The recession we have is still ongoing but here’s a question for you: have your savings plans changed because of this economic downtrend? For a lot of people, they’ve decided to make changes to their savings and investment plans in response to how the economy has been behaving — and it’s hard to blame them when their retirement funds have suffered a mighty blow over the past few years.

While a lot of experts say we should stick to our current plans, I believe that when the financial environment tests our strategies, we should be flexible enough to reevaluate them and see whether they need further tweaking. Here are actually some of the considerations I’ve been making during this recessionary period, which I believe will set up my portfolio for much better days ahead.

5 Money Strategies for the Recession

1. Manage your money in a low interest environment.

It’s a little frustrating to see how our cash holdings are earning anemic returns these days. In my case, my money market fund is barely eking out any sort of return. Even high interest savings accounts are no longer as high yielding as they once were. If you’ve got extra cash, you’re probably asking yourself where’s the best savings account for your funds. In my opinion, an online account is a great option because internet only banks are able to cut down on costs and pass on these cost benefits to customers via higher yields.

2. Seek out cost efficient financial institutions.
Banks can have sneaky bank fees while brokerages and fund companies can easily hit you up with transaction fees. Even if you’re investments have a great rate of return, you don’t want them eaten up by high cost funds or commissions. Why not check out this list of best online brokers for some low cost options? You may want to take a look at either ETrade or TradeKing to see if they fit the bill. Mutual fund companies (like Vanguard and Schwab) that offer index and no load funds are also great places to invest.

3. Look for places that will offer you great service.
I’m noticing more and more that financial institutions are trying to be more competitive by taking the extra steps to improve customer service. During this recession, these financial companies are all after our business, so don’t be afraid to ask for dedicated help from your bank or broker when the need arises. I can’t tell you how many times I’ve received courtesy calls from various institutions, checking in to make sure I’m satisfied with their services.

4. Rebalance your portfolio.
A stock market slump is actually an ideal time to tweak your portfolio in case it’s gone off kilter. You may want to restore your portfolio’s asset class proportions to their original state now that you could be subject to less capital gains taxes if you do decide to sell larger positions. It’s also a good time to buy new positions given the better market prices across the board.

5. Drop your losers for tax benefits.
I also think that if you’re holding some losers in your portfolio, it’s a great time to bid them goodbye. Decluttering your portfolio when prices are relatively lower allows you to write off the losses; if you’re interested in buying back your original positions, just make sure you don’t trigger the “wash sale rule”.

Sure, the recession has ravaged our portfolios and put a cramp on our interest earnings. But I also believe that our current economic situation is something which we can leverage for financial gains. If we do the right money moves, the opportunities we’re afforded by this kind of downtrend may actually help solidify our investment plans further (since they’re tested by a poor market) and set us up for a stronger comeback when the economy eventually bounces back.

Background and Characters – Years ago, there were 2 families, the Sams’ and the Lees’. Papa and Mama Sam worked hard through their working lives and provided for their 3 kids, Paris, Tommy and Ginger. At the age of 60, Papa and Mama Sam decided to stop working. They had worked hard for their entire lives and felt they deserved a break. They did not save a lot when they were working, so they made an arrangement with Paris, Tommy and Ginger, who were now adults.

They said, ” since we did such a great job bringing you up as good citizens and kids, you owe us something. Every month, we would like to take 10% of your income so that we can live comfortably and also in case we need to see the doctor. The 3 kids thought that this was a little outrageous since wasn’t it the duty of every parent to bring up their kids well? But so as not to start any squabble, they all agreed to give 10% of their paychecks to support their parents.

Over at their neighbors the Lees’, the Lees did not retire when they were 60. Instead, they still continued to work. Their 3 kids, Chin, Wee and Qing were all adults already and working. Because they were working, the Lees’ did not impose on their kids. But instead, they continued to provide for themselves. Their 3 kids also helped out financially if there is any need.

Life at Work – When the 3 Sams and 3 Lees entered the workforce as adults, they carried the same habits as their high school days. The Sams bought themselves nice designer clothes and stuff. The Lees were frugal. They got some basic clothes from sale and Sears and LandsEnd. They all share a rented apartment so they do not have to pay too much on rent.

The 3 Sams continued their party days from high school. After work, they like have dinner at hip restaurants and frequently partied every night at the night clubs. The Lees’ cooked at their shared rented apartment and just watched TV at night.

Sams discover Wonder Drug – Meanwhile, at around the corner where the Sam’s worked, there was a drug peddler called Jose. Jose showed the Sams’ his new wonderdrug at the night club. This drug was so potent that you could dance all night and still get to work the next morning. In fact, the drug also made you more alert at work!

The Sams started getting hooked on this new wonder drug. They would party all night, eat out everyday, sleep late. But they found they could still be alert and even more productive at work! Soon, all of Sam’s friends and the whole town were hooked on this wonder drug. More and more nightclubs sprung up because everyone was out partying till the early morning.

The Lee’s however, were as boring as ever, They stilled cooked their dinners at home. However, they saw what was going on in the night club scene and felt that there were opportunities. They started a company that made wine glasses. They figured that since more nightclubs were opening, selling wine glasses would be a good business.

And true enough, their wine glass business prospered as more night clubs opened. The Lee’s were working harder than usual. Demand for their wine glasses was simply booming. But being cautious as they were, they set aside 15% of their earnings aside in a rainy day fund.

