Comments on: Invest With Only $100 Experiences & Some Thoughts On Life

By: jim

jim — Sun, 03 Dec 2006 07:31:17 +0000

Glad to hear it Ryan, I think that empowering regular folks like us with information that can get them FREE money from the big corporation is always a good thing. Personally, I really enjoy keeping my list of credit cards that offer free gift cards and statement credits with your first purchase up to date because those gimme's are tax free.

By: Ryan

Ryan — Sat, 02 Dec 2006 21:33:56 +0000

Thanks Jim. I’ll keep my fingers crossed that my meager INT earnings are over looked

I’ve been on this site all morning and there is some very valuable information here. I’ve done alot of research and have just completed signing up for a sharebuilder account as well as a Bank of America $100 promo.

So I have joined the ranks of all the smart people at this site tkaing advantage of free money out there!

Thanks again

By: jim

jim — Sat, 02 Dec 2006 20:27:58 +0000

Sometimes they’re included on a 1099-INT and considered interest income to you, which you pay at your marginal tax rate. Sometimes they don’t include it at all.

By: Ryan

Ryan — Sat, 02 Dec 2006 19:43:04 +0000

What are the tax considerations for the gains on these promotional bonuses. Say I receive a $100 bonus from a Bank of america account, and repeat this process 4 times in 2007, for a net gain of $400.

Am I taxed differently on this gain than my marginal income tax rate? I know that tax rates are typically very high on my annual bonus from my company. Just wanted to see if anyone knew how these bonus were taxed.

Thanks!

By: Matt (different one)

Matt (different one) — Fri, 03 Nov 2006 06:13:33 +0000

The thing is, it’s all in how one approaches the analysis. Some people implicitly ask themselves “am I better off focusing my attention on THIS, or on something else?”. A one-time opportunity for $100 really _isn’t_ that big a deal. It’s cool that they’re giving it out, but a person electing not to take advantage of it doesn’t necessarily reflect a deep-rooted psychological issue with money.

By: Miller

Miller — Thu, 02 Nov 2006 03:41:43 +0000

I really like this post. Both the insights Matt has about his friends, and the comments about the worth of $100. Jim, you and I have a number of friends in common, and we both know if we said “hey, let’s invest $100 each” most would walk away without even looking. Why? Something to do with psychology. I don’t claim to know myself, but reading this I have lots of “maybe’s” in my mind. Your next blog post is about how “what’s the catch?” being the wrong question these days. Well, I think we’ve all grown accustomed to being taken advantage of and not trusting others with money. Personally, I think this is healthy! But, as you mention in that next blog post, the mentality does seem to be changing. I’ve signed up for $100 bonus credit cards. I do 0% BTs. And there haven’t been any catches… But I’d be lying if I didn’t admit I had to warm up to the idea (and you would be too, atleast with respect to BTs!). So what’s my point? I have no idea… still sifting the information. But this is great thought provoking piece!

By: Martha

Martha — Thu, 02 Nov 2006 03:01:39 +0000

This reminds me of Amy Tan’s “The Joy Luck Club.”

By: Steve

Steve — Thu, 02 Nov 2006 01:35:39 +0000

What I like about the article is the focus on returns and value. No one is offering those sort of deals in Australia, but the creativity is great.

You are right, it is very easy to spend $100. Really, it is very easy to spend a $1000, so you dont really think too much about getting the returns on smalled amounts of money.

By: Andrew Flusche

Andrew Flusche — Wed, 01 Nov 2006 20:12:27 +0000

I am really getting into this idea. The question I have is regarding credit ratings. How does it affect your credit to open these accounts? Do the institutions do credit checks? I just don’t want to tarnish my credit for such a small gain.

By: IRA

IRA — Wed, 01 Nov 2006 15:38:44 +0000

I agree with Matt. If you don’t really have a long term goal in mind (e.g., wanting to buy a home or helping your kids through college), you’re not going to have any incentive to save or earn $100 here or there. There will always be more folks in the general population who focus on the here and now. That’s why visionary leaders are in short supply. And let’s be honest. Fear is a huge motivator as well. Even the poorest person in the U.S. has infinitely more wealth than the average person in a third world country. If you’ve never known true hardship, you’re not going to have that compulsion to do everything in your power to make that extra buck to ensure that you never go hungry. In a pinch, you can always charge it on a credit card or go on welfare. The fact that people are comfortable (and it sounds as if Matt’s friends are comfortable) prevents them from seeing the need for change.

By: Randy

Randy — Wed, 01 Nov 2006 15:36:05 +0000

I agree that most people don’t understand the value of $100 or even $1. However, I disagree with this game of taking advantage of loopholes in these promotions.
I believe that any profit should represent a contribution to society. The creation of value. I am not the inventor of this idea. It comes from such luminaries as Ben Franklin, Andrew Carnegie, David Packard (HP founder), Ben Graham, Warren Buffett, and yes, Bill Gates.
Finding legal loopholes to make outsized returns strikes me as behavior exhibited by (and I’ll avoid people’s names, just the companies they worked for), Long Term Capital Management, Tyco, Enron, and Worldcom.
I know I’m being a bit extreme. There is nothing illegal about it. But it is also not personal finance.

By: Chris

Chris — Wed, 01 Nov 2006 15:28:25 +0000

Excellent Article….!!!!!

By: MoneyFwd

MoneyFwd — Wed, 01 Nov 2006 14:50:28 +0000

I think people are starting to think of money amounts around $100 as being nothing. For many it buys a dinner out, a video game and some extra crap, or a pair of jeans. To put any effort into making an extra $100 or so doesn’t seem worth it because it’s not that much. Many people have been molded by instant gratification and the idea of a flashy lifestyle so that putting time into making an extra $100 isn’t worth it. They don’t see much benefit in saving or trying to grow how much extra money you have.

I think people also still believe deep down that it’s hard to get this extra money since for so long we’ve lived with the idea that there’s always a catch.