So, how do you choose?

First, know yourself: if you typically carry a balance, rewards cards are likely not right for you—you’ll pay more in interest than the value of the rewards you’ll be able to redeem. Debt planning is the key here. Also, if you are late on a payment, some credit card companies forfeit rewards, raise your interest rates and/or eliminate interest rate grace periods. But, if you pay your credit card balances off in full every month and on time, then rewards cards have a lot to offer you.

Here are 3 Important Steps to Reaping those Rewards:

1. Pick a card that delivers rewards you’ll use… and can redeem.

1. Review where your money Actually goes, not where you think it may go. Chances are that a card that rewards your loyalty with free or discounted gas and groceries and restaurant dining will save you more money than one that give you plane tickets. And what about cold, hard cash?
2. Check redemption rules carefully Before applying for a rewards card of any type. Some cards limit how much you can earn; require you to spend a certain amount before rewards kick in; or offer a tiered rewards system. You’ll need to know which purchases qualify for rewards, and under what conditions those terms can change, to accurately estimate what you’ll be able to earn in a year.
3. Caveat: Be particularly wary of frequent flyer cards if you rarely fly, fly only during holiday “blackout periods”, or fly on short notice. Award seats are becoming an endangered species…especially as the airlines’ merge.

2. Once you’ve determined the category of rewards you want, shop and compare the cards currently offered.

1. All costs. Consider interest rates, annual fees, grace periods. Watch introductory rates. A card that’s set at 3% for 12 months is better than one that starts at 1.5% then pops to 5% after 6 months. Some cards also charge a fee to redeem rewards. Diner Club, for example, charges a 95 cent fee for each 2,000 points redeemed.
2. Any fringe Benefits which have true value. Some cards offer more than cash back, points or miles. They offer AAA discounts, roadside assistance, concierge services, rental car insurance, special hotel rates, etc.
3. Check rewards expiration dates. Some rewards expire if you don’t redeem them within a certain amount of time. Additionally, most frequent flier cards apply blackout dates, seat restrictions, and expiration dates on miles. A few critical restrictions can significantly reduce the value of the rewards you’re hoping to receive.

If all of the above sounds like too much work, you’re not alone. Mint.com was specifically designed to make understanding where you really spend your money, and which credit card is really right for you easy and automatic. Mint compares your personal spending patterns and payment history to the interest rates and rewards offered by hundreds of US credit card companies.

3. After you get your card, remain a savvy rewards consumer

1. Be Alert to policy changes. By law, credit card companies have to notify you if they change interest rates, but not if they change rewards policies. Open those envelopes and read the fine print. If policies change, call and fight back…or repeat steps 1 and 2, above!
2. Be resistant to the temptation to spend more. Some card companies notify you when you’re approaching a rewards threshold or when you’ve just earned or redeemed an award, tempting you to spend more money than you should. Don’t let yourself be led astray (from your budget).
3. Price Check the rewards offered. You may find that the products in the rewards catalogue are not worth what you spend to receive them. Compare one card’s requirement that you spend $2,000 to earn 2,000 points to get a free iron vs. spending $1,250 on groceries, drugstores and gas to earn 6,000 points in your first year with a Citi card which would get you a $50 gift certificate to Target. You could buy a $15 iron, and still have $35 more to spend!

If you’re not certain of your typical monthly spending or what your cards currently charge in interest rates and fees and their grace periods, visit Mint.com, the online financial planner to find out in 5 minutes or less. Our Ways to Save page will provide you unbiased recommendations and quantify your potential savings and/or rewards.

Mint asks: How did you find your last credit card? And did you make a good decision?

Further Reading on the Topic:

Online Financial Planner

Free Financial Planning

Online Financial Planning Tool

Learning how to personal bills tracking is something that we care about here at Mint.
Learn more with great personal bills tracking tips in our blog article index.

To anyone who just completed “year end enrollment” in their employer’s health insurance plan, and anyone who’s paying for their own medical insurance, it’s clear that costs are only going up. According to the National Coalition on Health Care, Americans spend $6,700 per person annually on health care.

So it makes sense to try to cut costs wherever you can without putting your health at risk. Here are 10 ways to reduce your medical costs while keeping yourself healthy.

At the Doctor’s Office

1. Ask for generic drugs. Generic drugs are cheaper than name brands. Busy doctors forget about alternatives, so don’t hesitate to ask. Check out Blue Cross and Blue Shield’s list of top prescription drugs and their generic equivalents. For pain medicine, find out if there’s an over-the-counter instead.
2. Avoid unnecessary tests and visits. If you move or change doctors, take copies of test results with you. Always talk to your doctor first, but some follow-up visits and tests are unnecessary-like annual EKGs. Call instead.
3. Barter for services. You could trade plumbing, legal advice, or tax preparation, etc. in exchange for medical services. A hospital in Brooklyn has a program that barters for medical care. Craigslist also has ads offering bartered medical services.
4. Get free samples. Doctors, dentists, and optometrists get tons of samples from manufacturers hoping to increase brand awareness. Ask your doctor for some instead of paying for prescriptions.
5. Negotiate. Some hospitals waive or reduce certain fees. Others will reduce the bill in exchange for cash upfront. Be sure you ask for explanations of costs if you don’t understand them. You wouldn’t overpay for something at Target, so don’t do it at the doctor’s office.

