Turning The Tables On Credit Card Companies

Credit card companies are currently fighting amongst each other to get your debt. That's because personal debt in North America is at an all time high. The result is loads of 0% APR credit card offers applicable to balance transfers. So, if you have debt elsewhere, they want it. That way, when your 0% offer runs out, you'll be paying them interest, not someone else.

But if you have very little or no credit card debt and good credit, you can use it to your advantage with a technique called balance transfer arbitrage. Balance transfer arbitrage is the act of using all those 0% APR credit card offers to earn money. The basic principle is to deposit each balance transfer check issued to you into a relatively high-interest online savings account or other liquid investment, such as a CD (Certificate of Deposit).

For example, say you received a credit card offer for 0% APR, 12 months, $10,000 limit. You have the card activated and receive a balance transfer check for the full amount. You then deposit the check into something like the Emigrant Direct American Dream Savings Account, which is currently at 5.05% APY.

That's roughly $500 in interest earned on $10,000 over 12 months. (Though you don't want to cut things that close. Only deposit for 11 months so that you don't miss the deadline to pay back your credit.) You could also get a CD, which usually earns at a higher rate. You just have to be able to cash out your investment before the credit line comes due.

You can read more about the ten golden rules of balance transfers at Your Credit Advisor.

Bootstrapping Your Business

Growing a young business is obviously a critical step to success. If you have a business or are starting one, you probably know the statistics. Something like 80-90% of all new businesses fail in the first year. (I might be making that up, but it really is very high.) And of those that remain, a huge percentage fail in the 2nd year. Get past that, you'll probably do fine.

The primary reason for failure? Well, I'm guessing it's one of two things:

1. Poor planning.
2. Rapid growth.

Can You Live On $12,000 Per Year? 20 Tips Towards Frugality

Time was when you could actually work a minimum wage job full-time and get by. Two jobs, and you could raise a family. Nowadays, it's nearly impossible, but some people seem to be making an attempt at living under the median line. The movie The Pursuit of Happyness is an example of what persistence can do to move you from having nearly nothing towards being such a success that someone makes a film about you.

I'm not sure if someone will make a movie about Donna Freedman, but people are writing about her decision to intentionally live on $12,000 per year. She seems to be not only coping but in control. Is it really possible? As someone who did it on about $10,000 a few years ago, for about 3 years, I'd say it was possible then, and still might be so today, but only in some cities. You'd have to give up anything that wasn't absolutely essential. It's not necessarily enjoyable, to be honest, but if you eat properly, you can at least maintain your health.

Here are some tips, if you find yourself in a similar position or just want to save money for a trip or investment or what have you.