NBA Players Welcome to the Real World

NBA Players make more than 90% of the U.S. population. They get to travel across the country for free by the NBA. You get paid for doing a job you love. Most Americans work a job that they hate and have no other options.

Many times players are lured into the NBA and believe that their lifestyle will last forever so they aren’t concerned with how much money they spend – but nothing lasts forever. Americans learned the hard lesson that nothing in life is guaranteed and that life can be hard.

NBA Players suffer from the Instant Gratification Syndrome, you want everything right now. You spend money that you earn in the future to buy things in the present. You have no right to complain that you can’t pay your bills. No one made you buy a multi-millionaire dollar home; spend money on partying, women, designer clothes, jewelry, and things that have no value. You made those choices.

You decided that living that lifestyle was what you wanted and more important than planning for your future. Don’t be like Chris McAlister of the Ravens.

Immigrants that were brought to this country or migrated to this country knew the value of hard work; they did whatever they had to do to make a living even if it meant making sacrifices or working multiple jobs. Americans are spoiled and have forgotten how to survive. If one option stops working, find another option.

Yes you should be treated fairly by your employer but you should always look for other options. You can use your celebrity status to create a radio show, a television show, a clothing line, a sneaker line, sunglasses, hats, become a speaker, become a board member or advisory committee member for a national company or start a business. So many options are available to you and are easier for you to attain because of your celebrity status and the people you have at your disposal.

NBA owners are denying players adequate pension plans and requesting stricter salary caps. You can’t have it both ways. You have to provide one option or other. This will continue to lead to future lockouts until owners realize they are nothing without the players. Here are 7 tips to plan for your future.

1. Save. Save. Save. Save at least 30-50% of your income each month.
2. Retirement. Sign up for the NBA Retirement Association. You only get a small amount of income but if you combine it with additional steams of income through endorsements or businesses you should be able to retire comfortably.
3. Downsize. Downsize your lifestyle. Who are you trying to impress with your ferrari, maybach, diamond watches, and millionaire dollar home. People may be fascinated by the things you have but no one really cares. When you retire what do you want people to remember about you, that you lived in a million dollar home that you couldn’t afford or that you helped your community.
4. Think About Tomorrow. You can get traded, released or hurt at any time. Plan for your future so that you don’t have to file for bankruptcy or foreclosure.
5. Role Model. Be the best person you can be and serve as a role model for youth and younger players to prevent them from making the mistakes you made.
6. Give. Donate to charities or start your own foundation. This helps to reduce your tax liability and provides greatly needed assistance to social organizations that have been affected by the recession.
7. Say No. Learn how to say no to friends, strangers, relatives who ask to borrow money or ask you to buy something. If you always lend money you only enable that person to be dependent on you forever. Show them how to earn their own money so they don’t have to ask you for money.

You determined your self-worth by the things you own instead of realizing that your self-worth comes from within. No matter how much money you have it cannot make you happy and cannot fill a void in your life.

Think how different your life would be during the lockout if you saved at least one year’s salary, if you only bought one car or if you lived in smaller house. When you experience a financial crisis, your true character is tested. You either become a winner or loser.

Determine that you will always be a winner. Don’t let anyone determine your destiny, determine your own destiny. Money can generate wealth or generate debt you make the choice.

9 Ways to Save on Back to School Supplies

This is the time of year that children become sad because summer is coming to an end. Children can no longer stay up late at night watching television or playing games. Parents have to plan their weeks sometimes having to be in two places at once. Parents have to buy school supplies and clothes.

Buying clothes and school supplies for your children can be a stressful and pricey task. Children want the latest electronics, gadgets and fads their friends have so they don't feel left out. Don't let your children pressure you into buying the latest fads or things they don't really need. Stick to your guns and only buy things that they absolutely need for school. This will save you money which we all need these days because the future in unknown.

Talk with your children before going clothes and school shopping and set expectations. Let them know about your finances and what you are going to buy and what you are not going to buy. Explain to them about needs and wants, designer clothes are not needs.