Addicted to Wonder Drug – The Sam’s found out that as time went on, they needed more drugs to get the same “high” effect. So rather than taking one pill a day, they started taking 2 a day. So things were fine now. However, Jose now was making more money because he was selling more drugs!

However, for the Sams and all others who were now addicted to this wonder drug, things weren’t as great as they seem. Because they now had to pay more for drugs, they found out that they did not have any money left to pay for them. Their pay checks went to supporting their parents, dinners, drinks at the club and off course the wonder drug.

So they decided to borrow from the Lee’s. The Lee’s obliged. After all, they were neighbors. They weren’t best of friends but the relationship was cordial.

Wonder Drugs at work – Meanwhile at work, the Sams and others on drugs were really doing well. The wonder drug freed their minds and they were getting at things like advertising and marketing. With the drug working wonders on their minds, they became better accountants, thinking up of schemes to lower taxes! Attorneys who were on this wonder drug also became more eloquent in their arguments. Soon, the whole town wanted to do these “services type” jobs. Why slog so hard when with the wonder drug, you could be more creative and excel.

Soon, nobody wanted to be clerks and do any grunt work. There was another family who lived further down the street. They were the Krishnas. The Krishnas saw an opportunity amid the fiasco created by wonder drug phenomenon. The Krishnas created a company to do the work that the Sams and their friends did not want to do. Soon, all clerical, telephone support functions were taken over by the Krishnas.

That was not a problem for the Sams or their friends. The Wonder Drug was great and everyone was having a great time partying at night.

Papa and Mama Sam having problems – Soon however, Papa and Mama Sam were having some health problems. The money that their kids were giving them were not enough. Food prices were also going up because of all the great demand from all the new restaurants that were opening up near the night clubs. Papa and Mama Sam realize that they did not have enough money to live on. After talking about this, they decided that they definitely did not want to work. Instead, they decided to borrow money from Senior Lees (their neighbor).

The Lees obliged since it was not a big amount. The Sams have also been good neighbors. They also realize that the success of their kids Wine Glass company was in part due to all the partying of the Sams’ kids!

10 pills a day – As time went on, the Sams’ and their friends are taking more of the wonder drug a day. Their body had got used to the effects of the pills. They were now taking 10 pills a day to get the same effect that they used to get.

One day, Paris collapsed on the dance floor at the night club that she was partying. Everyone was concerned. The ambulance was called. Paris was in the hospital for a few days. Her siblings and friends thought it was due to fatigue. “Oh, Paris will be back dancing pretty soon” was what every one said.

Hospital reports came back a few days later saying that Paris had suffered an overdose and that taking 10 wonder drugs a day was simply unsustainable. She would be out for a few months to recuperate. News of this shocked everyone, because everyone else was also taking 10 wonder drugs a day. Soon, everyone realized that they cannot be partying all night and taking 10 pills a day. They slowly cut down on their wonder drugs – 10 to 9 to 8 to 7….. But as they cut down on their wonder drugs, everyone realized that they could not party all night and still go to work the next day.

Soon night clubs were empty. Restaurants and diners who set up shop close to the night clubs were also having much less customers. One by one, night clubs began to close. Restaurants closed too. Workers who worked for them were laid off.

Papa and Mama Sam also facing a crisis – Back home Papa and Mama Sam were also facing a crisis. Their 3 kids are in rehab. They are out of work because they are on medical leave. So Papa and Mama Sam have no money to live on. Mama Sam has also just returned from her medical check up and was told she had a condition that needed expensive treatment. They had no money. They did not save any. They were then forced to approach the Lee’s again.

Meanwhile, the Lee’s kids business suffered as a result of night clubs closing down as well. They were less wine glasses to sell to as they were less night clubs and restaurants. And yet, the Sam’s were approaching both themselves and their parents for money. The Lee’s have always been frugal and saved for the rainy day. They have always lent their money to the Sam’s to earn interest and also because the Sam’s lived next door. They would never run away? Or would they? The Lee’s began to feel really uneasy about lending to the Sam’s but knew that if they don’t lend the money, they may not even be paid back on their existing loans to them!

Everyone has the same problem – However, it turns out that everyone has the same problem and issues. All of Sam’s friends also have to pay 10% of their income to support their parents. Now, with everyone sick and not able to work as long, every senior citizen is getting less money for their daily living. It also turns out that the Lee’s having been lending money to all of Sam’s friends as well!

Uncle Bill – the new leader – Every one soon realized that they had a major problem in hand. They decided to choose a wise person among them to help solve the problem. They decided on a very charismatic community leader (let’s call him Uncle Bill). Uncle Bill had no economic experience. He had always worked in the non-profits area. But he was an optimist and a real cheer leader. He brought every one hope.

Diagnosis – Uncle Bill thinks the real problem is that right now, there is nobody on the dance floor. He thinks that the key is that we need to get people dancing again. As long as there were people dancing, the night clubs were in business and restaurants will be filled.

To get people dancing again, Uncle Bill decided that he needed to give the people more pills. If he could get them at least to the dance floor again, things will improve. So he decided to take the money he borrowed from the Lee’s and buy more pills to give everyone. Right now, everyone was suffering from withdrawal symptoms. If only, they took a couple of pills, they will feel much better. So one day, Uncle Bill forced everyone to take two pills of the wonder drug.

