Photo Credit:  Picapp

Could things be more grim? You’ve had to take on some over-time work, if it’s offered, or maybe even a second job, if one can be found at all, to be able to pay your debts. Your Cd’s are earning about .03% , if that, and your 401K is no longer OK, and in fact it has lost all of its gains and then some.

Costs for food, fuel and fun are astronomical and continue to climb. Your mortgage is due and your pockets contain only some spare change. Your insurance premiums are rising along with your stressed out blood pressure. The government is printing money faster than the growth of ‘output’, which in effect devalues every penny. The term “hyper-inflation” is about to replace other over-used words that end in “ION” such as recession, depression and inflation.

All of these products of a bad economy lead you into having a rather shaky mind-set which imagines the onset of more catastrophes in the future. What good can be decried then, in support of any positive aftermath of this crumbling economy?

How can there be rainbows in an atmosphere in which rain drops continue to fall endlessly on your head? Well, psychologists and sociologists happen to have studied human behavior in times of adversity such as the ones we are experiencing today, and their results are awe inspiring. What they have found to be true is that the human psyche, when threatened by strong negative forces which are beyond its control, has a greater tendency to reinvent itself and become stronger, more vigorous, creative, healthier, and even more inventive and courageous during these events.

For instance, consider these 6 Good Things that happen in a floundering and Bad Economy:

1. Necessity stimulates invention. People make huge changes in their lives when they face job loss, or foreclosure, by re-training for new careers, cutting back on expenses, learning skills that will prepare them for future industry and market needs. Others start their own businesses, many of which are online and they can work from anywhere. Adversity stimulates the creativity needed to find new sources of income, and less expensive ways and places to live. Some families move in with extended family members or friends and begin to re-establish not only credit scores and bank accounts, but family ties and quality of living.

2. If you’ve managed to keep your job, you begin to destress and have a new found regard for the work you do, and your employer. You find yourself doing everything you can to make your worth felt by your boss and the company, in an effort to show that you’re committed to their success as well as your own. Your work ethics become stronger, and this can be mood enhancing, because you feel the blessing of being employed, and are able to feed your family, and pay your bills. What you once did routinely, takes on new value for you.

3. What you do for recreation may not be the “high-end” trip to Cabo San Lucas or nights out at fancy five star restaurants with your peers, or partner; but you now delight in reigning in the splurging behavior, to spend quality time with significant people in your life, perhaps at home or in peaceful, friendly, cost-effective environs.

4. Cutting back on your food bills by avoiding fast food restaurants, using coupons to stretch every dollar, cooking at home, and reducing your consumption of junk and processed foods, and rich and expensive desserts, forces you to eat more wisely and nutritiously. With conscientious shopping, you get more bang for your buck and your health improves when you cut calories and eat more fruits, vegetables, chicken and fish and soy products. Cooking and eating at home also have a positive effect on the quality of your family time spent together.

5. In an effort to save money and cut back on transportation costs, many people are walking, biking and car-pooling with friends and neighbors or co-workers. The exercise improves your health and the reduction in burned fossil fuels is good for the planet.

6. Going Green in an effort to squeeze the value out of every penny you do have, builds your confidence because you are taking control in an out-of-control economy. Dialing down the heat or up for the air conditioning, unplugging appliances that are not in use, cutting back on lawn watering and water conservation within your household, turning off lights in unoccupied spaces, and reusing or recycling wherever possible, will put your money to work for you while reducing your carbon footprint.

If you take the adversity which you are faced with and make it an opportunity to reinvent yourself with only great results in mind; rather than focusing on what has been lost, then there is a 98% chance that you will receive great benefit from the present “hyper-flationary” situation which you find yourself in right now.

Love, courage, self-confidence, education, faith, family, friendship,and health are all priceless possessions which belong to YOU, no matter what Wall Street or Washington D.C., or even the global economies are doing. There are many blessings and good things surrounding you, if only you make the time to take stock of your life, right now. It costs you nothing to count your blessings and be embraced by them. Adversity can be the seed for rebuilding and it definitely can lead to greater benefit.

