My own goals are simple (pay off debt, learn how to save, and spend money on things I want and will enjoy). I’m going to go further and post my bad habits and how I’m changing them to help realize these goals. I spent $1000 one month on just cabs, drinks, and eating out. That’s huge for me. Maybe $50 of that was sending the laundry to the laundromat. What an eye-opener. It hurts to think how much I spent on that. So here’s how I’m trying to change my habits to achieve my goals:

- Less eating out, more grocery shopping. Sounds obvious, but I always thought, “What a waste, I shouldn’t cook for just me, so I won’t bother” - and that leads me to spending nearly $200 a week on ordering/dining out.
- Disciplining my social activity so I’m not stuck in far-off neighborhoods at late hours, which encourages me to take a cab. Better to do one thing per weeknight that I enjoy instead of doing something every night at a moment’s notice (which includes event tickets, drinks, maybe dinner out, etc. etc.).
- On the heels of that, learning to go home at a reasonable hour and take the subway, which I’ve already got the friggin’ Metrocard for!
- Each month, before I even tear open my paystub, I deposit something in my savings account, no matter how little, no matter what big expense I have on the horizon.
- Less drinking in bars! One cocktail costs as much as a six-pack of anything at the store. I can drink soda and save the extra cash for something fun (skiing this winter, rockwall climbs, whatever else floats my boat).

And now, my to-do list:
- investigate savings vehicles (ie, savings accounts with better returns);
- research lower-APR credit cards with no-fees;
- think REALISTICALLY about buying real estate (not in the next few years);
- combine and organize 401k and 403b accounts;
- consider what to do with the Roth IRA I haven’t deposited to since 2002;
- file and organize bank statements.

I understand about the risk factor. I think for now I’ll stick with the stock market, which is something I understand (more or less).

Many of the people on Prosper are seeking lower interest — they’re not there because they can’t get money from a bank or credit-card company at all.

It is higher risk — I wouldn’t mark this as “cash” in my asset allocation. The risk profile is proably more akin to stocks. The interesting — and sort of fun — part of this though, is that we just don’t know what the long-term returns will be over the life of these loans. It’s total frontiersmanship. Which means it probably shouldn’t more than 10% of anybody’s portfolio!

You mention you want to invest with Prosper. Can I ask why you would? To me it seems this is too risky - ie: someone turns to prosper to get a loan since they can’t get the money from a credit card (or the rate they would get from their card is too high). Why would/should I trust them if their bank feels they are a bad risk?