Know any “lucky” people? You might want to pass this article along to them so they don’t wind up in hot water with the IRS. With revenues declining for local, state, and federal governments, you can be sure the Tax Man will be on the lookout for his cut of your winnings, even if those winnings aren’t in cash. And you don’t want to end up on this list of people with tax troubles.

Being lucky may not be all it’s cracked up to be. Most people realize that winning a huge jackpot automatically means a large chunk of change goes to Uncle Sam, but gambling winnings can show up in the strangest of places. Like where?

That iPad you won is taxable

Various sites around the Internet giving away prizes ranging from iPads/Pods/Phones to costume jewelry, and winners are required by law to report those prize winnings on form 1040.

All income (including non-cash prizes) from gambling of any sort has to be reported on form 1040. Form 1040A or 1040EZ users are not allowed to use these forms to report gambling winnings. This rule applies regardless of the amount and regardless of whether you receive a Form W-2G 1099-MISC or any other reporting form from the casino, track, bookie, company or … website.

Income includes, but is not limited to, winnings from lotteries, raffles, and random drawings. It includes cash winnings and also the fair market value of those prizes. It doesn’t include qualified educational scholarships, non-cash employee achievement prizes and designated prizes transferred to charities (check with your tax advisor or the IRS).

Prize winnings are fully taxable and must be reported on your tax return.

1. Income includes – but is not limited to – winnings from drawings, raffles, and lotteries, as well as the fair market value of prizes you may have won.
2. Depending on the type and amount of your winnings, the payer might provide you with a Form W-2G or a 1099-MISC and may have withheld federal income taxes from the payment.
3. The full amount of your prize winnings for the year must be reported.

Don’t let the taxable nature of any prize stop you from entering a drawing or contest.  After taxes are deducted from the winnings, the winner is still ahead of anyone who didn’t enter! But don’t forget your legal obligation either. You and I are legally bound to report any and all prize winnings on our tax return. Failure to do so could come back to bite you and cost a lot more than just an iPad.

For further information, see Tax Topic 419, Gambling Income and Expenses on the IRS website.

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“Pay off debt” and “save more money” are consistently among the top five financial resolutions made every New Year’s Eve, but you don’t have to wait to begin improving your personal financial picture. Most resolutions are far too general in scope anyway so here are a few ways to specifically plan for a better financial future – starting any month.

July
Summertime is a great time to complete home improvement projects around the house. Or, consider refinancing your existing mortgage at a lower rate (I recently did). Add your monthly savings to a savings account or use them to build your emergency fund.

August
August is well known as “back to school” time, but let’s plan beyond that. If you’ve got older kids at home, consider giving them a school clothing budget – loaded on a prepaid debit card. Make them choose between that trendy T-shirt and those must-have – but very expensive shoes or jeans. Kids learn a lot about finance and economics when THEY have to make the choices.

September
Do you have a child going to college this year? Help them start their financial life with a prepaid MasterCard rather than a regular credit card. They’re easy to use, but unlike a typical card, your student can only spend what they have. It gives the financial independence of a credit card, but without the risk of debt.

October
Got too much credit card debt? Outline a plan to get it paid off. Whether it takes three months or three years, you’ll feel great when you rid yourself of that burden.

November
Save a trip to the mall by giving gifts that send a financially positive message. Give the kids in your family a high yield savings account. Open it early in November and by year-end, they should be able to see some interest accrue. It’s a gift that keeps on giving!

December
Daydreaming about your summer vacation from under a blanket of snow? Start your vacation fund this month by putting aside a lump sum every month so you can take that cruise to Alaska in July – but without debt. Need ideas on where to find the cash? Check out my 17 Sneaky Savings Strategies.

January
Go ahead.  Make that financial New Year’s Resolution. Take stock of your finances, from the cost of life insurance and car insurance to the yield on your savings account and which online broker you use.

February
Tax time is the perfect time to take a big picture look at your finances. A tax professional can turn tax time into a bigger, more important discussion about retirement, your investments, and savings. Be sure to visit your tax professional with written questions in hand.

March
If you find that you owe taxes this year, consider reducing your tax liability with a traditional IRA. IRAs can lower your tax liability and help you save for the future. Ask your tax professional.

April
Take a look at your current deductions to see where you can reduce that tax bill next year.

May
Each spring, “Home For Sale” signs emerge like daffodils. If you’re in the home buying or selling market,  do your homework and shop for mortgage rates with the same passion you’re shopping for a home.