Photo Credit:  Treehugger

Need a better credit score in this chaotic and beleaguer economy? There is no “quick fix” for anyone. If you think that by reducing the number of credit card accounts you have “open”, you’ll instantly get into those illusive upper 700’s, the truth is that your score may actually decrease if you remove this source of proof that you are a good money-manager.

Perhaps you’ve decided that it’s time to be a money saver, and use very little if any credit. Although this is a wise idea, and we need to become a country of money savers, again; not using your credit cards will not improve your FICO score.

There are ways to improve your score:

1. Begin by getting your current credit score information. It may be obtained from Experian, Trans Union, Equifax or other reliable sources. If you do use Experian, remember that their version of this score is calculated by lower numbers.. representing a higher score (1-50’s is excellent). With Trans Union and Equifax, you will want 760’s and up, because if you’re looking for a good mortgage rate or even lower insurance premiums, you must be in the 760- and up range. The unattainable numbers these days are, of course, the 800’s.

2. Spend your money wisely. Creating a strong credit history is essential to gaining the lowest interest rates when you want or need to borrow money. To have a strong history you must pay off your debt, and credit card debt is looked at as a key indicator of your ability to manage money. Never use up or reach your maximum credit limit. In fact, stay as far from your limit as you possibly can. Today, people must begin to save, and live within their means. The less debt anyone has, the better their credit score will be.

3. Don’t miss a payment. Even if you can only afford to pay the minimum required amount and it will be eaten up by interest owed, pay and do not be delinquent, or your score will instantly fall at least 50-100 points. It can take a long time to repair and rebuild your score if you have fallen behind in your payments.

4. If you are considering borrowing money to purchase a new car, or if you want to apply for a mortgage in the near future, don’t open more charge accounts. This is a “red flag” to lenders that you have the intention to assign yourself with greater debt.

5. Do all that you can to keep your amount of money owed to less than 10% of the credit limit on any of your credit cards. Also, make wise choices about how and where you shop and use credit to pay for consumer goods. If you use your credit card to pay for groceries, you can lose between 20-30 points. Lenders would like to see that you allocate cash funds for these kinds of expenses. This is another key indicator of your money management skills.

It’s a good idea to sign up for e-mail alerts that remind you to track your payments and be aware of the due dates for monthly payments. If for some reason your interest rate is increased on your credit card, transfer the balance to a card with lower monthly payments and hopefully no transfer fees. This way more of your hard earned funds will be applied to the principle amount you owe, and your debt will be reduced in a much more timely manner.

The ability to boost your credit score can be yours if you: pay your bills promptly upon receipt, insuring that they will arrive well before the due date, stay in control of your debt and never run your charge accounts up anywhere near the limit, pay off debt as promptly as possible, and sign up to get your free credit reports several times a year and then review and correct any problems or inaccuracies.

Being a good money manager, and having a solid credit history and excellent credit score can help you to stretch your dollars, and get the best interest rates when or if you do have to borrow from a lender. Take the time to think through each purchase, and what effect, if any, it will have on your all-important FICO Score.

Photo Credit:  ehowmoney

“Ouch” and “Oh Boy”, there goes the retirement funds you’ve worked so hard to save.  You put your blood, sweat, and your tears, into saving that money, and now greed, corruption and inefficient governmental monitoring have brought us to the worst stock market decline in history, not to mention a very beleaguered economy.

It does no good to reflect on the hours you put into deciding where, with whom and for “how long”, those hard earned bucks should be placed in order for them to grow incrementally, over time, to be available  for meeting  your future needs.   Now, you’ve faced  substantial loses, many of which were unforeseen, and not of your own making.  It’s time to make a new plan.