But everyone did not want to return to the dance floor. They were feeling dizzy. Each time they got out of bed, they would puke again. They was just too much toxic in their bodies.

Many people were also out of jobs because of the night club and restaurant closures. Uncle Bill decided that he “MUST” get them back to work. He decided to pass a bill to build more roads and more energy efficient street lamps by the night clubs. But where could Uncle Bill get the money to pay these workers. He decided that there was only one way. He approached the Lee’s and the Krishnas’ for more money.

The Lee’s and the Krishnas were getting frustrated. They realized that their business customer was not credit worthy. But yet, they could not pull the rug from under them (at least not yet). So they decided to lend them money but with higher interest rates.

Switching Directions – The Lee’s and Krishnas business have suffered. But fortunately for them, they had savings and they could survive this period. Rather than selling wine glasses to the night clubs, they decided to convert them into toy factories and began selling to the Krishnas. The Krishnas also being helping the Lee company with outsourcing.

More sick folks – Meanwhile, the senior citizens (Sam and friends) are all getting sick and need medical treatment. Their kids are all sick too and are providing no money. They have to borrow even more money from the Lee’s and the Krishnas. Everyone is hoping that the Lee’s and Krishnas’ will continue to be generous and lend to them.

Lee’s get Fed Up with the Sams – But while some workers were now building roads, the senior citizens expenses continued to rise because they were going to the hospital more. They were late on their bills. They had to borrow more from the Lee’s and Krishna’s again.

Finally, the Lee’s and Krishnas have had it. Though they were getting paid by the Sam’s and their friends, they realize that the Sam’s were borrowing money for hospital bills! Why lend to some old folks that may soon die and not repay their bills. They knew that their kids gave 10% of their income to them. But they could see that the kids were either building roads (which did not pay much), or themselves were in debt.

The Lee’s made a painful decision. They did not want to lend the Sam’s and their friends anymore. They would take a hit in their savings account. But they were now trading more with Krishnas anyway that it did not matter.

Broke – sell your house on the cheap – The Sam’s and their friends realize that they were broke now and had no choice. They had to sell their belongings simply to live. The looked into reverse mortgage and decided to do just that so that they can at least live in their homes. But nobody could even do that with them because nobody had money! So humbly they turned to the Lee’s and Krishnas’ again. This time the Lee’s and the Krishna’s low balled the Sam’s. They agreed on doing a reverse mortgage with Sam and also their many friends (who now have to sell their property to raise cash). The Lee’s got a bargain price and at the end, they will end up owning all of Sam’s and their friends’ properties free and clear someday.

Have a question for us? Leave a comment below!

Grab our free RSS feed and keep reading:

• Is it OK if Your Bling Bling comes from Costco?
• The Return of Sanity
• How I Keep My Sanity When The Equity Markets Are Volatile

Let’s take a look at both sides of the argument:

Credit Is NOT a Form of Security:

Anti-credit advocates pretty much believe that credit is evil no matter what, but they do make a few excellent points when it comes to viewing your credit cards as a “backup plan”.

1. You Should Have An Emergency Fund First - Credit is no replacement for a cushy emergency fund. In every situation it is always going to be better to be able to use your own money in an emergency rather than borrowing money to do it.
2. You Can Get Into Big Trouble This Way - If you are using credit to compensate for every “emergency” that comes along, it’s an easy, and fast way to get into debt over your head. In other words, if you are using your credit cards to compensate for a lack of savings,(or worse, a lack of income!) then you are going to run into trouble month after month. Your regular budget should compensate for all of life’s smaller emergencies, and your emergency fund should compensate for the larger emergencies like being laid off from work, or a trip to the hospital.
3. How Will You Pay It Back? - If you didn’t manage your regular income well enough to plan for emergencies, how will you ever pay back that large chunk of unexpected debt? Especially if you lose your job, or you are too sick to work?

Those are all valid arguments as far as I see it. Credit, and credit cards in general can be a huge trap if you haven’t brushed up on your financial basics, or if you struggle with the temptation to charge. Viewing credit cards as an emergency fund will get you into trouble if you have no other recourse.

Credit CAN Be A Form Of Security:

My personal feelings on this issue are that yes, credit is a form of security, but it is only one form. I prefer to look at my money as a series of dams – pools of money and/or credit. In the event of an emergency, I would first tap into my checking account, savings account, then my credit accounts, then my investments, then home equity, and in the event of true meltdown, my retirement accounts.

So, no, I wouldn’t go whipping out the plastic at the first sign of trouble, but to me it is an essential part of the overall plan. It is one way that I ensure I can handle all the problems life throws at me – in an orderly and planned manner.

None of us can see the future, no one really knows what will happen today, much less tomorrow. To me, it makes the most sense to have as many backup plans as I can get my hands on – ready and waiting for me to use them if I need to.

Also, keep in mind that in the event of a true emergency, like being laid off, or sick, many credit card companies offer insurance for this type of thing. Better cards have it automatically, and sub prime cards you usually have to pay a few bucks a month for it.

This insurance usually allows you to freeze your credit card payments for up to six months and protects your credit history in the event that you can’t pay your bills. Everyone who carries a balance on their credit cards needs this insurance, and if you ever think you might need your credit cards in an emergency, it makes sense to carry it as well – even if it costs you a few bucks a month.