June
June is the perfect month for a mid-year financial tune up. What interest are you earning in your savings account? Do you need to sock more away for retirement? How’s that debt reduction plan coming along?

Each year we all make resolutions and think we’re “starting fresh.” A clean slate IS a thing of beauty, but the truth is that we can wipe our slate clean anytime during the year and there’s no time like the present.

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In times past, all it took to get an interest rate cut on a credit card was asking for one. But no longer. Today when you call to ask for an interest rate reduction on your credit card, the representative on the other end of the phone call will likely have been trained to listen for clues about your financial condition. He or she will then quickly evaluate the risk involved with giving up those interest dollars. Innocently mention a layoff or financial struggles and you can kiss that interest rate reduction goodbye.

By sticking to a planned and rehearsed script, you’ll avoid those pitfalls and you’ll also avoid setting off alarms with your card issuer.

Your first step is to know what your interest rate actually is

Begin by laying out all your cards on the table along with the most recent statement. Circle your interest rate and the company’s customer service phone number and then re-arrange those statements with the highest interest rate card on top. Write down how long you’ve had the card and note whether your rate is fixed or variable.

Then pick up the phone and get started.

After you give the necessary information so a customer service representative will speak with you about your account, launch into your script:

You: I’m considering an offer I’ve received from another bank for [X] percent but before I sign up, I thought I’d give you a chance to match it since I’ve been with you for [X] years.

Chances are good that the rep will say he or she isn’t allowed to arbitrarily lower your interest rate.

You: Look, this other offer is so much better than what you’re giving me. You and I both know that when I transfer my balance, within 2 weeks you’ll send me an offer to come back at an even lower rate. Why not save yourself the trouble and lower my rate today?

If the rep says no because your card is at a fixed rate …

You: That really doesn’t have anything to do with whether you have the ability to lower my rate. All a “fixed” rate means is that it doesn’t vary with changes in the prime rate. You can increase my rate – with the proper amount of notice – and you can lower it at any time.

If the rep continues to claim that he or she isn’t authorized to lower your rate …

You: I’d like to speak with a supervisor.

Then go through the script again. Even if you get a cut from the first rep, speak with the supervisor to see if you can get an even better deal. Many times the front line representatives are only authorized to cut a rate a few points but supervisors may be able to cut it much more. You may have to INSIST on speaking with the supervisor because many reps will claim their supervisor doesn’t have the authority to lower your rate either. That simply isn’t true. Someone, somewhere within that company can lower your rate. You just have to speak with them.

As always, keep a record of each person you speak with. If that promised rate cut doesn’t show up, you’ll need a paper trail to fall back on.

If you’re still denied an interest rate cut:

1. Transfer your balance. Check into other cards like Chase Freedom^SM or the Bryant State Bank MasterCard both of which offer fantastic balance transfer rates. I’ve seen offers as low as ZERO PERCENT but check out their links since terms change frequently.
2. Threaten to close your account. Yeah, it might ding your credit score, but if the rep believes you will, and you’ve been a profitable and loyal customer, you may have a better chance of getting that rate cut.

One caveat – if you haven’t been a profitable customer (that is, you pay off your balance in full each month or you rarely use the card), don’t expect anything. But then again, that type of customer doesn’t really need a rate cut, do they?

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Car insurance companies calculate your premiums based on several risk factors. The biggest factor is the likelihood you’ll file a claim. Some examples of other risk factors with auto insurance include the mileage on the car, how often you use the car, your driving record, previous accidents, your zip code, whether your car is highly desired by thieves, and  the car model’s history of accidents (Corvettes cost more than Chevettes). There are a few ways to reduce your risk factor and, in turn, the amount of your car insurance premium, saving your bank account from a state of shock!

1. Shop around!

Take a few moments and shop with online sites like NetQuote or Insureme. These two sites do the shopping for you, taking your information and getting online insurance quotes from multiple, highly reputable companies. The savings can be substantial and it pays to shop your car insurance every 12 – 24 months. Insurers can be guilty of “premium creep” – where they inch up your premiums every few months or so, citing nothing more than the increased cost of providing the service as their reason.