At Home

1. Outsource common tests. Independent labs can screen for cancer, run drug tests, and analyze blood and urine. Some even offer secure online access to your medical information. Check out myMedLab, PrivateMD, and PrivateLabTesting.
2. Personal Bills Tracking You can deduct expenses if the itemized total is more than 7.5% of your adjusted gross income. This includes expenses from acupuncture, artificial teeth, hearing aids, eye surgery, psychiatric care, and even weight-loss programs. Read the IRS’s Publication 502 for more information on tax breaks and which medical expenses are deductible.

You can use Mint.com to easily for your personal bills tracking and medical expenses incurred at all your health care providers, pharmacies, online services, etc, across all the accounts you have added to Mint.com. Mint automatically categorizes some expenses as Medical, and you can recategorize and/or label transactions to get an full and accurate picture of your total spending and to see if you qualify for tax breaks.

Show Me How

3. Fill prescriptions online. This is the cheapest option for people who take drugs daily. Make sure any company you use is FDA approved, has a physical address, privacy policy, and a secure Web site. They should also be a fully-licensed pharmacy or should fulfill orders from a fully-licensed pharmacy. Check out FrugalMed, MedBasket, and DrugsPark.

In the Future

1. Review your insurance plan. Meet with a professional if necessary. Don’t focus solely on the monthly premium-consider the total cost, including out-of-pocket expenses. If you can afford a higher deductible, lowering premiums will offer immediate savings. A younger person in good health might consider switching to a Health Savings Account (HSA). HSAs allow you to pay for current health expenses while saving for future medical expenses, tax-free.
2. Live a healthier lifestyle. Ok, we had to say it. Fulfill your new year’s resolutions to exercise more, eliminate stress, stop smoking, get plenty of sleep, get regular check-ups, drink 8 glasses of water per day, avoid red meat, and eat lots of organic fruits, vegetables and fish. You’ll lower your health care costs, and possibly your life insurance costs. So, it’s a smart financial decision to invest in good health.

Have you found a smart way to save on health care costs? We’d like to hear about it. Comments welcome.

Have the holidays left you juggling your finances, scrambling to get out of debt or back on budget? Well, fear not, for the combination of the sub-prime fallout and bank competition has been bad news for bank investors but may be good news for you. Financial institutions are currently offering attractive high-yield savings accounts and low interest rate credit cards to attract more customers and accumulate more of their money. This creates a golden opportunity to reduce the cost of your debt right now, and buys you time to pay down your debt. Now could be a good time to start personal expenses tracking:

1. Transfer any Balances to a Lower Interest Credit Card. Market conditions mean that there are a slew of 0% interest rate credit cards available today. Many cards offer this “teaser” rate for up to 12 months, with no annual fee to worry about. While this does not reduce your overall debt, it does save you from accruing costly interest for the next year, buying you time to pay down your debt. It also has the advantage of consolidating your debt, giving you a single statement to manage. Here are two options to consider:

1. Negotiate a Lower Interest Rate with your Current Lender(s). Ask for a lower interest rate or the best “new customer” deal from your current card providers. Competition for your debt is fierce, and the cost to the bank of losing you is usually more than the expense of reducing your interest rate. For more guidance on the best negotiation tactics, read Three Ways to Ask for More Money.

1. Consider (carefully) leveraging your Home Equity. If you have equity in your home, you might consider using a home equity loan to pay off your credit cards. This is not for everyone. But given the typically lower interest rates offered on these loans, it might be a smart option to reduce your interest costs. Tread carefully here, however, and consult a pro before taking this step.

Once you’ve reduced the cost of your debt to a minimum level, you have to focus on reducing that debt burden. Mint suggests a four step approach:

1. Decide which Debt to Pay Down First. In the ideal world, you ought to pay down the debt with the highest interest rate (a nod to compound interest) first, regardless of balance. But the Snowball Method, popularized by Dave Ramsey, says the opposite and encourages you to payoff lower balances first. Psychologically, this approach makes it easier for you to get some quick wins and possibly gain the motivation to continue paying off the rest of your debt. If you’re feeling overwhelmed, the Snowball Method might be right for you.
2. Set up Automatic Payments. This is a great way to ensure that you consistently pay down debt first, with the remaining money representing your new budget for your day-to-day expenses.
3. Yes, Tighten your Belt. It may sound simple, but until you’re out of debt you should be reducing or eliminating dinners out, travel or even that new gadget you’ve been eyeing. Think of the interest you’re paying now as a recurring expense that increases the overall cost of everything you’re buying. You’ll only be making it worse by continuing to spend more than you earn.
4. Get Better Organized in 2008. Understanding where your money is actually going is perhaps the most important first step to reducing your debt, preceding all the others. We designed Mint.com with the needs of the person striving to reduce or eliminate debt in mind. That’s why we made it easy for you to:
   1. See every transaction across your multiple accounts in one central place
   2. Set up budgets for the couple of categories you’ll want to watch most closely to get back on track
   3. And set up email or text alerts to let you know if your spending is exceeding those targets
   4. Find ways to save on bank interest and fees, as well as typical monthly bills.
   5. Use personal money management software like Mint to help track your spending.