How do you get back the 20-30% of your investment dollars that are gone, gone, gone?  It is very hard, if not impossible to know when the economy will recover.   Some financial planners speculate that we are mid-way into a cycle that will continue for another 5-8 years.  It’s fairly obvious that any kind of recovery would take at least 3-5 years.  Keeping these assumptions in mind, you’ve already:

a. cut or paid off credit card debt
b. shelved plans for trips and vacations
c. decided to stay in the work force longer
d. worked out a budget that is so tight, it squeaks
e. stopped buying anything but necessities

Financial planners are telling investors that now is no time to bail out on their stock holdings.  They cannot know when the market will rebound, but it could be a very long time; and the way that the market has plunged was more than your poor knotted stomach could tolerate.  Do you pray harder and keep some stocks, but also diversify and buy bonds?  Are fixed-income investments safe?  Do financial planners really know how to help anyone at this point?

Planning ahead is the only way to have some peace of mind and feel at least, that you have a modicum of control over your own money and its place in your future.   What you do will, of course, depend on whether you have many years to work, are about to retire, or are already retired and using your savings to support your life style.

Here is a place to start:

1. Do everything you can to build up a cash reserve that could support you for 1-2 years, or longer.
2. If possible, plan to place your income tax refund checks into your cash reserves and don’t spend them.
3. Reduce your Federal Tax Withholding and spend those extra dollars to pay off debts now.
4. Continue to track your spending habits, month to month to keep tight control and reduce expense.
5. If you want to stay in the market, re-balance your portfolio to include more long term bonds.
6. Plan to work more years, pushing back retirement, and wait longer to start collecting Social Security.
7. Don’t borrow money if you can possibly avoid it.  PAY CASH.
8. Shop for a solvent solid bank and make sure it offers FDIC on CD’s, savings accounts, and Money Market Certificates up to $250,000.  Watch that your deposits  do not exceed that amount .
9. Pay down your mortgage, even just $100 more a month will give you large long term savings.
10. Put some funds into Bank CD’s that can earn 3-3.75% for 6 months or one year.

There is no way to predict the  timely strengthening of our economy in this country, or the global market place, any time soon.  Working hard, saving cash, paying cash, giving up the option to have credit card debt, reducing leisure spending, picking banks carefully, along with CD’s and bonds; and being vigilant about your pensions, IRA’s and the amount you pay into your 401K, if you still have one; is the best way to control your finances for a future in which you will not outlive your income.

Photo Credit:  the age

No matter how hard you work, nor the simple fact that your work-week hours now average well over 80 and closer to 100 hours a week; the paycheck you get is just not stretching to cover your fixed expenses for the month.  Also, the idea of saving 10% or even less each month has become a figment of your imagination, rather than a plan based on the reality of the cost of your living expenses.  Due to fuel costs which have been unconscionable lately, and even though they are lower right now, you have no idea if this trend will last; and with the rising cost of everything else from food to energy, you must now have begun to feel like you’re sliding backwards up a slippery slope to solvency.

Try these 10 Simple Solutions for Spending Less:

1. Consolidate your indebtedness.  Cut down on the number of credit cards you have and pay off the balances as fast as you can.  If you get a good offer, transfer the balances to the lowest interest rate you can get.  Check to make sure that there are no hidden penalties associated with transferring your balances.  Don’t try to get a second mortgage to pay these debts because right now banks really aren’t lending, and it might be a waste of time and effort on your part.

2. Begin to collect all of your lose pocket change, and your family members too, and place it in a convenient container (the old pickle jar works just fine).  When it’s full, roll the coins and put these funds into savings for life’s little emergencies.

3. Buy in BULK whenever the supermarket or Big Box Stores have a good value on the things you really need.  Stocking up, just for the sake of what you think is a good deal, often isn’t.  Do the math to make sure that buying bigger is cost effective.

4. PAY CASH. Using credit and having a mind-set to always want things and buy more, is one of the ways the economy and your own budget (and mine) is failing.

