The $100 bonus promotion from the Discover Business Card is going away on December 31st. You can earn a $100 Cashback Bonus when you make $1000 in purchases within 3 months after your account is opened.

In addition, there is 0% APR on purchases for 12 months, so there is no hurry to pay the whole balance off right away. Just keep in your bank account earning interest. Finally, you can get 5% back on office supplies, 2% on gas, up to 1% on all other purchases.

As with all these business cards, individuals can apply as sole proprietors by simply using their name as the business name. You just need to put your Social Security number as requested, and leave the Federal Tax ID blank for this application (it will use your SSN). More details here. More $100 bonuses listed here.

Okay, so I couldn’t think of a good title… but think about it after reading these helpful articles. 😉 I’m including some excerpts I like, but I would highly recommend reading each piece in its entirety. Good stuff.

Warren Buffett: Buy American. I Am.

So … I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.

Why?

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.

Of course, I don’t remember him ever writing an Op-Ed saying “Be 100% Bonds, I am”, or “Hedge Against The Dollar, I Am”. However, I do agree that if you are going to buy stocks, now is a fine time to buy. I am maintaining my asset allocation, and I’m not even doing it grudgingly – I’m doing it happily.

Hedge Fund Manager Andrew Lahde’s Goodbye Letter

I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.

This guy bet big on the collapse on the subprime mortgage market and got great returns the last few years for his small hedge fund. He brings an interesting point of what drives people to super-duper-richness. I would probably do the same as Lahde, but others would keep reaching for more. Buffett’s new biography The Snowball also goes in the family life sacrifices/choices he made. The end part about hemp… is there a hidden correlation?

Bogle & Bodie On Wise Diversification

Jack Bogle: I am a believer in diversification. You buy index funds for stocks, and your bond portion should equal your age. This is how I invest, so I know how little it’s hurt me to have a substantial position in U.S. bonds. I’m in half Treasuries, half corporates.

[…]In recent years, international investing has had a higher correlation with the U.S. market than was traditional. If you invest internationally, you have to invest in foreign companies not as diversifiers but wealth producers. If you like international, get in gradually, maybe with 20% of your portfolio, half in developing markets and half in emerging markets. Europe looks a lot like us, so it’s at least possible you might get a better return out of emerging markets. I don’t invest internationally myself.

Zvi Bodie: […] And then there is insuring or hedging. That’s when you’ve got a safe asset and to my mind that is Treasury Inflation-Protected Securities, or TIPS. One way to protect yourself is to combine a diversified portfolio of risky assets with the safe asset. We teach students that you only need two mutual funds—the risky assets and the safe asset—to generate the entire set of risk-and-reward trade-offs.

Given current events, it might be good idea for the average citizen to better understand our modern banking system. Reader Rick submitted this following video by Paul Grignon which tries to explains things in an accessible way using animation. It is about 45 minutes long, so you need to commit a chunk of time to watch it, but I thought it was worth it.

The first part explains our fractional-reserve banking system very well. One might think that for every $1 we put in a bank account, that is $1 that can be lent as a mortgage loan. In actuality, it is more like $100 that can be lent. (Wonder why banks want our money so bad?) So where is most of the world’s money coming from? In effect, it is created by the act of borrowing itself. Money is created by debt!

However, in the end, it draws some controversial conclusions. The creator contends that this system is unsustainable, and because banks control the credit in our society, they effectively control the society. Thus, it would be better if the government took over such transactions. I have been unable to find a good rebuttal by a financial professional or economist online, so please drop a comment if you have.

(Best viewed in full-screen mode. Takes a while to start.)

High-Yield Bank CD
Washington Mutual has brought back their 5% APY 12-month CD for another week, which had previously dipped to 4.5% APY. If this fits your needs, don’t miss it this time around.

Chest Freezers
Apparently, I was not alone in doing cost/benefit analysis on an extra chest freezer, as this AP article shows:

Once relegated to the dank corners of the basement, freezers are being embraced again by shoppers who are stashing bulk-sized purchases of meats, fruits and vegetables there as they work to combat rising food prices. Across the country, shoppers bought more than 1.1 million freezers during the first six months of the year — up more than 7 percent from the same period last year, according to research firm NPD Group.

That rings up to nearly $400 million in freezer sales — a staggering figure compared to the rest of the home appliance sector, where industry data shows shipments are down nearly 8 percent. And, experts said, it’s a trend that’s expected to continue at least through much of next year as penny-pinching shoppers buy in bulk to take advantage of deals or bundle grocery shopping trips to conserve gas. […]

About half of all U.S. households already have a chest or upright freezer, separate from the refrigerator-freezer combo that’s a kitchen stalwart, according to industry statistics. [Source]

I also had no idea 50% of households already had an extra freezer. We still haven’t bought one yet ourselves; I’ve been in kind of an anti-stuff mode recently.

Here are some recent links from fellow bloggers that made my cursor pause…

Grad Money Matters ponders when to stop chasing money? How do we know at what point when we need to slow down? Good question.

Wisebread offers up some cheap things to do in San Francisco. I always like to see other people’s views of an area I am familiar with; everyone always has different ideas. The comments are good too.

The Consumerist tracks the continuing trail of destruction by the Grocery Shrink Ray. AllFinancialMatters laments the shrinking beer bottles of certain brands. Or are they 1/3 liter bottles? Or are 1/3 liter bottles a convenient metric-system-abusing excuse? Financial Ramblings says we get what the market decides. I believe, with consumer awareness, the balance can be shifted.