   Sign up today!

And lastly: stay calm and keep your sense of humor. You are not alone in feeling under water. If you need any reassurance, please check out our Holiday Spending Hangover Contest (in preview now until its 1/31 launch). You’ll probably find that the stories submitted there sound familiar to you. Submit your own story and, who knows, you might win $5,000 yourself! That could represent a big step out of debt in 2008.

Is there a debt reduction idea we’ve missed? Please comment to let us know.

Further Reading on the Topic:

Personal Expenses Tracking

Personal Money Management Software

Free Money Manager

Financial budgeting software is something that we care about here at Mint.
Learn more with great financial budgeting software tips in our blog article index.

Since the New Year starts next week, you’ve got just a couple more days to take some steps to reduce your 2007 taxes. These tactics will lower your realized income so that you can reduce your overall tax bill come spring using financial budgeting software. Not all of these steps are going to work for all people, but in general, here are the 6 big end-of-the-year tax trimming ideas:

Give to Charity. If you have a favorite charity, giving money (backed by a receipt or canceled check) is considered a deductible item to reduce your taxable income. You can also deduct the fair market value of donated items you own, such as a used car or stuff around the house.

Maximize Your Retirement Account. If you can afford it, there’s no better way to reduce your tax bill than by contributing as much as you can into your retirement account. The maximum allowable 401k contribution for 2007 is $15,500 or $20,500 if you’re 50 or over. For traditional IRA contributions, the maximum you can contribute this year is $4,000 or $5,000 if you’re 50 or over.

Sell Your Losers. If you own stocks and have ridden the highs and lows of the stock market, selling your losers and donating your winners can help offset some of the tax man’s bite. If your once high-soaring stock decided to head south for the winter, consider selling it now to qualify for capital losses (you can always purchase it back, but not before 30 days). With this method, you can deduct up to $3,000 in losses from your gross income.

Donate Your Winners. With losers come some winners; that’s the hope at least. If you’re so fortunate, you can donate a portion of your appreciated assets to charity. You would avoid capital gains and be able to deduct the full amount of the donation. If you purchased stock worth $1,000 and it’s now priced at $1,500, you can avoid the capital gains of $500 (if you chose to sell it) and deduct the entire $1,500 from your income. By avoiding taxes and maximizing your tax deduction, it’s almost like government is matching your donation – well, almost.

Leverage Your Home. If you’re a homeowner, you have several options to make additional deductions. If you have a property tax bill due in early 2008, consider paying it in 2007 to increase your deductions. You can also pay your January ‘08 mortgage, with the interest paid counting toward beefing up your deductions.

Get Organized. Knowing your options means knowing how much you’ve spent, donated, and earned. Mint.com financial budgeting software can help you organize your transactions and simplify your end of year tax planning. Mint auto-categorizes every transaction and allows you to manually re-categorize if need be. You can also view reports by category for the entire year.

Reducing your taxes is all about being smart with what you do with your money, and knowing where you stand is the first step in determining where you’re going. Your wallet will appreciate it when the Tax Man comes.

Sign up today for Mint.com and you’ll start the New Year with a fresh take on your money!

As the year end approaches, you may find yourself reflecting on your financial magagement…did it get better or worse this year? And do you have a plan for next year which will get you to where you want to be, financially, this time next year? If you have a student loan, how much can you pay off in 2008? How will you lower your taxes? Or your out-of-pocket medical costs? Can you pay your bills and get started on saving for some big ticket item, maybe even a home?

Some people can develop a solid and effective financial mangement on their own, but others have complicated financial situations, and need help. If you have the time, you can probably learn much of what you need to know to act as your own financial advisor. But most people don’t have time or the confidence to play that role solo, especially when the stakes are high (ex: it affects family members).

That’s where a financial advisor comes in. A good one can assess your current financial situation, help you carve out a financial path, and then help you move down that path to help you achieve your life goals.

Mint’s Point of View

Financial advisors aren’t necessarily just for large corporations or the rich. They can help you plan for major expenses, investments, and help you prepare for life altering events like marriage, children, and college. They can help you manage your budget, refinance your mortgage, even lower your taxes.

Seven Steps to Find the Guru for You

If you decide you need a financial planner, you should know where to begin. And you should know how to pick one that will help you save and make more money. So, how do you find someone to worry about your money as much as you do?

