SAVING MONEY in the Old Fashion way....

You can get yourself in a position where you’re not spending more than you make, but it takes commitment to stay there. Remind yourself every day that you’re not going to waste money and that you’re going to spend less than you earn this week - and this month - and this year. It’s all priorities and budgeting. I believe it comes down to desire to get ahead. There are many little habits and purchases that can be cut out of everyday life and will add up to thousands of dollars over the years. No matter what your financial situation may look like, you must prioritize your bills. Credit card bills and other debts should seldom come before groceries, shelter, or utilities. There is nothing more important than your family’s well-being. Dealing with debt can feel like a never-ending battle, but it's important to look to the future. Regardless of your situation, you can find the light at the end of the tunnel if you have the proper tools and support. Create a budget and commit to taking control of your financial situation by making hard decisions.
1. Money to spend on yourself each week
2. Money to put aside for your bills and regular commitments
3. Money for lifestyle
4. Money to save for your goals and the future

Financial Perspective: Spending Lunch Money

Let's put it in perspective; you eat out 5 days a week, at $6.00 a day, for about 20 days a month, 12 months a year (5 days x $6.00 a day x 20 days a month x 12 months a year). That's $7,200.00 a year spent on lunch.

Now, what would you do with $7,200 if you didn't buy any lunch?

I would pay off the debts.

Credit Unions

I have been a satisfied member of a credit union I belonged to for years until recently. I read somewhere that nearly 70% of credit union customers feel that their credit union has their best interests in mind. Credit unions are not-for-profit organizations that work to pass on earnings to account holders in the form of better rates on savings accounts and loan products. The remaining 30% do not feel the same way. I wonder why?

I can see why a member may be treated differently due to various circumstances.

Most Credit Unions' guiding principles have remained the same:

(1) Only people who are credit union members should borrow there;

(2) Loans are made for "prudent and productive" purposes;

(3) A person's desire to repay (character) is considered more important than the ability (income) to repay.

Members are, after all, borrowing their own money. These principles still govern most of the world's credit unions. Credit unions (most of the time) continue to look out for their members’ interests and provide a level of service that is not generally available at other financial institutions. Whether it’s providing a loan to help a member cover unexpected medical bills, giving financial counseling to a member whose company closed its doors, or simply offering a better deal on a used car loan, credit unions make a difference for their members and the communities they serve.

Credit unions do provide many services that banks offer. But the core values are so different—regardless of the credit union’s size or offerings. As a credit union member, you’re not just a customer; you’re an owner, with a vote in determining the direction of the credit union. And because credit unions are not-for-profit, all earnings go back to the members in the form of great rates and low fees. It’s about putting people before money. Banks, on the other hand, exist to make a profit for shareholders. While that is fine, it means they’re not motivated by the same values as credit unions. Regardless, both Banks and Credit Unions rely on the faith and confidence of their customers/members in order to stay in business.

My personal opinion is that Credit Unions are still better than banks and other financial institutions. In my personal case, I will continue to evaluate my relationship with my Credit Union.

Words versus FACTS

I can see that there are more women bloggers out there than men. I can't win with words but I can win with facts. However, those with words will try to win more than those with facts. You can see that in media and everywhere else.

My work has cut my pay for the next two years and my wife is not getting paid this summer so my reality of paying the bills builds on my heart, mind and soul.

In this world, we all need more affirmation and less confrontation that if you can’t say something nice, keep your mouth shut. Often, I see flaws and often keep my mouth shut because I have flaws of my own.

“There is a time for everything, and a season for every activity under heaven….a time to tear and a time to mend, a time to be silent and a time to speak….” Ecclesiastes 3:1 & 7

Financial disagreements are a normal and necessary part of any marriage. In any discussion between two people who are, financially speaking, there will always be a certain amount of tension. Tension that, over time, leads to even more disagreements over petty issues.

I know that God doesn't always drop money into our hands because His provisions come in ways to cope with the situations we face. More times than not, the answer to my financial provision hasn't been cold hard cash, rather it's been a way to save, the courage to sacrifice something that isn't necessary, or simply a calm peace.