5. Bring Your Own.  Stop paying premium prices for trendy coffee and pre-packaged foods.  You can make your own coffee and carry it in a thermos.  The pre-packaged foods you buy are often unhealthy and filled with additives.  They aren’t nutritious and the cost is very expensive.

6. Comparison Shop on-line before you buy anything you need that is of significant cost.  There are many sites that offer convenient comparisons for you, and some sites offer coupons which are good on-line and in the bricks-and-mortar stores.  If you must purchase something, use debit cards for safety and so that your credit cards will be idle!

7. Shop for used items.  Craigslist, yard sales, estate sales, and on-line auction houses often have great deals on tools, yard equipment, books, clothing and even furniture.

8. Use coupons, either in-store, on-line or the kinds that come with circulars in your mail.  It may take a little time to find the right coupons for your shopping needs, but the savings is worth it.  Also, buying no-name brands can be a great savings and if you make comparisons, you will often find little difference in ingredients.  You have been paying for Brand Names far too long.

9. Cut out idling time when you are waiting in your car for some reason, for any length of time, like at the bank or to pickup the children from school or activities.  Make only the necessary trips and try to drive efficiently when doing errands, in order to save fuel.

10. Check your “flow”, where does the money go:

a. Do you have too many magazine subscriptions?  All the latest news, fashion information, health advice, and much more can be found online.
b. Do you have the best cell phone or land line phone plan for your family’s usage and needs?
c. Are you insurance poor? Comparison shop your car, home owner’s and even health insurance plans for the best deals you can find.

Monitoring what you spend, whether it’s fixed monthly expenses, food and energy bills and cable, entertainment and leisure expenses or whatever.  Keep a constant vigil over credit card statements, bank statements, even the charges on your cable bill can be incorrect.  Looking for errors is a smart way to save.

Cut out unnecessary spending and there will be a bigger amount left after your pay check covers your expenses.  Having at least a small sum of funds set aside for any emergencies is a priceless gift for your own peace of mind.

Photo Credit:  lb-Main

As the days have gotten shorter, and in many places it’s so much colder, the fact that electricity and home heating fuel costs have risen by at least 6-9% or more, in recent months, is probably having a devastating effect on your already strained budget.  You don’t have to just accept this situation as one of those “things you cannot change” situations.  There is no way for the consumer to control these ever increasing prices; however, there are simple steps that you can take, right now, to decrease the amount of energy and electric you are using.

1. If you recently purchased a plasma or LCD television, did you factor in the 10% of your energy bill that these magnificent items use? Don’t leave the set on when no one’s watching,;and if you haven’t upgraded to one of these sets yet, do the research and pick one that is rated with an Energy Star label from the Federal Program for energy conservation.
2. Use your toaster oven, instead of your large oven when warming food, or cooking smaller items.  If you don’t have one, consider this: many items that you prepare in your full-size oven can be easily cooked in an energy efficient toaster oven for a fraction of the energy use.  In a toaster over, reheating food costs just a few pennies.
3. Try not to over stuff your refrigerator or freezer with food. When you have the fridge loaded with to its fullest capacity with food, the compressor works overtime to keep everything cold and maintain the settings you have put in place.  The refrigerator consumes a huge portion of your electric bill, and there goes the budget.
4. If you live in a cold climate and the temperature falls well below 30 degrees, it’s not a cost effective time to use your fireplace.  It might seem like a cozy idea and you could tell yourself that the fire will more than make up for any heat loss, but it just isn’t true.  Studies have shown that heat loss from an open flue is far greater than the amount of heat your fire creates.
5. Replace your furnace filter every 30 days.  Your furnace will work more efficiently and use less energy. If you have a washable filter, check it often, and keep it clean.  When the filter is dirty, the furnace works much harder, which can cause expensive repair bills over time, too.  Make sure you put in a programmable thermostat, for at least a 20% savings on your heating bill.
6. Don’t forget to use your ceiling fan in a “reverse” rotation  during the colder months.  You can easily install a switch that will let the fan run in a counter-clock-wise direction to force warm air down into the living spaces.
7. Dial back to under 70 degrees and wear warmer clothing.  Your energy bills will embrace this change and you will be healthier.
8. Caulk or install weather striping around windows and the door walls in your home.  It costs very little money and takes just a short time to complete these tasks and you will save at least 2 to 3% or more on your energy usage.
9. Lubricate your door hinges and locks to make sure that the door closes snugly and securely.  Any heat loss is money thrown away.
10. Unplug appliances when not in use, because they are using energy even when turned off. Toasters, computers, printers, the microwave, and other items, are wasting energy which we all need to conserve in order to not only save money, but to reduce our carbon footprint on the planet.