Get Rich Slowly talks about the best salesman in the world, whose path to riches lay in selling $5 potato peelers on the streets of New York City. Interesting story.

No Credit Needed offers an illustrated guide to debt reduction. I like pictures.

The Simple Dollar explains why they decided to finally merge their married finances.

Christian PF makes his own toothpaste. I must admit, this is something I’ve never thought of doing myself. I do drive my wife crazy by squeezing the last atom out of our current tubes, though…

Almost Frugal shows us how to cut a little boy’s hair. Amazingly enough, no bowls were involved! As a kid, I was happy with a buzz cut for many years. I’ve never been big on hair…

In an effort at personal development, I am currently reading the long-time bestseller The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change by Stephen R. Covey. I got the book years ago from some sort of corporate team-building workshop but never finished reading it.

I think that many ideas within the book have applications to personal finance. The first habit is to Be Proactive. This is not the same as simply going out and doing many things – that’s being active. Instead, think of proactive as the opposite of reactive. One should consciously choose how they respond to external events. Even being angry is a choice. “Nobody can hurt your feelings unless you let them.”

Circle of Concern vs. Circle of Influence
The Circle of Concern is everything we might be concerned with – from world peace to lunchtime. The Circle of Influence is what we can actually do something about.

Where do you think you should focus your energy? Consider these “if only” thoughts:

• If only I didn’t lose my job due to downsizing.
• If only gas wasn’t so expensive.
• If only my house didn’t plummet in value.
• If only I had a great pension plan like my parents had.
• If only someone could teach me how to invest.

Getting sucked into such thoughts is to dwell on the Circle of Concern; It is a waste of energy and won’t help you at all. The only thing that can help you is to focus on your Circle of Influence. Spend as much time each day on finding a new job as you spent working at your old one. Examine your habits and consume less. Borrow some books on investing. Move forward with a business idea. Then, you might be able to expand your Circle of Influence:

I know, it’s a bit cheesy. But if you listen to yourself carefully, I think you might catch some of these “if only” thoughts popping into your mind. I know I do. There is a very applicable prayer from Alcoholics Anonymous:

God, grant me the serenity to accept the things I cannot change, courage to change the things I can, and the wisdom to know the difference.

Saw Batman today (the free movie tickets worked!). I’m not much of a graphic novel guy, but it turned out to be one of the best movies I’ve seen all year. Side thought: Is it really impressive that a movie broke a box-office revenue record when even a matinee costs $8 now? If the goal is to compare popularity, shouldn’t they just count the number of tickets sold instead? Here are some other personal finance articles from my weekend reading:

The Finance Buff has a guide on buying TIPS directly from the government at auction.

J of BudgetsAreSexy bought himself a frugal Cadillac. Oxymoron? This reminded me that I still want an old Jeep Wrangler. If I view the Jeep as one step closer to being a beach bum, does that mean J secretly wants to be a pimp in his DeVille? 😉

Punny Money asks (using hilarious stick figures) if one should buy or rent a tuxedo. For a long time, a small part of my beach bum dream lifestyle was to die having never worn a tuxedo. I managed to avoid having to wear one at my wedding. Alas, I had to wear one last year while being a groomsman for a friend (all your fault, Joe!). But never shall I buy a tuxedo!

JLP of AllFinancialMatters shares his opinions on brown-bagging lunch as well, and his readers chime in.

As SUVs everywhere are being traded in, The Digerati Life explores the MPG illusion. Saving money on gas by switching cars may not as beneficial as you think.

Lazy Man offers to sell his endorsement at Prosper Lending, and starts a lively debate. Given the losses that many other lenders have been experiencing, I’m quite happy with the estimated 10% ROI on my tiny portfolio.

Boston Gal remarks that you know the economy is bad when the Wall Street Journal pushes libraries. From her commenter Sean of Financial Ramblings – “If CNBC starts running specials on clipping coupons, Colbert will have to raise the threat level.” Ha!

Here are some links from sites in my blogroll, not in the alphabetical order of their blogs, but their names. I tried (very unsuccessfully) to make something clever related to the actual titles when possible. My apologies to the English language.

• 2million decided to open up a bank account in China. How much is $2 million RMB?
• Boston Gal discovers that fake grass is expensive. Yes it is, but could it possible end up more eco-friendly than our current water-thirsty and fertilizer-eating lawns?
• Canadian Capitalist points out that passive investing let you live your life.
• Dong gets Asked: Is the Wii all that? I don’t think so, but I’m never been much of a video game person. It is good for socializing though.
• Emily Brandon interviews folks to find out their stories of unplanned retirements.
• Grant and his Corner Office poses an interesting question about airlines – why are many airlines willing to operate at a loss for so long? All I know is that $15 for the first bag is stupid. If fuel costs are the issue – will we see people being charged by the pound next?
• IndexFundFan shares his May 2008 Portfolio return. So many asset classes!
• J.D. shares another way to Get Rich Slowly by subscribing to Craigslist Search Results to get fast updates on new listings. I still search for cheap Jeep Wranglers and beater Toyota Trucks daily when I take breaks, even though I’m not allowing myself to buy one right now.
• Jim Bargaineered his way into an insurance policy for his engagement ring.
• Michael Muses about Money when he shares a video of a guy trashing his house because it’s in foreclosure. That’ll show the world…
• Patrick asks which shift do you prefer to work for your cash money?
• Single Ma’s Fabulousless shines through when she talks about living life on her terms and doing what she has to do to get what she wants.
• Tricia continues Blogging Away Debt even though sometimes it may feel like a roller coaster.