1. Decide what your financial situation calls for. Do you need to establish or revisit your retirement plan? Do you want to buy a new car? Or put a down payment on a home? Are you trying to decide between an IRA and a 401k? Your goals can be broad or specific, long-term or short-term. What progress you have made so far in achieving your goals. Do you have a time table? What stands in your way?
2. Decide on a budget for advice, and the way you’d like to pay for it. Some advisors are fee-only; some commission only. Some charge a combination of fee and commission, and others offer salary-based services. Commission-based payments only save money if you keep the same investments for 7 years. Since the average lifespan of mutual fund ownership is 2 years, you’ll end up paying more. If you’re unsure, stick with the fee-based plans.
3. Use referrals and the Internet as starting points. Referrals shouldn’t be your definitive source of information. What works for a friend or colleague might not work for you. Sites like www.wiseradvisor.com and www.myfinancialadvice.com provide unbiased, criteria-based searches as opposed to zip code searches.
4. After your initial research, make a list of 3-5 financial advisors whom you’d like to meet. You can request a Form ADV from each advisor to learn more about them before you meet. That’s a form they must file with the SEC containing information about their services, fees, investments, business activities, and background information.
5. Hold initial interviews with your short-list. And confirm that the initial consultation will be free. They shouldn’t be charging you for an interview; this is their opportunity to sell you on their services. Here are some of the critical questions to ask during the interviews:
   • What licenses they hold, in which states
   • What services they provide
   • Their investment strategy
   • How they would prepare and implement your plan
   • Who their existing clients are (ask for references)
   • The average size of their portfolios
   • How their portfolios have performed
   • Their fees and/or commission fees
   • If they sell financial products
6. After the interviews, get critical. Did they seem straightforward and honest? Did they listen well and come up with good ideas for your financial plan? Did it seem like your situation was uniquely analyzed? Consider how well you got along with the financial advisor. Did you sense a rapport?
7. Lastly, contact their references and run a background check. Federal and state laws require that brokers, advisors, and forms be licensed and registered with the SEC. Sites like www.sec.gov and www.finra.org provide databases that allow you to investigate potential advisors. If you’re unsure about independent advisors, go with a major brokerage firm. Use sites like the National Association of Personal Financial Advisors (www.napfa.org) to find comprehensive question sheets and explanations of credentials.

By following this seven step plan, you’ll give yourself a great gift in the New Year: an expert partner in your quest to achieve some more financial success, goals and peace of mind. It’s a great head start on your New Year’s resolutions.

And we, of course, encourage you to Sign Up Now for Mint.com if you’re going to be looking for a financial planner. We can make it easy for you to get an accurate picture of your financial situation in time for your advisor interviews.

Money saving tips are something that we love here at Mint. Learn more with great money saving tips in our blog article index.

This year, instead of buying friends and family lots of material goods that they may or may not like or return, consider giving each other the gift of time. It’s not only less expensive, but can yield a much higher “return”. Here is a money saving tip: Do some greater good in the world by organizing a volunteer event with friends, family or co-workers (i.e. in place of that tired “secret Santa” gift exchange you may do each year).

Mint’s Point of View

When your family volunteers together, you demonstrate the importance of caring for others. By volunteering with family or friends, you’ll meet new people, learn new skills, strengthen bonds, and make a difference in other people’s lives. You also can’t help but become more appreciative of what you have. And when you consider that there are 3.5 million homeless people in the U.S. (1.4 million of them are kids), another 3 million more people in hospitals and retirement homes, and thousands of families disrupted due to military service this year — you probably have a lot to be grateful for. Why not “give back” by giving your time this season…and save some money by doing so?

Action Plan

Once you’ve sold the idea to your soon-to-be able group of volunteers:

1. Make a list of organizations you’d like to work with.
2. Set some guidelines: Do you prefer being outdoors, animals, assisting the elderly, helping the homeless, working with your hands? How much time can you spend?
3. Contact your target organizations to find out what volunteering projects they may have.
4. If you’re not sure where to start, here are a few Web sites that will match you up with appropriate volunteer opportunities.

The Holiday Project is a national, non-profit organization in 31 states focused on spending the holidays with people in hospitals and nursing homes. Ways to participate include visiting with the elderly, making and wrapping gifts, managing and organizing events, and contributing cash and goods. For group visits, you choose the facility, setup, and manage visits with the help of the Holiday Project staff.

Network for Good is one of the leading Internet-based resources for donors, volunteers, and charities. They provide a search tool for volunteers to find opportunities based on their interests and geographic location, or to search for organization by name. It also provides searches for individual or group volunteer opportunities. Through the site, you can even volunteer abroad, keep online records of your service, and maintain a private journal.

Volunteer Match makes it easy to find opportunities with at least 50 organizations by searching based on your interests, skills, and schedule. They allow you to search for specific organizations, group opportunities, and even virtual volunteering opportunities. You can also request email alerts when new opportunities based on your criteria become available.

