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.

A sunnier forecast of our stormy recession

The thought of today’s stagnant economy is enough to make consumers tighten their wallet, throw credit cards in the freezer, and brace for more fiscal hard times as we push through the U.S’s worst recession since the Great Depression. But forget the doomsday reports and take a closer look at the good and bad of the recession headlines right now because an understanding of our economy can help you change your personal economy –how you handle your finances– for the better. Let’s take a look at various segments of the economy that are rebounding.

JOBS

The national unemployment rate has been teetering at the 10% mark for some time now, but its primed for change. The federal government’s near $500 billion stimulus plan is powering up for a new media blitz to promote job growth and policies that the administration says will create 20 million new jobs over the next 10 years. The White House reports that stimulus spending has helped create or save 1 million jobs so far, new jobless claims have dropped to lowest levels since January, and economists say the willingness of companies to begin adding jobs is getting close. While the current unemployment rate is still a dark cloud hovering over Americans, job creation efforts hold the possibility of brighter prospects.

HOUSING MARKET

The mortgage rates dipping below 5% is a promising gauge of a stabilizing housing market. Refinancing has been on the rise, the First-Time Homebuyer Tax Credit has spurred traffic in house sales, and the Federal Reserve’s continued purchases of mortgage-backed securities has been keeping the housing market afloat in spite of foreclosures and dropping home prices. Also, buzz of Congress possibly expanding the $8,000 tax credit to apply to all homebuyers may jumpstart the housing market back to pre-recession activity. “The most fundamental argument for the Credit is that nothing works in the economy if housing is falling – it hurts household wealth and credit becomes tight,” writes CNN Money.

RETAIL SALES

Before you cringe at these numbers, this is actually good news. Retail sales in September were down 1.5%, but that’s better than the expected 2.1% fall economists predicted. Outside of auto sales, which plummeted about 10% after the Cash for Clunkers auto sales incentive expired, retail sales are actually up 0.5%, which is also higher than economists projected. And when consumers spend, everyone profits. Stronger-than-expected gain in retail shows a boost in consumer confidence, which is a great omen for the coming holiday season. More spending is both an effect and a cause of a slow, gradual recovery, and may be reflecting broader progress in other areas of the economy.

STOCK MARKET

Even the average consumer has reason to be excited about the Dow’s highest close in a year. Better-than-expected retail sales and strong earnings from some big-name companies have helped drive climbing index points, and continued upward market trends indicate a strengthening economy on a larger scope. Analysts say that while the 10,000 point threshold isn’t a significant technical milestone, it is “meaningful on a psychological level” and will bring more confidence in buying and selling on the floor. While the ongoing problems in the financial industry and a potential stock market pullback make some economists skeptical, growth on Wall Street is a general precursor for good things to come.

CREDIT DEBT

Trends of decreasing credit debt reflect an overall healthy shift in consumers’ financial lives and more responsible credit use in the economy’s current credit crunch. Better consumer management of debt suggests that consumers will also be better customers in the marketplace by being more creditworthy and thus less at risk of defaulting and throwing the economy into another credit spiral. On top of that, credit scores are on the rise for 39% of consumers. Healthier credit for consumers spells more liquidity in the market, more consumer activity, and a healthier, more productive economy.

FUTURE FORECAST

The coming holiday season may be the clearest temperature check on the state of our economy—it may explode into a spending frenzy or it might be another conservative Christmas for many of us, but there is hope for significant growth in a better-than-expected end to 2009 and a recovering 2010 if spending keeps up. By no means is this a concrete financial analysis of our economy, but step back and look at the bigger picture—economic recovery may not be smooth sailing but at least consumers are beginning to look forward. People are gaining back their appetite to shop as the U.S economy slowly but surely emerges from deep recession. Sure, credit is still tight and rising unemployment could stall a full recovery from recession, but consumer demand is up, markets are stabilizing, and there is more reason to hope that darker times could give way to sunny skies in our economy.

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.

If you are interested in investing in the stock market, one of the first things you are going to need to do is to build your portfolio. We highly recommend contacting a knowledgeable broker that is seasoned in investing if you are going to get serious. While there is nothing wrong with day trading on your own, there is a lot of risk involved, especially if you have no idea what you are doing. Working with a financial advisor or a broker is vital for those that have no experience in the markets.

You’ll need to first decide how much money you are willing to invest, and then develop both some short and long term goals. For example, if you have $1000 to invest, you’ll need to figure out how much money you would like to have in six months, one year and five years. These goals can be used as a guide to help you find the best stocks that will help you meet those goals. Remember, the stock market is a risky business. You should only invest money that you are prepared to lose.

