Balance Transfers: Pay off debt (not just CC debt!)

So I just applied for a new card, the Citi Driver's Edge. I've already had the college version, but I'm getting the normal one just to see how much of a higher credit line I can get. Basically with this card you earn 3% back for gas, groceries, and drugstores. More so, you earn $1.00 for each 100 miles driven, which could essentially translate to free oil changes (5000 miles = $50.00). Of course, you do have to send in forms to take advantage of this, and the money earned isn't straight cash back (you have to use it for car stuff), though you can convert into points to use on the Thank You network.

But I digress. I'm planning to use the 0% APR balance transfer to pay off the student loan that I currently have, and carry me over with the money I'm putting into the Employee Stock Plan, while saving on the interest (which is around 6.80%). Citi allows you to balance transfer to a bank account, and it's easy to boot, which makes for a great way to pay off loans easily, or just to put some extra cash in your pocket. Of course, there are some caveats to keep in mind.

• Pay on time! If you miss even one payment, your interest rate will shoot through the roof.
• Don't think of this as free money. You do have to pay it back sometime.
• Check the fine print. My Driver's Edge card does have a fee on the offer (though with a max). Other cards may or may not.

So use your credit wisely, and you can really benefit. But be careful, because especially in this day and age, it may be really hard to get back on your feet if you mess up.

Employee Stock Purchase Plans

I just discovered a pretty good way to make a good and fast return. Most companies offer stock to employees at a discount (usually 15%). You buy the stock by an automatic deduction from your payroll check (1-10%). At the end of a set period, usually 6 months, the company automatically buys the stock with the discount.

The cool part is that companies may let you sell the stock immediately after you receive it. Therefore, you could be easily making a 10-13% return even if the stock doesn't go up or down in value. The reduction in return is caused by tax, but even so the remaining return makes it worth it. If you can afford it, and your company lets you, you should max out contributions to these employee stock plans. Of course, there will always be some risk (the stock could suddenly drop the day after you buy it), so consider your risk tolerance before you try this.

Employee Matching Programs

I'll have more details up on my website about my budget and stuff later when I have the time; I've been kinda slacking off on that. But in the spirit of giving...

Most major employers offer matching contributions to non-profit organization. It is a great way to really increase the effectiveness of how much power you have in giving; in fact, many offer dollar for dollar matching!

The programs vary from company to company (matching amount, timing of giving, etc.), but it is something you should definitely check out, especially with the holiday season coming. The only common restriction that I seem to know of is that these matching donations cannot be typically made to religious/church non-profits, so keep that in mind when looking at what to support.

So when making those donations to get some tax deductions this holiday season, keep those matching programs in mind!

Starting Out...

Ok now that I've started working for awhile, it's time to save up and build up net work. It's really been annoying to pay off the 2k credit card debt from college that wouldn't go away completely because of the new expenses I've been loading on to it. I think though that I finally have things under control, and my net worth should be moving on up from here!