Idealist is a non-profit where people exchange resources and ideas, search for non-profit jobs, and locate volunteer opportunities and supporters. Using their search engine, you can find opportunities based on: area of focus, location, age, language, date, and specific opportunities for families or groups. Idealist also offers email alerts.

Volunteers of America is a national, non-profit volunteer organization in 44 states. Projects include working with: the disabled, day care centers, and teachers; and helping offenders transition from prison to the community. Volunteer opportunities are available for individuals as well as groups and can be short-term, weekly, or monthly.

If you’ve used some of these web sites to find volunteer projects in the past, please add your comments below…how were they to work with? If you have a different recommendation for help in matching your interests with your community’s needs, please share that, too.

And if you do organize a volunteer project, please send us a group photo. We’d love to post it on the bulletin board in the Mint company kitchen. And we might just send you some t-shirts to say thanks!

Budget planning is something that we care about here at Mint. Learn more with great budget planning tips in our blog article index.

The holiday shopping season officially starts on the Friday after Thanksgiving. So, most of us are gearing up to tackle the our holiday budget planning. According to the Retail Federation, Americans will spend an extra $20 billion during November and December. Think about this at a personal level: if you charge an extra $1,000 on your credit card, and pay a minimum of $25 per month with 19% interest, it’ll take you nearly 5 1/2 years to pay for those gifts! And don’t forget that during those years, you’ll face five more holidays with more expenses.

Mint suggests a different approach this year. We’ve collected some ideas on how you can balance your desire to shower your loved ones with gifts, with your need to reach other important financial goals such as reducing debt and increasing savings. But we’re not Scrooge! Here are 10 tips from Mint to help you celebrate the holidays… while keeping your spending in check.

Make a List

• Know what you have. If you can only spare $600, it’s better to know that before you start shopping, instead of shopping blindly per person then attempting damage control afterward. You can use Mint.com to easily determine your average monthly spending by category and set a budget for your holiday gifts.

• Remember non-gift expenses. Holidays expenses don’t stop at gifts. They include travel expenses, gift-wrap, tape, food, household decorations, etc. Account for these things in your budget so there are no surprises.
• Best Option: Use cash. It’s harder to let go of money when it’s real cash. Handing over twenty-five $20 bills for that Play Station for your little brother might make you think twice. How about some new PS games instead of an upgraded player?
• Second Best Option: Don’t spend more that it’ll take to pay off in one month. Friends and family don’t expect you to sacrifice your credit for their happiness. If it’s going to impact your financial health and ability to reach your goals, they won’t want you to spend it.

Check it Twice

• Reduce the length of your “must buy for” list. Make up your “nice” list… and then review it. Do your hairdresser and mailman really need gifts from you? Reduce expenses by sending cards, or letters of praise to their bosses, if you want to share your appreciation.

• Think outside the (gift wrapped) box. Write a poem, sing a song, bake cookies, make arts and crafts, spend time, or make a coupon book for free chores. If buying for more than one person in the same family, buy a group gift-something they can all appreciate.

• Shop online. Malls are designed to get you to spend more money than you’d planned. With online shopping, you can make more objective, smarter purchasing decisions.

• Get the best price. Use comparison-shopping sites like nextag.com, pricegrabber.com, and bizrate.com to find the cheapest price. Ebates.com and rebatejunkie.com will refund a percentage of what you spend if you shop through them. Search Google for coupon codes to get free shipping or a percentage off your total. Keep track of prices before or after you buy using services like those mentioned in our recent 5 Sources for Savings and Rebates on the Web post.

Plan Ahead

• Keep detailed records. Know what you bought, for whom, and for how much. Keep a tally of what you’ve spent and what’s left. This will ensure you don’t exceed your limits this year … and will help you plan a budget for next year.

• Put money away. Starting in January, put money away monthly in a high-yield savings or money market account. At the end of the year, you’ll have what you need for your 2008 holiday shopping.

Build your gift giving fund! When you easily earn rates 11 times higher than that of the national average with high-yield accounts, you’ll be better able to meet the budget you have set for your next year’s holiday shopping.

Accelerate your savings. Here are two accounts that offer high-interest.

E*Trade Max Rate Savings

No fees & no minimum deposit.

Sign Up

HSBC Direct Savings

No fees & no minimum deposit.

Sign Up

These are some of the shopping strategies we’ll be using this year. What are some others that you’ve found helpful?

Shop smarter this season. Sign up today for Mint.com to plan and track your holiday spending. You’ll be headed for a happier New Year!

I think every one of us harbors secret shopaholic tendencies. But staying out of debt means spending less than you earn. And that means spending smart and personal expenses management. To help you on your smart spending journey, Mint has come up with a list of eight items that no matter how tempting, you shouldn’t buy new.

1. CDs and DVDs: With iTunes, Netflix, and speedy CD-burning technology, it doesn’t seem like anyone even needs to buy new CDs or DVDs anymore. There’s no shortage of online retailers that sell used CDs and DVDs for reasonable prices, including amazon.com, secondspin.com and half.com. Sites like deepdiscount.com or dvdplanet.com sell new DVDs for much cheaper prices, some as low as $5, with free shipping. Brick and mortar stores also sell used CDs and DVDs. Ilike Amoeba, the world’s largest independently owned record store; but, unfortunately it’s only located in the Bay Area.