If you are not sure whether or not your credit cards offer this benefit you can either break out the fine print that came when you opened your account, or you can give your credit card company a call and ask them about it.

In conclusion, I would say that credit can be an excellent form of security – as can an excellent credit score! If you have the ability to borrow money when you truly need to, then that is a good thing. However, credit, and particularly credit cards should not be the first thing that you lean on in the event of an emergency.

The truth is, if there is a true emergency going on, the last thing you want to worry about is how in the heck you are going to pay for it. Be nice to yourself – give yourself some options, not just credit! Money in an emergency fund, a bank account not hovering at zero, and as many methods of payment as you can think of. Plan these things out now so that in an emergency you are equipped to handle anything – because the money is the last thing you are going to want to focus on!

What do you think about using your credit cards in an emergency? Is it the right thing to do? Leave a comment below!

Grab our free RSS feed and keep reading:

• Emergency Sources of Funds and Income Compliment Your Emergency Funds
• Life After Credit Card Debt Reduction
• Sources of Financial Liquidity

T’was the night before Christmas, and all through the states
Not a creature was spending – we’re all in dire straits.
The coffers were hung by the chimney with care,
In hopes that a bailout soon would be there.

GM and Chrysler nestled all snug in their beds,
While billions of dollars danced in their heads.
And ma with her nickel, and I with my dime,
Coughed them right up as the banks stood in line.

When up from Wall Street there arose such a clatter,
I called up my broker – asked what was the matter?
Away went our savings they flew like a flash,
So I ran to my mattress – “Quick, stash all our cash!”

I cried into the night, with a single loud roar
“The economy’s a problem too big to ignore!”
When, what to my wondering eyes should appear,
But a great big ‘ol sleigh, and eight greedy reindeer.

With a little old driver, so lively and fulsome,
I knew in a moment it must be H. Paulson.
More rapid than eagles his cronies they came,
And he whistled, and shouted, and called them by name!

“Now Fannie! Now Freddie! Now, Bancorp and Citi!
On, Rahm! On, Pelosi! on Levin, and Bernanke!
To the top of the Hill! to the top of the wall!
Now take away! Take away! Take away all!”

As dry leaves that before the wild hurricane fly,
When they meet with an obstacle, mount to the sky.
So up to my roof top the coursers they flew,
With the sleigh full of debt, and H. Paulson too.

And then, in a twinkling, I heard on the roof
The pounding and stomping of each greedy hoof.
As I drew in my head, and was turning around,
Down the chimney H. Paulson came with a bound.

He was wearing the constitution, from his head to his foot,
And it was rumpled, and tarnished, with ashes and soot.
A bundle of debt he had flung on his back -
Billions in pork barrels he had tucked in his pack.

Tax breaks for arrows, and tax breaks for rum!
We can’t stop now – ‘Tis too good to be done!
His droll little mouth was drawn up in a sneer,
Yet his mouth kept on saying “There’s nothing to fear!”

But my savings have plummeted, my retirement is gone!
My home’s in foreclosure, I’ll work for a song!
But Paulson just smiled, and said with a jibe
“All must contribute, if we are to survive!”

He was greedy and mean, a right evil old elf,
And I cowered when I saw him, in spite of myself!
A wink of his eye and a twist of his head,
Soon gave me to know I’d rather be dead.

He spoke not a word, but went straight to his work,
He emptied my wallet, then turned with a jerk.
He gave me the finger from my head to my toes,
And giving a nod, up the chimney he rose!

He sprang to his sleigh, to the senate he whistled,
And away they all flew like the down of a thistle.
But I heard him exclaim, ‘ere he drove out of sight,
“Happy bailout to all, and to all a good-night!”

** Merry Christmas, and Happy Holidays everyone! Just wanted to include a note that stated that this poem in no way represents the thoughts and opinions of the entire staff here at Ask Mr. Credit Card. This is just the author, Connie Brooks, poking bit of fun at the state of the nation. Hope it gave you a smile.

Merry Christmas Eve!

I’m curious if either of you saw the news release today where the federal government, Citigroup, Fannie & Freddie, and possibly a few other mortgage lenders are willing to negotiate with homeowners to restructure their current mortgage to prevent foreclosure.

We hadn’t really talked about the new “Hope Now” program that our government is rolling out, and I’d love to have your opinion on it!

Here’s the skinny:

1. The goal is to put delinquent homeowners into new, “Long term sustainable mortgages” that they can actually afford.
2. It will go into effect December 15th, 2008
3. In order to qualify borrowers have to be at lest three months behind on their mortgages and still owe more than 90% of the total value of the mortgage itself.
4. For borrowers who qualify, it will reduce your housing expenses to the point that it will not take up more than 38% of your total income.
5. You could also have the option to extend your mortgage from a 30 year loan to a 40 year loan and make some of the principle mount owed interest free instead.

*facts from MSN money’s article “US Expands Program to Modify Troubled Mortgages“.

I would really love to know what you guys think about this plan? Is it a good one? It is undoubtedly helping the people who need it most (those going into foreclosure).

Here’s the rub, (for me at least). My husband and I are three years our of bankruptcy. We have been diligently working to recover our credit, and save enough for a reasonable down payment on a house. Before all of this mess started we considered getting a home, but we did not want to get locked into an adjustable rate mortgage – we were afraid of what would happen if our interest rates shot up and we couldn’t make our payments. So we rent….and we rent…and now thanks to the credit crunch, we will likely be renting for several years more.