Ask your children to create a list of mandatory supplies they need for school. Determine what clothes your children can still fit comfortably and make a list of things they need. Prioritize the list in four categories: Need Now, Need in 2-4 months, Need in 5-7 months, Need When School Ends. This will also help budget and stretch your money if you don't have the cash to get everything you need. Here are 9 tips to save money when shopping for back to school supplies and clothing.

1. Plan Ahead. Don’t wait until the last minute to buy school supplies. The best store sales start early so plan ahead to take advantage of them and get the best choices.
2. Barter. If you know a parent who provides services that you need and you have clothes or toys your kids are not using consider bartering.
3. Sales. Go to yard sales and dollar stores to find great bargains on school supplies.
4. Clothes. You can buy clothes from a thrift store, consignment shop or discount store such as Old Navy, Kmart, Wal-Mart or Target. Kids grow quickly and their clothes generally don't last or fit them throughout the entire school year. This will save you money and you kids will still remain fashionable. Buy clothes and shoes if possible at least one size too big so your kids can get more wear out of them.
5. Network. Mention to family, friends, co-workers and neighbors that you are going school shopping. They may be able to provide money savings tips for buying school supplies or may have extra supplies they can give to you for free.
6. Comparison Shop. Search the internet for reputable website that sells school supplies at a discount price and purchase items before school starts to get the best deals. Every few minutes of comparison shopping can save you $1-$9. Also shop at stores that honor competitor prices and coupons.
7. Budget. Create a budget for necessary school supplies (pens, paper, pencils, erasers, notebooks, composition notebooks, rulers, compass, etc.) and save some additional money for unexpected school expenses that may pop-up after school starts such as additional supplies need for classes, school trips, additional school supplies, etc. Buy only what you need if you don’t have enough money to buy extra supplies. Look around the house to see if you have any leftover supplies from the previous school year.
8. Internet. Search the internet for reputable websites that sell school supplies at a discount price.
9. Gather Information. Towards the end of the school year ask the teacher for a list of required school supplies that will be needed and buy supplies throughout the summer. This will spread the costs out over a period of time and ensure that you budget will not be greatly affected by waiting until the last minute to go back to school shopping. This will prevent rushing to buy unnecessary items because you didn't create a list to buy only the things needed.

10 Financial Tips for Sexy Consumers

Being sexy can be summarized in 3 main areas: attitude, confidence and image. Attitude relates to your views on life, usually an optimistic person who can take criticism well and always remains positive. Confidence is how you feel about yourself no matter what someone else says about you or does to you. Image is the physical appearance of a person, their smile, their teeth, their hair, their walk, their laugh, their face, their body, how they dress, how they smell.

According to a study by ING 61% of the men that participated in the survey feel that women who are frugal are smart and sexy. Cash is king and having a savings account makes you more attractive and appealing. When you are in debt and have bad credit it is hard to focus on anything else and if you do, you can’t give it your all because of your financial problems especially when it comes to relationships.  Saving is smart. Investing is smarter. Good credit is smart and sexy. Saving the environment is sexy. Saving is sexy. Here are 10 financial tips for sexy consumers.

1.     Being debt free is fantastic. Save money on interest by paying more than the minimum monthly credit card or loan payment which helps pay your balance down faster so you can get out of debt. Keep debt balances at than 10% of your monthly income.

2.     Pay down debt as fast as twista rhymes. Pay ½ the balance with the 1^st paycheck then pay the remaining balance with the 2^nd paycheck or pay the minimum monthly payment when you get the bill, then each week pay as much as you can toward the balance.

3.     Act like a celebrity and go green. Help save the environment by filing your taxes electronically and get your refund in 2 weeks from the date of filing. Use tax preparation software like Turbo Tax or Tax Cut to help with the tax filing process.

4.     Stay cozy and keep money in your pocket. Do an annual check on your heating system. Insulate your attic. Automate thermostat settings and use the lowest setting. Seal drafts and cover floors to retain heat. Open blinds during the day to let heat in.

5.     Social media can be your enemy. Many debt collectors and some state taxing authorities are searching for consumers on social media networks who owe debt. If you owe debt, hide your profile from public access or just be responsible and pay your debt.

6.     Plan for the unexpected. Create an emergency savings fund to cover all of your monthly bills and expenses for 9-12 months. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D.