Taking simple steps to keep costs down and energy efficiency high is good for your already squeezed budget and the environment too.  There are devises that you can purchase at the hardware store, which detect heat loss in your home.  Make a list of these deficient areas, and one by one, work to make them air tight or better insulated.  Every appliance you replace should be upgraded to an Energy Star rating, for overall savings now and in the years to come.

Photo Credit: Parents for ethical Marketing

The holidays are so beautiful and special for you and all the extraordinary people in your life. You, naturally want to make these events as meaningful as possible, so you dedicate a large percentage of your free time to creating a magical and festive home for the celebrations to come. With all of this busy activity, it’s easy to get caught up in these events and forget that the environment pays a very heavy price while we are having fun. During the holiday season, you do a lot more shopping, which requires a lot more driving and gasoline consumption. It really can’t be avoided. Your budget and the environment can be less encumbered, if you make some wise choices right now.

The decorations, both inside and outside, require a much greater demand for electricity. Between the lights, movable angels, inflatable objects of every kind that use powered compressors to produce the volume of necessary air, lighted trees, wreaths and reindeer; your energy bill will be soaring.

Friends and family will gather from near and far to spend some quality time together and celebrate the blessings that loving relationships create. Unfortunately, more fossil fuels are used to accommodate the increased travel and shopping trips.

Since you want to be responsible about the eco-system, and need to be consistent in reducing your carbon footprint, it’s necessary to put in place a plan to have a budget and eco-friendly holiday season.

Try these tips to achieve the kind of celebration you want to create:

1. When you entertain during the holidays, encourage your guests to car pool with each other. Not only will you have a designated driver, if needed, your guests will be happily cutting emissions from the air.

2. If you must have a live tree this holiday season, and can arrange it, get a pine which has been harvested with a root ball of soil or a potted tree. This way you can replant the tree when your soil is warm enough, and can keep the tree alive and hydrated in the interim. Trees not only help the environment, they add to the value of your home.

3. Try to use less lighting, both indoors and out, to conserve power and reduce your energy bill. If you have small bulb lighting, please reduce your lighting time to from 4 to 6 hours. Leaving lights on all night is not only dangerous; it is a great waste of energy.

4. In place of wax jar candles and pillars, why not try soy or beeswax candles, this year. The candle light will be as beautiful as ever, and these candles burn much more slowly. Not only are beeswax candles cost effective, they burn cleaner and have no negative impact on your environs.

5. Create eco-decorations by using twigs and branches, pine cones, berries, bay and laurel leaves, and bay berry from your yard or neighborhood.

6. Dial down the temperature of your home, just before your guests begin to arrive. The house will be warm enough to be comfortable for your guests, and will not get too warm by the increased numbers of people in the room. This will also save energy usage.

7. Use eco-friendly wrappings for your gifts. Re-purposing baskets, ribbons and paper, saved from previous celebrations, is cost effective and smart. Plain brown paper bags can be decorated with rubber stamps and ink or markers for a totally unique look. Use your imagination. Your guests will be impressed with your personal touches. It’s a great way to express yourself. Everything you have put to use creates zero waste.

8. Instead of using expensive fragrance sprays in your home, why not simmer some cinnamon sticks in a small pan of water. The wonderful, natural and welcoming holiday scent of cinnamon is energizing, gentle, and so welcoming.

