Hey everyone. I know I haven’t been diligent in writing lately but I figure now that things are getting a bit less hectic and a bit more open as far as time is concerned, I can get back to sharing good info with y’all again. I’ve been thinking about the stock market and the currency market and how they can help raise your income IF you know what you’re doing.

I have a friend that is taking her future into her own hands. (actually she’s doing it for her family so her Husband can retire and they can enjoy life together a lot more)

Anyway, She has a system she uses called the Market Mover Trading system. It’s educational, and it’s meant to be fun. How fun? Not sure, I’m about to find out this week though and I will follow up on how it looks. The idea though is to do “turnarounds” in the mini S&P market trading on Economic announcements. If you click the link above you’ll see some of what she does as she posts her actual trades for people to see.

That being said I have some thoughts on how to participate in the world of trading. These are the three top things you’ll need to keep in mind when looking at doing it. Remember this isn’t for everyone, but there are courses that are getting more and more geared to teach the average person how to participate in small to large amounts. Think about this…if you had a trader in every home in America that understood and traded stocks or invested in futures or currencies, what would that do to our hard economy right now?

My Friend Jason Burack and I talked for a bit and he gave me this advice for newbies to consider when they are trading:

Tip # 1 : Never buy your entire position in a stock all at once

Keep your investments in Halves or thirds in your portfolio. This will keep you from getting all your eggs in the right company at the wrong time. Nothing like knowing everything is stacked for you only to find out the one thing that could have happened to kill it, did.

Tip # 2 : Don’t trust what most Wall St analysts buy, sell and hold recommendations for a stock

If their company does investment banking that company might have the recommended company as a client for that and their ratings for the stock will be anything but unbiased. Too often this has been true when it comes to over inflating the value of a stock. By the time the stock takes a dump no one was the wiser and the company got what it needed even though it wasn’t a good buy.

Tip # 3 : Dividends don’t Lie

Indymac gets sweet deal with FDIC

ok, I’m officially pissed…

Can anyone tell me why we are still sitting on our butts waiting to tell our “politicians” that they are screwing this up by letting the banks get more money? I heard a little about this but didn’t realize how bad it was.

The FDIC is PAYING the banks to take short sales! No wonder it’s near impossible to get a modification now. WTH?!?!?

Watch the video and let me know your thoughts…and they better be good. I’m not letting any crap be left there about, “Oh it’ll work itself out.”, or “That can’t be right, I bet it’s not all that true…” CRAP CRAP CRAP It’s ALL TRUE, to what degree is the question.

I’ve already heard from others how much harder it is getting to get modifications, and how much easier it is to get a short sale. I hate to say it, but the Realtors that are short sale specialists are helping themselves to a bad situation and one that really only advantages the banks, and them. They are not really helping someone by saving their credit. that’s a side effect at best. (And I say this even knowing that it does save it a bit)

I want true thoughts folks, and then I wanna know what you’re going to do about it in November.

How's the market doing?

I have to apologize that I haven’t had a lot of interaction over the last couple of months. I’ve been busy to say the least.

Been talking with some really bright minds in personal finance, and have been pouring over the news and reality of what is happening in the markets right now due to mismanagement of economies around the world, safeties for investors, smart investing, and of course not so smart investing.

I can’t tell you the shock I am feeling when I see how even after the most successful people have said how things should go, the rest of the public doesn’t listen and they continue to do the stupid things that only hurt the economy more. Poor investing strategies, uninformed investing,(emotional directed by media) or just plain sitting. (this isn’t good either)

No action is worse than bad action. Don’t be one of those that sits in the corner and choose to let the big boys fight it out for you…it’s not going to happen. You have to get out there and make it happen through your own proper research. Don’t count on the media which is biased on their own opinions and “sponsored” opinions. I truly wish media wasn’t owned by big dogs…it only gives them a means to manipulate the market the way they want to.

What are you investing in?

Now the article I am linking to shows even the big boys are “short selling” through their funds. This is a tell tale sign that they know how to make money in a bull market. There are systems out there that can help you to profit even in thee midst of what is going on in the market. You have to do some work thought so you can feel it out, and then make an educated decision. Do not, sit still, do something.

If you are an entrepreneur, you need to make sure your business investments are solid. Don’t guess. Do something.

Teddy Rooselvelt said, “Try something. If it doesn’t work try something else. But try something.” You need to do the same.

