So it finally happened. Someone out there stole my credit card number and bought a bunch of phone card charges with it. Funny thing is, I never lost my card. It was still in my wallet!

So people, beware of identity theft: protect yourself. Now more than ever in this economy. My deduction is that when I gave the waiter at a restaurant my card to pay for the meal, the number was swiped. I did some research and found out that international phone cards do not need more than a credit card number to re-charge. The culprit then takes these fresh cards and sells them for less than face value. Viola! Instant 100% profit for the scumbag.

As you may have already seen, in the recent months, there have been different scams and frauds in the news, as well as some credit and debit cards being compromised from a certain processor.

I would like to share a few effective ways on how you can keep your accounts safe:

- Check your account statements for fraudulent activity every month. If you see any suspicious charges, notify your financial institution immediately.

- Sign up for Online Banking to keep track of your transactions in real-time.

- Do not call unknown phone numbers or visit suspicious web addresses.

- Do not give out account numbers or other personal financial information, unless you initiate contact.

- Shred personal and financial information before recycling.

- Ignore any correspondence with urgent requests for personal financial information. Many scammers will include upsetting or exciting messages to get people to react immediately.

- Review your credit report annually (or tri-annually, like I taught you). Visit Annual Credit Report dot Com.

- Use cash for smaller transactions.

Luckily, I called my bank in time and reported the incident. All is safe. See you in seven-ish!

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Hi guys! I was trolling on the internet the other day and came across this article that I found would be of interest you readers. It is called, “How Do I Negotiate in Real Estate.” Now, I do not agree with everything in the article but I do think that it is a good read for anyone who is thinking about any major purchases in the near future.

The article hit upon topics like, Should I Rely on the Agent? It warns that a Realtor, though charged with a fiduciary duty, may not always be on your side. his may be true. Remember, the agent gets nothing if the deal doesn’t close. The seller will always want more and the buyer will always want to pay less. So, think about this next time you work with an agent.

Another section I found interesting was, Are You Your Own Worst Enemy? Many people are so scared of getting ripped off that they will be so intent on not acting like a fool, they do not notice the most obvious pitfalls. Others do not want to seem incompetant and will act like such a know-it-all that it puts sellers and seller agents off.

Further down the article, you will find discussions on how to negotiate successfully, how much to offer, and whether or not to lowball. All in all, not a bad way to spend ten minutes on reading. You are, after all, improving yourself.

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Hi guys! I am sure you have all heard by now that Uncle Sam has issued check after to check to keep Wall Street bankers afloat. And you, as American taxpayers, who were picking up the tab, are growing increasingly resentful of paying for others’ mistakes.

And I am sure when President Barack Obama announced a $75 billion plan to lower monthly mortgage payments for up to four million distressed homeowners in mid-February, your frustration turned into rage. But the Obama administration has pitched its housing fix as one that would help all homeowners, not just troubled ones. So after fresh details of the plan were released last Wednesday, I am sure you are asking: “I’m a responsible homeowner; what’s in it for me?”

Do you qualify for Obama’s housing plan? Well, the $75 billion goes toward reducing mortgage payments for “at-risk” homeowners. The program is only available for owner-occupied, principal residences with mortgages that originated before January 1, 2009. To qualify, the borrower’s monthly mortgage payments must exceed 31 percent of their gross monthly income. In addition, they must also have undergone some type of financial hardship (such as a loss of income) that puts them at risk of default. While you don’t need to be delinquent on your mortgage to qualify, borrowers who are comfortably making their mortgage payments won’t be eligible.

So if you don’t qualify, how does it help you? Many Americans who purchased homes they could reasonably afford and made their payments on time are understandably upset at seeing neighbors who made reckless decisions bailed out on their dime. But the Obama administration argues that keeping people in their homes is in the best interest of all homeowners, since foreclosures (which can blight communities and nurture crime) will drive down property values for everyone. “One study in Chicago found that a foreclosed home reduces the price of nearby homes by as much as 9 percent,” the president recently said.

Remember, if I was to sell your house, the first thing I’m going to do is to figure out a listing price. Of course I will look at comparable homes in your neighborhood. And if you’ve got all these depressed property values, that is going to definitely harm the sales value of your home. As such, if Obama’s housing plan succeeds in reducing foreclosures for troubled borrowers, it may help to bolster the values of other homes as well.

So, what incentive do you have to keep paying your mortgage? A home foreclosure is an ugly stain on a credit report, and it can remain there for as long as seven years. To be honest, you mind as well declare bankruptcy. With banks tightening their lending standards in the face of higher delinquencies, it’s a particularly bad time to ruin your credit. If you have a home foreclosure on your credit report, you’re likely to have a difficult time getting any type of new credit these days: from a credit card to a new mortgage.

But what if you are not in trouble now, how can you protect yourself from the threat of foreclosure? Factors that can lead to foreclosure include unemployment, exploding-rate mortgages, and reckless spending. Although homeowners may have less control over their employment situation, by addressing these other factors, they can put themselves in a better position to avoid foreclosure should they suffer job loss.

I believe that as homeowners, you should make sure that you have sufficient savings set aside to pay your mortgage in the event of the unexpected. Fallback savings is critical. At least have three months of your mortgage payments saved. And of course, make sure that savings is making you money by putting it in a high yield savings account (or something comparable). In setting aside such savings, families should institute a household budget and review their online bank statements regularly to ensure they aren’t spending wastefully.

