While there are certain advantages to this method, such as not incurring credit card debt, there are also major disadvantages, as in not quite knowing where all that money is going and not contributing enough to your savings because there’s never anything left over.

Even though budgeting is a wonderful tool for managing your finances, many people think it’s not for them. The logic they use, however, is often flawed. Below is a list of 10 budget myths that stop people from saving as much as they could – and should. Do any of these budgeting myths apply to you?

1. I don’t need to budget.
The truth is, almost everyone, even those with large paychecks and plenty of money in the bank, can benefit from budgeting. Keeping track of your monthly income and expenses allows you to make sure your hard-earned money is being put to its highest and best purpose. For example, if you knew how much money you were spending on restaurant meals every month, you might decide that you’d rather be putting that money toward something else, like a nicer vacation.

2. I’m not good at math so I can’t manage my money.
Thanks to budgeting software, you don’t have to be good at math, you simply have to be able to follow instructions. Many of these programs are free and can be safely downloaded without fear of viruses or spyware from CNET’s download.com. If you know how to use spreadsheet software, you can even make your own budget. It’s as simple as creating one column for your income, another column for your expenses and keeping a running tab on the difference between the two.

3. My job is secure.
No one’s job is truly secure. If you work for a corporation, downsizing or losing your job is always a looming possibility. If you work for a small company, these concerns may not apply, but if the owner died suddenly, the company might die with the owner. You should always be prepared for a job loss by having at least three months’ worth of living expenses in the bank. It’s a lot easier to accumulate this money if you know how much money you’re bringing in and laying out each month.

4. Government-sponsored unemployment pay will tide me over if I lose my job.
Unemployment benefits are not a sure thing. Let’s say a bad situation at work leaves you with no choice but to quit your job. Because you weren’t laid off, leaving your job will be considered voluntary and it’s very unlikely you’ll receive any benefits. It won’t help if you decide to remedy this problem by getting yourself fired, as those who are let go for bad behavior are also very unlikely to receive unemployment assistance. On top of that, getting fired will make it harder for you to get a new job.

5. It won’t happen to me.
We all think that unexpected high bills and tragedies won’t happen to us. With the number of things that can possibly go wrong in life, hoping for the best is the most logical emotional survival tactic. However, you might lose your job, be in a car accident, get cancer or need to help a friend or family member who falls on hard times. It’s best to be prepared and hope that you’ll get to use the money for something fun one day instead.

6. I don’t want to deprive myself.
Budgeting is not synonymous with spending as little money as possible or making yourself feel guilty about every purchase. The crux of budgeting is to make sure you’re able to save a little each month, ideally at least 10% of your income, or at the very least, to make sure that you aren’t spending more than you earn. Unless you’re on a very tight budget (and we all are sometimes), you’ll still be able to buy baseball tickets and go out to eat. Tracking your expenses doesn’t change the amount of money you have available to spend every month, it just tells you where that money is going.

7. I don’t want anything big so I don’t need to save for anything big.
This one is tricky. If you don’t have any major savings goals to buy a house, a new car or to save enough money to quit your day job and take a stab at starting your own business, it’s hard to drum up the motivation to stash away extra cash each month. However, your situation and your attitudes are likely to change over time. Perhaps you don’t want to save up for a house because you live in New York City and expect that renting will be the most affordable option for the rest of your life. But in five years, you might be sick of the Big Apple and decide to move to rural Vermont. Suddenly, buying a home becomes more affordable and you might wish you had five years’ worth of savings in the bank for a down payment.

As another example, many people thought home ownership would be forever out of reach when the housing bubble was pushing prices ever higher, so they gave up on the idea of owning a home. After the bubble burst and prices sank, however, those who previously couldn’t even afford condos sometimes had the income to afford houses. Even FHA loans require a down payment, though, so those who saved their extra money when prices were high put themselves in a great position to buy when prices dropped.

8. Any money I save would just be taken when I apply to grad school/an MBA program or when I send my kids to college.
Yes, the catch-22 of student financial aid is that the more money you have, the less financial aid you’ll be eligible for. That’s enough to make anyone wonder if it isn’t better to just spend it all and have nothing in the bank in order to qualify for the maximum amount of grants and loans.

When you apply for federal student aid such as the Stafford Loan, Perkins Loan or Pell Grant, you will fill out the Free Application for Federal Student Aid (FAFSA). Whether you are an adult student going back to school or the parent of a student headed to college, this form does not require you to report the value of your primary residence (if you own a home) or the value of your retirement accounts. This means that if you want to save money without compromising your financial aid eligibility, you can do so by using your savings to buy a house, prepay your mortgage or contribute more money to your retirement accounts. The savings you put into these assets can still be accessed in the event of an emergency, but you won’t be penalized for them. Paying down credit card debt and auto loans can also serve as a form of saving that won’t detract from your financial aid eligibility. Just think of all that interest you won’t have to pay when your balances go down or are even paid off completely.

Another issue is that even if you employ all the legal strategies available to you to maximize your financial aid eligibility, you still won’t always qualify for as much aid as you need, so it’s not a bad idea to have your own source of funds to make up for any shortfall in the aid you’re offered.

9. I don’t need to budget because I’m debt-free.
While being debt-free is unusual and commendable, it won’t pay your bills in an emergency. A zero balance is better than a negative balance, but that zero can quickly become negative if you don’t have a safety net.

10. I don’t need to budget because I always get a raise/bonus/tax refund.
It’s never a good idea to count on unpredictable sources of income. Your company may not have enough money to give you a raise, or as much of a raise as you’d hoped for, even if you’ve earned it. The same is true of bonus money. Tax refunds are more reliable, but this depends in part on how good you are at calculating your own tax liability. Some people know how to figure to the penny how much of a refund they will get (or how much they will owe) as well as how to adjust this figure through changes in payroll withholding throughout the year. Others find W-4 forms, 1040s and tax tables incomprehensible and April is always a surprise. You might be expecting a $1,000 refund only to find that you’re getting $300 – or worse, that you owe.

Solutions
If you’re still not convinced that budgeting is for you, here’s a way to protect yourself from your own spending habits. Set up an automatic transfer from your checking account to a savings account you won’t see (i.e., a savings account at a different bank from your checking account) that is scheduled to happen right after you get paid. If you are saving for retirement, you may have the option of contributing a regular, set amount to a 401(k) or other retirement savings plan. This way, you’ll always pay yourself first, you’ll always have enough money for the transfer and you’ll always pay yourself the same predetermined amount that you know will help you meet your goals. If you don’t think you have the discipline for budgeting, this is your best bet.

However, a better solution is to make this automatic contribution in conjunction with starting a budgeting spreadsheet or using budgeting software. This way, you won’t run into any unpleasant surprises, like your checking account balance reaching zero when your car insurance is due and you don’t get paid for another week.

Conclusion
To manage your monthly expenses, prepare for life’s unpredictable events and be able to afford more expensive purchases without going into debt, budgeting is a great idea. Keeping track of how much you earn and spend doesn’t have to be drudgery, doesn’t require you to be good at math and doesn’t mean you can’t buy the things you want. It just means that you’ll know where your money goes, you’ll have greater control over your financial situation and you’ll probably be able to sleep more soundly at night.

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Before you search the wanted ads and every website you can think of, take a deep breath, because you may not be laid off at all. Or, the company may be required by federal law to give you two months’ notice.

Two-Month Requirement
Since 1989, large companies in the United States have been required to let employees know 60 days in advance if there is going to be a massive layoff. This rule was enacted by the Worker Adjustment and Retraining Notification Act (WARN).

“Large Company” Qualifications
In general, an employer must have 100 or more employees working more than 20 hours each for over half of the year in order to be liable for the two-month layoff notice. Any private company is covered by this rule, whether nonprofit or for profit. However, under this rule, the government is not required to give notice to its employees.

Notified Employees
The notification requirement varies, based on whether it is a plant or location closing, if it’s a massive layoff, and the total portion of the workforce being laid off. A layoff of only a few employees will never require the WARN letter notice. A layoff of 50-499 employees who have been working for the company for more than six months is covered, as long as the exiting employees represent at least 33% of the employees at a given employment site.