So, it’s a little hard for me to watch our government bail out all of these people when we chose to be responsible, and avoid a mortgage we couldn’t afford. They get to keep their homes, while we will have to continue renting.

Is that jealousy? I’m sure that it must be. We went bankrupt. We’ve already played our bailout card, thank you very much. And, after all, we chose not to get into a mortgage before this mess, so why cry that we don’t have one now? In my heart I am very glad that people…families….will have an easier time of things. It’s not in me to want to see children put out into the streets because their parents made bad choices.

I just have to wonder…how far will these handouts go? Now I am hearing talk of the government bailing out the large auto manufacturers. Those companies have been in trouble for years. Yet right now everyone has their hand out, so why shouldn’t they do it too? After all…they do provide a lot of jobs here in America.

Has America truly become a welfare nation? Why are we turning to Uncle Sam to fix this problem? What happened to American ingenuity? What happened to the force and the spirit that our immigrant ancestors built this country on? Have we lost the American Dream because we felt like it was a God-given right instead of something to be sacrificed for?

What do you think?

Keep Reading:

• The Return of Sanity
• Declare Bankruptcy, or Tough It Out?
• Home Owners Association Fees and Bankruptcy

To this I say “pffftttt….“.

America, for too long we have allowed greed to blossom in our own hearts.

Instead of recognizing the wealth and plenty around us, instead of understanding the concept of enough, we have continued to feed the machine.

We purchased items we did not need on credit, we purchased homes and cars on credit when we weren’t sure that we could make the payments.

As a society, we moved our houses, and our families to the beach. We wanted that beautiful ocean view, and we wanted it now. Yet we were building our homes, and our economy on the shifting sands of equity and credit.

Each and every one of us (to some degree) have allowed greed into our homes. We fed greed, made it a welcome guest, and asked it’s opinion on every purchase we made.

Too long have we allowed this unwanted guest to dictate our thoughts, and the actions of our families.

It is no great sin to want, but to want at any cost, at any risk, is nothing less than insanity.

And so, I welcome the return of Sanity, the grandfather of Greed – the one to whom all bills are handed, no matter how past due.

It is Sanity that will clean up the mess we are in. Sanity, who will show us how to return to the good ways of true prosperity, security, and enough.

From the moment he walked back into our country, Sanity accepted the hard work of cleaning up the mess Greed joyfully made.

When you see lending practices being restricted to only those who are credit-worthy, that is Sanity at work. When you see businesses fail because they overextended themselves in their greed – well, that is Sanity at work too.

But be aware; Sanity is no gentle animal to be cuddled, fed, and kept as a pet. Sanity comes in like a hurricane. Eyes blazing, he cuts away sickness wherever he finds it.

There will be times when we feel like his cure is not preferable to the slow poison of Greed. But it is necessary if we are to have a chance to pick up the remaining pieces of our economy and our financial lives.

The influence of Greed was so widespread that many of us will find ourselves trapped between the breakdown of the lives we used to live, and the beginning of the ones we must now live. We are used to taking Greed’s easy advice, and now we must begin to listen to the harsher voice of Sanity as he tells us, “You must change.”

The folks in Washington have long ago exiled Sanity. He is not invited to their meetings, nor present within their hallowed halls. And though he beats and rails at their walls, his cries fall on deaf ears.

It is for this reason that I advise you not to rely on the government to fix our economic crisis. They are still keeping Greed fed, and fat within their hearts. And Greed is an expensive guest! Their last offering to him alone was worth $17 billion.

Instead I ask you, throw the doors of your own home wide, and welcome Sanity. We, the people, are the backbone of the economy. It is we who must decide if this country will prosper, or slide into depression.

Though Sanity is not as pleasing a house guest as Greed; his form is not as fair, and his words are not as soft, you will find that he pays his own way.

Sanity is willing to work for us in a way that Greed never did. He will be there for each of us as we shore up our own finances. He will work beside us, plugging the leaks that threaten to sink us.

It will not be without pain, and it will certainly not be without work. But the work and the pain are ours to bear, for we each owned a small part of the chaos that was allowed to foster and grow.

And when all is said and done, when all of the chain reactions have stopped, it is Sanity who will help us rebuild a new tomorrow.

If you enjoyed this article, please pass the link on to a friend, or give it a Stumble. You can also subscribe to our RSS feed. We would love to have you join us!





Additional Commentary on the State of Things:

• The Shallowest Generation at Seeking Alpha – This is my pick for the best article of the week! I don’t agree with everything said, but it is a well thought out, well written commentary.
• Excuses, Excuses at The Simple Dollar. Making excuses sometimes buys you time, but it never fixes the problem.
• Eight Financial Questions for Success in a Bad Economy at Money Smart Life
• Blaming Parents for Financial Problems at Frugal Dad.
• The Nightmare that Nobody Wants to Talk About: The Next Depression at Penny Jobs
• Obama’s First Presser Features Economy, Dog at TIME.com

Saving Money:

• 10 Quick Tips To Winterize Your Home at Blueprint for Financial Prosperity.
• Saving Money on Car Maintenance at Clever Dude.
• The Most Beautiful Way To Save Money While Heating Your House at Financial Ramblings.
• Three Unique Subscription Services that Might Save You Money at Wise Bread.
• Save some money: De-clutter at I Pick Up Pennies
• Thanksgiving Turkey Dinner – Trim the Budget without Forfeiting Taste at Not Made of Money

Healthy, Wealthy, and Wise:

Burning the candle at both ends, isn’t good for anyone. These articles deal with many of the common sense topics that it’s easy to forget about in our day-to-day lives.