Remember that God cares for the birds of the air, He cares for me. We need not worry. He'll help us get our bucks in a row. So, I have to learn to share the financial responsibilities of the family as couple by “talking”. Talk about these things, work together that the phrase “Two heads are better than one” rings true. The expenses we make are discussed in advance and our dollars are weighed against priorities. There is no mine and yours—it’s ours. Our financial situations are not always caused from bad choices - sometimes the unexpected happens. Learning to manage the family finances consists of more than how much money is in the account. Money management begins with a partnership. Sharing the decisions and sharing the responsibility and more so, learning to give.

Talking: When it comes to talking men are at a serious disadvantage. Experts tell us that women speak, on average, 20,000 words a day. Men might utter 20. We process information, calculate our response and carefully weigh the impact of our words. Men always put foot in their mouth so men, in general do not speak much. Speaking less is better than being in trouble whenever they say something wrong when they are thinking directly from the minds.

I can see that there are more women bloggers out there than men. I can't win with words but I can win with facts. However, those with words will try to win more than those with facts. You can see that in media and everywhere else.

Recession hits harder for deaf, hearing-impaired and disabled

Those who run non-profit groups are feeling the pain of deep, wounding budget setbacks, including support from various supporters.

Especially those who are disabled who rely on their income to support their disabilities are getting furlough, cutting pay or even facing lay-offs. I am facing my own 10-day unpaid furlough. I even lost almost $15,000 worth of retirement in my deferred compensation plan funds (similar to IRA) that I have to work longer to recoup what I have lost.

Recession also leaves disabled job seekers behind. Many disabled are competing with thousands of non-disabled job seekers going for jobs. The Department of Labor in February released a report tracking unemployment rates among disabled job-seekers. The survey found a 14 percent unemployment rate among disabled workers -- almost double that of the non-disabled population. According to the U.S. Census, people with disabilities comprise the largest minority group, approximately 20 percent of the population. The numbers will change after 2010 Census.

Will President Barack Obama's economic stimulus package help people with disabilities?

Many of us who are disabled do NOT want disability checks. We WANT TO WORK. Many experts and people often treats disabilities as 2nd or 3rd class citizens. We live in a world which places great emphasis on beauty, wealth and power. People with disabilities are often a symbol of the opposite, we struggle with physical or mental imperfection, powerlessness and often invisible. This only adds to the stigma which isolates them, separating them from the mainstream of life. Today, people with disabilities are focusing attention on tough issues that affect quality of life, such as accessible transportation, housing, affordable health care, employment opportunities and discrimination. People should be aware that that people with disabilities are ordinary people (just like them) with common goals for a home, a job and a family.

There are areas that are still facing barriers in one form or another. Improving the material quality of life, improving public safety and security, improving education, Christianity and spiritual values, increasing employment or improving work conditions for those who are truly disabled, improving the cultural quality (i.e. Deaf Culture) of life, improving the psychological and social quality of life and much more.

People with disabilities still are dealing with old legal barriers that prevents them from being independent. We are still identifying barriers to participation in our society. Many people with disabilities have the ability to overcome barriers in their own ways and making sure that they are having quality of life regardless of barriers. Proverbs speaks of the relationship between adversity and strength. "If thou faint in the day of adversity, thy strength is small (Pro. 24:10)." No matter how big the adversities, we can over-come and be able to what we want with our desires. Its our will that is strong. Its our desire that is strong. Its our determination that is strong.

Billionaire investor Warren Buffett says U.S. automakers need a new business model to better compete

Buffett is Chairman of Berkshire Hathaway and arguably the greatest investor of all time.

Warren Buffett, the world's richest man according to Forbes magazine

is buying US stocks even though the American economy is in a "mess".
read article

My investments are still going though as normal as I have in the past. Right now, I am buying stocks cheap and down the road, hopefully (most likely) that my stock values will go up.

Mandated Laws (i.e. ADA) and Small Businesses

I do understand that harmful government mandates further threatening employee and employer alike in all small-businesses that the economic outlook has become more scary. For small businesses, they have been carrying the costs of the economic downturn which make up 80% of businesses are small-businesses while 20% are large corporations.

I understand that most small-businesses owners are republicans because they understand that in order to be able to provide jobs and benefits to each and every employee, they don't want democrats to create unfavorable governmental regulations threaten small businesses ability to run their business. As an Ohioian, I am looking into the 2008 election, all of us need to understand the impact by small businesses owners and their employees will vote as pro-business mindset when they cast their ballots. They will want to work with elected officials who have similar ideals that strengthen business and do not irresponsibly hinder job production and growth.