For example, if a location has 200 employees, and 50 employees are going to be laid off, 60-day notice is not needed. However, if there were 66 or more employees that could lose their jobs, then 60 days notice is needed. In massive layoffs of 5,000 or more, there is not a minimum percentage, all employees must be notified.

The closing of a plant or one single location that has 50 or more workers will require notice to be given. This applies whether you are a marketing manager or a forklift operator.

How Notification Is Handled
WARN notifications are sent to unionized labor representatives for unionized employees, and individual unrepresented employees who could be subject to the layoff. For instance, if you work in a position that is unionized, such as an airline mechanic, your company just has to send notice to the union. If you work in a non-unionized management position, you are required to get an individual letter.

Exemptions
Exemptions are provided for such acts as natural disasters and “unforeseeable business circumstances.” For instance, if a tornado hits an office building, your company will not have to give you notice that your job is lost. There’s also the figurative tornado of a major client unexpectedly terminating their relationship. For example, if you make student desks and the school district the company makes most of your desks for cancels its orders.

While “unforeseen business circumstances” are considered a reason to avoid the 60-day notice rule, it is not considered a reason to give no notice. Employers are still required to give as much notice as possible.

Exempt Employees
If you are an independent contractor or a temporary employee, you will never be required to be given notice. Thus, it’s more important for you to gauge the possibility of a company closure or layoff, whether or not a WARN letter will go out.

Places to Find the WARN Letter List
Certain states do post which companies are undergoing layoffs You can find links to many states on the Oklahoma Department of Commerce’s Web site.

Wake Up Call
Perhaps now is also a time to shape up, or get shipped out. Get a free trial of GroupReady scheduling software. Used by thousands of offices, this easy to use software lets multiple people work with the same schedule at the same time – and see each other’s changes instantly. Doesn’t require Exchange Server and can also be accessed through a web interface. Implement this in your office and make the head honcho think twice about giving you the axe.

Conclusion
Trying to predict whether your company will have a massive layoff can feel like trying to predict an unexpected rain storm. However, WARN letters can act like a trusted and accurate meteorologist. If you work for a large company and aren’t an independent contractor or temporary employee, watch for WARN letters before panicking about finding a new job or paying next month’s rent. You can use the two months you have, once warned, to find a job and set aside money until you get your next job.

Stay tuned for more updates.

For the worker, it means the end of regular income and probably the termination of company health benefits, a 401(k) and other perks of the job. For the owner, CEO, or whoever announces the dismissal, it could mean firing a trusted, well-performing worker (or several of them) in a desperate means to cut costs. It won’t be easy, but there are best practices. What so many successful CEOs, human resources leaders and senior managers have advised when laying-off an employee is simple: be honest, be compassionate and be quick.

Wielding the “Ax”
Even if the cause for termination is based on an employee’s poor work performance, or for some reason other than a need to cut personnel, firing a human being, telling them, in effect, that you no longer value them, is a psychological and financial trauma for the person let go and can be a psychological trauma for whoever swings the ax. There are ways, however, to make it easier for all concerned. Following these well-established general criteria for whom to dismiss, how to do it, and what – if anything – to provide to the person or persons dismissed will help ease the process.

Before we discuss how to lay someone off, deciding whom to lay offis equally important. It is also important to consider the circumstances of the economy, the company doing the dismissal and the financial condition of the company in question.

Assuming the economy is good and the company is profitable, there may be several reasons to terminate an employee.

For poor performance, including lack of punctuality, absenteeism, or failure to produce desired results
For resisting change
For negativism
For insubordination
For not conforming to company values
For questionable character or ethical lapses
For criminal acts

However, in a poor economy, decisions about whom to fire and why may be decided using other criteria. The employees marked for termination may include the following:

Higher salaried employees
Newly-hired employees

The lower 10% on the work performance scale, a group Jack Welch, former CEO of General Electric (NYSE:GE), often terminated – in both good times and bad. (For more on this great CEO, see You Don’t Know Jack Welch.)

Employees nearing retirement and/or older employees. Employers should note that terminating older employees may present a risk of age discrimination lawsuits, either individually or as part of a class action suit, so caution must be exercised in this category. It may be advisable to obtain legal advice before terminating employees in these two categories.

Layoff Best Practices
The “three be rule” is your best guide to the termination process when it comes time to tell the employee.

Be honest: Tell the employee why he or she is being laid off, even if it’s for poor performance. You’re not doing the employee or yourself any favors by concealing the reason. You may cushion the poor performance assessment in a variety of ways, but the truth must be told. For any layoffs due to poor performance, a recent record of poor performance reviews will support your decision and justify it to the employee. It may also be used as evidence if a wrongful dismissal suit is filed against the employer.

Be compassionate: Being laid off can be painful. Show the terminated employee some compassion and understanding. If your firm has the capability, provide outplacement services or job counseling to help cushion the blow. Keep the employee’s ego in mind – it may need a hefty boost at this time, and you can provide it by praising previous accomplishments.

Be quick: A quick, surgical dismissal, while keeping the above recommendations in mind, is the most humane way to handle a layoff. You may want the employee to clean out his or her desk that day and it may be a good idea to have security escort the employee to the door. Too many terminated employees have taken out their sense of injustice or lust for revenge by sabotaging their computers or attempting to hurt their managers and colleagues. Being escorted to the door can be a humiliating experience for the terminated worker but it can prevent destructive expressions of rage. Dismissing an employee on a Friday afternoon is also an effective means of allowing the terminated worker an entire weekend to recover from the shock of dismissal.

What Not to Do
The manager doing the firing should never express anger, express too much disappointment, or threaten to imperil the fired employee’s chances. Depending on circumstances, you may want to tell terminated employees that they might work as outside consultants, as part-time employees without benefits, or that they may be hired back at a later date, when economic and financial conditions warrant it. That said, employers are urged neither to make promises of any kind, nor to make statements that can be interpreted as promises.

The Bottom Line
Laying off staff can be a painful experience for both the laid off worker and the employer who issues the pink slip. Beyond the loss of income and whatever other benefits the employer provided, the laid off worker often feels a loss of self-esteem. For the employer, the experience of laying off a worker may be equally uncomfortable, although in a different way.

Both of these painful consequences seem inevitable, but both can be reduced in intensity if the employer follows the “three be rule” cited above and determines judiciously who should be terminated. In the situation of a mass layoff, a standardized package may be offered, in which case an employer is less likely to deviate from the severance offered. But in many other cases, severance can be negotiated.

Stay tuned for more updates.

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1. Be Sure to Communicate
Regardless of whether you are an independent adviser with your own practice or an employee of a brokerage firm with your own clientele, staying in close touch with your customers is essential for your professional survival. In times like these, your customers are being bombarded on a daily basis with negative financial news from the media, their friends and relatives, and most likely their own emotions. This is when your input is needed the most, and failure to give it can easily result in the loss of your client to someone who will.

Don’t wait for the phone to ring; create a letter addressing current market events and send it out. Find out what your clients think of current market conditions and the performance of their portfolios. Make every effort to help them see the current market from a long-term historical perspective. The most successful planners are the ones who are able to make their clients and prospects understand that when items are severely under-priced for their values, it may be the time to buy.

2. Adjust Portfolios
Although communication is vital, your ability to control your clients’ losses during a severe market downturn can be the deciding factor when it comes to customer retention. The judicious use of puts, option collars and other hedging strategies can make a huge difference in the numbers that show up on your clients’ monthly statements.

Long-term strategies such as periodic re-balancing and dollar-cost averaging will also aid in keeping your clients’ investment objectives within reach. Clients with depreciated holdings in taxable accounts can benefit from tax swaps, which can generate a consolation prize of capital losses that can be used to offset capital gains or income.

3. Earn a Professional Designation
The media has been telling the public for years to seek stockbrokers, financial planners and insurance agents that have earned professional designations, such as the Certified Financial Planner (CFP), Chartered Mutual Funds Counselor (ChFC) and Chartered Life Underwriter (CLU). Although there are many other designations pertaining to specific areas of specialization, these three are among the most widely known to the public.

