Having extra money set aside can be a real lifesaver later on in life should you ever run into a financial emergency, want to put a down payment on a home, start your child’s college fund, or start your own business. Here are some saving and investing opportunities that will make the most of any amount of spare money, from your pocket change to your golden nest egg .

If you have a $100…
Saved up a few hundred? Open a high-yield online savings account that will allow you to earn the highest interest on your sitting money. Our top picks that do not require a minimum balance include Ally Bank’s online savings account with 1.70% yield, HSBC Direct’s 1.35% APY, and ING Direct’s Orange Savings with 1.30% APY. Or you can go to MoneyAisle to compare APY rates yourself.
Tip: Be on the lookout for any minimum deposits or minimum balances that some high-yield accounts require that may make you ineligible for stashing your money there.

If you have $1000…
If you don’t plan to touch your money for a period of time, a Certificate of Deposit (CD) might be a good place for your money’s safe-keeping. CDs offer a higher interest rate 1 to 2 percentage points higher than savings accounts. What’s the catch? For the term of your CD (anywhere from 9 months to a few years), you cannot withdraw or deposit additional money or you will pay a penalty. If you are confident you won’t be itching for your money, shop for CDs according to their life span, minimum deposit, and rate—1.75% APY on an 18 month CD at Citibank, 2.25% APY on a 24 month CD at American Express, or a 2.75% APY for a 3 year CD at Discover.
Tip: The 12 month 2.00% APY CD with Discover offers no-penalty access and no-fee early withdrawal, which is a good option in a time of job insecurity and recession.

If you have a $10,000…
Wall Street’s encouraging market rally maintaining over 10,000 points make now a promising opportunity to invest in stocks and potentially reap big rewards. Whether you are a first-timer or a trading veteran, $10,000 is a good investment towards a few top-notch stock funds or to diversify your stock portfolio. Online trading webistes like TD Ameritrade, TradeKing, Zecco, and ShareBuilder offer online convenience and low cost per trade that makes it easy to invest your money.
Tip: Good news for new traders: both TradeKing and ShareBuilder are offering a bonus to new accounts.

If you want to do a good deed…
An alternative place to put your savings is investing in a peer-to-peer loan or microloan. While this may not pad your bank account as much as the above options, the pay-off is that you this alternative to traditional banks helps other people and supports a good cause. Both Prosper and Lending Club allow you to choose who you want to help finance through small, personal loans. Kiva, a microloan lending platform, connects you to third-world entrepreneurs to help finance projects for impoverished communities.
Tip: P2P sites like Prosper and Lending Club offer great 7%-13% estimated returns for lenders.

Put that extra cash where it belongs
Finding the right place to save or invest extra cash will pay off later as interest rates continue to drop, jobs start to stabilize, stock markets keep surging, and your money will be financially fit for an economic boom.

Becoming a millionaire seems like an impossibility since the past decade’s get-rich bubbles in real estate, dotcoms, and stocks have burst and left most Americans worried about earning a regular salary, let alone millions.

Becoming rich won’t happen overnight, but it can happen over time. It takes good, consistent habits and before you know it, you’ll be a lot closer to millionaire status than you were before reading these 7 tips:

1. Finally get rid of your debt! Your credit card debt is a black hole of interest and never-ending, unpaid debt for all your hard-earned savings. The average American carries a $6,000 balance on their credit card and a typical credit card APR is 14.9%, so if you paid the minimum payment of $100 a month, it would take little over 9 years to pay off your balance. On top of that, you will have racked up $5,074 in interest charges! Start focusing your current cash flow on paying off your debt now so you can avoid potentially paying double your original debt in interest charges in the long run.
2. The old piggy-bank method, reinvented - Let’s take out the calculator again, but let’s focus on saving rather than debt reduction. If you saved $500 a month and put it in a savings account like Ally Bank’s high-yield 1.75% APY online savings account, in 10 years you will have $60,553.84 saved up! If you keep this up for the next 45 years, you’ll be sitting on a $270,000+ nest egg when you retire. Or you can opt for a CD with an even higher interest rate, like Discover’s 3 year CD with 2.75% APY, which will yield a whopping $430 in interest with an initial deposit of $5,000 by the end of the CD’s term.
3. Trade your credit card for a debit card, secured card, or cash - There is nothing evil about a credit card, as long as you know how to use it responsibly. For consumers overspending on credit or paying late or not at all, sticking to credit card alternatives like a debit card, secured card, and cash is the best way to avoid the debt and interest charges and keep up a healthy credit report. And seeing your spending directly shrinking your bank account might make you think twice about your purchases.
4. Shop around for loans – Not all loans are alike, and with a little bit of research and comparing, you can save a substantial amount of money by looking for a loan with the best terms and rates that fit your needs. If you are a student, use SimpleTuition to do all the loan searching and work for you. For any other type of loan—from opening up your first restaurant to paying off your car—check out Prosper and Lending Club for a person-to-person lending platform that has reduced rates for lenders (as opposed to going to a bank) and are perfect for short-term and smaller loans.
5. Invest! – On that note, you can also invest in the P2P platform of Prosper and Lending Club to get a high rate of return, ranging from 8-20%, while also helping out fellow consumers.
6. Cut a little, save a lot – Start making coffee at home and deposit the $4 you would’ve spent every weekday morning in a savings account, and within a year you will be $1,008 closer to becoming a millionaire. If you usually eat out for dinner and opt to go out 2 times a week and cook the other 3, that adds another $3120 a year to your savings. If you want to take this saving thing seriously and cut out your annual Tahoe ski trip and New Year’s Las Vegas trip, your “staycation” could save you another $3,500+ or more. With these three suggestions, you could savea possible $7,628 to deposit to your piggybank.
7. Sell on eBay! – Think you have nothing to sell, it’s too complicated, or it takes too much time? Millions of people buy and sell on eBay and millions of dollars are exchanged because it can be profitable and effective if you do it right. Check out this blog, “Sell it Now—how to make hundreds of dollars in 37 minutes,” and see how to make your mint-condition Beanie Babies collection can help make you a millionaire.

Start Today
Getting rich slowly may not be your ideal way to hit seven figures, but it’s certainly the most practical and realistic. Building your personal wealth is hinged on simple ideals of saving more, spending less, dealing with debt, and being financially responsible over a longer period of time.

Are you as credit savvy as you think you are? Did you know that the average consumer credit card debt in July was $6818, or that your credit report could shape the approval and account terms when you apply for a credit card, home loan, and auto loan? If you’ve been keeping up with our blog, you probably know many of the ins-and-outs of the credit world, but take this quiz to see if you have the financial know-how to keep up with your credit health.

1. Income is a key component of your credit score? True or False
2. What state had the highest average credit score in July?
   A. California
   B. Colorado
   C. Illionois
   D. New Jersey
3. What is the amount of credit card debt you currently have divided by your total credit available?
   A. Credit Card Utilization
   B. Credit Card Default
   C. Credit Limit
   D. Credit Charge-Off
4. What are the first two changes of the Credit Card Bill of Rights? Choose two:
   A. 30 day advance notice for arbitrary interest rate increase
   B. Issuers must deliver billing statements at least 21 days before due date
   C. Co-signer necessary for credit card applicants under 21
   D. Double-cycle billing no longer permitted
5. What credit card is best to help consumers start building or rebuilding credit?
   A. Unsecured Credit Card
   B. Student Credit Card
   C. Rewards Credit Card
   D. Secured Credit Card
6. What credit card do you rarely, if ever, want to close?
   A. Any unused credit card
   B. Most used credit card
   C. Oldest credit card
   D. Most recently opened credit card
7. Credit scores can impact your credit limit? True or False
8. Once a creditor charges off an account, the consumer is no longer responsible for payment of the debt. True or False
9. When does the $8000 First-time Homebuyer Tax Credit expire?
   A. November 1, 2009
   B. December 1, 2009
   C. December 31, 2009
   D. January 1, 2010
10. A co-signer on a loan or credit card account can expect to:
    A. Pay-off the account if the primary accountholder cannot
    B. Have the credit line added to their personal credit history and report
    C. Have their credit score affected if the primary accountholder defaults
    D. All of the above