There are many ways to have a beautiful and memorable celebration this season, which do not have a negative impact on the earth or your budget. Using recycled materials which are cost effect and beautiful, such as solar lighting, cloth napkins and tablecloths, soy and beeswax candles, natural decorations and replanting or recycling your tree, are just a few of the positive steps you can take for a wonderful merry occasion and a renewed green planet.

Photo Credit:  ecoble

The current crises that all of us face these days are not just about environmental issues, although everyone must take immediate action to reduce their carbon footprint on the planet.  The economy is also spiraling out of control, and actions must be taken to curb spending, live within your means, and stop borrowing money.

There are many reasons for these dire situations and often you hear the rhetorical question, “what can be done about these enormous problems?”  There are a great many actions that can be taken in order to improve your ecological and financial status.  You don’t need a PHD in Economics or Ecology to make a difference that can be good for you and the environment too.

Try these five proactive steps to save money and “go green” simultaneously:

1)      Lowering your thermostat to save money is not only economical, it is an excellent way to conserve energy.  The simple task of purchasing and installing a Programmable Thermostat, which you can set to work when you are at home, and turn off, when you’re away, has gotten even easier.  To install a Programmable Thermostat now takes about 15 minutes and the only tool you need is a screwdriver.  The thermostat  costs about $80-$100 dollars and will pay for itself in just about eight weeks.

2)      Stop using paper towels for your clean up chores. Re-purpose your worn out dish cloths, dish and hand towels, old wash cloths and even t-shirts, which work great for many of the chores you do everyday.  Then toss them into a little cardboard box, wash them, and use them again.  For jobs that require a paper towel for sanitary work spaces, use recycled paper towels.  When you think about it, there is far too much land-fill being taken up by paper products, and paper towels cost about $8-$10 for eight rolls.  At even, $20 a month, that’s a big expense for your family, that can be reduced and help the environment at the same time.

3)      Using water wisely is vitally important to everyone.  You can save a lot of money on your water and energy bills by turning your water heater back from about 140 degrees to 120.  For every degree that you lower the setting, you can save at least 3% on your water bill.  You can also install an insulation blanket around your water heater, in winter, to keep the hot water from cooling when you aren’t using it.  This saves another 8% on your bill, and conserves energy too. This padding comes in various sizes and is merely wrapped around the tank and taped for a snug fit.  Low-flow shower heads use at least one-third the amount of water as regular fixtures, but have equal pressure and cost only $8.00.  Imagine how cost effective this simple fix is, and the savings on your water bill is at least 15-20%.

4)      Wasted power is a huge drain on your wallet and on the nation’s supply of energy.  Your computer, printer, fax, and scanner, as well as cable hook ups and other devices, use energy even when not turned on.  If you purchase new “smart” power strips, which have a specific outlet for the devises that need to remain on, and those which use energy in the off setting.  The strip will turn off the flow of energy to whatever is not being used, and you will save an enormous amount of wasted energy, along with having lower electric bills.

5)      If you must make a purchase to replace an appliance in your home, look for the blue and white Energy Star rating which the Environmental Protection Agency has placed on over 20,000 different items for the home.  Whether you need a refrigerator, stove, dish washer, low-flow toilet or hot water heater, the efficiency is at least 50% greater than with your previous appliance.  This is great news for your budget, and the energy savings will allow your purchase to pay for itself in savings, in a very short time.

These are just a few of the everyday decisions that can be made, with thought, care and concern for your planet and your family’s solvency, which can make a huge impact on the quality of life for everyone.  Taking the time to change habits that have a negative effect on your life, as well as ,the environment; along with finding better solutions for ending the waste of natural resources, and your hard earned dollars, through simple planning; these kinds of steps will restore the order that is very necessary for a simple happy life.