Now that you have your initial investment funds ready to go, you’ll need to decide what industries or stocks you are interested in. Every market will fluctuate, and while some stocks may look promising today, they could end up as penny stocks tomorrow. You’ll need to do quite a lot of research before you jump in to avoid getting burned. The dot com boom and bust is the best example of what can happen with promising stocks.

The first place to start your research is in the financial pages, money magazines and publications like the Wall Street Journal. There are also many great resources online that can help you track stocks before you actually invest, as well as learn more about the background of a company. Google has a great tool that is incredibly useful for this purpose and it is free to use.

Target the stocks you are interested in and you can begin building your portfolio. As with most things in life, you’re going to need to be diversified. Never put all of your eggs in one basket, or in this case, industry. For example, if you are heavily invested in tech stocks and the bottom drops out, you will have lost your investment. If you were invested in tech stocks, as well as many other industries, you’ll have spread that risk out a little more.

For those looking to build a very diversified portfolio, ETF’s are a great initial option that allows you to invest in many different industries without having to buy individual stocks. These are managed funds that can provide great short term results, but they are still quite new, so long term data is not yet available.

Once you have built your portfolio, you’ll need to monitor it to see how your different stocks are performing. You can use your goals as the yardstick to measure performance. If something isn’t performing up to expectations, you’ll have the option of selling that stock and figuring out which ones will perform better for you.

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Right now there is a lot of talk about a recession. The financial buzzword that is out there this month is “Recession” and for good reason. It has become increasingly vital that as American citizens, we begin to understand how we can properly safeguard ourselves against the risk of a potential downturn in the economy. Obviously there are no real guarantees in life, but there are numerous healthy and advantageous steps that can be taken in order to mitigate your losses during any financial turbulence that should occur in the near future. Here are some steps that you can take to recession proof your life.

Clean your finances up.

It is time for you to get serious about your financial health. Look at your budget this month and start cleaning everything up. Decrease your debt slowly but surely, and work to find friendlier credit lines and ways to increase your cash savings and emergency fund savings. By reducing unnecessary expenses and increasing cash savings, you can safeguard against the occurrence of becoming financially strapped.

Focus on creating a financial plan.

If you have a plan, focus on it. If you do not have a plan, put together a one year, five year and ten year financial plan and tweak it over time to ensure that it is meeting your needs.

Make yourself invaluable in your profession.

If you become invaluable at work, it will be much harder for you to find yourself laid off during a recession. Some people are laid off without any warning, but if you can increase your role at work in any way, do so now and you may be spared.

Figure out a way to earn real money.

Can you further supplement your income in any way? If so, now is the time to start thinking long and hard about these opportunities. Consider obtaining a second job, or some other form of part time work that will allow you to increase your bottom line. This is the best way to prepare yourself for a recession, in case you have no idea where you’ll be when the economy takes a turn for the worst.

Think ahead and plan accordingly.

Above all, keep in mind that “this too, shall pass.” Think about the future and work on learning from the past. Think ahead and plan accordingly and you should have no difficulty overcoming the recession with the shirt still on your back. A recession does not automatically mean that your finances have to go south, but the more prepared you are, the better off you will find yourself when the waves die down and things go back to normal, so keep that in mind when recession proofing your life.

There is no way for you to completely and fully protect yourself from a dip in the growth of the economy, but there are plenty of ways to ensure your survival during this period with as little turbulence as possible.

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When is the right time to invest? Even though the stock market is volatile, for many investors, this is the time that money can be made. Speculation is a risky business, but it has made empires in very little time. If you have the stomach for it, this is a great way to make money, but it is vital to realize that you are playing with fire. If you are a small investor looking to pick up stocks cheaply however, this is a great time to get started, provided you have done enough research.

Before you decide to dip your feet into the market, or jump right in, you’ll need to have the sound advice of a financial expert to guide you. Whether you are working with a personal broker or a financial advisor, it is helpful to have the benefit of their knowledge. They can assist you in figuring out how high your risks are and they can offer valuable advice that can help you avoid the pitfalls of investing when the markets are in a decline.

For most investors that just want to make a few dollars, or get in on a stock they want while it is cheap, the best strategy is to start small and to use funds that are not vital. If you have some extra money put aside that you don’t need, this is the type of funding that you should use. It is never a good idea to leverage your house on a volatile stock market, or to use money that you actually do need.