I come from a family that run small businesses and I do understand the impact of what laws can do to small businesses. Often when laws hinders small businesses to do what they are intending to do, they will lay off employees or close up.

Needs versus Wants

The latest survey of business expectations predicts economic conditions will deteriorate and many people are going to rely on needs more than wants. One important idea in economics is that of needs and wants. Needs would be defined as goods or services that are required. This would include the needs for food, clothing, shelter, health care. Wants are goods or services that are not necessary but that we desire or wish for.

When the money GETS TIGHT, we must get a feel for what "needs" are and "wants" are. The "economic slowdown" is getting more slower. This will affect many jobs in the future that if people are not buying, the jobs will not be there. Consumer spending and retail sales are the backbone of the nation's economy.

Working part time out of economic necessity........

I have a great job and great pay. My wife has a nice job but do not pay that well since it is a small non-profit organization. She loves working there and she wishes the non-profit organization gets more revenue so she can be paid more. She donates more of her time there than she gets paid.

Last night, my wife and I were talking about getting part time jobs temporarily until things are better financially for both of us. My wife will talking to the people of the organization and letting them know that she will have to get another part time job in order to get more money.

The key problem is that my wife and I work in different schedules. I work during the day, Mondays through Fridays while my wife works in the evenings Mondays through Thursdays and all day saturday. We have an adult child who lives with us who is disabled and even though she can be left alone at times but we cannot leave her alone all the time. One of us have to be home and it will be harder for us to find a part-time job when we have schedule conflicts.

Nowadays, we have to make ends meet because of the expenses are going up and our pay checks remains the same. We are still paying our old medical bills that the insurance did not cover.

Do you know what? I noticed that there are more "part time" jobs available than "full time". Why? Part-time employees are cheaper because there are very little over-head costs like benefits.

With MS, I perfer NOT to work another job but sometimes, I don't really have a choice.

This weekend will be deep thinking for me and my family. I will probably be online searching around for what are out there for me.

Insurance again.........

My fellow blogger wrote a good blog about the latest news about insurance This is about co-payments for expensive drugs to go up higher. My avonex for MS is very expensive and I hope my insurance will do change their prescription plans.

It is time for United States to have universal health plan.

The future of airlines.............

Fliers not always entitled to refunds

Everyone should be aware that airlines are not required to compensate passengers for canceled flights. I wonder how many will by plane tickets in the future when the economy is getting bad. I won't be buying a ticket unless there is an emergency trip.

I find driving more relaxing and much cheaper.

Economic Band-aid

I have a strong respect for billionaire investor Warren Buffett and I agree with one of his quotes when he told his shareholders a few years ago: "If they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful." Investors, who at heart want to make money and make it as soon as they can, are the ones that can hurt the economy. The purpose of the corporation was and still is to generate profits for its investors (shareholders) which is not a problem for me because I am one of those "investors". Economic's chief purpose is to discover and refine just and means of creating, distributing, and consuming wealth to overcome poverty and to increase the material prosperity of people. In the United States, work ethic in form of stewardship and that economics are called for efficiency and productiveness of common sense and a strong sense of disiring to be a good steward of taking care of the country's citizens. America's attitudes towards money should be in their conviction that money is a social good, not a private possession and that the economic main purpose is the welfare of everyone in society, not the personal pleasure of the person who happens to have control over it.

At the same time, those who got greedy which lead them to trouble in the housing markets as well as subprime loans. I agree with John McCain's policy with his quote: "it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers."

In my own opinion, why should we reward bad investers and borrowers by bailing them out when the wiser investors and borrowers who gets no rewards other than being non-greedy and wiser? I will not count those who lost their jobs or their health caused them to spend more on their health care because they are not at fault. I am talking about those who invest and borrow unwisely. Also, we need to punish "predatory" lenders who lure people into borrowing out of their reach.

We live in a country that is "you're-on-your-own" situation as today's commentary by George F. Will: McCain's bailout minimalism is a maximum advantage. I will always remember Benjamin Franklin's quote “The Constitution only gives people the right to pursue happiness. You have to catch it yourself.” Throughout the Old Testament, there were lists of people who were wealthy and in fact the Book of Proverbs wrote who we use our wealth. Economic system is stewardship. In this country, people have equal opportunity to be successful but not everyone would be successful.