• Why you need a nap at The Smart Spending Blog. It tuns out that not getting enough sleep can cost you money as well a time.
• Obama healthcare plan boon for hospitals from Reuters.com. Not sure I’m 100% in favor of this, but they are thinking positive.

Giveaways:

Freebies are always welcome, in any economy! The sites below all have contests or giveaways going on. Check them out!

• Nuru Personal Finance Flash Cards: Review and Giveaway @ Bible Money Matters
• Extend the Life of Your Razor Blades and Get Free Razor Samples @ Prime Time Money
• Book Giveaway: $1,000 Dollars & An Idea – Entrepreneur To Billionaire @ My Two Dollars
• Romancing The Yarn is giving away more yarn than you can shake a needle at. If you knit or crochet, be sure to check it out.
• Bargain Briana lists tons of freebies each Friday.

Carnivals, Festivals and Celebrations:

Many thanks to these carnivals for featuring our articles this week!

• Festival of Frugality 11/4 Election Day Edition @ Bargain Briana
• Carnival of Financial Planning – November 1 2008 Edition @ The Skilled Investor.
• Carnival of Financial Goals–Election Day 2008 Edition @ The Dough Roller
• 83rd Carnival of Money Stories – Election Day Edition! @ Simply Forties
• 37th Carnival of Money Hacks: Wonders of the World @ Living Almost Large
• The First Ever Carnival of Consumer Credit @ Arrive Financial

That’s it for this week’s commentary and links. Hope you have a great weekend!

Barack Obama Jokes:
(Courtesy of this site)

Q. Why won’t Obama release his real birth certificate?

A. It got mixed in with his Rezko mortgage records and shredded.

Like any experienced Chicago politician, Obama would go the cemetary to register voters. One night he came across a grave so old and worn that he couldn’t make out the name on the tombstone. The staffer holding the flashlight got impatient and suggested they just move on to the next plot. Obama angrily exclaimed, “This person has a much right to vote as anyone else here!”

“People looking into Barack Obama’s campaign contributions say that Obama may have received $3.3 million from abroad. Yeah. It turns out that broad is Oprah Winfrey.” –Conan O’Brien

Obama’s so pretty….

Obama is so pretty that Bill Clinton wants to intern for him.

Obama is so pretty that he won’t ride in Ted Kennedy’s car

Obama is so pretty that he would even look good in a Hillary pantsuit

“After his big speech in North Carolina today, Senator Joe Biden said he was experiencing a sore throat and lost his voice. Boy, the good news doesn’t stop for Barack Obama. Just one lucky break after another.” –Jay Leno

He ignored me and continued writing the ticket. I called him a ‘Nazi.’ He glared at me and wrote another ticket for having worn tires. So I called him a ‘doughnut eating Gestapo.’ He finished the second ticket and put it on the windshield with the first. Then he wrote a third ticket.

This went on for about 20 minutes. The more I abused him the more tickets he wrote. Personally, I didn’t care. I came downtown on the bus, and the car that he was putting the tickets on had a bumper sticker that said, ‘Obama in ‘08 .’ I try to have a little fun each day now that I’m retired. It’s important to my health.

Jokes credit: The Barack Obama Jokes Website <-- You can click there to read the ones I couldn’t print!

All’s fair in love, war and politics! What about the other side?

McCain / Palin Jokes:
(Courtesy of this site)

A woman at a John McCain rally said that Barack Obama is an Arab. And McCain quickly corrected her. It was really awkward, because McCain had to tell her, ‘Look, Governor Palin, you are wrong.’” –Jay Leno

“Sarah Palin had to have her campaign bus make an unscheduled stop at a Wal-Mart in Ohio, so she could pick up a package of diapers. I guess she ran out of diapers, so they pulled over and she went in and everyone followed her. Which is kind of cute, but it turned out Senator McCain didn’t need them.” –Jimmy Kimmel

“Political experts are saying that to succeed in the vice presidential debate, Sarah Palin needs to show that she has the same concerns as everyday Americans. For instance, Palin planned to start the debate by saying she’s really troubled by John McCain’s choice for vice president.” –Conan O’Brien

“The Republican Convention is under way. The theme for tonight’s Republican Convention is, ‘Who is John McCain?’ Tomorrow night’s theme is, ‘Who forgot to check if the Vice President’s daughter is pregnant?’” –Conan O’Brien

Jokes Credit: These are just a few of the jokes compiled by Daniel Kurtzman, About.com’s Political humor guide. Way to go Dan! You can click this link to check out the rest of the McCain funnies.

And to top it off, a wacky video making fun of both candidates:

Happy Voting!

This ridiculous and rather offensive little song nevertheless reminds me of all of the rights that I currently enjoy as a woman in this country. Rights to freedom, rights to vote, rights to prosper. Rights that were hard won by the blood sweat and tears of countless men and women throughout history. Rights that I am not normally even grateful for.

As the election presses ever closer I find myself hopelessly disillusioned by both the candidates. Economists they are not! In fact, both sides have recently spouted so much hogwash about the economy and the financial state of the nation that I have occasionally been speechless.