Many fee-based advisers carry the CFP designation as their mark of expertise, and this is the primary designation that has been endorsed by the media. But these credentials can serve both you and your clients in many ways, as they will enable you to spot more planning opportunities and increase your professional competence. Employers in the financial arena tend to look favorably upon employees who earn these credentials, and carrying these certifications will almost certainly make you a more valuable employee. Remember, it often takes money to make money, so if you have to invest in something to succeed, why not invest in yourself with an education?

4. Be Willing to Offer Discounts or Extra Services
Losing money in a bad market is disheartening enough for your clients; making them pay fees and commissions on top of that is even worse. Of course you still have to make a living, but offering discounts and/or free services to your clients can be another source of consolation for them. If nothing else, it will show that you are willing to take some losses along with them.

A 25% discount in fees or commissions can do wonders to placate day traders, while free services such as income tax preparation or estate planning consultations can save your customers money, provide them with a substantial benefit and unearth new planning opportunities for your business.

5. Be Flexible and Proactive
Employees who keep a good attitude and volunteer for unpleasant tasks will always have a better chance of keeping their jobs than those who complain and shirk their responsibilities. However, attitude alone has seldom provided real job protection. The willingness to take business trips and transfer to another location may keep your employment on surer footing, and a willingness to work overtime performing tasks that no one else wants to do can elevate your status among your superiors.

Don’t underestimate the impact of your willingness to go the extra mile when layoff notices are being decided upon.

6. Keep Your Options Open
If you feel like there’s a real chance you may get the ax, don’t wait until a pink slip shows up on your desk before taking action. Update your resume and start talking to other employers now. Consult with your clients off the record to see how many of them will be willing to leave with you if necessary.

Also don’t hesitate to join a local professional organization such as the Financial Planning Association or National Association of Insurance and Financial Advisers, which can offer you many resources in your job search, and many contacts to help you grow in your profession.

Bottom Line
Both employees and independent financial practitioners can do many things to improve their job security. Client communication, loss mitigation, discounts and extra services are just some of the measures that can be taken to improve your standings with your clients and supervisors. But having a “Plan B” in place is essential in an uncertain job market where a good attitude and the willingness to work overtime may not make a difference.

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Stay tuned for more updates.

Becoming a Cosigner
I know I’ve mentioned this in past posts, but cosigning a loan can be a very risky thing to do even in flush economic times. After all, if the individual taking the loan doesn’t make the scheduled payments, the cosigner could well be asked to make them.

However, during an economic downturn the risks associated with cosigning a note could be even greater as the person may be at greater risk of losing his or her job and the means to pay down the loan. Also, the cosigner is more likely to land in the unemployment line as well.

Getting Into an Adjustable-Rate Mortgage
When purchasing a home, some individuals may choose to take out an adjustable rate mortgage (ARM). In some cases, this move might make sense. After all, as long as interest rates are low, the monthly payment will be low as well.

However, what if the individual were to be laid off and interest rates were to rise as the recession or slowdown started to abate? As rates rise, the monthly payment may go up. In such a case, the homeowner may find it extremely difficult to come up with the money to make the payments.

Adding Debt
Taking on new debt may not be a problem in good times if the individual makes enough money to cover the monthly payments. However, what happens if the individual’s livelihood is adversely affected in the midst of the economic turmoil? What happens if the borrower is laid off?

In many cases, recently laid off individuals may have to take jobs that pay less than their previous salaries just to make ends meet and to keep money coming in the door. Unfortunately, the new income may not be anywhere near the amount they had previously earned. When this happens, savings can quickly dwindle away.

Taking Your Job for Granted
During an economic slowdown, it’s important to understand that corporations, even large ones, may be under financial pressure. And when that happens, many companies will try to reduce expenses any way they can. In some instances, that may mean scaling back on company functions such as holiday parties, but in other cases, companies may cut the dividends they pay, and sometimes companies will cut jobs as a means of saving money.

Because the employment situation during a recession may be so fragile, employees should generally try to do all they can to make sure their employer has a favorable opinion of them. This may mean coming to work early, staying late and of course doing top-notch work at all times. While there is no guarantee this will save your job, it could make you important enough to your company to ensure you’re kept on the payroll.

Taking Risks With Investments
Business owners should always be thinking about the future. They should always be thinking about new and exciting ways to grow their businesses. However, an economic slowdown may not be the best time to make risky bets.

For example, taking on a new loan to add physical floor space or to increase inventory, or otherwise add to the business may sound good. But what if the business was to slow down?

However, small investments can add up. For example, if you have a web based business, being listed in a business web directory like Jasmine Directory, would be greatly beneficial.

They are 100% SEO friendly, W3 css and HTML valid, generate you an automatic thumbnail, and five deep URLs. Combine the business listing with a few other smaller investments and you get a significant boost at less cost.

Bottom Line
Individuals may not need to live a monk’s existence during an economic slowdown, but they should pay extra attention to their spending and budgeting, and be wary of taking any unnecessary risks.

Stay tuned for more updates folks.

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1. Give a cash gift.
Of course, this is the least effective because if someone is not financially responsible, giving him or her cash will actually be detrimental. That being said, if your loved one is having a short-term cash flow problem, decide how much you can afford to give, without putting yourself in financial jeopardy, and then either give the maximum amount you can afford all at once or perhaps give smaller gifts on a periodic or regular basis until the situation is resolved. Make sure it’s clearly understood that the money is a gift, not a loan to be repaid, so you don’t create an awkward situation for the gift recipient.

2. Make a personal loan.
Your family or friend may approach you and ask for a short-term loan. Talk frankly, clearly write out the terms of the loan on paper, and have both parties sign it. This helps both parties be clear on the financial arrangement they’re entering into.

3. Co-sign on a bank loan.
Before simply saying “yes” and essentially lending someone your good credit, it’s important to realize that there are legal and financial implications to co-signing on a loan. The most critical thing to understand is that you are legally binding yourself to repay the loan if the other borrower fails to do so. The lender can take legal action against you and require that you pay the full amount, even if you had an agreement between you and your family member that you would not have to make payments. This delinquent loan will also now affect your personal credit. So if your friend fails to make payments on the loan on time and in full the lender can report the negative account activity to the credit bureaus to file on your credit report which, in turn, can lower your credit score.

4. Create a budget and help create a bill-paying system.
Often, people in a financial crisis simply aren’t aware where their money is going. If you have experience using a budget to manage your own money, you may be able to help your family in creating and using a budget as well. To break the ice you may want to offer to show them your budget and your bill-paying system and explain to them how it helps you make financial decisions. As you work together to help them get a handle on their financial situation, the process will point out places where they can cut back on expenses or try to increase their income to better meet their financial obligations.

5. Provide employment.
If you’re not comfortable making a loan or giving a cash gift, consider hiring your friend to assist with needed tasks at an agreed-upon rate. This side job may go a long way towards helping them earn the money they need to pay their bills, and help you finish up any jobs that you’ve been putting off. Treat the arrangement like you would any other employee; spell out clearly the work that needs to be done, the deadlines and the rate of pay. Be sure to include a provision about how you’ll deal with poor or incomplete work.

6. Give non-cash financial assistance.
If you’re uncomfortable or unwilling to give your friend cash, consider giving non-cash financial assistance, such as gift cards or gift certificates. You’ll have more control over what your money will be used for and you can easily buy gift cards in varying amounts at most stores. Of course, he or she can always sell those and buy whatever he or she wants. But if that’s the case, he or she has more serious problems that you probably could not help with.

7. Prepay bills.
You may want to consider prepaying one or more regular bills for your friend to help them during their current financial crunch. Offering to do something, such as paying their car payment may help them avoid a short-term crisis and give them the little extra time they need to work out of their situation.

8. Help them find professional assistance and local resources.
You simply may not wish or be able to provide your family member with financial assistance or hands-on help. But you can still play a key role by helping them find local professionals that can steer them in the right direction. Consider referring them to a well known career counselor, welfare agency, credit and debt counselor, or even a lender who can provide short-term solutions.

Friends, family and money aren’t always a good mix. But, in tough economic times or when faced with unexpected emergencies, your loved ones may truly need your financial assistance. Before you commit to helping, be sure to think through what you can and can’t afford to do. Remember, if your own resources are limited, there are other meaningful, effective, and creative ways to help.

Stay tuned for more updates.