7.     Shop like the rich. Set a budget and find bargains online, use coupons or shop at holiday sales. Mix and match basic pieces with fashionable accessories such as belts, earrings, bracelets, shoes and purses. Buy knockoff pieces for extra style. Shop at discount stores and outlets for name brand pieces for less.

8.     Cut back. See what areas you can reduce spending by creating a balanced budget to stay out of debt. Thirty-five percent should go towards housing, 15% towards debt, 25% towards transportation, 10% towards savings, and 15% towards other expenses.

9.     Plan for the future. Open a retirement account and save at least 10% towards your retirement each month. You will need 60-80% of your pre-retirement salary for a minimum of 20 years to have enough money during retirement or at least $1,000,000. 

10.  Don’t be a question mark.  Know your net worth (assets - liabilities). Verify your net worth annually. Know how much you earn, how much you owe and how many assets you have. Use the figure as a baseline to increase your net worth on a yearly basis. 

What is Your Debt Ceiling

The US debt ceiling is a limit that is set by Congress on the amount of debt the federal government can borrow. The debt ceiling cap applies to debt owed. The debt ceiling is similar to the total debt a person owes to their creditors.
Every day the federal government spends more money than it takes in and makes up the difference by borrowing money. As a result, every day, the government’s debt increases. Every day Americans spend more money than they earn and make up the difference by using credit cards, lines of credit, and home equity loans (HELOC) or other loans. As a result, their total debt owed increases. The government needs to balance the budget which will require reductions in spending. Americans need to create their own personal budget or spending plan and make reductions in their daily spending. An individual balanced budget consists of: 35% for housing (rent/mortgage and housing related costs), 15% transportation (car payment, maintenance/repairs, insurance), 15% debt (excluding mortgage), 10% savings, and 25% remaining expenses (entertainment, food, cable tv, internet, etc.)

A budget doesn’t have to be restrictive. Stars and athletes have budgets; they hire accountants to keep track of their money so why shouldn't you keep track of yours? Seventy percent of Americans live paycheck to paycheck and forty percent live above their means. When your budget is out of balance you go into debt which can lead to serious financial problems such as foreclosure, bankruptcy, etc.

Creating a budget shows accountability for your spending and identifies your SEO – what you spend, what you earn, and what you owe and reduces credit card usage. Make your budget flexible so you have additional money to pay for unexpected expenses. You budget should include savings. Here are 7 tips to creating a budget.
1. Subtract monthly expenses from your monthly income after taxes. If the total is negative or less than 5% of your total monthly income this is a red flag that you need to make some major adjustments to your budget.

2. Track daily, weekly or monthly.

3. Keep all your receipts and reconcile your bank accounts.

4. Use automated software tool, pen and paper or the envelope method.

5. Create short and long term financial goals.

6. Use money left over in budget to create a savings account and pay down debt.

7. Use automatic paycheck deduction or online bill payment.

8. Verify your bank statements with your monthly receipts.

Here are 12 tips to get out of debt:

1. Stop using your credit cards. Pay cash for all purchases until you pay off all of your debt.

2. Downgrade or downsize. Move into a smaller and less expensive home or apartment. Trade in your luxury car for a car with no note or a cheaper car payment.

3. Compare. Comparison shop before making a purchase to get the best deal. Use sites like www.bizrate.com, www.pricegrabber.com, craigslist.com to find bargains.

4. Insurance. Buy insurance for health, life, disability insurance. Buy bundled services to save money with the same company and ask about discounts.

5. Setup a debt payment plan with your creditors. Setup a debt payoff plan to prioritize your bills. By using the debt snowball method you will be able to quickly pay off some of your debts. Start by paying off the smallest bills first, then use the money paid towards a previous bill and apply it to the next bill and continue this process until all your debts are paid.

6. Sell Items. Sell items not used within the past 3 months or more on eBay or Craigslist.

7. Get current on late payments. Pay off collection accounts, tax liens and judgments as soon as possible.

8. Pay on time. Pay balance in full each month prior to the due date or as soon as you receive the bill which helps to avoid paying finance charges.

9. Negotiate. Contact the companies to negotiate a lower interest rate, get fees waived or change terms if your account is in good standing.