Starting small is also a good strategy, unless you are planning on speculating. You can try a few picks and see how they perform over the short term before you invest any more money. Caution is necessary when you’re using these techniques and it is better to err on this side than to lose everything you own on a bad pick.

Short term investing in a market like this one can be riskier than long term investing. There is a chance that when you buy a stock it will continue to go down. The key is finding whether or not it has a basement and if you want to hang in there. Generally, short term investing in this type of stock will prove harrowing. However, if you are willing to wait out the long term, you can do very well.

Once you have determined how much you want to invest, you’ll need to stay on top of financial news and do some fact checking on that stock before you finalize the purchase. Do some due diligence into the company and see what is happening before you make that final decision. This step can help you weed out the companies that are going under from the companies that are just going through normal stock fluctuations.

With care, and the right strategy, you can turn a down market to your advantage. Just remember that there are no guarantees and there is no “safe” investment.

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As the news gets into a frenzy over the recent bank failures, the failed bid for a bailout and the continuing bad news about the economy, many consumers are left wondering just how these bank failures and other events will affect them personally. While there is no one answer, this is a time for caution, but not panic. The vast majority of people will see no real difference in how their money is handled, and so far, the bigger banks appear to be coming to the rescue.

For those that have funds with a bank that will soon be under new management, there should not be much change in the day-to-day routines. Over time, new privacy rules may be updated, according to different company policies and name changes may also occur. For now however, the banks that have gotten assistance or have been purchased by other companies will most likely remain in operation as if nothing had happened.

The worst thing that consumers can do when they are concerned about a bank failure is to immediately pull out all of their money or stop making deposits. This was one of the main reasons that the curtain closed so quickly on Washington Mutual. Investors and customers caught wind of the trouble in the air, and stopped putting their money in the bank. As a result, when the daily deposits dropped off sharply, the situation was compounded.

While it is only human nature to want to rescue your money, suddenly drawing it out only contributes to the problem. For now, worst case scenarios don’t involve losing your funds, and since the vast majority of banks offer FDIC insurance on funds up to $250,000, most consumers are completely protected. If you have deposits in excess of this amount, there are also special stop gaps in place to make sure that you don’t lose your money.

It is all too easy to get caught up in the whirlwind and star to see doom everywhere you look, especially if you have been glued to news about banks. However, for most, it is business as usual. That is not to say that there are not some severe problems with some banks in the United States as well as the UK. However, panic is the worst thing that consumers can do at this time.

Instead of rushing to stuff your money in your mattress, it is best to stay calm, read up on the situation from solid sources and wait to see what happens. You may also want to contact a financial advisor if you are truly concerned about what will happen to your money if your bank does fail. By reducing the amount of panic that is running rampant in the industry, banks will have time to get back on their feet and go back to running as they usually would. Consumers can assist this effort by making smart money choices and refusing to give into the herd mentality that can cause even more economic problems.

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If you are paying attention to the news about the credit crunch, it is all too easy to get caught up in the whirlwind of bank failures, rising interest rates and the prospect of doom and gloom everywhere you turn. While there is no denying that we are in economic trouble at the moment, there is a lot of controversy over just how bad it really is. If you’re trying to find your balance economically, it pays to find out just how the credit crunch will affect you.

There are specific areas that are being hit the hardest right now. By focusing on fixing these in your personal finances, you can gain the upper hand and weather the credit crunch with aplomb. Let’s take a look at a few tips that will help you get on firm ground and help you take a good and honest look at the credit crunch – free of hype.

1. Credit Card Debt –

This is hitting many people hard right now. As the cost of living goes up, many are turning to their cards to get by. This is creating a vicious cycle for many as interest rates climb and it gets harder to make that monthly payment. If you’re struggling to pay your monthly payments it is definitely time to think about getting a consolidation loan before you credit score is dragged down by late payments and high balances.

2. Housing –

For those that have ARM mortgages, this is certainly a tough time. Interest rates have changed dramatically and a mortgage that was affordable last year may be reaching critical mass right now. Selling is not an option for many thanks to falling home values and a lack of buyers. If you are stuck with a rising interest rate, start finding new ways to save money. By cutting back on non essentials, you can free up the extra money you need to make your mortgage payments.

3. Investments –

After the stock market had its biggest one day fall since the 1980’s on September 29th many casual investors started thinking about just how much risk they are currently facing. While some investments are riskier than others right now, the general consensus from analysts is that it is best not to panic. Things will turn around. However, if you are not diversified, this is a good time to think about doing that before it is too late.