1. Books: I can’t tell you how many books are on my shelves that I bought new, read once, and never looked at again. There’s even some I never read. The usual suspects (amazon.com, secondspin.com, and half.com) will carry cheap used books, as will sites like bookfinder.com or abebooks.com. And there’s always the library. Libraries offer access to online versions of their books and audio books. Your librarians miss you; just beware of late fees!

Mint’s Tip: Watch for online bartering sites that allow you to trade items with other people for free. Sites like peerflix.com, switchplanet.com, and barterbee.com allow you to trade things with people all over the world.

1. Apple Products and Electronics: There are a number of online resellers of refurbished apple products like iMacs and iPods. This means that with minor aesthetic or mechanical repairs, the product is as good as when Steve Jobs first demo’d it. It just costs less. Apple stores sell refurbished products, as do online retailers like Small Dog Electronics. Some people warn against buying used electronics, but I have two refurbished Macs at home and have never had a problem. Try to get full-disclosure about a refurbished model and you should be fine.

1. Designer Clothes: You may be surprised to see designer clothes and budget in the same sentence. Sites like celebclosetraiders.com and vickissecret.com sell used designer and consignment clothes. CelebClosetRaiders.com raids celebrities’ closets and sells what they no longer want, like a dress Paris Hilton wore on MTV’s TRL. Fashion Under $100 is an innovative blog that finds cheaper versions of celebrities’ outfits. Other sites like bluefly.com offer new designer clothing at discounted prices. An even cheaper practice is to buy designer lines that are specifically produced for retail chains. Vera Wang, known for $10,000 plus price tags, recently brought an exclusive line to Kohl’s. Target teamed up with designers like Isaac Mizrahi and Cynthia Rowley. And J.C. Penny has teamed up with Nicole Miller, making great design available at realistic prices for the first time.

Mint’s Tip: People tend to think the more money they make, the more they should spend. Instead of paying $80 for a pair of jeans, they’ll shell out $200, just for the name brand. Mint suggests you stay loyal to the brands you liked on your way up, and put the difference into a high yield money market account (just like you should be saving your raises, bonuses, and other financial windfalls).

1. Baby and Maternity Clothes: No one should pay $50 for designer jeans for a toddler, right? In one year, a newborn triples its weight. The next year, he or she gains 3 to 5 pounds. Age three brings 4 more pounds. Growth continues until they are old enough to buy their own clothes! Instead of wasting money on clothes they will quickly outgrow, opt to buy clothes from sites like gently-used.com or babyloot.com, and encourage doting family members to do the same. Then, invest the difference in a college savings account for your child, like a 529 plan. The money will grow tax-deferred and future distributions come out federally tax-free. A gift like that lasts longer, and means more for your child’s future, than any outfit.

1. Games and Toys: How many times have you played Monopoly since you bought it last year? Twice? Amazon.com and ebay.com have lots of games and toys to choose from, generally with cheaper prices than retail stores. Ebgames.com and gamestop.com offer large selections of the most popular games, as well as the classics — both in new and used prices.

1. Homes: Unlike cars, homes can increase in value if you update and improve them. But older properties may need expensive and weekend-consuming repairs. That’s why these properties often cost less per square foot, and why you might be able to get more home for your money. Decide what’s right for you based on your time, skills and patience for home renovation, and on factors like location, price, neighborhood, safety, amenities, living space, taxes, and school district. Sites like the Department of Housing and Urban Development, newbuyer.com, and MSN Money are good sites to start with if you are considering buying a home.

1. Cars: New cars depreciate drastically. Unlike with a house or real estate investment, they won’t increase in value. As soon as the tires hit pavement, it’s only worth the wholesale value. Then it drops 15-20% per year for the first three years. At that rate, a $12,000 automobile loses $5,400 in three years! Plus it will cost thousands per year in gas, maintenance, and insurance. It makes more financial sense to buy a used car. You’ll get more for your money. Read more about new car and used cars from a previous post: A Young Professional’s Car Buying Guide.

top photo credit: miltedflower

Would you give your phone number to a stranger? How about a stranger in a frog costume, or hey, a frog avatar online? It may seem incredible, but 82 Facebook users did just that last month.

According to a recent report by the San Jose Mercury News, Sophos, a Boston-based Internet security company, was able to acquire highly personal information from 40% of the nearly 200 Facebook users who chose to add “Freddi Staur” as a friend in their Facebook accounts. Freddi Staur doesn’t exist, except as a toy on the desk of some Sophos employee. The company created a fictional person on Facebook to illustrate how vulnerable people can be when using social networks.