Another aspect of shopping around is to ask for discounts. Sometimes simply asking can score you some big-time savings! Ask about discounts for :

• Your occupation
• Multiple vehicles insured with the same company
• Multiple insurance lines with the same company
• New vehicle safety features
• Senior citizens
• New parents
• Those who have been accident free for multiple years
• Alternative fuel vehicles
• Anti-theft devices installed on the vehicle (including On-Star)
• Taking defensive driving courses
• Low annual mileage driven
• Not driving after midnight
• Having no traffic citations
• Good students
• Driver training courses

2. Choose a policy with a high deductible ($1,500 and up).

I’ve seen a statistic that the average car accident is minor and costs less than $1,200. Insurers are willing to charge a much smaller premium to avoid the hassle of a $1,000 fender-bender. If you’ve built your emergency fund properly, a $1,500 deductible won’t ruin your bank account!

3. Maintain a clean driving record.

Lay off the lead foot! Use your cruise control when on the highway (set for the speed limit) and pay attention to traffic signs and signals. I tell my 16 year old — “Do what you know is right” and you won’t have to worry with getting pulled over.

4. Lower your coverage on older cars.

Drop collision and/or comprehensive coverage on older cars that are worth less than ten times the premium –  these cars aren’t worth the cost of that type of coverage.

5. Keep your mileage low by using public transportation when you can.

Make sure your insurer knows that you use public transportation on a regular basis. More miles on your vehicle means a great possibility of an accident.

6. Take a defensive driver education course.

Even if it isn’t to relieve your record of a ticket, a defensive driving course can reduce your car insurance premium, drastically if you have drivers on your policy that are under the age of 26.

7. Buy a used vehicle with safety features, such as airbags and anti-lock brakes.

Remember that not only is your likelihood of filing a claim an important consideration, but also how large your claim might be. Buying a car with safety features no only protects you and your loved ones in case of an accident, but also protects the insurance company from higher claims.

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A “deal” is usually defined as an arrangement for mutual advantage but most “deals” aren’t. When a deal seems too good to be true, it almost always is, and it’s usually slanted in someone else’s favor.

Marketer’s have a huge playbook of techniques to make you think you’re getting the best of them, but consumer’s have to be  careful to not get ripped off and bust the budget. Here are 6 to look out for:

While supplies last …

The fear of scarcity can drive you and me to make a decision without thinking. We’re naturally afraid of limiting our choices and we worry about regretting it. Salespeople know it, play on those fears, and convince us to get out the checkbook.

10 for $10

What this usually results in is 9 too many. This type of pricing structure is most often used on items you wouldn’t buy 10 of anyway. Most of the time, you can purchase just one for a dollar. That means there never was a discount.

Buy one get one free – just pay shipping

Those “as seen on TV” items are major culprits of this tactic. “It’s only $19.95, but WAIT – order now and we’ll double the offer!” That item (according to Consumer Reports), costs approximately $5. By the time you pay postage of $8 on each item, so you end up paying $35.95 for two … and the TV sales guy makes a fortune.

Medium, large, extra large

People tend to favor a middle choice and by renaming “small” as “medium” retailers play on that tendency. They tend to leave off the fact that the small size is the one they make the most profit on.

Serve yourself – only $3.99/lb

Ever see that sign at a salad bar? Hey, how much could some lettuce weigh? A lot more than you think. Sure lettuce doesn’t weigh much, but bacon, cheese, salad dressing, boiled eggs, kalamata olives, and red pepper humus does. By the time you put your salad on the scales, you’ve spent $10.

Only 99 cents

I’ll bet you didn’t know that the net profit margin of 99 cent stores (7 percent) is double that of Wal-Mart (3.5 percent). Since people perceive prices that end in 9 as more appealing than those ending in whole numbers, those 99 cent stores are raking it in.

Though these marketing playbook tactics can seem sleazy at times, personal finance IS personal. That 10 for $10 deal may actually be something you need, so please don’t think you shouldn’t take advantage of purchasing opportunities that make sense for your situation. Just make sure you are doing what’s best regardless of the “deal” presented to you.

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This is a guest post by Vicki Thompson. If you would like to guest post here at The Wisdom Journal, please use my guest post submission form.

You can save on moving costs even when you hire the services of a moving company to assist you.

Initially, when you plan to move, make sure to weigh two possible options. You can either move on your own or you can hire a moving company instead. Acquiring the services of a mover may sound expensive but it doesn’t always break the budget. It may still come out less expensive if you are moving across the country. Whether you rent a moving truck or hire an agency, be sure to do what makes sense for your wallet. Here are some tips:

1. Lighten your cargo

Reduce your load to save money. The lighter the weight of your stuff, the less money is involved. Sort your things and sell or give away what you no longer need. You can have a garage sale to get rid of unimportant items. Books can be donated to charity centers.