For those of you with adjustable-rate mortgages, see if you are eligible to refinance into a fixed-rate home loan, while those of you who already have fixed-rate loans should see if you can refinance into a lower rate. In doing so, consumers should first obtain their credit report and see if their mortgage is owned or guaranteed by Fannie Mae or Freddie Mac. Those with Fannie or Freddie loans may be eligible to refinance into a lower rate through a second component of Obama’s housing plan.

Is there a silver lining in this mess? It’s nearly impossible to spot any sort of silver lining in the current housing mess. But if there’s anything good to come out of this, it’s the hope that homeowners, lenders, regulators, and policymakers will learn from their mistakes and ensure that mortgages going forward will be properly underwritten and affordable. By overlooking the lessons of the crisis, we risk going through this devastating cycle again in the future.

Okay guys, see you in seven.

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Hello readers! I just finished a book called The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach. While I do not agree with every idea in his book, I do want to share with you his main point, the juice of his book, or essence if you will. The biggest secret to building financial security and wealth is automating your savings. And once you know how, you too can get rich automatically.

Step One: Put a minimum of 10% of your income into a 401k or similar retirement fund every month straight from your account. Better yet, put in the maximum amount your employer will match. Increase your contribution to 20% of your income when you can. Invest this money in portfolios that are appropriate to your age and risk tolerance. The key is to set up an automatic transfer. After a while, you won’t notice that the 10% is gone and you will make due without it!

Step Two: If you have any credit card debt or other consumer debt, put 20% of your income toward paying the balances down to zero. Do not use the cards until that is done. Give yourself a cash allowance each month for necessary expenses. When the cash is gone, stop spending. If you do not have any credit card debt, bravo! You are well ahead of the curve. In that case, invest more!

Step Three: Pay off your full credit card balance every month. Do not skip a month for any reason. This will be difficult for most Americans, just because we are a nation built on debt (LOL!). In that case, refer to Step Two first. The goal is to carry no consumer debt beyond your house and cars (if you must). Work towards the day when you are debt free. Pay off consumer debt first and then pay extra on your mortgage. Even $100 a month extra can save you tens of thousands of dollars in interest on a typical mortgage.

Step Four: Put money aside automatically with automatic fund transfers by your bank for major expenses such as taxes, insurance, vacations, wish list items, college, etc. A good budget will let you know how much you’ll need. Remember, my advice on setting aside one day out of the month to go over finances? Do it!

Step Five: Live on the difference. You will know you are doing okay if you can pay off your credit card balance every month and you have cash left in your pocket and checking account. On the flip side, you will know there’s a problem when you can’t pay off a credit card balance right away or your bank balance starts dropping instead of going up. Those are your signals to adjust your budget, your spending and your savings. Monitor your money. Get rich.

While not everything here comes from David Bach’s book, all of it was inspired by it. I’ve have found that the most commonly used method among rich people is the automatic deduction and automatic savings. As I mention earlier, “After a while, we just didn’t miss it,” is the common saying.

Take care guys, and see you in seven!

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Most of us flush the toilet, or wash the dishes and laundry, and never think about where the water goes after it leaves our sight. Am I right? Well, why should we care anyways? Here is why we should all care:

All the pipes in your wastewater from toilets, sinks, dishwashers and washing machines come together into a single pipe, called a lateral, that runs from your house to a larger pipe, called a sewer main, under the street.

Most homes have a cleanout, a pipe that connects your sewer line to the surface of the ground, that helps prevent overflows inside homes.

The lateral is divided into two segments. The upper private segment extends from the house to the cleanout at the curb, also called a District cleanout, and the lower public segment extends from there to the sewer main.

As a homeowner, you are responsible for maintaining the upper lateral. Depending where you are in the country, your local sanitation department maintains the lower laterals. If there is no district cleanout, the homeowner is responsible for the lateral from the home to the sewer main.

In many areas, homes still have their original sewer lateral connection. The pipes are old, often made of clay with cement mortar joints. Over time, some have cracked or have separated joints, and sometimes the pipes have shifted out of place. These defects allow tree roots to grow into the pipes, which cause blockages.

Other causes of blockages include cooking oil and grease, the wrong things being put down the drain, and more. When pipes re blocked, overflows occur.

If you have a cleanout on your property, and a blockage occurs in your lateral, the overflow will occur outside your home. This may cause damage to your yard, your neighbor’s property, and, if the overflow reaches the storm drain, may harm the Bay.

If you don’t have a cleanout and a blockage occurs, wastewater will back up into your house causing potential health and property problems.

If you have an overflow or stoppage, call your district’s sanitation department first. They will evaluate the problem. If it is District related, they will fix it. If the problem is in the upper lateral, you will probably be advised to call a plumber.

Two Important Notes:

If you do not address the problem, there are risks involved/ You may be subject to fines for allowing wastewater to harm the environment through the storm drain, or you may be open to litigation from your neighbors for property damage.

Fortunately, there’s a good solution. Your local District may have what is called an Upper Lateral Program that can reimburse part of the cost of upper lateral replacement or cleanout installation. You must apply for reimbursement before you do the work-you can not bring in your receipts to the District afterwards for reimbursement.

Remember, keeping your upper lateral in good shape is better for the environment, and may save you thousands of dollars.

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