So, to my mind, the election of either set of candidates cannot be considered a huge political victory. It can however, be considered an amazing victory of equality. For the first time in the history of this country we have both an African-American man, and a woman on the tickets.

America, what a long strange trip its been eh? To come down to this.

There is another issue at play during these elections though. An issue older even than equal rights and suffrage. It’s the issue of the “haves” and the “have nots”. The ever widening gap between the rich, and the poor. Wealth: challenger of nations.

The issues of class and caste, old wounds uncovered by fresh economic blood. The lower and middle classes are hungry for a champion, and the rich are struggling to hang onto their wealth. Rarely has this issue been brought to the forefront in America, rarely has it moved from the shadows into the light of day.

This is still a land of plenty, a land of a billion opportunities, even in a time of great loss. It is a land where any man or woman, by the force of their own will and hard work can amass a fortune.

In what is now undeniably an electronic age, I would like to turn the spotlight on the heralds of opportunity. Those who are leading the charge today. As so many of our brothers and sisters in ages past have given of themselves for the betterment of others, so too are these writers devoting themselves to the cause of what they believe is just and right: Equal opportunity economics.

They spend their time each day, in public forums, freely handing out the secrets to wealth and success. And they receive little commendation for it, and sometimes little profit. Yet they persevere, and they lead.

Let’s take just a moment, to follow them as they go:

• The Happy Rock has some further commentary on the presidential candidates and personal finance.
• Get Rich Slowly features the Faces of World Poverty: 20 Arresting Photographs as part of blog action day. Now matter how bad I think I may have things, all I have to do is turn around to find someone with even less.
• The Smart Spending Blog has a guest post by VH at Funny About Money. “At 63, preparing for an economic hurricane.”
• The Simple Dollar is doing an in-depth review of The Intelligent Investor. This part of the series is on Investing versus Speculation.
• Five Cent Nickel gives us Four Reasons Not to Overreact in the Current Market.
• Economic Crunch tells an interesting story about how CitiBank is encouraging people to pay up faster.

Stay Informed:

• The Digerati Life dishes on How To Get Free Credit Scores, myFICO Credit Scores On Discount.
• Free Money Finance tells us The Easiest Way To Launch Into Real Estate Investing.
• Mrs. Micah warns us to Avoid Paying For Mortgage and Credit Repair.
• The Credit Toolbox gives a simple and readable explanation of R1, R2, R9 and Other Terms in Your Credit Report.

Cherry Picking:

My favorite article of the week!

• Clever Dude is “Swearing at the Bill Collector“. Don’t miss this one!

Festivals, Carnivals and Celebrations:

Thanks to these carnivals who featured our articles this week:

• Blog Carnival: Business Books – October 15, 2008 @ Brian Oates
• 34th Money Hacks Carnival – Fall Into Savings @ Where You Are Now
• Carnival of Debt Reduction #161 – Fall Colors Edition @ Gather Little By Little

We also had a guest post up at The Digerati Life; “Leverage Your Good Credit! Don’t Let Good Credit’s Rewards Pass You By.” Thanks SVB!

Special Note: We will be hosting the Carnival of Twenty Something Finances on Monday! Here’s an official invitation for you to stop on by!

Thanks for reading, and as always we value your comments! Please feel free to share your thoughts and opinions in the comments section below. You may also want to subscribe to our RSS feed – you can click here.

Never forget that the television we watch, the sites we read, the stories we hear – they are all told because there is some profit in it. If it was not profitable for the news media to forecast doom and gloom 24 / 7 they wouldn’t be doing it.

So before we all go off into a blind rush and pull our money out of our 401(k) plans, just please, I beg you, take a moment to wonder who is profiting by perpetuating the madness.

With that said, here are a few down to earth, regular old articles. And yes, some of them mention the e-word (economy). But they aren’t the normal, run of the mill “The earth is going to EXPLODE” articles we’ve all been seeing so much of lately.

Just to make you smile:

• Miley Cyrus beats out Fannie Mae and Freddie Mac @ Credit Cards.com
• What is your deepest, darkest financial secret? (Over a hundred people spill the beans!) @ Broke Grad Student
• Ten Ways to Visualize Our Government’s $10 Trillion Debt @ Mighty Bargain Hunter

Life Goes On:

• Accomplish Anything in 120 Minutes @ The Simple Dollar
• How Much Cash Do YOU Stash? @ Get Rich Slowly (some great reader comments in this one)
• How To Financially Educate Your Children @ WiseBread
• 10 Ways To Reduce Your Utility Bill @ Money Crashers
• If you use an envelope budgeting system, check out some of the best advice I’ve ever seen on how to actually make it work @ Frugal Dad
• How Paying Attention Can Save You Money @ Blunt Money

Game Over…Insert More Money?