10. Pay more than minimum. If pay the minimum monthly payment your payment may not cover the cost of interest and finance charges that accrue on the balance. Send more than the minimum monthly payment each month to help your balance will go down faster.

11. Clothing. Shop at discount stores, buy clothes in off-season, check out discount racks at stores and ask if stores if they honor competitor coupons. Buy a few jackets and mix and match pieces to stretch your wardrobe.

12. Helping Others. Don't open joint accounts or co-sign for loans. If they don’t pay you are responsible for the debt.

How to Save Money on A/C Costs

This has been a hot summer and many people have become dehydrated and overheated due to lack of air-conditioning in their homes. Many homeowners incur lots of money during the summer to keep their homes cool. Refrigerators and air conditioners are the largest consumers of energy. Air conditioning contributes to approximately 16% of the average household’s annual electricity bill. The amount of air conditioning you use depends on where you live and how many days a year you need to use your air conditioner. The average costs spent on an air conditioning per year is $2,643 and the average home air-conditioning unit costs $280 per year.

There are several alternatives to using air conditioning such as whole-house fans and evaporative coolers; however, they do not perform well in all climates. If you live in a state that has a lot of humidity, evaporative coolers are not a good option. If you don't have an attic a whole-house fan is a good option. If you have a hot attic an evaporative coolers is a good option.
Saving on air conditioning costs can also help the environment. Cutting back on your air conditioning reduces your CO2 (carbon dioxide) emissions by 5.4 lbs a week. The more electricity you use, the more carbon dioxide gets released into Earth’s atmosphere. An average household central air conditioner uses enough electricity each year to release of over 2 tons of CO2 into the air. Here are 9 tips to reduce air conditioning costs and CO2 emissions.
1. Turn up the thermostat. Each degree higher you turn up your thermostat allows it to use 1-3% less electricity. Set your thermostat at 76 or 78 degrees F during the day.

2. Turn it off. If you aren’t home during the day turn the air conditioner off. Program the thermostat to turn the air conditioner on an hour before you get home.

3. Room a/c. Turn the room air conditioner to a warmer/cooler setting during the day when you are not at home. Put room air conditioners in windows that are facing north or that are in the shade. A room air conditioner that sits in direct sunlight uses 5% more electricity.

4. Clean. Clean or replace your air conditioner’s air filter every month when it’s in use. The harder the air conditioner has to work pulling air through the filter, the longer it runs and the more electricity it uses.

5. Usage. If the temperatures outside is cool at night turn your air conditioner off and open the windows or turn it down to a lower setting.

6. Fans. A ceiling fan provides added air circulation and can help keep your air conditioner set at higher temperatures. Make sure the ceiling fan is reversible and that it blows air down in the summer. Window fans and floor fans can provide cooling by getting the air moving or by helping move cooler outside air into the house at night.

7. Tax Credit. The Residential Energy Property tax credit is eligible to homeowners who make energy efficient improvements to their existing homes. The credit is 30% of the cost of all improvements. The credit applies to improvements such as energy efficient windows, insulation, and energy-efficient air conditioning.

8. Solar window film. Replace plastic window film with solar window film to help keep your home cooler by reducing utility costs. The film prevents the sun’s rays from entering your home and reduces the need for air conditioning.

9. Electrical Devices. Don't place lamps, televisions or computers near your thermostat. The thermostat can sense the heating coming from the appliances and will run longer than necessary.

Bankruptcy May Not Help Homeowners

Many homeowners believe that filing bankruptcy will help save their home and prevent them from going further into debt. Unfortunately, filing for bankruptcy if you are a homeowner is not as easy as you think. Approval for bankruptcy depends on your salary and the family size. Income limits are based on the state you live in www.justice.gov/ust/eo/bapcpa/20101101/bci_data/median_income_table.htm.