Answers

1. False. Your credit score is determined by several factors including the length of your credit history, on-time payment history, credit utilization, total accounts, and number credit inquiries. Consider using the Credit Report Card to see a summary of your key credit factors as well as how you compare to other Credit Karma members.
2. D. New Jersey. New Jersey’s average statewide credit score for July was 694. Credit Karma’s national average consumer credit score in July was 674.
3. Credit Card Utilization. Credit card utilization basically tells you how much of your available credit you are actually using. Try to keep your total credit card utilization to 30% or less. The credit card utilization ratio of your total debt to available credit determines roughly 30% of your credit score.
4. A & B. One provision of the Credit Card Bill of Rights will be an additional 30 days advance notice for arbitrary rate increases, credit limit change, or any other ‘significant’ change to your credit card’s terms. The other provision to go into effect is that credit card issuers must deliver billing statements at least 21 days before the due date (previously 14 days). These changes go into effect August 20, 2009.
5. D. A Secured Card. A secured card is designed to help consumers build a credit history by providing them the opportunity to demonstrate responsible credit usage and regular on-time payments. A secured card requires a security deposit from the cardholder that functions as cash collateral which sets the credit limit and helps keep consumers from defaulting on their payments.
6. C. The oldest credit card. Age of credit history is a key component of your credit score, so closing your oldest card will likely shorten your credit history and could cause a significant drop in your credit score.
7. True. Credit card companies use a consumer’s credit score as a prediction of how much risk they will be as a cardholder, and determine a cardholder’s credit limit based on this assessment.
8. False. When a credit card company charges-off your debt, meaning they declared it a loss for the company, the consumer is still responsible for paying off the debt. The credit card account will be closed so the cardholder will not be able to charge to it and interest will no longer accrue on that debt, but you will still receive bills until and the creditor will attempt to collect until the entire debt is paid off.
9. B. December 1, 2009. While the deadline is a few months away, consumers are advised to begin shopping for their home now because complications like getting approval for a loan, negotiating a mortgage rate, navigating inspections, managing paperwork with escrow, and the closing process of the Tax Credit could take months to complete and first-time homebuyers definitely do not want to miss out on this opportunity.
10. D. All of the above. As a co-signer, you contractually agree to pay off the account if the cardholder does not and you are obligated to the account until it is paid off in full. Any delinquent actions reported on the account will affect your credit score as if you defaulted on the payments yourself.

Scoring:

If you missed 0-2 questions , you are a credit know-it-all and chances are you have a good credit score. But don’t sit back and think that you and your credit score are safe. Make sure you put your credit know-how to good use by being diligent about keeping your credit health in check.

If you missed 3-4 questions, you are on your way to knowing more about credit. You might know the basics of how credit works, but empower yourself to learn more specifics about your credit report, the Credit Card Bill of Rights, and more details about how to manage your credit score in the process.

If you missed more than 5 questions, you may be a New Kid on the block when it comes to credit. The ins-and outs of credit scores and credit reports may be a bit fuzzy for you. The first step towards getting a good credit score is to understand how credit works, so keep learning and build a more solid foundation of what credit is, how to use it responsibly, and how to maintain healthy credit.

Saving up for a college fund is a luxury in today’s economy, so Upromise is turning the usual shopping trip, grocery run, and fill-up at the gas station into a daily opportunity to earn money for college. Upromise’s business model makes it easier for families to start saving for college early by making the most of what Americans do best— shop.

Upromise, going strong with 10 million members and nearly $500 million in member rewards, is one of the largest private sources of college funding contributions in the United States.

This is how the completely free program works: you start by creating an Upromise account and registering your credit, grocery, or loyalty cards. Then, you shop, shop, and shop as usual and make purchases at any of their participating 21,000 grocery and drug stores, 14,000 gas stations, 8,000 restaurants, thousands of retailers, and over 600 online shopping sites. A percentage of your purchase at these participating retailers and products goes directly into your Upromise account.