Why is Mint bringing this story to you? Well, securing your personal information on social networking sites isn’t only a matter of privacy. It’s also an important step in preventing identity theft. If you share personal information online, you make it easier for identity thieves to make off with your life story (and credit cards, and social security number, and so on) without a second thought. Victims of identity theft can suffer significant financial losses, and can spend years working to “clear their name.” Read any of Identity Theft Horror Stories our readers have shared with us… We don’t want to have this happen to you.

Secondly, as a new web service in the personal finance space, we’ve given a lot of thought to what we can do to make a web experience as private and anonymous as possible. In fact, you’ll be able to register for Mint using only your email address, zip code and password. And since we don’t share or sell your data with anyone, your privacy will be thoroughly protected, and TRUSTe verified.

We thought we should share with you what we know about how to evaluate and protect your privacy and identity online. The Freddi Staur story got us focused on the issues relative to the popular “social networks,” so let’s answer the big question:

How do you protect your personal information while still enjoying the social and professional benefits that Facebook, MySpace and LinkedIn have to offer?

At Mint, we want you to understand:

• The information you should and shouldn’t share
• How you can actively set limits on the information you do share, and
• How these sites treat your information differently.

The Information You Should Never Share Online

Some information is so central to your personal safety and so revealing of your individual identity that you should never make it available on the public area of any website. Think of these as the Three Off-Limit Facts about you:

• Your social security number
• Your phone numbers
• Your home address

Information You May Choose to Provide Online

Facebook, MySpace, LinkedIn and similar sites have become incredibly popular precisely because of their social factor: they help you stay in touch with friends or business contacts, and make new ones as well. To take advantage of their benefits, though, these services need you to share some personal information. That’s where we throw the caution flag, because you have to:

• Understand the information you share with the site.
• Understand what information the site will share by default and with whom.
• Actively use controls the site provides to better protect your information.
• Understand how the company providing the site will use your information themselves.

Understand the information you share

Sites typically ask for some personal information at two points: registration and profile development. These sites typically require some or all of the following information from you to set up an account:

• Name
• E-mail address
• Zip code
• Birth date
• Gender

After registering, you’ll probably want to add information to your profile to get the most out of the site. After all, isn’t this “private profile” supposed to represent you? Many people often add a slew of other identifying bits after registration to flesh themselves out. Common additions like school and work locations, contact information, your friends, groups and networks you join, and personal interests and activities are all there to give your profile personality. Right? True, but be aware it’s giving your profile publicity, too.

And when you look across all the information you’ve shared, it’s pretty clear that any stranger with bad intentions — and access to this information — has a great head start in knowing who and where you are, and if you’re a high potential target for identity theft. They know how to contact you, too, and what information they might use to lure you into slipping them some of the Three Off-Limit Facts that open the door to your financial life and personal security.

Understanding Your Options

Each of the three sites we’ve highlighted takes a slightly a different approach to sharing your information, so we’ll look at each separately.

Facebook

Default Settings: Facebook’s information philosophy — and default setting — is to share almost everything that you’ve included in your Facebook account. That means if you’ve never changed your privacy settings, your Facebook profile is shared with not only all your friends and groups, but also with everyone in every network you join.

That’s a lot of sharing.

Luckily, though, Facebook gives you options to limit that outlandish profile broadcasting. Here’s where to start reigning in your information.

Information Control Options: The good news is that unlike many social websites, Facebook provides their users with an arsenal of privacy control and settings.

When you sign into your Facebook profile, take a look at the upper right-hand corner of the page, and click on the “Privacy” link next to the “Logout” link:
In this page, you have control over:

• Information you share in your profile
• Information people see when they search for you
• Information on actions you take with other people
• Information available to others when you contact them
• Privacy controls for applications you’ve added to your account

Important Facebook privacy settings to note:

Search settings: By default, everyone can find your profile listing in a public search. This includes users on Facebook, and potentially people searching on Google, Yahoo, and MSN.

If you want to keep yourself searchable like this, you should strictly limit the information you’re leaving on that public listing. We highly recommend, though, that you don’t “go public” and instead uncheck the box “Allow anyone to see my public search listing.”

Profile settings: Here’s where you have control over the contact information you provide to other people. If you’re in one or more of Facebook’s Networks, you have the option of either displaying your contact information to only your friends, or to everyone. Again, Mint recommends that you limit sharing to only your friends and that you specify “no one” can see your contact e-mail.

Are all of these settings giving you a headache? Set your profile to “No Networks” and many of these settings will remain inactive. This makes it less likely that you will unknowingly share information you don’t want to provide to strangers.

MySpace

Default Settings: By default, people on MySpace can see when you’re online. Your profile and photo is also set to be viewable by everyone.

Information Control Options: MySpace’s privacy options are very limited, but changing three key settings can provide you with some important privacy protection:

• Online Now: By un-checking this box, other users won’t know when you’re actively on your account.
• Profile Viewable By: By selecting “My Friends Only,” you limit the ability for strangers to find your personal information.
• Photos: By un-checking this box, you prevent your photos from being emailed and shared by other users.