However, if have a higher income you can still file. You must provide proof that you are unable to pay your bills and have sought additional help in the past. You must provide documentation such as: tax returns, paystubs, bank statements, mortgage statement or rental lease agreements, detailed list of monthly expenses including, a list of all debt, amount owed, interest rates, canceled checks and credit card statements, retirement accounts, business income and debt, and child support. Be honest when providing documentation. If you decline to provide all the requested documentation required by the Trustee your bankruptcy filing may be dismissed. Do not include you SSN on any documentation provided. Mistakes in your documentation can cause delay or a dismissal. If you do meet the income requirements there are additional criteria you have to meet such as:

• You must take a credit counseling class prior to filing for bankruptcy.
• If you have enough income to pay some of the debt you may be considered for a Chapter 13 bankruptcy.

Here are 11 tips to consider before filing for bankruptcy:

• Bankruptcy fees when filing on your own cost approximately $300 when filing for chapter 7 (most debt cleared) or chapter 13 (repayment plan for 3-5 years). Bankruptcy filing fees when using a bankruptcy attorney can range from $1,000 - $4,000.

• Look for real estate investors in your city by doing a search on google “name of your city or state real estate investors”, i.e. “maryland real estate investors”, etc.

• Do not make any large purchases before filing for bankruptcy because this will decrease your chances of being approved.

• Don’t file Chapter 7 bankruptcy if your income exceeds your expenses.

• Don’t transfer credit card balances.

• Don’t make payments on any debt.

• Don’t file your tax return if you expect to get a large refund.

• Don’t cash out any retirement plans or 401k’s because this money is exempt from bankruptcy.

• Don’t take out any loans or open any new credit accounts.

• Disclose any judgments, collection accounts, and tax liens.

• Don’t bank where you owe money. Close the account and open a new at another bank. If you wish to continue doing business with the bank take all the money out of your account as soon as your direct deposit is posted to your account. If not, this will increase your chances of having your bank account garnished.

The following debt is not included in Chapter 7 bankruptcy: taxes and tax liens, student loans, child support and alimony, debts for fines or penalties to governmental agencies, debts for judgments in wrongful death or personal injury lawsuits, and condominium or townhome association fees. The following debt not included in Chapter 13 bankruptcy: some taxes, student loans, child support and alimony, debts for fines or penalties to governmental agencies, debts for judgments in wrongful death or personal injury lawsuits, debts incurred after filing your case.

Items that are exempt from bankruptcy:

• $16,500 in equity in your home

• $2,575 in equity in your car

• $425 per item in any household items up to a total of $8,625

• $1,625 in job-related expenses, books, etc.

• $850 in any property, plus part of the unused exemption in your home, up to $8,075

• Social security, unemployment, VA benefits, welfare, and pensions

The Government's Budget: The Debt Ceiling

What is a debt ceiling? The US debt ceiling is a cap that is set by Congress on the amount of debt the federal government can legally borrow. The cap applies to debt owed to the public or anyone who buys U.S. bonds in addition to debt owed to federal government trust funds such as those used for Social Security and Medicare.
Every day the federal government spends more money than it takes in and makes up the difference by borrowing money. As a result, every day, the government’s debt increases. This is why the government is considering raising the debt ceiling or the government will have to stop spending more than it takes in which requires balancing the budget. Balancing the budget will require reducing spending by approximately 40 – 44%, raising taxes or a combination of reducing spending and raising taxes.
If the debt ceiling is not increased the government has to pay more money to borrow money which adds up very quickly and could cost taxpayers hundreds of millions of dollars. This can cause taxpayers to lose confidence in the government. If lenders lose confidence in the government that it can’t repay its debts, interest rates will start to increase.

The government generates money by selling debt through Treasury bonds which is the government's IOU. A taxpayer, a foreigner or a hedge fund manager purchases a Treasury bond (bill) and the government promises to pay the bond at a later date, paying the buyer back with a small amount of interest. As of January 2011, foreigners owned $4.45 trillion of the U.S. debt.

As long as Treasury bond buyers are confident that the government will repay them, they accept the lower interest rate of return. However, if bond buyers feel that the government will not be able to repay them, the market will demand a higher interest rate on the bonds which decreases the number of buyers who want to buy them. Taxpayer money is used to pay the bond interest rate so higher interest rates will result in higher taxes. A lack of confidence has already been seen in the stock market decreases over the past week as we approach the current debt ceiling.