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The following is courtesy of SFGate:

As the cost of maintaining your rental property rises over time, you may need to raise the rent you charge. But before you raise the rent, you will need to take several things into consideration.

Landlords that do allow a trade of services for rent must still need to claim the entire amount of the rent as income on their tax returns. For example, if you charge $500 a month in rent, but your tenant pays only $450 and mows the lawn, you must claim the entire $500 amount as income since you are receiving a service in exchange for that $50. But, you should be able to deduct the $50 as a property expense. Check with your tax advisor to clear up any tax issues before taking this step.

Stay tuned for more updates!

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The following is an article originally from SF Gate:

Sept. 27 (Bloomberg) — The U.S. may be entering another recession, according to Nouriel Roubini, co-founder and chairman of Roubini Global Economics LLC.

Roubini predicted a bubble in U.S. housing prices before the market peaked in 2006. His forecasts haven’t all been accurate. When the Standard & Poor’s 500 Index fell to a 12-year low on March 9, 2009, he said it probably would drop to 600 or lower by the end of that year. Instead, the U.S. equity benchmark gained 65 percent for the rest of 2009.

Remember, cash is king!

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Courtesy of Associated Press

By DEREK KRAVITZ, AP Real Estate Writer

An index of builders’ outlook in the Midwest rose one point to 11. In the Northeast and South, the index fell two points to 15 and in the West it fell three points to 12.

Diversify folks!

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Eight Bay Area real estate investors agreed to plead guilty to rigging foreclosure auctions in Alameda and Contra Costa counties, the Department of Justice said on Thursday. The investors’ actions suppressed competition for properties, keeping their prices noncompetitive, it said.

Franciose, Freeborn, Margen and Legault did not return calls for comment. Kramer declined to comment. McKinzie, Jaime Wong and Jorge Wong could not be reached.

Now, I did not show you this to show you how the rich are getting richer, or how shady these people were. This shows that there is still money to be made in real estate!

Now that these people are being brought to justice, perhaps this will scare the usual monopolies to ease up a bit to allow us laymen to get in on the action. If you have been saving those hard earned dollars, perhaps now is the time to become a slumlord – er, landlord!

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So yes, I spent last nine days and eights nights traveling throughout Costa Rica. From San Jose to Arenal to Monteverde to the Guanecaste coast.

The destination vacation consisted of two days in a five star resort and spa, two days exploring the Arenal volcano and rain forest and three days at the beach in Guanecaste.

So between the professional massages, dips in the natural hot springs, zip lining, hikes, coffee tours, river rafting, surfing, snorkeling, and drinking, there is more than enough for anyone to do.

Throughout my time there, I could not help but notice that all tourists were Americans and Europeans. And when I say Americans, I mean white people. And when I say Europeans, I mean a group of German and French tourists. Though similar in climate and food to Hawaii, the human demographic was completely different. Not a yellow face in sight!

And contrary to what I read before my departure, the U.S dollar is accepted everywhere over the native colones. And boy, do they charge U.S prices! It was as if I spent an entire week eating and drinking out in San Francisco! But I’m sure I was charged tourist prices.

Anyways, this brings me to my point. How can Americans afford to go on such extravagant vacations when the dollar is so weak right now? And how can Costa Rica survive on their top cash cow, tourism?

My solution? Start language specific tours to the richest demographic group right now. Come on Costa Ricans! Forget whatever squabble you have with Nicaragua. Start chartering tours and bring those rich Chinese down to your land! Their disposable income dwarfs that of any average American right now.

Forget Hawaii, Costa Rica is where the opportunity is. So, who’s for moving down to Costa Rica with me to count RMBs?

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What’s going on guys? Yes, it’s still happening. Nothing new. As many Americans begin to realize that it will be years before their houses are worth what they owe on them, the idea of walking away from your mortgage is going mainstream. Still. It’s just not news anymore.

Not surprisingly, the mortgage industry is doing everything it can to prevent this, including telling homeowners that they have a “moral obligation” to pay. Desperate huh?

Is it okay to walk away from your mortgage for no other reason than it doesn’t make financial sense to keep throwing your hard-earned money away?

Most importantly, the reason is not that “Wall Street deserves it” or “We’ve got to teach the banks a lesson” or any of the other bogus “retribution” logic being thrown around. The reason is that you and your lender engaged in an arms-length transaction in which you balanced your competing interests and spelled out your agreement and obligations in a clear contract. And unless that contract states that you have a “moral obligation to pay,” you don’t.

When you borrowed money to buy your house, the bank or mortgage-lender evaluated the risk of the transaction and concluded that the risk of your not paying was a risk worth taking. To protect its money, the lender also required that you pledge the house as collateral, and it required you to have some equity in the house as an additional cushion. In the event that you didn’t pay, the lender retained the right to seize the house, sell it, and pay itself off before you got your equity. The lender loaned you the money because it concluded that this was a smart business decision.

You, meanwhile, also made a business decision. You decided to borrow money to buy your house even though it meant risking your equity, home, and credit rating. A bad one, on your part.

Fortunately, you don’t have to fight about what happens next. The contract spells everything out: If you stop paying, the lender gets the house. That’s it. Unless the contract specifically differentiates between a failure to pay based on hardship and a failure to pay based on a collapse in the value of the house, there’s no difference.

Now, compare this to a situation in which you DO have a moral obligation to pay: When you borrow money from a friend at no interest, for example. THAT is a moral obligation to pay. In this case, your friend did not lend you money to make a profit. Your friend loaned you money as a favor, with no collateral or contract.

And here’s another way of looking at it: If you have a “moral obligation” to pay your mortgage, doesn’t the bank have a “moral obligation” to keep you in your house? After all, they loaned you the money to buy it, got your hopes up, moved your family, etc.

Just because you don’t have a moral obligation to pay your mortgage, of course, doesn’t mean it’s smart or even the right thing to walk away. In fact, the best solution would likely be for you and your lender to compromise using a loan modification. That’s what companies often do. Also, abandoning your house can screw your neighbors. And you may live in in a state with “recourse” laws, in which your mortgage lender can go after other assets.

But don’t let the mortgage industry guilt you into paying from some “moral obligation.” You both made a business decision. It turned out to be a bad one. That’s why you have a contract.

See you in seven.

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Hey, what’s going on guys? It’s a new year, so it’s time for a fresh start. 2010 sucked the big lemon for many of us. Let’s do 2011 right.

Salary discussions can be intense, especially when the stakes are high and the job market is this crowded. Learning how to present your value in a clear and concise way will help pave the road to a salary increase. Whether you are job searching or staying in your current job, increasing your salary begins with planning and researching.

The first step is to improve your visibility in your department or company by making an effort to stay in contact with decision-makers while doing your job well. Project a positive image. Volunteer to be on committees where you can build relationships on that common ground. Maintain communication with your boss by asking how you can help, discussing projects and sharing information. Don’t wait until you must communicate with your boss, to do so. Developing a good working relationship with your boss is a part of career development.

The second step to increasing your salary is to research the market and make sure your compensation is up to par with your current role, or if you’re job searching, learn the going rate for the job you’re seeking. What you made in the past really isn’t relevant to a salary discussion for a new position. The focus should be on the current market rate for your position. Compensation websites can offer a broad view on the current market rate for a position, but take your research a step further and get more information from your contacts in the field.

The third step you can take is to start a career journal that documents your accomplishments. This serves two purposes: it supports a salary increase and it keeps your resume updated. Record your achievements by citing examples of how you increased productivity, reduced expenses for your employer or created new systems. The more you can quantify your accomplishments, the more memorable they become when talking about salary increases.

The fourth step is go back to school and take classes that will add to your degree or certification. Staying current in your field by continuing education usually pays off when discussing salary issues. Employers are interested in people who display the initiative to improve their knowledge and skill sets.

Finally, if you feel your career has been stagnating and there is not a clear upward path, consider starting a job search. A new job might be just what you need to increase your compensation. As always, take the time to do your due diligence, and if a job sounds too good to be true, or the pay seems too high, stop and think before accepting.

While not everyone wants a promotion, people do want to be rewarded more for a job well done. Don’t think of it as asking for freebies, but asking for what you deserve. To oversimplify: Ask and you shall receive. If you don’t ask, you won’t get!