Bottom line, you need to see what information is really good, and then act on it. If you have nothing invested just yet, start to look at what you can do to start. Even if it is a small life insurance policy, and small IRA, a self directed one. Do something.

Don’t leave it to chance, research quickly enough and then act…Do Something.

Here’s an inspirational video for you anytime you need to “Just Do It”!

Click here to view the embedded video.

.

.

Art Williams many years ago had a very sensible and easy take on life…Just do it.

Wonder if that’s where Nike got their saying from?

Whatever it is…Just Do It!

You can get your Payback BIG Time

Wow…that’s all I can really say…wow..WOW!!

I have been blessed with an interview with my friend Phil Town author of Payback Time – BIG. I had the chance to ask him a few questions and get some seriously real answers…I have to Congratulate him on getting to the #1 Spot on the New York Best Seller’s list! WOOHOOO! GO PHIL!

If you want to get some background on Phil Town before you read on go here. His story is simply AMAZING.

DISCLAIMER: I am not a CFP, I am NOT a Financial Professional. I am a crusader against debt, and work as an Independent Agent (rep) for a company that distributes a web based service that helps people get out of debt in as little as 1/3 to 1/2 the time without refinancing or changing their income. www.save4home.com In short what you are about to read, may upset you because you’re about to get a dose of TRUTH!

The good news is, you get to see some solution too…I can’t print the whole interview it would be too long, and I want to save some of the “juice” for later when I get to interview him live….by the way, Phil is starting a TV show shortly and I will let you all know what it’s called and where to watch it when that time comes, but what I can tell you is, it will be AWESOME!

Here’s some of the highlights that are important right now:

WHAT ARE SOME OF THE COMMON MYTHS PEOPLE BELIEVE ABOUT MUTUAL FUND INVESTING THAT AREN’T JUST SO?

That a diversified portfolio of mutual funds will go up in the long run at approximately 8% a year.  Truth is shocking. The long run can be longer than you imagine.  1905-1942 – about 0% return in a diversified portfolio.  37 years.  1965-1983 –  about 0% return in a diversified portfolio.  18 years.  2000-2010 - about 0% return in a diversified portfolio with a long way to go to go up.

WHAT DO YOU MEAN WHEN YOU SAY THE FINANCIAL INDUSTRY HAS CONNED MANY MILLIONS OF PEOPLE?

The guys who ran Harvard’s endowment called the mutual fund industry a giant scam.  Warren Buffett has said you get nothing for your money from a fund manager.  Here’s why: The industry charged $100 Billion last year for ‘active management‘, meaning fund managers were getting paid approximately $100 billion to beat the market.  I remember reading a Fortune Magazine article many years back that reported that since 1985 only 4% of all fund managers beat the market.  1 out of 25.  So for almost everyone, investing in a low cost index would have saved them a huge amount of money.   In fact, over a 40-65 year investment period, these worthless fees have removed about 50% of people’s retirement money.

PLEASE EXPLAIN YOUR OVERALL TAKE ON THE CURRENT FINANCIAL MARKET

I said get out in August 2007 when the Dow was at 13,100.  I said get in on March 10, 2009 when the Dow was at 6700.  I got lucky with both calls on the timing, especially the last one.  I didn’t know the market wasn’t going to 2500 but I knew great companies were on sale.  If we could buy more of the same company in six months at an even better price, that works for me just fine.  Today we’re hanging in the 10,000 range.  Unless the economy starts moving suddenly, there is no real up that isn’t speculative and no one seems to want to speculate.  So with no up to go, putting money into the broad market is a big risk.  On the other hand, there are individual wonderful companies that are going on sale every day.  What I’d do it I were you is I’d read Payback Time and learn a simple way to gauge whether a business is on sale.  Let’s say, for example, you would be happy to buy a business if you could get your money back from earnings in 6 or 7 years.  After that, you’ve got your money out and you’re playing with house money.  Well, you could have bought McDonald’s like that in 2009.  Or Whole Foods.  Or Chipotle Grill.  Or many other companies that went on sale big time for no real reason other than the market crashed.  They were still growing, still making good money. That is the only way I know of to do well in this kind of market.  Yeah it takes a bit of work.  But it’s a lot easier than the financial services industry wants you to think it is.  And really, what’s your choice?  Mutual funds could go nowhere for 15 years.  If they raise interest rates, bonds might actually crash and real estate ain’t going anywhere if mortgage rates rise.  The only safe place to be is ownership of a great business that you bought at a great price.

