you already have a TurboTax, Quicken, or QuickBooks account. Intuit owns all of these applications which makes it easy to sign up for them under one account. (The fewer passwords and logons to remember, the better!)

Track almost every account and transaction. Quicken Online is compatible with over 5000 financial institutions. And just like the desktop version of Quicken, transactions are automatically put into a category (or you can create custom categories). My experience showed that the auto categorization can be less than accurate at times. The good news is that Quicken Online “learns” from your corrections and those made by the community of online users, so eventually most transactions will be correct.

Bill reminders and alerts. One of the nice benefits of using Quicken Online is the ability to receive reminders and alerts via text message and e-mail. If you use this feature correctly, you never have an excuse to miss a payment again!

Security. Quicken Online is very secure and uses the same 128-bit encryption technology as most major financial institutions in the world.

iPhone and PDA compatibility. Quicken Online features Quicken Beam, which allows users to view data on their iPhone or other PDA. This makes it easy to get updates on the go.

Areas for improvement for Quicken Online

Quicken Online primarily gives users a financial snapshot and will not completely replace the desktop version of Quicken in terms of functionality. Quicken Online only tracks bank accounts, credit cards, and loans and gives the user an overall view of money in vs. money out. There is limited investment tracking, but mostly just for balances, and not much else. The desktop version Quicken is designed to track all transactions including investments, which is something Quicken Online doesn’t do yet.

The main goal of Quicken Online is to get people thinking about how they spend and manage their money, and I think it does a great job in that respect. And the  price is free, which is just about right.

Looking for another online money management tool? Check out these FREE online money management tools for a variety of options.

~$~

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I’ve mentioned several times in the pages of this site that I think personal finance topics should be taught to high school students. Well, High School Money Book is designed to be that primer. I would consider this book to be a jack of all trades, master of none, type book because of its breadth of topics covered, and the fact that the book just gives an overview into each topic. This style of writing is perfect for anyone just getting introduced to personal finance topics.

The good: High School Money Book gives a high level overview for understanding the true value of money, making financial goals, frugal living, shopping tips, credit and debt, philanthropy, preparing for college, online banking, basic investing, working, and preparing for the future with topics like insurance, mortgages, preparing wills, and more. While none of these topics go in depth, they give enough information to get the reader thinking about the topic, which is the goal of the book.

The bad: The only bad thing I can say about this book is that it does not go into much detail on most topics. However, this book is not aimed at people who already have a strong foundation in personal finance topics.. It is designed to be an introductory book, and it does a good job. But some people may read this and feel like they want more information. That is actually a good thing because then the author achieved the results for what he set out to do: get people thinking about money and personal finance.

Should you buy High School Money Book? Even though the title is High School Money Book, this book makes an excellent beginner’s guide to personal finance and is good for all ages. High School Money Book is also a good read for a quick review of personal finance principles. While I don’t consider myself an expert on personal finance (though I think I have a strong foundation), I learned a few things in this book. I wouldn’t recommend this book to people with a lot of experience, but I would definitely recommend it to anyone graduating high school, college, or to anyone who needs a good place to begin their financial education.

Following my tradition for book reviews, I will give this book away. However, since my (much younger) sister is graduating high school next week, I will give this to her. She just doesn’t know it yet.

~$~

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I recently received a copy of the book, Make Money, Not Excuses, by best selling author Jean Chatzky. The subtitle is Wake Up, Take Charge, and Overcome Your Financial Fears Forever. I think that sums up what this book is about – taking control of your financial situation and coming to terms with the fact that no one is going to do this for you.

It’s only fair to note that this book is written for a female audience. But if there is one thing I’ve learned about money is that it doesn’t discriminate!

About the author. Before reading this book, I was not very familiar with Jean Chatzky, who is a best selling author and a semi-regular on the Oprah Winfrey show. She is also a journalist, financial editor for the Today show on NBC, and she hosts a nationally syndicated daily radio program, Talking Money with Jean Chatzky. With these credentials, I would say she is someone who is well qualified to talk about money!

About the book. The book’s goal is too help people get over their fear of money. In my opinion, this book is designed to help people who may be intimidated by money get over their fears. This is aimed more toward people new to money management, but there are some solid tips within it’s pages that are applicable to everyone.

What I liked. Jean Chatzky has a no nonsense approach to money matters. I would classify her writing as a female version of a mix between Dave Ramsey and Larry Winget, who wrote You’re Broke Because You Want to Be. The tagline on the back of the book is “Get Rich, Don’t Bitch.” I like that phrase, because it reiterates that you hold the keys to your financial future.

Each chapter starts off subtitle highlighting a common complaint many people have regarding handling money. It is titled: “Don’t Bitch.” Then Chatzky discusses common ways to deal with these situations under the heading “Get Rich.” Whining about the situation won’t fix anything, but action will. And this book is a call to action.

I also like how this book deals with the psychology of money instead of just cold, hard numbers. There are other great tidbits of information including how to reduce loans, pay off debt, make saving automatic, and a great glossary of financial terms used throughout the book.

What I didn’t like. There is not much bad to be said about this book. However, it is written as an entry level financial book. That doesn’t mean there isn’t value there, because there is a lot of value – it just depends on the audience. This book is directed toward women, so some men may not appreciate it as well as women might, but I still think they would gain a lot from reading it. This is also not an investing book and won’t tell you where to put your money to make millions. But in many ways it is more important than an investing book, because it helps people change their money habits whichcan be infinitely more rewarding.

Buy or don’t buy? Make Money, Not Excuses is targeted toward women, so definitely take that into account when making the decision to buy it. However, I think there is a lot of good information that can be learned from this book. This book is a very good introduction for someone looking to turn around their finances and I would recommend it for anyone who needs to change their money habits. If the audience is a man who wouldn’t be caught dead reading a book with a pink cover, then I would recommend You’re Broke Because You Want to Be, by Larry Winget.

Want a free copy?

I’m giving away my copy to one lucky reader. To enter, you must send me an e-mail with the secret phrase as the subject. The secret phrase is included in the footer of my RSS Feed or e-mail subscription. Here is more info about how to subscribe if you are not familiar with it. Once you have the secret phrase, you can e-mail me via my contact form. Subscribing is free, and you can unsubscribe at any time.

How the winners will be selected:

The giveaway ends May 24th at 11:59 PM, Eastern Daylight Saving Time. I will use a random number generator to select the winner, which I will announce on this website Sunday, May 25th.

Good luck everyone!

~$~

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