Photo Credit:  Bunteauction

The stock market has taken plunges in recent weeks that haven’t happened in years, if they happened at all.  The Fannie Mae and Freddie Mac government recovery activity (bailout) along with turbulent real estate pricing, bank failures, and a chaotic global economy, is enough to make anyone put their hard earned cash in a mayonnaise jar, and bury it in the back yard.

Although some fearless investors see this situation as an opportunity to buy, and rationalize that most stocks were over-valued, and with this financial crisis, have now stabilized; its very difficult to determine just how bad the situation is, and how much risk you would be taking, by purchasing anything at all right now, or for the foreseeable future.

The politics of our lame-duck government, give us no solid information about what will happen next, or how this bail out will work to assist the lives of taxpayers?  Not knowing what kind of new leadership is fourthcoming, after the election, what do you do to maintain your simplified life, when everything that represented rock-solid economic growth and solidarity, is now going under or is just barely afloat?

What about getting expert advise and counsel, to gain some confidence about how to proceed and keep what’s left of your portfolio intact?  Standard & Poor’s pushes “sell” right now and other “big name” analysts have issued “buy” recommendations, even on Fannie Mae?

This crisis is far too complex, it’s global, and there are too many risk factors and unknowns which effect every aspect of the market.  No one can call themselves an expert during this unique set of circumstances we call commerce, today.  Fannie & Freddy are getting the help they need to meet their financial obligations right now, and therefore, conditions in the market place probably will improve very slowly and over-time.  However, there is no clear cut method to determine the reasonable value of the assets of a great number of companies right now.  It would be an act of faith, rather than solid number crunching and analysis, to buy anything with the fractured housing market showing no sign of immediate improvement.

Those who study the markets call these times a “crisis of confidence”, thinking process.  Since nothing is being done to stop lending institutions from making further high risk mortgage deals in the future, and no penalties or consequences have been put in place by the government; it seems to be the right time to hold your speculative tendencies in check.  Sell what makes you feel the most insecure, and simplify your portfolio for the next twelve months, at least.

The politics of our government are about to change and there is no way to gauge how this new regime will handle the current debt, or the economy, or what the recovery time will be.  The car companies are scrambling to merge, and then offer alternatively fueled vehicles.  However, they too have accepted government loans, and it will take time to put the technology in place, and repay those loans.

If your peace-of-mind is sinking, but the little voice in your head is screaming about opportunities to make money, keep this little 3 step criteria in mind:

1)      only pick stocks with more than six or seven years of revenue on their balance sheets

2)      look for “recession proof” stocks from companies that sell staples we all need

3)      Sell your financial stocks and don’t look back.

Often, less is more, and if you want that simplified lifestyle with little or no drama, and a good nights sleep; this would be a good time to sell off your volatile stocks and coast.  When the time is right to reinvest, or to grow your financial plan, there will be many solid economic factors in place to use as solid criteria for investment.   For now, why not concentrate on being healthy, happy and less stressed because you simplified your financial life?

Photo Credit:  thebaldwincompanies

Your work space and home environment are clean, organized and clutter free, but what about your finances? Are you trapped in a paper shuffle? People spend more time sorting and paying bills, checking bank statements for errors, balancing the check book and savings accounts, and paying late fees, than they do participating in their favorite hobby, or going out to dinner.

Over the last twelve months, Americans have paid about $16 million in late fees. Part of the problem is that we all have too many credit cards. Studies reveal that most families have more than ten credit cards, which are hard to manage with their different due dates and credit lines.

The economy is reeling from the adjustable mortgage rate fiasco, which has been fueled by greed. There is not much to fall back on for any substantial feeling of financial security. How long will the Social Security System be solvent? Your trusty 401K is taking a big hit, daily, and if you have to borrow from it, you will be working a long time to repay that amount. The idea that your current bank might be less than solvent is troubling, and hanging on to a solid credit score just got a lot more difficult because the credit card companies can shrink your credit limit, at their discretion. Staying out of debt in these times takes a lot of prayer and copious amounts of self control.