What follows is  the math and sources to support the statement: “In fact, over a 40-65 year investment period, these worthless fees have removed about 50% of people’s retirement money” ….the “tyranny of compounding costs”:

•      When mutual funds charge a 1% fee on a  8% average return every year = 1/8 = they are charging you 12.5% of your return

•      When mutual funds charge a 2% fee on a  8% average return every year = 2/8 = they are charging you 25% of your return

•      When mutual funds charge a 2.5% fee on a  10% average return every year = 2.5/10 = they are charging you 25% of your return

•      When mutual funds charge a 2.5% fee on a  7% average return every year = 2.5/7 = they are charging you 30% of your return

•      With a 2 or 2.5% fee, the mutual fund is receiving 25 percent of your returns every year that your money remains with that fund.

•      The result is that you have less and less money after fees to compound every year, and after a 65 year period of time, you realize that somewhere between 50 and 70 percent of your money is GONE

Bottom line: The financial system puts up none of the capital, takes none of the risk, and still captures 50 to 70 percent of the return.

I want to thank Phil Town for taking the time to chat with me and look forward to our “Live Interview”! Phil has a site that you can stop by and sign up for classes on how to use his strategies on “Stockpiling”. Stop in sign up for an account and get your copy of “Payback Time” today!

Resources for the figures above:

Brooks Hamilton of Brooks Hamilton & Partners, (which designs 401(k) plans for corporate clients such as Neiman Marcus and Frito-Lay provided the following table that walks people though the math.

Here is the link:

http://www.pbs.org/wgbh/pages/frontline/retirement/etc/tyranny.html

This table breaks down John Bogle’s, (the founder of Vanguard, one of the world’s largest mutual fund organizations, and the author of The Battle for the Soul of Capitalism (2005)), example of the impact of compounding — and compounding costs — over the long term.

On the left it shows the growth on $1,000 invested by an individual at age 20 until his/her death at age 85, assuming 8 percent annual growth. On the right, it shows what happens to that same $1,000 over the same period assuming a 2.5 percent annual cost, such as a mutual fund management fee. Over the 65 years, these annual fees eat up a staggering 79 percent of what the investor would have earned with no management costs.

Note: they use 2.5%, Phil uses 2% fee

Here is a link to “The Arithmetic of Mutual Fund Investing is More Important Than Ever”

http://www.vanguard.com/bogle_site/sp20050524.htm

Here is a link to “The Wall Street Rip Off: Fees and Consequences”

http://www.multinationalmonitor.org/mm2009/052009/interview-bogle.html

Well, I found this through the Economic Crisis Blog and boy if you wanna talk about the truth? Check out the graphic.

I’d really like your opinion on this whole gambit. My girlfriend has already had to deal with a couple of the sneaky things the credit card companies have been dealing out to consumers. (lowering credit limits without notice, changing interest rates without notice…etc.)

Personally, if you don’t have the money why buy it. That’s what got our country in trouble in the first place, “buy now pay later”. That mentality has to stop and saving must begin right away. No savings, no credit to lend on. hate to say it but we have to have debt to get credit again. Savings are definitely needed for that to occur. You can watch a full video on how our money system is designed to work and understand why we need to start saving if we are to stave off the worst depression ever. (www.chrismortensen.com)

Now if you have good credit you may think you’re exempt from the melee the credit card companies are throwing at everyone, but only the Uber rich aren’t really feeling it, and they pretty much have enough money to get what they want anyway. (Oh by the way I have it from a friend that is a CFP for some “money people” that even they are starting to cut back on the buy now pay later mentality)

Anyway, check out the graphic and tell me what you think. I’d like to know if you’ve been hit with anything like it says the credit card companies are doing.

Spend on Life has a grab bag that touches on one more thing about how fast certain credit card companies complied with the CARD Act and didn’t try to keep screwing over consumers…they just found other ways to do it…

We're getting crushed..time to stop em!

You can't be like this guy

Debt? What  Debt? LOL! I DON’T GOT NO DEBT!…except maybe that old credit card I used to have, and that car loan I defaulted on, umm oh yeah and my school loan I never finished paing off..crap I guess I do have some…BUT NOT AS BAD AS MY ROOM MATE!..

Ok. Enuff.

Look we all have had debt at one time or another, and I’m here to run over some of the “tell tale” signs you’re in denial that you have any debt.

This’ll be quick and painful…I Promise.