2. Move during non-peak season

If you want to save money, schedule your move for a date that isn’t in the peak season. You can ask your moving company to provide you with information about their peak and off peak seasons. A mover will charge higher rates during their peak period.

3. Ask for a discount

When asking for a quote, ask if about discounts. Most companies offer discounts to stay competitive in the moving industry. Get at least three quotes so you can make comparisons and have full control over your choice. The majority of moving companies, such as the Sacramento moving company, will offer free estimates. Search the net to find a huge list of moving companies willing to provide price quotations without charging you a fee.

4. Adapt to the company’s schedule

If you agree to coordinate your time with the company’s moving schedule, then ask if they will consider granting you a pricing discount.

5. Beware of the hidden costs for various services

Ask about the fees that could be charged for various services such as:

• Accessorial charge – packing, unpacking, and additional charges for longer hauls.
• Expedited service charge – a fee applied to the transfer of your possessions at your designated time.
• Flight charge – fee for transporting your things by going up and down the stairs whether at the point of origin or at your new home. Availability of elevators for carrying your things would not imply additional costs.
• Line-haul charge – this is a fee for long distance trips obtained during a move.
• Long carry – another fee charged when you go beyond the distance limit, which is a specified gap from the back of the truck to your dwelling. Any more than that, an extra cost will be added on the moving rate.
• Shuttle service charge – is applied to the use of smaller vehicles transporting things to areas that are not accessible by large trailers.

Plan ahead for possible services you will need during your move to prevent any unexpected fees and charges.

6. Get your new home is ready

Make sure that your new home is ready for you to move into. Otherwise, you will incur an additional charge called storage in transit fee. This fee is charged for the temporary storage of your goods waiting to be unloaded.

7. Consider moving specialty items and bigger things yourself

Specialty stuff and bigger belongings would entail extra costs to move. If you plan to drive to your destination, rent a trailer and move these things by yourself.

8. Investigate specialty movers

Another option of moving specialty items is to hire a specialty mover. It may cost you less than paying additional fees for the added staff from your moving company.

9. Ask about appliances that need special packaging

Appliances and other valuable items may require some special form of packaging. Inquire from moving companies for the possible extra rates on the moving cost. Should they charge, you might as well as get help from relatives, friends or neighbors to help you out in packing.

10. Pack everything ahead of time

Be sure to pack your things before the moving truck arrives. Help from the mover’s staff for last minute packing involves additional costs.

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It is possible to get out of a car lease. Possible, but not always easy. Possible, but not always without damage to your credit score. Possible, but not always cheap.

If you have the cash flow in your budget, I believe keeping your word and paying for the lease until it ends is the honorable thing to do. But … what if there’s no way you can continue your lease? What if you lost your job? What if the lease is breaking you financially and you need to abandon it because other items (such as housing and food) are being neglected because of that crazy car lease? Read on.

Getting out of a car lease

Your first step is to go talk to your car dealer.Your dealer may be able to help you strike a deal to:

• Lower your payments
• Preserve your credit
• Get you out of the car completely

Obviously if the deal will cost you more than the balance on the lease, you don’t want to go this route, but if your dealer is willing to work with you, there may be a way out. But beware: is WILL cost you something. The car dealer isn’t in the business for charity work.

If your dealer cannot work with you to get you out of your lease, consider a “lease swap.” Companies such as SwapALease.com or LeaseTrader.com will connect you to a buyer who, for an incentive, will take over your car lease, allowing you to walk away with no liability and no penalties or obligations. Before you list your car with a lease swap company, it is vitally important to check with your leasing company to see if they will allow this type of transfer.

What is the “incentive?” That would be a steep discount. How steep will depend on:

1. Your car
2. How much is remaining on your lease
3. How many miles you have on it
4. The interest rate of your lease

So the answer is: it depends.

But if your budget can’t take it anymore, using Lease Trader might be a viable option. It will cost $75 to $100 to list your car, and then there will be a contract transfer fee that could be as much as $200 – possibly higher. Listing your lease doesn’t mean getting out of your lease is a slam dunk though. If you’re running close to your allotted mileage, you may find it difficult to to find a taker.