Whenever we face financial problems in this world, we need to understand that there is not one "economic system" that will solve anything. Even as much as they try, not one "Government system" will be able solve anything. My final thoughts on the political economic system: I have said before and I will say again, economic system is NOT the problem, its PEOPLE and their attitudes.

Last week, I have made some changes in my investments as well as my spending. I am taking the responsibility for my part of helping the United States economic situation.

I just can't do this alone.

Personal Economy and Budget Cuts.....

I am not sure about everyone else, but my family is struggling to make ends with our cost of living because housing and utility costs rose including monthly food and automobile fuel costs. I take the bus to work daily which means I saved over $250 a month of wear/tear, fuel and parking costs just by paying for a simple bus pass.

My family is one of those America’s working middle-class families who are facing a wave of economic insecurity even though we do have a secured job and we are paying our bills. However, our expenses are higher than our income due to prices going up such as food, auto fuel, others and especially medical bills. Our medical bills have been getting bigger over the years.

My wife and I are making efforts to cut costs and reduce the amount of not needed costs which means giving up what we enjoyed.

I am sure many of us have financial fears regarding the effects of the corporations and businesses attitude in regarding working with us because they are in the business of making money and they don't care if we have problems. This is just another specific economic area that affect other economic areas and they are all related. Corporations and other businesses needs to remember that we consumers drive the U.S. economy according to our ability pay for supply of goods and services that debts are in nominal terms, falling sales and wages made it impossible to service the debt. When that happens, everything else in economy will be affected. There are limited programs that help people survive through bad economic times because many corporation do not want to work with us. They rather have the government work with us while they reaping in millions.

In one of my posts in this blog, I posted about most corporations are paying their CEOs and other exectuves too much and I find that disgussing. Shareholders needs to speak up and tell the executives to shape up or else. While I understand the logic behind the salary amount which competition is expected because they attract a large number of qaulified applicants. I know CEOs face long hours, considerable travel, and intense pressure but we have to remember, there are hundreds of thousands CEOs who are not making over $ 150,000 a year including non-profit agencies. It is very laughable when many CEOs earning more than 100 times the average wage. They should be helping the company and sharing their wealth with their workers. CEO's bonuses are even WORST and their employees working their butts of making the companies success, executives should also have their bonuses should flow through so all members of a company have a reason to perform.

The purpose of the corporation was and still is to generate profits for its investors (shareholders) which is not a problem for me because I am one of those "investors". However, I am the investors who are trying to live while executives are making more money than they deserve. Therefore, corporations and major investment holders really do not serve minor investors but their own. Our relatives ran into these kind of business people in the past (1800's, 1900's and years later) and they were often referred to as "politicians as villains and businessmen as heroes" and they still are today. Today, many corporations are restructuring two processes that are known as "downsizing" and "outsourcing", because they are basically shedding of higher-paid employees (not exectuves) and the hiring of low-wage contingent workers elsewhere. Therefore, there are American workers who are not making money or not making enough money to help with the economy.

Back to our budget plan.....
After paying off debts, we are going to invest more so that when economic crisis come again, we will be ready and will not rely on corporations and government. Since my income can only pay so much therefore, in the future, I am going to make some changes in my budget to focus on a much more simple living than I am living now. My first step to making better choices about my family spend our money by living consciously. This is not about to "consume less" but rather to "consume differently" to save money in the long run.

My family's first focus is our current debts. We are going to use our tax refunds and rebates towards our debts. Close out some accounts that are considered wasteful even though they do "help U.S. economy". I am sorry to say that our rebates are not really going to help U.S.'s economy since many companies do not and will not like working with consumers so therefore, there's no point working with them and I rather spent my money to companies that desires to help the economy by working with consumers rather than relying on the government alone.

If I remember correctly, the last time we received tax-rebate checks, most Americans have used the money to pay off their debt -- not spent it in the stores. Recently, the UBS Securities commissioned survey was released by the International Council of Shopping Centers, Inc. found that 43% of the 1,000 surveyed Americans would pay off debt, while 26% said they would save the money and only 24% said they would spend it.

So... this week and weekend, we are going over our bills and find ways to cut costs. We are cutting our cable and phone features.

Oh yes, in terms of investments, I am looking into investing into companies that don't have high executives salaries and bonuses. I want companies to work for investors and consumers more than they are working for their own bank accounts, pockets and wallets. I would encourage all investors do the same.

Are you all facing similar issues as I am?