Alright, that’s it for today folks. See you in seven.

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Hello and welcome to the new year. This article is for all you dinosaurs out there still trying in vain to stop the onslaught of new technology. Embrace it people. it will improve your business and make you more money!

With the changing face of the real estate business, software that allows accessibility across different platforms is the new “must have”. Blackberries, web listings, and portable printers have been added to the nice luxury sedan, as staples to the successful agent.

When searching through the extensive software solutions out there, pay special attention to the ones especially designed for real estate agents. Look for ones that will improve your business control, marketing, administration, communication, task and client management.

Some Real Estate Agent Software offer countless benefits. The best way to get a complete picture of how something can help you run a better business is to speak to one of of their sales consultants. Yes, they are going to try to sell you something but it’s your job to figure out if it will help you.

When looking for Marketing products, make sure they can generate online and printed property marketing at the touch of a button, instantly produce superior sales particulars via integration with the leading digital print houses, and impress your vendors by getting their property details in front of applicants instantly via emails, text or picture messages.

Make sure you will be able to showcase properties in full with virtual tours on your website, on high visibility screens around your office or on your desktop.

For Processes software, make sure it can store and access live and archived property, client and applicant information quickly and easily, including comprehensive transaction history details. Having it search and match properties with applicants automatically puts the weight off your shoulders.

Finally, for good Management software, make sure it can monitor staff accountability and business productivity via pre-programmed or user-defined reports. It should also provide greater transparency to clients and improve your customer service with professionally presented vendor reports and analyze data to gain a better understanding of your local market and your business.

Alright, that’s it for today folks.

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Hey guys, what’s going on? There are many ways to make money in this world. By far the most common is working a 9 to 5 job, or some variation of it. I just can’t grasp the concept of why people would choose to make their income this way, if they didn’t have to. Trading limited hours for a set dollar amount is like the worst possible method of earning a living. Why?

You Get Taxed The Most

You are the Man’s favorite servant. Why? You are the government’s biggest income source. And there is no way for you to escape it, because the company you work for withholds taxes from your paycheck. And the more you make, the more they take, close to 30% of every dollar. Of the three entities that are subject to income tax (individuals, corporations and trusts) no other entity is taxed as highly as an individual.

You Receive The Fewest Tax Breaks

Not only are you taxed the most, but you have the fewest tax breaks available to you. While a company can write off pretty much anything that is used in the course of their business, you have to use after tax dollars to get to work, eat your lunch, buy cloths, fill the gas tank, entertain, etc. About the only real tax break available to individuals is the IRA/ 401K. And most people don’t even take advantage it!

You Only Earn When You Work

You get absolutely no residual or passive income. If you aren’t working, you’re not making any money. It’s a tough balancing act. You want to earn a living, but you also want to spend time with family and friends. It’s give and take. With a traditional job, you can’t have both. If you want more time with family, you have to work less. If you want to make more money, you have to keep working.

There Are Only 24 Hours In A Day

It doesn’t matter how much you want to work, there are only 24 hours in a day. And it’s really hard to work 24 hours a day. That alone, puts a cap on your income. Even if you’re a high power lawyer that bills out at $500 an hour, you still have to sleep. And while you’re making good money, you’re still working for your money. The instant you stop billing, the money stops.

You Are Not Invincible

Eventually a time will come when you can no longer work. If you become ill, get into an accident or are forced to retire. What happens then, depends on the decisions you made earlier in life. If you planned well, you’ll have enough to live on without having to work. However, statistics shows that the majority of Americans do not plan well.

If you work the traditional job, I would recommend you take a serious look at your situation. Look at how much the government is taking from you, and what you get in return. What will happen to you and your family if you can no longer work? Most of us don’t carry enough life insurance. We all like to think we’re invincible but we’re not.

Think about this guys, and see you seven!

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With money so tight these days, I am always looking for an opportunity, however small, to invest in real estate. Here’s what I found out about the city.

Over the past decade, Wilmington, North Carolina has become a popular target for real estate investors, retirees and families relocating due to its growing economy, temperate climate, popular university, and beautiful coastline.

While the median price of a Wilmington home has dipped slightly in recent history, ($226k in 2006 compared to $207k today), the area still offers fantastic opportunities for those who have the patience to buy and hold.

Wilmington’s industrial base includes electrical, medical, electronic and telecommunications equipment; clothing and apparel; food processing; paper products; and pharmaceuticals.

Important to Wilmington’s economy, is also tourism, due to its close proximity to the ocean and vibrant nightlife. Film production also plays an important role in the city’s economy. Wilmington, North Carolina was #2 in the Nation in a national study for 2007 projected job growth.

As of the census of 2000, there were 75,838 people, 34,359 households, and 17,351 families residing in the city. The racial composition of the city was: 70.57% White, 25.82% Black or African American, 2.63% Hispanic or Latino American, 0.90% Asian American, 0.35% Native American, 0.09% Native Hawaiian or Other Pacific Islander, 1.14% some other race, and 1.13% two or more races.

So, if you like the demographics, check out some homes for sale in Wilmington, NC right away. Companies like BlueCoast Realty Corporation can really help. You can go to the website and search for properties by map, subdivision, and property type. They are linked to the MLS, so you dream home, or investment property are just a few clicks away. See you in seven!

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What’s going on guys? Ever get the feeling that your overdraft fees from your bank were a little too coincidental for their benefit? How the timing was always stacked in the bank’s favor? Every. Single. Time?

Sure, it was fishy, but you couldn’t prove it. Or was it that times were good back in the day, and it wasn’t worth the trouble to investigate and clear up?

Well, the banks were laughing all the way to the..er, bank. Literally. Nationwide, banks and credit unions collected almost $24 billion in overdraft fees in 2008, according to the Center for Responsible Lending.

Not anymore you fat cats. Times have been tough and people aren’t letting it go anymore.

Case in point, Wells Fargo. Recently, a San Francisco judge’s scathing ruling ordering Wells Fargo to pay its customers $203 million for manipulating debit transactions to maximize overdraft fees might be just the start of troubles for the bank. Ah ha! Busted!

U.S. District Judge William Alsup’s 90-page opinion Tuesday described Wells Fargo’s motive as profiteering and said the San Francisco-based bank’s goal was to “maximize the number of overdrafts and squeeze as much as possible” out of customers.

But wait. The hefty tab represents only what the bank owes its California customers. That figure is far smaller than the potential bill from a separate suit in which Wells’ clients in other states have accused the bank of the same unfair practices.

That case, consolidated in federal court in Miami, includes similar claims against 30 other lending institutions, including Bank of America, Citibank, Chase, Union Bank and U.S. Bank.

The crux of the claims is that the banks processed debit transactions from the largest to the smallest, instead of the order in which they occurred, depleting accounts faster and boosting the number of overdrafts, which cost as much as $35 per transaction.

So, what does this mean for the case in Florida? Well, it could affect the outcome of that case, even though the judge there is not legally bound to follow it.

But the point is folks, be on the look out for your pay out from your bank soon. Don’t spend the money though, however small the eventual amount is. Save it, invest it. You’ll thank me later.

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Hi guys, while it has been a looong seven days since I last posted (yes, my consistency sucks), but I’m back again to impart more wisdom, or insanity (however you want to look at it).

Today, I will be giving you the one thing you should focus on investing in during these tough times: You. Let me explain.

The problem with investing during a recession is that you have to invest in things that people can’t, or won’t do without such as food, cigarettes, medicine, etc., and these investments are usually slow movers. Besides, there is no way to know when a recession will end or how bad it will get and if you have to pull your money out to save yourself, you might end up having to do it at a market low and actually lose on your investment.

Take my advice: history has a way of repeating itself in one way or another, so learn from the trends. I took a look at what kind of people came through the Great Depression on top. It turned out to be people who were out of debt. In fact, some of those people became rich during the Depression.

The same holds true during a recession. Check it out. If your $800 per month BMW loan is at 6% and you pay it off, then you just got a 6% return on your investment plus have an extra $800 per month from a payment you are no longer making. Same goes for your home equity loans, credit card balances, consumer loans, etc.