You should be aware that MySpace does not have individual privacy controls for each section of information you provide. Whenever you decide to add information to your MySpace profile, you should take extra care in deciding what you divulge.

Default Settings: By default, your LinkedIn public profile is set to display your full profile information. That means any information you provided will be available publicly. Thankfully, there are choices available to you to take control of your privacy.

Information Control Settings: LinkedIn provides you with much more control over the information you share with other users. Unfortunately, these controls are scattered throughout the site.

To get started, click on the “Accounts & Settings” link on the top right corner of LinkedIn, and then on the “My Public Profile” link under the Profile Settings section. You will now be on this page:

Now you have two options: turn off your public profile so that no one out of your LinkedIn Network can view your information, or limit the type of information other people can see. If you’re concerned about your privacy, we recommend that you turn off your public profile.

The other settings choices are fairly straightforward. You should note that if you choose to have your public profile on, LinkedIn requires that you make available your basic information such as name, industry, location, and numbers of recommendations.

LinkedIn also provides further privacy controls under the “Privacy Settings” section of the Settings page. Although each of these settings is on a separate page, LinkedIn provides great descriptions to each of the settings available to you, and what those settings can do.

Two settings to note in this area: “Profile Views,” where you can set what will be shown to other LinkedIn users when you view their profiles; and “Notifying My Network,” where you can control how or when people in your network are notified when you make significant changes to your profile.

In the “Name & Location” settings page, you have the option to display only your first name and last initial. When you set your locations, LinkedIn does a good job of simply sharing your regional area — not your specific city — to other LinkedIn users.

Understanding Their Privacy Policy

An important part in being proactive about your personal information is to examine a website’s privacy policy. That policy document explains how the website’s parent company plans to share (or commits not to share) the information you provide with other large populations of strangers — namely its employees, its parent company, subsidiaries, advertisers, and the like.

Things to consider when you read a privacy policy:

• Is the privacy policy easy to read and understand?
• Will they share or sell your information?
• How recently was it updated?

Let’s apply some of the considerations listed above to each of the social networking websites:

• Will they sell your information? Sites that share and sell your information expose you to greater privacy risks. Obviously, the more people with access to your information, the more opportunities for identity theft.
  • Facebook and MySpace: Neither states that they will not sell your personal information. It’s safe to assume that they are reserving the right to do so.
  • LinkedIn: LinkedIn clearly states that they will never rent or sell your personal identifiable information to third parties for marketing purposes.
• How recently was it updated? Sites should be updating their policies whenever new services and features are introduced which affect the privacy of your personal information. If you see that the social networking sites you use are frequently adding new features, you should expect to see that their privacy policies are reviewed and updated regularly. How recently were these sites’ privacy policies updated?
  • Facebook (May 24, 2007) and LinkedIn (July 14, 2006): both updated within the last 14 months. Not bad.
  • MySpace (August 26, 2005): you may want to consider whether their policy is current enough to protect the information you may have added in any new features they’ve added over the past 2 years.

Mint’s View on Privacy

These sites offer real benefits to their users, as shown through their popularity. But they also come with considerable risks to your privacy and identity. You should protect your “virtual self” with the same common sense that you apply in the real world. Mint’s point of view is:

1. You should never share your phone numbers, physical addresses, or social security number information on public websites.
2. You should take the time to understand how the information you do choose to provide will be shared. There are three key questions to answer before you open accounts and complete “profiles” (or to answer today if you already have an account):
   • What’s shown to friends/contacts?
   • What’s shared with strangers on the site?
   • What’s shown publicly on search engines?
3. You also need to be proactive in finding and using the controls these sites provide to protect your personal information and reduce your exposure to identity theft.
4. You should understand how the companies that provide these sites will use your information. Key questions to answer:
   • Will they share or sell your information?
   • How up-to-date is their Privacy Policy?

You can also take immediate steps today to give yourself an extra layer of privacy:

• Visit TRUSTe and read the ten tips on protecting your personal information on the Internet.
• Check out Privacy Rights Clearinghouse’s fact sheets on Internet Privacy and Financial Privacy.

How safe will my privacy and identity be at Mint?

Mint is not and will not be a social networking website, but you should still ask yourself many of the same questions about our privacy practices. Our philosophy is that your privacy is paramount: we believe that you should be anonymous when you are on our site, and that your information is your own. This philosophy drives our practices:

1. We’ll ask for the absolute minimum amount of information necessary in order to provide a great and useful service. To sign up for Mint, you’ll only need to provide:
   • An E-mail address of your choice. We recommend that you use an email which doesn’t include your name.
   • Your zip code.
   • A password. We’ll let you know how strong your password is.
2. We will not sell or rent your personal information to anyone, for any reason, at any time. Not for marketing purposes, nor to “enhance” your experience on Mint.
   • We’ve tried hard to write a privacy and security policy in English. Please let us know of anything that’s not crystal clear. Our policy was last updated on August 8, 2007, and you should expect that we’ll be updating it at least once a year — especially given the new features we already have on the drawing board!