5. Still going out on a prepaid debit card cause your CC is shut off. Ok guys here’s the number five reason…Because it’s the easiest to spot. Everyone thinks this is the greatest way to stay out of debt, but most use it because they are IN IT! Why’d you get it in the first place? Don’t blame the credit card companies, you’re the one that couldn’t resist going out every weekend rather than every other one like my post on how to save. A pre paid debit card is for everyday expenses, stop trying to show off to your friends that you have money, you don’t. Interestingly enough I found that when my cashola had run out, so did my friends…pretty shallow gang they were. Glad they’re gone.

It's not all good...

4. You spend more than you earn – Come OOON People…if you make 2k a month and are spending 3, DUH! You’re in DENIAL! Get a hold of your head and get a hold of your pocket! Sit down and see what you really need to make ends meet and Stay in your means! Don’t become a statistic in the Bankruptcy arena just because it seems to be “cool”. (and yes bankruptcy is fast becoming a trendy thing, not a good idea though if you can stay away from it do so)

3. You’re borrowing more to pay off other debts. – I’m guilty of this one, did it…Point: if your borrowing to pay off, you’re still borrowing…get it? Good. Oh and NO IT DON’T WORK!

Don't get like this...

2. You have no savings – ummm ok, let’s talk a bit about this one. If you have nothing saved for a rainy day, how do you intend to have that vacation you so wanted next year? How about that new car? or down payment for a house. Won’t be there if you don’t have a savings of any kind. If you don’t have a savings, you can well bet it’s because you’re doing 3 above and not getting anywhere. I wrote this in my 10 ways to save too,  just start SOMETHING somewhere. It won’t hurt I promise.

1. You find it hard to sit down and look at your finances to see what you owe, and frankly don’t want to know. (which will lead to denial of a worse kind…Delusional) Look if you don’t get a grip, it will get one on you, and then there will be no turning back from the pain this will cause you financially. Don’t think you can just let it go. You need to deal with it while you’re in the “lack accurate information” stage. You can sit and talk with a confidant about it to help you get into the mindset of truth and consequences. The Truth is you’re in debt. The consequences is, if you don’t do something about it, you’re screwed , and soon.

Is there Hope?

Save it up for a rainy day

Hell yeah there’s hope! I said this would be painful, not hopeless.

You have all kinds of remedies at your disposal, but the first thing you have to do is take action to make things different, and get out of the habits you may have fallen into.

If you have a financial planner, you should be fine, if you don’t, you need to find someone that can hold you accountable (that means they kick your arse if you get out of line) for any spending you do. (and if you are going to make that your spouse get ready for a war…find someone else that has your best financial interests at heart too, this way your spouse at least thinks you’re fiscally responsible.)

If you have to transfer your balances to a 0% interest card, you can do that all year round. Just be aware that if you have too many cards that you can end up in worse shape, not better with your credit. If you can’t get a Credit Card get a Prepaid for now, and start watching what you do when you do it. (spending) The more you print out your account statements and pre paid statements the easier you can see where you’re spending and on what. This will help you stay away from over doing it.

Seek advice if you have to, but do something to get a hold of your finances and yourself.  Your Wallet will thank you for it later, so will your bank accounts!

Destroy Your Debt

One of the best things you can do is as Yahoo finance contributor Rachel Robson writes is “adopt this goal: Destroy your debt”.

I couldn’t agree more…:-)

What will you do to get out of Denial? What will you do to “Destroy your debt”?

I like bringing the pain like this, it’s fun, and it gets people pissed off enough to do something about it, SO DO IT!

Keep it Rollin!

Hey everyone. So yesterday I was doing a coaching session with a future author who had some concerns with finances. When the phrase “Personal Finance” came out it seemed to strike utter fear into them. Every kind of excuse came out as to why they couldn’t make finances work. the biggest fear was just the term, “Personal Finance“. Kinda like the girl here on the right.

Ok, let’s make something really, really clear; Personal Finance is, to me, a subjective term. It is defined by different people differently. Your means may not justify investing in an oil company that’s been around for some years. At the same time your means may justify a diverse portfolio of investments and savings vehicles. (Insurance, CDs, Real Estate, etc.) But the only person that can define that is YOU.

Do not succumb to anyone saying that if you cannot invest in something you don’t have anything for “personal finance“; they’re full of themselves and full of it period. So this is a “top ten ways to save” post.