If the interest rates on Treasury bonds increases this will have a domino effect and cause the interest rates of other products such as cars, student and mortgage loans and credit cards, business loans or lines of credit to increase. There could also be an increase in personal products such as electronics, clothes, food, household goods and company products and services. This will cause the value of the dollar to decrease causing an increase in costs to purchase foreign imports as well as gasoline for cars.

The less money that is approved for loans or credit will cause taxpayers and business owners to spend less and save more which will hurt the economy.

If Congress doesn't raise the debt ceiling, the government will reach the debt ceiling and max out its borrowing power which will prevent the government from paying its debt. This would affect Social Security, Medicare, military salaries, tax refunds, and unemployment insurance, government grants, and other funding.

Money Saving Tips for Journalists

Working as a journalist can involve a lot of travel to do interviews for newspapers, television or radio and can rack up many expenses that can occur at the last minute that may not be covered by your job. These expenses can make it difficult to make ends meet and live day-to-day.

Due to the economy and company cutbacks, many journalists have to cover expenses that were previously covered by their employer. In other instances, journalists have to pay for travel or work related expenses upfront and then get reimbursed later. To save money create a budget and look for ways to reduce expenses. Here are 8 ways for journalists to save money:

1. Travel Discounts. Comparison shop for discounts on parking or air, hotel and rental cars or buy as a package. Some companies that provide discount fares LongTermParking, HotDeals or Kayak. Sign up for online alerts with airlines to learn about their weekly specials. Search for fares early in the morning or on weekends. Check to see if they accept discounts for membership to Diner's Clubs, AAA, AARP, etc. This can save you $30 to $175 per transaction. Check social media sites for discounts.

2. Supplies and Expenses. Shop for office supplies at Costco or online sites such as Amazon, eBay or Craigslist. Consider setting up a home office. You can write off a portion of your mortgage and utility bills. If you do not have space for a home office consider using a telecommuting or telework center at companies such as Regus or the World Environmental Organization or search online for additional telecommuting sites. This can save you $50 to $100 per week in supplies, wear and tear on your car and gas. Check social media sites for discounts.

3. Food. Pack you own drinks such as water and juice along with your favorite snacks. Search online for coupons to your favorite restaurants at site such as Groupon, Living Social or Bloomspot. Sign up for free restaurant newsletters to receive coupons or to find out about specials. This can save you $30 to $200 per month.

4. Car Maintenance. Perform regular maintenance on your car by keeping your tires properly inflated and balanced which improves mileage. Save money on gas by using the lowest octane which is usually 87. Fill up your gas tank before going to work or in the evening when it is cool. Drive the speed limit and keep the trunk weight light. Pay for gas with cash. This can save you $.05 to $.30 per gallon.

5. Insurance. Make sure you have health, life and disability insurance. If you need to see a doctor you won't have to worry about paying medical bills. If you become sick for an extended period of time you won't have to worry about paying medical costs. Contact eHealthInsurance.com or Aflac for health insurance quotes. Also consider opening a Health Savings Account. If you need disability insurance contact the Assurity company. This can save you $20 to $200 per month.

6. Use coupons. Use coupons to save money when shopping. Search for online coupons at sites such as Coupons.com, CoolSavings.com, and Couponmom.com. This can save you $20 to $250 per month on your grocery bills and other household costs. Check social media sites for coupons.

7. Go green. Try eco-friendly ways to save money. Visit sites such as Bankrate.com and MSN.com and search for ways to save money going green. This can save you $20 to $500 a month.

8. Phone calls. Use your cell phone to make free long distance calls. Contact your cell phone provider to determine the code to interrupt a voicemail greeting. When leaving a message skip the voicemail greeting and go right to the beep to leave a message. Also, if you make a call during peak hours ask the person to call you right back so they pay for the call. This will save minutes and save money on your cell phone bill. Send text messages for short conversations instead of making a phone call to save minutes. You can also use Google talk or Skype to make free phone calls.

These tips will reduce many of your work related expenses and your financial stress, allowing you to focus more on your work assignments and become more productive.

Is Barnes & Noble Next?