4. Pensions –

Pension funds that rely on the stock market are taking a bad hit right now. However, pulling your funds out may not be the best solution at this time, and may only compound the issue. Speak with a financial advisor and let them help you create a plan to keep your pension safe.

Hiring a financial advisor is a great idea right now, given the state of the credit crunch. They will be able to look at your finances in detail and help you create a plan that will make your income recession proof, or at least close to it.

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Insiders on the economy have mixed ideas on the impact that the economic bailout plan will have on the country. A federal bailout package may significantly boost the psyche of consumers and make banks more willing to extend credit, which could significantly improve the struggling economy across the nation. Unfortunately, it could also send a negative message to residents and businesses that are facing financial challenges without any help from the government.

Despite the public disapproval that is being offered regarding the $700 billion dollar economic bailout which was passed this past week, the economy is desperately in need of this assistance. Financial institutions, according to experts in the field, absolutely need this monetary assistance from the government as soon as is possible in order for our economy to rebound following recent stock market crashes and other drops.

Experts have said that without the bailout plan, more banks would have failed, causing even greater costs to the economy. If the revised $700 billion bailout plan had not been passed, the costs would have been even greater. A number of representatives received an overwhelming number of letters from constituents voicing support against the bill, causing it to fail the first time around. Luckily, within a week the bailout had found its way through because of its necessity to put the economy back right again.

Accordingly to experts in the industry, those who are against the bailout are generally people who do not understand what it is about. Most of the people who were against the initial bailout bill felt that way because they thought of the bailout as a handout to the rich rather than a way to right the economy. The real goal of the economic bailout plan is to allow the government to buy defunct loans from the banks, owning up to one third of the larger banks for a period of time in the process. Once the banks are able to regain some of their own wealth, the government would then be able to sell these bonds back, only losing between $50 billion and $200 billion in the process.

While it may not be the taxpayers’ fault that this is happening, the proper response is not simply to become angry. If the economic bailout plan does not rescue these banks and financial institutions from their current situation, the economy is going to fall a lot further, which will only make things worse. The banks need support, otherwise they are going to begin to lose a lot more money, which is going to prevent them from giving loans and mortgages to the consumers that need them. By rescuing the banks, the government is making sure that these financial institutions will continue to lend money to the individuals and families that need it most, like students and families trying to buy a new home for example.

The $700 billion dollar bailout plan may not be the most ideal solution, but it is much better than the alternative, which is to do nothing at all.

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The big news this week was the defeated bailout plan and the stock market immediately answered by dropping more than 700 points. As investors quake and consumers wonder just how safe their money is, this is a good time to look at the bailout and what the failure really means to the rest of us. While the bailout would have been helpful to many banks, some experts are actually pleased that the measure did not go through. Let’s take a look at what all of this means for the average consumer.

Even though the stock market took one of the worst dives it has seen since 1987, all hope is certainly not lost. In fact, early Tuesday morning, it was looking like the markets may bounce back. The biggest issue right now is fear, and there is quite a lot of that running rampant in investment circles. Many are dumping stocks as quickly as possible in order to get cash.

“There’s a monster amount of fear out there. This is global contagion. It’s no longer just the United States,” Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, N.J., told Reuters.

For the average consumer, the dip in the stock market will have temporary effects, but it is too early to judge the long term effects that the failed bailout proposal will have. In the meantime, it is best to consult with a financial advisor in order to develop a long term strategy. By focusing on the long term, investors can step out of the panic mindset and start focusing on what benefits there may be right now.

For example, energy prices actually dipped, which is good news for those eyeing empty propane and heating oil tanks before winter comes. Again, there is no long term indication that these drops will last, but in the short term, consumers can actually benefit from these lower prices.

Bank failures are a big concern, but so far, bigger companies have come to the rescue. Now, the focus has shifted to the fact that around three or four of the world’s biggest banks are now controlling the majority of funds. This could prove to be risky in the future, but for now, consumers funds are safe.

For analysts, the biggest concern is addressing the issues that led to the failed bailout measure and deciding what to do instead. While there is a lot of controversy over whether or not the bailout was even required, and who would actually benefit, the fact remains that there are some serious issues with banks right now, and unless something is done, the effects may be long lasting.

But, for the average consumer, it should be business as usual. Stock markets plummet and come back up, it’s the nature of the beast. Banks fail and new ones are started. By getting out of the “sky is falling” mindset and focusing on good money management principles, the average consumer should do just fine, at least for now.

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