When you check out LeaseTrader.com, be sure and click on “How IT Works” in the upper right hand of the home page. They can show you step by step what to do to get out of an existing car lease.

The last option is the least pretty. You can get out of your car lease by possibly surrendering your car to the leasing company. But you’re not really “getting out” of anything. The company will sell your car and proceed to sue you for the difference. Your credit score will take a hit and you may have a judgment filed against you or your wages garnished to pay for the shortfall.

Do you have any experience with getting out of a car lease? What did you do? What did you learn?

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Moving from saver to investor is a big step. Even though you’ve selected the brokerage company that works best for you and your situation, there are still some other considerations.

Should You Start Investing?

It’s crucial to only invest money you won’t need in the immediate future. Investments fluctuate in value, so you don’t want to find yourself forced to sell at a time when the value of your investments has temporarily declined. To determine whether you have enough money to begin investing, follow these steps:

Review your savings goals and habits

Consider investing only if you have already established an emergency fund and have achieved your other major savings goals, such as saving for a first home. Most people don’t start investing substantial amounts of money until they own their own home. One exception to this is retirement investing: smart people start investing for retirement as soon as they start working – usually through IRAs or workplace sponsored retirement accounts, such as 401(k)s or employee stock purchase plans.

Consult your budget

In general, you should begin investing only if you have a budget surplus of at least $300 – 500 each month after covering all your expenses, including amounts that you’ve reserved for specific savings goals. If you have no surplus, or a surplus of less than $300, you shouldn’t be investing at this time.

Save for an initial deposit:

Most investment accounts require an initial deposit of $1,000 or so, though some like Scottrade do require less. If you don’t have that much cash on hand, you’ll need to create a savings plan to help you reach that goal first.

Set up an automatic investment plan:

Once you’ve begun investing, generally it’s best to invest your entire surplus each month. Most banks and investment firms offer automatic investment plans in which you can have a set amount of money transferred directly into your investment account at set intervals, such as with every paycheck or at the end or beginning of each month.

Why Invest Anyway?

Investing is the most effective way to build your wealth at rates that exceed those of inflation (an economic phenomenon that causes the prices of goods and services to rise over time). Inflation doesn’t change the amount of money you have, but it does erode your purchasing power – the amount of goods and services that you can buy with your money. In short, inflation explains why homes that cost $25,000 during the 1960s costs more than $700,000 now.

Since 1925 (oddly enough the same time the Federal Reserve started messing around with the money supply in the US), inflation in the United States has averaged 3% per year while the average savings account has paid an interest rate of about 2% or less. During the same period of time, the return, or the annual rate of growth, of U.S. stocks has averaged 10%. Subtract inflation and you lose money with the savings account and net 7% through investing.

• If you keep your money in a savings account: It won’t grow at rates that keep pace with inflation, and you’ll end up losing purchasing power each year. A savings account is a holding account whereas investing is a growth account (hopefully).
• If you invest your money instead: It can grow at rates that do beat those of inflation, which can enable you to increase your purchasing power over time.

One of the best books on investing I’ve ever read is How A Second Grader Beats Wall Street by Alan Roth. When you’re ready to start investing, make certain you read this book.

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Note: This is a guest post by Debt Consolidation Care. If you would like to guest post here at The Wisdom Journal, please use my guest post submission form.

Recent studies have shown that credit card debt is a major problem with Americans today. The average American has a credit card balance of around $8,000 USD spread over several store cards and multiple credit cards. As a result of this high debt load, many people are opting for credit consolidation to combine all of their credit card bills into one fixed (more affordable) monthly payment.

Credit consolidation can save the average person a serious chunk of money because interest rates on credit consolidation loans are as low as 6% whereas the interest rate on credit cards can be as high as 24%.

Credit consolidation tips and traps

Although many financial institutions can provide a credit consolidation loan, there are loads of traps you should be aware of. Here are 5 credit consolidation tips and traps you must know:

1. Credit consolidation scams: Each year, far too many people fall prey to credit consolidation scams. Despite the impossible claims of an instantaneous credit fix by shady credit repair companies, no one can eliminate debt overnight. You still owe the debt and you have to pay it off. Check the authenticity of the credit consolidation firm with BBB (Better Business Bureau).