Take a look at the interest rate on some of those loans and try to find an investment that can give you a guaranteed return like that. No bloody likely. When you invest by paying off debt, you get a guaranteed, no risk return that can’t be matched anywhere else. Yes, it’s no fun, but you will come out way ahead for it.

The average American family pays out about $2,000 per month in debt payments (counting the mortgage.) Imagine getting that all paid off and having $2,000 per month to do with as you please. You can finally afford that epargne afer life insurance policy. Try to find an investment that can do that!

And if the recession gets really bad, every debt that you pay off is extra money you no longer need. Then, when the recession does finally end, you come out of it in great financial shape with whatever your debt payments were to start investing with.

That’s it for today! Go forth and invest in yourself!

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Now, for my French fans!

Salut les gars, pendant que cet a été un looong Sept jours puisque je dernier posté (oui, mon homogénéité suce), mais je suis de retour encore de donner plus de sagesse, ou la folie (cependant vous voulez le regarder).

Cela l’est pour aujourd’hui ! Aller en avant et investir dans vous !

Hi guys, welcome back to another session of how to get rich and stay rich. Today I want to focus on how to develop leadership qualities. Because, let’s face it, the captain gets the largest share of the booty. Always.

In these economic times, making money all by your lonesome is very difficult. We just don’t have enough resources individually. The trend has been to pool resources together for businesses and splitting the profits. You invest less, and do less, but still see returns. The trick is to have a great leader.

Whether you are choosing a leader, or want to be one yourself, there are a few traits that a good leader must always possess or develop. A good leader must be able to remove roadblocks. If there is a problem, you better be able to solve it, or at least motivate the team to come up with a solution.

A good leader must be able to facilitate open, and honest communication. Never sugar coat things, or lie. It will always come back and bite you in the ass. Always.

Do as I do. Never do as I say. A good leader must always model behavior that he or she wants from the team. On the same vein, act instead of react. A good leader can facilitate decision making and discussions. He or she must be able to see the big picture and communicate each member’s role in that context. Don’t make it personal.

A good leader must be able to recognize the strengths of each team member and focus those strengths to the benefit of the team. Remember, everyone is good at something. The trick is to encourage independent thinking and trust each team member to make good decisions. And when assembling your team, a leader must be able to gather team members with complementary skill sets and draw from the strengths of each member.

Hope this helps some of you guys. Now go assemble your dream team and tackle that 200 unit condominium conversion! See you in seven (or less!).

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Hey, what’s going on guys? In yesterday’s post, I showed you how to attract new customers to your business using web directories. Well, usually there is a space for your company website on most those directory forms. Who doesn’t have a website these days? If not, get one now!

So, the problem with most websites is that the information on them gets outdated quickly. When that happens, the search engines stop picking it up and no one ends up going there. Then, no new customers for your business.

My suggestion? Run a regular blog on your website along with the other pertinent information you’ve got on there. Post up news in your industry, your thoughts on the news, and maybe your solutions to current problems. This will attract new customers as well as keeping your existing ones. Better yet, get paid to do this!

Enter blog advertising. Not only do you improve your writing, but you also get paid for it. That’s like getting a grant to go to school!

In fact, blog advertising is much more effective than traditional methods. Let me ask you, what do you do during a commercial creak when you watch television? You get up and go to the bathroom, get a snack, and anything that isn’t watching the commercials!

Now, what do you do when you visit a website and a pop up come sup? You get annoyed and close it as soon as possible right? And some company has paid top dollar for those ad spaces. With blog advertising, people who are actually interested in your business is already reading your blog! Advertisers would kill for these type of advertisements! But, not only do you not have to pay for it, YOU are getting paid!

Sounds great right? Now get to it! There are plenty of great blogging for money type sites out there. Pick a few within your industry and either bid on the right to get paid for a particular article or wait for someone to buy a post from you.

Alright, see you in seven (though it seems like everyday now, doesn’t it?). Get rich and stay rich guys!

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Hey guys! Here are some tips on real estate investing that I couldn’t wait seven days to let you know about.

As many of you real estate moguls have already been experiencing, buying and selling real estate has not been as easy as it once was. “Flipping” has taken another meaning altogether. Instead of buying low, fixing up, and “flipping” a house for profit, investors are now “flipping” their lids or “flipping” out, at the mortgage payments, property tax, and defaulting renters.

My suggestion? Think smaller. Houses are not selling? Try manufactured homes. I’ll wait till you finish laughing. No, go ahead. You’ll want to pay attention.

If you can find a piece of land that is within a mile, or relatively close to, the mobile home, then you can make even more profit. But the trick is to obtain a nice three bedroom two bath mobile home at an auction or foreclosure sale, and plant it on another vacant land investment property you have. While prices may vary by location, but a budget of $150,000 is quite sufficient. Clever planning on amenities such as electricity, gas, water and sewer connections can see even more savings.

This process should take no more than three months. This will include the permit process, purchasing the land and mobile home, and various home upgrades to make it presentable. Upon completion, an asking price of $185,000 to $200,000 should be considered affordable almost anywhere in the States. $35,000 to $50,000 profit for three months of work? Not too shabby in this economy, right?

But, for argument’s sake, let’s say you can’t sell it, so you rent it out. Now, you have to deal with tenants that potentially may default on their rent. Enter my next tip.

Here is how you can make sure you get your rent on time each month. Put into the rental contract that monthly rent is to be automatically deducted from the renter’s savings or checking account. Or, even better, if your tenant works for a company that will allow it, set them up on payroll deduction/direct deposit for their monthly rent.

Now, you can immediately know if there will be a problem before the two weeks the bank takes to let you know that a check has bounced. Therefore, you can minimize your potential damages by starting the eviction process earlier.

Sure, some renters will freak at this. Well, then there’s a problem, and you shouldn’t be renting to them. But okay, beggars can’t be choosers in this economy right? Some milder things you can do is to send them deposit slips and prepaid envelopes.

Well, I hope you were able to take something away with you guys today. See you in seven (or less!). Get Rich, and stay rich, people!

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Hi guys! Today I will be sharing how I utilize web directories to get richer. For those of you new to the Internet era, a web directory is a directory on the World Wide Web that specializes in linking to other web sites and categorizing those links.

To explain further, a web directory is not a search engine, and does not display lists of web pages based on keywords; instead, it lists web sites by category and subcategory. The categorization is usually based on the whole web site rather than one page or a set of keywords, and sites are often limited to inclusion in only a few categories. Web directories often allow site owners to directly submit their site for inclusion, and have editors review submissions for fitness.

And there, folks, is the key. It doesn’t matter what field you do business in. All businesses require customers, whether returning or new. To retain your old customers and make sure that they are repeat ones, well, that I would have to leave to you. You had better do a damn good job. If not, then you should really be looking at doing something else. Anyhow, any and all businesses would love to attract new customers. The simplest way to do that? Well, get your name out there, of course! Able to include your contact information? Even better!

Now, most web directories are very general in scope and list websites across a wide range of categories, regions and languages. But there are also some niche directories which focus on restricted regions, single languages, or specialist sectors. And these are the ones you want to look at and submit your website or contact information to.

Examples of well known, general, web directories include the Yahoo! Directory, Business dot Com, and the Open Directory Project (ODP). ODP is significant due to its extensive categorization and large number of listings and its free availability for use by other directories and search engines.

One of the best ways I have used a business web directory is to simply just submit my business name, website, and contact information. For example, as a Realtor, I constantly have new listings that I purchase a URL solely dedicated to the property address. This drives traffic directly to the listing site, and the more people look, the more chances I have of making a sale.

So, what are you waiting for? People are not going to just find out about you just by accident! Get your information out there! Find a web directory specializing in your field, and post up!

Alright guys, see you in seven (or less!) for more tips on how to get rich and stay rich.

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Copyright (c) 2010 Scott Bywater
Copywriting That SELLS
http://www.copywritingthatsells.com.au/

The internet is very sexy at the moment.

——————————————————————
Scott Bywater is a direct mail copywriter and the author of
Cash-Flow Advertising. To get access to his highly prized
complimentary copy of ’7 Ways To Get More Customers” (valued at
$29.95) and to join his controversial and insighful “Copywriting
Selling Secrets” newsletter where you’ll uncover the truth about
why most ads and sales letters don’t work (and how to make yours
stand out from the rest) head on over to his web site at
http://www.copywritingthatsells.com.au/

See you guys in seven!