Want some financial tranquility? It works like this: Economic data suggests that people who budget and constantly plan their spending, are about 40% wealthier than those who do not make the effort to take control of their own financial future. Most insurance, 401K’s, retirement plans and other financial systems are designed to help you grow your money, but the secret to all of these plans is to keep them simple; and to try and save at least 3-4% of your salary and place it in a few simple funds. Mix your stocks and bonds choices depending on how many years you have until you reach retirement age. You could choose IRA’s or 401K’s to place all of your funds in, but often these kinds or investments are very stressful and confusing to maintain. There are too many plans to choose from and they are allcomplicated.

Do away with the clutter in your financial life by:

1. Putting your money in one or two banking institutions, only.

2. Limiting your investments to just a few types

3. Getting help and good advice before you invest

4. Putting all of your insurance needs with one company for better service and discounts

5. Changing your stock plans only once a year

6. Having only a very few credit cards to maintain a good credit score, and staying out of debt.

Using online software programs to manage your finances, assists you in putting a budget in place that fits your particular needs. Keeping your investments, insurance plans and credit card debt, simple, and on a software system, will help you save more, prepare income taxes easily; and you will find a sense of tranquility in your existence by simplifying your methodology. The peaceful feelings that accompany a well designed financial plan that is manageable and do-able, with a modicum of paper chasing, is a priceless result for small amount of effort. Like with most things, even in this economy…simple is the best.

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Could the economy be any more manic?  What are the high interest rates doing to the financial plan that you slaved over and created to simplify your life?   You’ve tried setting money aside each month in a savings account, certificate of deposit, or other savings plan,  cut down on lattes except for your birthday and Christmas, listed fixed expenses that roll in monthly, changed your cable provider to “El Cheapo Inc., which only works when there is no wind; and you are even cleaning your living space, yourself.

All of these sacrifices, both great and small, are designed to build your savings account until it is large enough to provide for choices, at some future moment, when no savings would mean no choices. Even as your embattled savings account begins to accumulate some assets; you might want to take a road less traveled, now, to reach your goals of solvency and savings in a faster and wiser way.

Perhaps a better plan would be to apply the funds you were about to plunk into your low interest savings account, directly on to your credit card debt.  The interest on current credit card accounts averages out to be anywhere from 11 %, if you’ve been very good and paid promptly, to between 18-23% and more, if you made even one late payment.  Certificates of Deposit and Money Market funds can’t pay any more that between 4-5%, and your savings account is even lower, about 1.5% to maybe 3%, depending upon where you bank and how much money the account has in it.   You may be paying as much as $80-$90 dollars a month in interest on your revolving credit card account, depending upon the amount of debt which you have incurred.   Does it make sense to have low paying interest on savings and high interest debt?

Pay off the debt now!   Here’s why:

1)      By prioritizing your debt and paying off the cards with the highest interest rates first, you save a lot of money.

2)      Pay as much as you possibly can each month, not the minimum payment, and request that the credit card company reduce your interest rate.  Asking for an interest rate reduction, as you pay down the amount owed, can’t hurt; and more money will be applied to the principal for a better FICO score, and a debt free life.

3)      Peace of mind and being debt free will put you back in charge of your life.  If you don’t owe you will sleep better, feel better and your stress level will be significantly reduced.

When everyone’s salary is shrinking due to economic atrophy, you will be able to retain your standard of living and still keep saving, if you stay out of debt.  If you loose your job, you will be able pay bills while looking for new employment.  If you need time off, you can take it.

Your savings will grow quickly when you have no debt to repay.  You could look for ways to put the money to work to earn compound interest, but this can be a stressful choice.  Your old nemesis, interest, will now be working for you rather than against you, when you put those hard earned funds into savings, cd’s or money market accounts.  Think about retirement plans which offer government tax breaks such as 401K’s or IRA’s , and always put wind-fall profits of any kind into savings, if possible.   Every dollar you put aside today, is worth much more later in life.