2. Easy loans: Many financial organizations offer credit consolidation loans with low interest rates to lure debtors with bad credit histories. It is quite normal to get attracted to these ‘easy loans’ as the bad-credit loans attract very high interest rates. But, what people forget is that although the lender charge low interest rate on these loans, they extend the loan term for an indefinite time period. Therefore, if you don’t read the “fine print” carefully, you may end up incurring eternal debt.

3. Non-profit organizations: There are various non-profit organizations in the market. These companies charge a nominal fee for their services. However, there are very few honest non-profit organizations in the market. Most of these firms are out there to victimize you. So, be very careful when you talk to the credit consolidation experts via phone. You must check the reputation of the firms with the BBB.

4. Check the agreement letter: Be careful when you sign any agreement letter or contract. Don’t sign any contract unless you understand the terms and conditions fully. You must go through the “fine print” section carefully. Sometimes, hidden fees are written in that section. You can hire a lawyer to protect you from the legal jargon involved.

5. Compare: Before choosing any credit consolidation firm, make sure to compare the rates charged by the different firms. This will help you to know whether a particular firm is charging a high interest rate on a consolidation loan.

Finally, stick with those credit consolidation firms that have been in this field for many years. They have experienced professionals to help you.

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Carbonite Online Backup makes 4 claims about their service:

• Secure — Everything is encrypted before it leaves your computer.
• Automatic — Runs quietly in the background to ensure your backup is up-to-date.
• Unlimited — Back up as much as you want for only $54.95/year.
• Hassle-Free — Recover lost files anytime, anywhere with just a few clicks.

Every year, 43% of computer users lose irreplaceable files. Even those who use on-site backup methods such as CDs, memory sticks and external hard drives are at risk. Fires, floods, theft and other disasters can render onsite backups useless. Carbonite Online Backup eliminates the risk of losing files by automatically backing up the irreplaceable photos, music, e-mails, financial records and other valuable files on your computer to a secure, offsite location. Carbonite takes less than 5 minutes to install and beings working right away to protect your most valuable files, continually updating your backup while you work — without slowing down your computer.

How it Works

After installation, Carbonite scans the hard disk looking for files to back up. Carbonite automatically backs up all file types except executables (such as .exe and .dll), system files, temporary files and video files. However, any of the excluded file types can be manually added to the backup by right-clicking on the file and selecting “Back this up” from the Carbonite menu. Upon setup, Carbonite offers a wide array of options for customizing your backup, but 95% of Carbonite users prefer to stick with the default settings.

In the default settings, dots on files and folders show their backup status in a glance. A green dot on a file or folder means it is selected for backup and that the backup copy is up-to-date. A yellow dot means that the file or folder is selected for backup but awaiting backup because it is either new or has been modified since the last backup. A green dot with a hole in the center (a “green donut”) on a folder means that the folder’s backup is up-to-date, but there are some files in the folder which are not selected for backup. If a file or folder has no dot, it means it is not selected for backup.

Backup

Carbonite is designed to automatically back up most files in the Documents and Settings folder, which includes “My Documents” and “Desktop”. However, some users choose to manually select files for backup, or decide to back up files that are stored in other locations. Any file or folder can be added to the backup by simply right-clicking on the file or folder and selecting “Back this up” from the Carbonite menu. Once files and folders are selected for backup, they will be continually backed up in the background so that your backup is always up-to-date.

Restore

If anything happens to your computer, restoring lost files is easy. To restore a specific file or folder, simply open the Carbonite Backup Drive from your desktop. Files and folders are organized in the backup drive exactly as they are on your computer. Locate the specific file or folder, right-click and select “restore.” The file will be restored to its original location on your hard drive. You will also have the option of restoring the file to a new location, by selecting “Restore to…” or recovering a previous version of the file by selecting “Restore previous versions…”

If you need to restore everything in your backup to a new or repaired computer, go to carbonite.com and click the Restore tab to log in to your account and restore your files. The Carbonite Restore Wizard will help you restore all of your files to your new computer with just a few clicks.

Security

Carbonite is a leader in online backup, not only for its ease-of-use, but also for its excellent security precautions. Using the same technology as online banking and credit card purchases, Carbonite encrypts your files to protect your privacy. Files are encrypted before leaving your computer and sent to the Carbonite data centers over a secure connection. In the data centers, files are stored on RAID arrays, which are 36 million times more reliable than a single drive.

Carbonite Online Backup is the secure, simple and automatic way to back up your computer. Try Carbonite Online Backup FREE for 15 days — and never think about backup again.

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