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Hi guys! Here is an interesting article I found written by Jesse Self. I found that this was applicable to me since I am a Realtor, but I believe it can be utilized by many of you out there in different fields.

Copyright (c) 2010 Jesse Self
Marketing With Jesse
http://www.marketingwithjesse.com/

Educate them about what, you may be thinking. Well, consider this, many businesses focus solely on attracting new customers, but you NEED to spend a good chunk of your time retaining current and former customers. These are people you already know to be a good sales potential… they’ve already bought from you!

——————————————————————
If you haven’t already taken us up on it, Jesse Self is offering, for a limited time only, a F.R.E.E test drive at http://www.marketingwithjesse.com/ – the site is your one stop shop, all under-one-roof, source of genuinely tested, proven-yet -original, ground-breaking, even radical “insider” roadmaps for turning ordinary businesses into extra-ordinary businesses. We offer 30 hours of high-end video and audio, plus countless resources at: http://www.marketingwithjesse.com/

See you guys in seven! Now go out there and get rich!

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Hi guys. I know many of you have been feeling the pressure in our downward facing economy. Business is slow to almost non existent, and new ventures just don’t seem to be working. It feels like you are working twice as hard to get less returns lately.

Never fear, I found an article written by Scott Bywater that may give you a little pick-me-up. Yes, it is tennis related, beacuse, yes, I was a tennis player. And yes, Mr. Bywater does try to push some service, but pay attention to his lesson. Enjoy!

Copyright (c) 2010 Scott Bywater
Copywriting That SELLS
http://www.copywritingthatsells.com.au/

Yesterday, I just lounged around… hanging out with my little boy most of the day. Having breakfast, playing with leggo, pulling “The Bear With the Big Blue House” out of the cupboard and watching that.

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Scott Bywater is an advertising copywriting expert and the author of Cash-Flow Advertising. To gain access to all of his copywriting tips on how to get more customers via his eye opening “Copywriting Selling Secrets” newsletter, simply head on over to his web site at http://www.copywritingthatsells.com.au/

See you guys in seven!

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Hi guys. It’s that time of year for me again. It’s time for all of us, actually, to check our credit reports. In a dumpy economy, our credit scores are more important than ever. Remember, I always get a free credit report every four months. A free one is allowed every year by the top three credit bureaus, so if you plan it right, you can get one free every four months.

Here are things to focus on this quarter. Keep your average credit limit for your major credit cards, such as Discover, American Express, VISA, or MasterCard, high. This tells lenders that you have enough financial experience, and they will be more likely to see you as a good credit risk. The trend for banks nowadays is to continue to cut your available credit whenever possible. Don’t allow this. Call and argue your way to the top. More often then not, they will keep you at your current limit to keep you as a customer.

Contrary to what many say, you have to have at least two or more open major credit cards, such as Discover, American Express, VISA, or MasterCard, on your credit report. This shows lenders that you are a responsible borrower and they may be more likely to see you as a good credit risk and extend you credit. But keep in mind, that these better be in good standing.

Most importantly these days, make sure your credit file shows no record of any current delinquencies on real estate accounts, such as a mortgage. Having real estate accounts in good standing is viewed positively by lenders.

In addition, make sure your credit report does not contain negative public records, such as a bankruptcy, lien, lawsuit or judgment filed within the last two years. This will have a positive impact on your credit score. Public record items may remain on your credit report for 7 to 15 years, depending on the item.

If you have any questions after reviewing your credit report this quarter, feel free to drop me a comment. I am, by no means, and attorney or qualified to give legal advice, but I am always open to giving my opinion.

Stay tuned and see you in seven! Happy savings!

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Hey guys! Back in seven as promised! In today’s tight economy, who doesn’t want to free up some cash? Trim the fat but not the fun from your budget.

Here’s how to slash your grocery bill.

Only shop once a week. The more trips you make to the store, the more likely you are to buy on impulse when you see tempting items. About two-thirds of purchases are unplanned; cut that in half to save around $143 a month (if you spend $100 a week on groceries).

Give up the bottle. Stop drinking bottled water and instead buy a filter for your faucet (about $34, plus $25 for replacements). If your family consumes 12 gallons a month, you’ll save about $15. Not too shabby right?

Eat what’s ripe. Out-of-season produce costs 20% to 50% more than it does when it’s in season. Estimated savings: $7 a month.

Ditch your second (or third) car (Eeks! That’s my department…)

Sure, she turns heads, but that 2009 Aston Martin DBS is an expensive mistress. An oil change can put you in the hospital. If something goes wrong, it can downright kill you! Can’t do without two cars? Trade one in for a new (shudder)Camry and save close to $221 a month.

Visit your local cobbler

Last year’s Cole Haans are so … in this year. Rather than shell out $150 or more each season to buy a new pair of good shoes, clean up last year’s kicks. Your local shoe-repair shop will charge about $10 to fix worn-out heel tips for women. Men can get another year or more out of their dress shoes by replacing the rubber heel and the sole. Cost: about $50. If the lady of the house buys four pairs of shoes a year, and the man buys one (at $150 each), you’d save more than $50 a month.

Twitter to Save
Get timely if terse tips about bargains by following these twitterers. Not up on the technology? Get a tutorial at twitter.com.

Music: @amazonmp3
Travel: @JetBlueCheeps
Fashion/beauty: @DealDivine
General retail: @DealsPlus
Giveaways: @fstimes

Time your buys

Don’t get gouged, buy that air conditioner in January, not July, and get it for nearly half the price. You can save 25% to 40% or more if you know when to buy these goods.

Stretch it out

Look like a million bucks without spending a million by slowing down your personal care regimen. Sounds gross? Please, in this economy, read ahead. Trust me.

Go easy on the dry cleaning. Cut the number of trips you make in half: 65% of clothes that are dry cleaned can be washed by hand or machine. For example, you can put linens in the washer and do most sweaters in cold water by hand (including cashmere and camel hair). Most silks are hand washable too. Exception: bold colors like brick red, deep brown, and navy should still be dry-cleaned.

Do home touch-ups. Add at least two weeks to the time between hair coloring appointments ($100 or so a pop) by using over-the-counter products (about $10) from the drugstore to cover up your roots. Or, damn it, quit coloring your hair! What’s wrong with a little salt and pepper? It’s distinguished.

Get to work cheaper

A suburban driver commuting to the city might shell out $575 a month for gas, parking, and car upkeep, assuming a 30-mile round-trip. These downshifts can help:

Grab a tax break. Sign up for your company’s transportation reimbursement account, which lets you pay up to $230 in monthly parking fees with pretax dollars. (You can set aside the same amount for mass-transit costs.) Savings: about $80 a month.

Drive with a buddy. Carpool to work with a colleague. Soak in some office gossip. Or not.

Go from four wheels to two. Buy a good commuter bicycle ($500) and cycle to work as the weather permits. Try Craigslist for great second hand bikes for even more savings! Do that six months a year and you’ll save $250 a month.

Stepping off the gas

You don’t have to buy a Prius (thank god), trade in your clunker or ride the bus to cut down on the money you spend for gas each month. Just make a few adjustments to your driving habits:

Drive sensibly. Aggressive driving on the highway, speeding, rapid acceleration and braking, can lower your mileage by 33%. Hear that, Speedracer?

Observe the speed limit. Gas mileage decreases rapidly above 60 miles per hour. Reining in your speed will save you up to 23%.

Keep tires inflated properly. Check your owner’s manual to list your vehicle’s proper tire pressure, buy a good dial-type pressure gauge ($8), and check your tires once a week. Keeping them properly inflated can improve your mileage by about 3%.

Empty the trunk. Don’t carry around unnecessary items, especially in small cars. An extra 100 pounds in your vehicle could reduce your miles-per-gallon by up to 2%.

Buy ink not cartridges

Instead of buying new black and color ink cartridges when your computer printer runs low, just get them refilled at your local drug store or shopping mall. After all, you don’t buy a new car every time you get low on gas, do you? I wish!