From your account, you can transfer savings over to a 529 college savings plan where you can decide where and how to invest the dollars your purchases earned you for your child’s education. You can use these rewards to save up for college, pay for an existing student loan, or you can opt for a check in the mail for college-related expenses.

If you’re not convinced yet of getting free money for college, Upromise’s $100,000 College Dream Sweepstakes should sweeten the deal. Upromise is giving away $10,000 to 10 lucky winners from now until August 21, 2009. To qualify, simply join Upromise and install Turbosaver, an online savings reminder tool.

Upromise is a simple and effective free rewards program to start earning savings for college early and easily. It takes no more effort than shopping as you usually do, unless you actively seek out Upromise merchants to accumulate savings faster. Either way, you earn savings in small, incremental ways that could add up to the cost of a textbook, part of your dorm rent, possibly even a year of tuition. Even friends and family can contribute to your Upromise savings the same way you do: simply have them register with Upromise, add their loyalty and credit cards, shop, shop, shop, and then direct their savings to go to your account.

The only downside is how slow it may take to accumulate savings. You aren’t likely to pay-off all the expenses of four years of tuition just by buying participating orange juice and butter products. The highest contribution percentage comes from shopping online with Upromise, providing members the opportunity to earn 1-25%. Participating restaurants also provide a significant savings opportunity with earning power of up to 8% of your total bill.

Upromise gets you cents and dollars to pad your college fund. The idea is not to save money for college by curbing spending habits, but how to make the most of the fact that if you are going to shop anyway, at least shop specific brands so you can earn some savings in return. Because free money for college, is still, free money for college.

Consider these five online brokerages with low rates for stock trades and introductory offers whether you are a new investor or an active trader. With the Dow back over 9,000, if you are fidgeting on the sidelines, now may be the right time to get back into the market with our top picks.

P2P lending marketplace Prosper began lending again on July 13 with the green light from the Security and Exchange Commission.

Originally launched in February 2006, Prosper was the first auction platform, matching prospective lenders and borrowers by allowing the final rate to be established essentially by what lenders will pay. In October 2008, the SEC halted Prospers operations because federal law prohibits the sale or offer of securities without the company registering with the regulators.

Prosper came back a healthier, more lender-friendly marketplace with key enhancements for borrowers and lenders alike including:

• Lender: A minimum credit score for borrowers from 520 to 640 and capped the loan request to $25,000 for a three year fixed rate loan.
• Lender: Added onto the already existing borrower profile information, which details past loan performance as well as credit files, is a Prosper Rating that ranges from AA- HR and represents a loss rate range. The Prosper Rating will be shown in the listing along with an estimated loss rate and credit score range (20 points, down from 40 points).
• Lender and Borrower: Lowered minimum bid requirement from $50 to $25. This helps lenders to diversify their loan portfolio.
• Lender: Better lending with a “hard bid floor” for each loan listing that sets the minimum interest rate a lender can bid; this helps lenders assess the risk of the loan and price it more appropriately.
• Lender: Now lenders can sell their Prosper Loans in a new secondary market, Foliofn. This gives lenders more liquidity with their Notes if they need access to the funds before the loan is fully paid off.

Currently, Prosper can facilitate P2P lending in 16 states including California, Illinios, and New York, and is working through each state’s regulatory process to allow lending nationwide.

Prosper is the first Internet auction-based lender approved by the SEC. Unlike competitor P2P lender Lending Club, where fixed interest rates are set according to Lending Club’s base rate plus Adjustment for Risk and Volatility, investors at Prosper agree to fund a borrower without knowing what the final interest rate will be. Other major player Loanio imitates Prosper’s auction platform and unsecured rates, but has currently suspended its business pending registration with the SEC.

Despite the 9 month setback, Prosper seems to be on its way back to the top ranking in P2P websites. Prosper has more than 840,000 members and funded an estimated $178 million in personal loans. Their comeback arrives not a second too soon, providing consumers an alternative to big banks and reviving hope that consumers can still put their money to work despite the current dry spell in the credit markets. Looks like alternatives to investing, without the bank or broker middleman, can be, well, prosperous.