Why this first? Well, Debt Elimination really comes first, but you need to start putting away for a rainy day as our wonderfully prosperous country has taken a dump into the “spend spend spend” mode rather than the “save, save, save” mode. ( and let’s be clear I am not saying don’t treat yourself here and there, but be realistic please?!?!) It’s the reason our economy has taken the hard turn it has. People started to spend money they didn’t have…not smart.

Sinbad talks about how to manage your money and other fun stuff

“Some kid with $100 buy a 3and a half million dollar house and now ain’t got da payment…??? Do house was just a dollah 6 months ago and now da payment went up?!?! It was just a Dollah!” – Sinbad on being smart about money on his Comedy Central performance February 21st, 2010.

Ok so here’s my top ten ways to save:

1. When it comes to saving it’s usually putting aside 10% of your income. For those of you who are tithers(like myself) you put aside 10% for that and 10% percent for savings. If you don’t know where to stash it, The Digerati Life has a user suggestion that simply states, put it in high interest saving that you can’t touch. the rest you put through your checking for expenses. one way or another when you do see you have a check coming count on NOT having 20% to use. This means just count on less, and plan your expenses that way. (Don’t want to do that? ok, but just remember you asked for it)

2. I’m a fan of coupons…heck my hosting is on a coupon…:-) if you want to save there is still something to be said for coupon clipping, or at least look to see where the best deals are and try to get everything at the same place. You may have to sacrifice some convenience for price just make sure it balances out against your fuel bill.

3. Don’t shop when you’re hungry or bored. I’ve found that when I’m bored or hungry I tend to over spend or spend needlessly on stuff I’ll either never use, or ever eat and in some cases have wasted a LOT of food…just get what you need and be honest about it. If it is not ABSOLUTELY needed, don’t bother with it, you can get it later when your wealth is built up a bit.

4. Cut down on your cell bill. This means talk less…unless you are in business for yourself, and absolutely need your cell on an unlimited plan, (and I have remedy for that too)cut down your plan and see if you can get your home phone through magic jack, internet is cheaper and the magic jack suffices for most anyway. Me? I don’t even have a home phone, I use my cell for everything and a Google voice number for business.(yeah I suck but hey I have friends and they offered…I gladly accepted)

5. Reusing stuff may seem a bit odd, but it can definitely save you money in the short and long term. If you aren’t sure how that can work, check out Lifehackers article on reusing your stuff. It will help you think a little more outside the box and help you save on what you’d be spending a lot more on.

You can save a LOT by brewing at home.

6. Brew at home – OK, I may get blasted for this one but I know of a woman that found out that the time value of her dollars were better spent at her own home not spending the $5 on Starbuck’s or Caribou Coffee. In the long run, the month’s worth of coffee looked to be about $107.50, but when she found out what that money could have been making her in even a low interest savings account(something like $250 or something like that) she immediately started to brew at home. By the way, the flavors of coffee you get at the local coffee shop is cheaper if you make it yourself…go look at the discount stores and or places like Cosco or Sam’s Club. Which takes me to my next way to save.

7. Buy in bulk when applicable. Sometimes it just makes more sense to buy it in bulk when you know it can last. I’m not talking about perishables, but some frozens and mostly dry goods will keep longer and most likely cost you less in the long term. Try not to think so much about “Brand Names”. Just get what you need and make sure that you get enough to last for a bit. Kroger is a great alternative to normal brand name buying and the taste, buy my standard, is comparable.

8. Can the Cable. WHAT?!?! yep…can the cable and find some lower cost alternatives. Here are a few: netflix, Hulu, etc. Yeah I know they are delayed, but seriously, you got all that time to slack off? Shouldn’t you be interested in sharpening your own skills for your career or business? hmmm. I like to game like any other, but I don’t have all that time just yet to get in front of the box and “veg”. I can do that in front of my computer…LMAO!

9. Find out what grants and public assistance you qualify for…again, yes I said it. There’s nothing wrong with asking for help. My mom gets help from the County for her utility bills, some of you may qualify for other types of assistance. Go check with your local government offices to see what is available to you. If nothing check with local charities. THIS IS NOT A DIRECTION TO GO SCAM THEM. if you really can get it, do so. don’t get it just because you can if you don’t need it. some other family or individual may and you might be the one to help that office or charity run out of money, use your discretion. Here’s a report on a program that helps people learn how to save money.