• A Financial Adviser’s Take On The Economy @ Money Ning
• Psst! Hey Chicken Little, the economic sky isn’t falling @ Gather Little By Little
• Help! My 401(k) is Losing Money!@ Cash Money Life
• Don’t Be Stupid. Leave Your Money In The Bank @ Five Cent Nickel
• 60 Minutes Report on Financial Crisis: Wall Street Wasn’t Very Good at Their Job @ Steadfast Finances

Cherry Picking – My Favorites

• Why it’s time to move on…@ The Financial Philosopher
• 10 Day Give Challenge Kicks Off @ Mrs. Micah

Carnivals, Festivals, and Celebrations:

Thanks to these carnivals for featuring our articles this week:

• 19th Finance Fiesta – Oktoberfest @ Living Almost Large
• October 7th Carnival of Travelers: The Money Saving Edition @ Fly Away Cafe
• 160th Carnival Of Debt Reduction – Bailout Edition @ The Happy Rock
• Carnival of Personal Finance – 173rd Edition @ Girls Just Wanna Have Funds

That’s it for this week. Sincerely wishing you a weekend full of family, fellowship and fulfillment….without the talking heads!

]]> http://www.askmrcreditcard.com/creditcardblog/time-to-turn-off-the-tv-and-restore-your-sanity/feed/ 1 http://www.askmrcreditcard.com/creditcardblog/well-what-now-some-thoughts-on-the-economy/ http://www.askmrcreditcard.com/creditcardblog/well-what-now-some-thoughts-on-the-economy/#comments Sat, 04 Oct 2008 07:58:44 +0000 Jenna http://www.askmrcreditcard.com/creditcardblog/?p=763 The mess on wall street has degenerated into a fist shaking, back biting, teeth gnashing mess – and I am totally entertained! Ok, so maybe I shouldn’t have quite so much glee as the infrastructure of the economy crashes and burns, I know.

I do have complete faith that big banking and big business will recover with no more than a temporary black eye. Now the little guy? You and me? Well, that’s not such a rosy prospect, now is it? So, I have to admit that while I’m thoroughly enjoying the media zoo surrounding recent events, I do have that small voice in the back of my mind (which sounds a lot like Morgan Freeman!) saying “Well, now, and what will this bailout mean for you in the long run? Hmm?”

The fact is, most people agree that the bailout is A Very Good Thing. But I have yet to see anyone accurately predict what it will mean. We’ve reached the proverbial rock-and-a-hard-place, and there are no graceful ways to save the day. Only hard choices.

From a mass media perspective, this is the government’s attempt to swallow Pop Rocks and Coke. They’re just hoping no one’s stomach explodes.

Think it’ll work? It’ll take a miracle!

(Don’t know what this photo is? Sit back and let Miracle Max explain why the economy is only mostly dead! Memo to Washington: Please note that a chocolate coating will make the bailout go down easier. )

So. With all this uncertainty, let’s take a look at some of the folks who are giving us the real facts this week, shall we?

The Chocolate Coating (There’s A Pork Lining In Every Cloud):

For some fun facts on the wacky things that will be subsidized as part of the $700 million dollar bailout (Including wooden arrows and Jamaican Rum!) Check out these articles:

• There’s plenty of pork in Wall Street rescue at The Smart Spending Blog
• The 2008 Bailout Bill-Wool Wearers, Racing Fans and Forest Eco-Systems Can Finally Rest Easy @ Frugal Dad
• How a $700 billion bailout became a $800 billion “rescue plan” @ Wisebread

The Bitter Pill:

From the individuals actually daring to put forth an opinion on the bailout, here’s the news:

• Insiders Perspective: Embarrassing Congressional Reaction to an Originally Dangerous Bailout Plan @ Milk Your Money
• Emergency Economic Stabilization Act of 2008: What it does, what it will cost, and whether it will work @ The Dough Roller




• Wall Street Bailout Bill: 5 Examples of Wall Street Trickle Down Effects @ Steadfast Finances
• Bailout passed in Senate. What’s next? @ My 1st Million At 33
• Congress To Vote Again On Economic Bail Out Plan @ Money Crashers


The Secret Ingredient:

Along with the continuation of the bailout saga, there were a few less-publicized but decidedly better smelling proposals from Washington this week.

• U.S. Treasury to Guarantee Money-Market Funds @ The Sun’s Financial Diary
• FDIC Asks to Temporarily Increase Deposit Limits @ Blueprint for Financial Prosperity


Common Cents:

(The blogs for the rest of us!)

• Ask the Readers: Choosing a Bank During the Credit Crisis? @ Get Rich Slowly
• The Only Thing We Have to Fear Is Fear Itself @ The Simple Dollar
• Will cash become king again? @ Credit Cards.com
• Time to get back to basics @ The Mighty Bargain Hunter
• 10 Frugal Steps To Help You Survive A Tough Economy @ The Digerati Life


Editor’s Choice:

I had to pass these two on…

• The Credit Crisis is REAL! It has to be, since it has an official definition on Investopedia….
• Inspire Me! Do you appreciate what you have? @ Gather Little By Little

Carnivals, Festivals, and a Cuppa Cheer:

Thanks to these carnivals for featuring our articles this week.

• Money Hacks Carnival #32 – Have You Ever Edition @ The Financial Blogger
• Carnival of Debt Reduction #159~They Never Said It Edition @ On A Quest To Be Debt Free
• Carnival of Personal Finance #172 – Meltdown Edition @ Debt Kid
• Carnival of Credit Report Stories @ Fix My Personal Finance
• Money Hacks Carnival #31 — Crisis And Bailout @ Moolanomy

Well, that concludes this week’s edition of “Help, we’ve fallen and we can’t get up!”

Sincerely wishing that both you and the economy will live long and prosper!

]]> http://www.askmrcreditcard.com/creditcardblog/well-what-now-some-thoughts-on-the-economy/feed/ 0