Be loyal to your brands selectively

Save your brand loyalty for where it counts, a Chanel bag or a Brooks Brothers jacket. After all, when you’re battling Rafael Nadal in Grand Slam Tennis on your Wii, who cares what batteries are powering your remote? If there’s no innovation happening with the product, the private label can be just as good, or better.

We estimate you can save up to $15 a month by going with the store-brand or little-known brand for batteries and these other products: pain relievers, canned fruits & vegetables, pantry staples and basic beauty products.

Work out for less

Sweat on your high-end health club’s StairMaster, and unwind at the martini bar.

Better: $50-$90. Work out at the YMCA. There are nearly 3,000 locations throughout the nation.

Best: $0. Free online boot camp whips you into shape at www.marinecorpsfitness.com.

College expenses

Tuition is the largest single bill you’ll pay for Junior to get a degree from Bleed You Dry U. But other costs add up fast. Slash these three:

Books: Nix Brief Principles of Macroeconomics from the college bookstore ($146); rent it from Chegg.com or CampusBookRentals.com, which carries the intro econ text for $68 a semester.

Meals: Go for a seven- or 14- meal plan, not a full one. Your kid will be up late partying, er, studying, and skipping breakfast a few days a week. And no one eats in the cafeteria on Saturday night.

Travel: For trips home, buy a Student Advantage discount card ($20) to save 15% on train and bus fares, 10% off selected flights.

Hope this helped! See you in seven!

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Hey guys, sorry it’s been a while since I updated. It seems that the sagging global economy has even affected the best of us. If we’re not scrambling to make ends meet these days, we are pissed at some random person for some random act, that we would never have given a second thought in a better economy. The downward spiral is getting out of control, and it has even affected our physical health. We need to take back control people. And the first step is identifying the problems. So, what every day activities may be threatening your financial health? Here are seven:

1. Using a debit card without writing down the transactions in your account register.

Debit cards are expected to account for 60 percent of transactions this year, but debit-card users tend to lose track of their money: Swiping plastic triggers 44 percent of overdraft fees, while paper checks account for just 27 percent.

Why write down debit spending? Because swiping a card doesn’t feel the same as laying out cash. The discipline of recording the transaction may reduce mindless spending and makes money easier to track. Simplify your money trail by using online bill pay for all your regular monthly bills, rather than having money withdrawn from your account by outside companies. Then take 30 seconds a day to log on to your account, add the pending transactions in bill pay to the outstanding checks and debits listed in your register that haven’t cleared yet. Subtract from the current balance. If the result is nearing zero, add money to the account. Voila! No overdrafts, no fees.

Sounds simple, but it’s more difficult than you think. Start small. Baby steps. Once you see what a dramatic difference it makes, you’ll want to apply this sort of order to every aspect of your life.

2. Tossing out the “junk mail” from your credit card company.

The Credit Card Holders Bill of Rights Act goes into full effect in February. Ahead of that deadline, companies are changing the terms of customer agreements. For example, the new law prohibits raising the interest rate on existing balances unless a customer pays more than 60 days late. To skirt that provision, firms are notifying customers that their cards are now “variable rate.” (Translation: We can jack up your rate whenever we please.)

So watch those benign notices, and be ready to call and demand a fixed-rate card or take your business elsewhere. Amid these tactics, a new bill calls for moving up the deadline on the credit card law to December 1st.

I just got one from Bank of America. The basic “rock and a hard place” ultimatum they gave me was, cancel my card and stay with the 9.9% APR until pay off, or keep my $10,000.00 limit and get raped (excuse my French) for 29.99% every month. My solution? After I gave them the finger, I transferred the amount to another card. Always keep a few open folks.

3. Ignoring new bank charges.

You may have noticed banks are a bit desperate these days to make a buck. One of the more recent innovations is dinging customers who make electronic transfers to an external account.

For example, last year, Wachovia started charging customers $3 per transfer to an outside bank. Let’s say you automatically stash $100 a week into a savings account at an online bank offering 1.8 percent interest (the current top rate). Smart move. Except Wachovia will now ding you for 3 percent of that weekly deposit. Annual cost? $156.

Meanwhile, Wachovia doesn’t offer any savings accounts that compete with a 1.8 percent rate. The solution? Find a local bank or credit union with no transfer fees, so you’re free to access higher returns.

4. Investing time in the wrong things.

Maybe you’re someone who will drive 20 minutes to a store on your lunch hour to get $5 off a $20 sweater. Or you’ll spend 45 minutes on the phone protesting a $3 error on the cable bill. It’s just not worth it sometimes. But, it’s still money you argue.

Well, let me tell you what is worth your time. Joining the 401(k) plan at your company. Don’t just leave your contribution languishing in a money-market account.

Make a weekly to-do list of your financial decisions (savings and spending) and then prioritize them in terms of bang-for-the-buck over time. When you do the math, you’ll see why paying off credit cards in full and contributing to a retirement plan that offers a match should be at the top of the list.

5. Spending with no goals to guide you.

One definition of insanity, attributed to Albert Einstein, is doing the same thing over and over again and expecting different results. Yet that’s how some people approach their finances. They earn and spend and earn and spend, and wonder why they aren’t making any progress.

Break the mindless cycle by figuring out what you value most, whether it’s world travel, returning to school to change careers, home ownership, a peaceful retirement or a debt-free college education for the kids. Then set specific goals, with real time frames, and track your advancement on a monthly basis. Make this a daily discipline by putting a list of those goals in your face: the fridge, your desk at work, your wallet.

Remember what I said about those monthly meetings with your significant other? This is what I was talking about. Or, just set up a day each month and sit with yourself to go over these things. It will pay off. I promise.

6. Failing to track spending.

You can’t succeed at No. 5 if you don’t know precisely where your money is going. When I first started working, I carried a pencil and paper around and wrote everything down. Today, there are numerous desktop software applications and Web sites that will aggregate your finances and track your spending and savings. If you own a smart phone try Mint.com.

You can pay upfront for software. Choose an online program that’s free, but supported by sponsored ads and offers you’ll see when you log in (and the service may sell your data). Or you can pay a monthly fee for a site with no outside ads or offers.

7. Failing to exercise.

How can this hurt your finances? Daily physical activity lowers the risk of a multitude of ailments, from heart disease to diabetes to certain kinds of cancer, which are obviously expensive to treat, even for people who have health insurance.

A study has found medical bills are behind 60 percent of U.S. bankruptcies, and more than 75 percent of bankrupt families had health insurance at the onset of the illness.

Meanwhile, a regular work-out might even get you a raise. Studies have found exercise can improve your performance at work by boosting cognitive skills and productivity, and reducing stress and absenteeism. And, the most important factor, you’ll just feel better!

Thanks for staying with me guys. See you in seven (promise!).

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After installation, they claim to save you 4% on your water bill. I was only able to receive one set per household unit, but I’m sure you can keep going back for more. Check it out!

It is best to install these first on your rental properties as tenants are much less likely to help you save water, especially if their utility costs are included in their monthly rent.

See you in seven!

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Hello again folks! Now, I know what most of you are thinking right now, after reading the title to this post: Are you kidding me?!? And with good reason too, I might add.

For those of you not familiar with Oakland, California, please check out their Wikipedia profile here. For the rest, let me first clarify. When I said hot, I never meant it in a positive way.

Anyways, it immediately caught my eye, when Oakland 94606 was named one of the top 10 “hottest” real-estate markets in the country, in Zip Realty’s second-quarter Home Hunter Report.

Zip Realty is an online real-estate company that went public in 2004. It turns out, that the reason they bestowed the “hottest” honor on this particular Oakland area, was based on the number of offers on homes that were higher than their lists prices. The reality is that these days, this is principally happening when bargain-basement foreclosures prompt bidding wars between buyers.

So, is this something to get excited about? Nah, not so much. It just goes to show that the media can put a positive spin on just about anything to raise public moral. The truth? The economy is just as crappy as it was six months ago, and the rich are just getting richer. Oakland residents are unable to pay for their houses, so they are losing them to foreclosure at high rates. Then, the rich scoop them up at bargain prices, and rent them back to the residents!

Nice scam, eh? That’s business! Keep it here folks. Be back in seven.

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