10. ok here’s the last one…simply take $5, $10, or $20 out of your pocket every week and put it into a savings account that takes more than your signature to get out. Make sure the other signature is of someone that knows your financial goals and wants to help you accomplish them. They will be an accountability partner that will call you to be sure you’ve made that deposit and eventually you’ll have a small rainy day account. This is needed just to begin getting disciplined to SAVE. Once you’ve gotten that together, you can begin to think about investing in other types of savings accounts.

A little here and there makes it better over time

This article is not for the Uber rich, but even they had to do these things at one time or another, and a few of them are having to start doing them again. Reason: we’re all hurting one way or another. Some are working new ventures that take time and don’t pay a lot just yet, some lost fortunes in the last recession and soon crash. But here’s where I like to lay my thoughts in this economy…”I would rather be a broke millionaire than a Millionaire that just went broke.”

The Broke Millionaire will bounce back. The Millionaire that just went broke wasn’t watching, thinking, or saving. They just lived the high life and now have nothing to show for it; Kind of like a lot of lottery winners. Which do you want to be?

Oh, and throw more of your suggestions on the bottom as to how you save, I’m sure our readers will enjoy the suggestions! Keep it rollin!

St. Valentine

So, Today is Valentine’s Day and I started to wonder how this holiday came about…I got Stomped! I had no friggin idea about where this particular love day came from. So, I wanted to find out just how this day celebrating LOVE came about. There are a few legends about this.

The one that seems the most plausible is the one about Valentine having performed secret weddings under the rule of the tyrannical Claudius who wanted to have such a large army that he outlawed marriages for young men so they could serve in his army. This of course did not deter Valentine and he did the services quietly for fear of the soldiers hearing him.

Eventually they did and he was arrested and ordered put to death by Claudius. While in prison his friends would come by and throw him flowers and encourage him to be of good faith. He would always write back signing, “with Love your Valentine”. History.com states it was possible that Claudius’ daughter was the one who would stop in and visit him there and he would send her notes signing it, “Your Valentine”.

So, we commemorate love by this legend and how much of it is true, who knows? But one thing is for sure, it triggered a day of love for us to enjoy each other as friends, lovers, colleagues, even neighbors…or roommates…:-) (did you like that segway to today’s post? huh? Did ya?)

Ummm..damn

I said I’d write about some of the agreements that need to be made in order for having a room mate to work. The reason I wanted to address this was simple. I see a LOT of dysfunctional relationships with room mates simply because they don’t have certain agreements in place…BEFORE you sign a lease agreement.

About.com makes a couple of real good points that make really good sense:

It is suggested, and I agree with this one, that you resist the temptation to “figure it out as you go”. Let me tell you this will only cause serious head aches and drama trauma between you. This is unnecessary and if you sit down and truthfully figure things out and make your agreements before you move in together, it will make for a much more easy living situation. This includes what to do if things don’t go well. (someone loses a job, can’t pay rent, can’t contribute to the bills etc. these all need to be agreed to or else it won’t work)

ok why am I even talking about this…HINT: A lot of you are not doing it! You’re trying to “figure it out as you go” and it’s killing relationships that would otherwise be great and functional.

Go ahead eat my food...

I also know a few couples that live in that situation or some friends that share a house with five bedrooms and they do everything according to a “Communal” lifestyle where everyone contributes and it works! But, it’s because they all agreed to make it work by making their agreements including how the rent was to be split, (in one case it’s uneven because one person has a master bedroom so they pay a bit more and the one with the smaller room pays less…duh it’s fair) how much to contribute to utilities, and shopping. (who goes, what foods they can eat and they cook for each other. This gives a greater variety of foods to be eaten)

Sometimes, it’s just better to get those things out of the way before you find out later someone loves fish soup that you can’t stand, or raw food versus cooked food. (Love you Brad…your my bro you know that right? lol)

I’m quoting this from the article on About.com:

1. Also, write down what you and your roommate have decided about the practical aspects of your apartment living. Here are some points to consider:

Don't get involved with these three

• Will one of you cook, and how often?
• Will you alternate who takes trips to the supermarket?
• Will you split the task of writing expense checks or managing online utility accounts?
• What furniture and appliances will each of you bring?
• Who’s responsible for decorating the common areas?
• How much notice will you give each other if one of you wants to move out before the lease term ends or if only one of you wishes to renew the lease?

Look the bottom line is, this is another situation that if planned out correctly can help you get into a better position financially to get out of debt, and begin saving for your future. The 10% that you should be putting aside can be found easier now. (stop spending it on the girl next door, it’s not helping you financially unless she/he is a sugar momma/daddy or Cougar/Trout…in which case more power to ya)

I’m curious though, what other agreements do you think would need to be made for a successful arrangement to be had for living with a room mate?

Mom give me a money

Ok, so you have had to realize that the economy has taken it’s toll on you. You’re not gonna make it for rent next month and the huge anxiety of moving home is beginning to hit you right where it hurts…nope not your pocket, YOUR PRIDE.

Lizzie, a contributor to the Get Rich Slowly Blog, wrote on her experience of how hard things were getting and that she really needed to grow..up. She had a need to get rid of her credit card debt, and wasn’t going to be able to do it living the way she was. IT was time to move home.

Get this though, her troubles weren’t all financial. She was worried about other issues that involved family, transportation, and all around life. Funny how everything seems to pile in all at once when your finances aren’t straight. Not to mention how uncomfortable things are when you first get back. But there’s a bright side to doing this. (And I’m not suggesting everyone move back home, in some cases it is NOT appropriate ie, not on speaking terms with parents)

Ehow.com, gives some pointers on how you can move home smoothly and to begin to “contribute” to the tribe again, even if you’re not asked to. (nothing like a slob moving back in, show them you’ve grown up some and pitch in to help around the house. One day you’ll have your own place and hopefully you’ll have learned how to take care of your domain much better than when you were sixteen.

Now on to the deal of why you may want to consider this move.

Kids moving home

First off, if you cant’ afford living on your own, moving home presents a welcome place. (hopefully) People you are familiar with will be there that you may be able to draw on experience from. (If they are CPAs be prepared to get a lot of flak but at least they’re trying to help) Being in a “contributory” environment can help you save money so you can pay off some of those nasty credit cards that are just making money on their interest that you can barely afford as it is.(whew! what a mouthful) Here by saving, you can start to pay it off. As you sit down and plan out your next move, (and I don’t mean your next residence) you can begin to see clearer whether or not your plan is going to work and you’ll have a safe environment to operate from (no landlord trying to throw you out hopefully). Make sure you have made your agreements with regards to responsibilities both financial and domestic. This way no one expects too much or too little.

Second, All those nights out proving your flashy party self to your friends are gonna have to cut down. I didn’t say stop, you deserve a night out here and there, but I live in Las Vegas, NV. I can tell you right now I know a ton of younger folks out here that are out a lot more than they ought to be. Curb your habits of going out to once or twice a week. And finding those dollar nights or ladies nights free isn’t a bad idea either. Also, if you can stand it, try to just spend time in looking at your next moves financially. (don’t stress or pour over them, just look at where you want to go, and practice visualizing yourself there. There’s something to be said about visualization)

You can have this for as little as $3.60? yep...

Three, you need to plan out your budget for the month regarding EVERYTHING! From rent to food to entertainment. (yes I included rent…you didn’t think Mom and Dad would just let you stay home for free do you? If they do you’re one lucky bastard!) Find the things that you don’t need and don’t do them or get them. We all have had to live on Top Ramen at one time or another. Heck, I still enjoy it here and there as Dry Mein, or with an egg and some white meat chicken breast I find on sale…why not? It’s still good! My point is there are times you have to sacrifice comfort for future stability and/or freedom from debt. It’s not an overnight ride and can be daunting at first, but it does get better. Funny thing too is you learn where to be able to eat well on small budgets. (like a Super store offering three fillet mignon wrapped in bacon seal packed for $3.60)

Lastly, set up some goals as to when you want to get things paid off, and be realistic. If you know you can’t give up Thursday Ladies Night, don’t go thinking you can omit that cost from your goals…it won’t work. Be frank with yourself, and be real. Fooling yourself will not help your situation and will cause you to become a burden on your parents rather than helping yourself to get back on your own.

Moving home can be a good thing

Here’s the bottom line, You find yourself in a situation where you have to go home; as long as you are on good terms with your parents and they are agreeable to it, it is an option for you to consider so you can get back on your feet. It is not a walk or life of shame. The shameful ones are the ones fooling themselves that things will get better while they struggle and move out in the middle of the night not honoring their rent contracts and not trying to communicate. these are the ones that make it hard on the rest of us. Your true friends may even step up to the plate to become a roommate. That’s another thought I’ll expound on next week. I’ll also talk about how you can plan with your roommate together, even though you may not live the same lives…it can work really well if done right.

Keep it rollin!