On July 21, 2011, at a scheduled hearing Borders is expected to ask the U.S. Bankruptcy Court of the Southern District of New York to allow it to sell off all of its assets. If the judge approves the move, liquidation sales could start as soon as Friday; the company could go out of business by the end of September. Due to Borders closing all of its stores, 11,000 employees will be losing their jobs. This will have an impact on the economy as well of those families of those employees, more foreclosures, more bankruptcy filings, and more bad credit.

What does this mean for the book industry? The only two major bookstore chains left were Barnes and Noble and Borders. This is good news for Barnes and Noble but what about Borders customers. Will they honor the Borders coupons, Borders gift cards, Borders Bucks, Borders Rewards program, Borders Reward Plus? Will Borders Kobo e-reader owners be allowed to use the Barnes and Noble Nook to read their Kobo books? What happens to vendors who are owed money from Borders? These are some of the many questions that need to be answered.

Barnes and Noble has 717 stores in the United States and has 637 college bookstores. There are approximately 1300 independent bookstores in the United States. In some states there will be miles of neighborhoods without a bookstore. For those who do not have a computer or e-reader, buying books will be difficult. For those who enjoy going to a bookstore to view books before purchasing them, the buying experience will now be different.

For authors, especially self-published authors getting a booksigning will become more difficult since Barnes and Noble does not usually work with self-published authors. I was a fan of the Borders bookstore chain. Borders has more of a friendly family oriented feel. I loved the Borders policy where customers did not have to wait in line more than 20 minutes to make a purchase.

Hopefully Barnes and Noble is reviewing and analyzing Borders customers and using that to ensure former Borders customers enjoy their experience each time they visit at any Barnes and Noble store.
If you are a book lover and enjoy going to a bookstore to purchase books, browse books or attend booksignings or seminars, voice your concerns to Barnes and Noble about the type of customer experience you would like to see at Barnes and Noble. This is a critical time for Barnes and Noble and will determine if they continue to stay in business or go out of business but they need your help.

Warren Buffet's Investing Style

I am a big fan of Warren Buffet. However, being a fan doesn’t mean I agree with everything he does or with all of his beliefs. I do admit that he is knowledgeable about investing. It has been stated that “he invests long-term and understands what he invests in”. It is essential that with anything you do or anything you put your money towards you understand. Many homeowner signed mortgage loans and didn’t understand what they were getting in to. As a result they foreclosed on their homes.


LouAnn Lofton wrote a book entitled, “Warren Buffet Invests Like a Girl”. Well, if he does, then all men need to follow his advice too. I think Warren Buffet is a great investor who doesn’t get emotional about investing. His investing is very strategic which was displayed when he bought shares of Goldman Sachs in 2008 for $5 million which made his company Berkshire Hathaway millions. Here is some background information on Buffet:

1. Carried golf clubs at age 9 for $3 a day

2. Bought his first share at age 11

3. Sold used golf balls from age 11-13 and sold newspapers at age 13

4. Bought a small farm which was 40 acres at age 14 with savings from delivering newspapers

5. Rented out used pinballs machines at age 16 making $50 a week

6. Bought Berkshire Hathaway in 1962

7. Bought stock in Coca-Cola, Disney, McDonalds, Gillette, American Express and Dairy Queen

8. Follows 6 Principles: 1) keep it simple, 2) be an investor not a trader, 3) find outstanding business, 4) make your own decisions, 5) leave a margin of safety, 6) Rule 1: never lose money, Rule 2: never forget rule #1, focus on strengths.

9. Still lives in the same small 3-bedroom house in Omaha that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

10. Don't buy more than what you "really need" and encourage your children to do and think the same

11. Drives his own car everywhere and does not have a driver or security

12. You are what you are

13. Never travels by private jet, although he owns the world's largest private jet company

14. Always think how you can accomplish things economically

15. His company, Berkshire Hathaway, owns 63 companies.

16. Does not socialize with the high society crowd. After he gets home is to make himself some popcorn and watch television.

17. Don't try to show off, just be yourself and do what you enjoy doing

18. Does not carry a cell phone and does not have a computer on his desk

19. Stay away from credit cards (bank loans) and invest in yourself

20. Money doesn't create man but it is the man who created money

21. Live your life as simple as you are

22. Don't do what others say, just listen them, but do what you feel good

23. Don't go on brand name; just wear those things in which you feel comfortable

24. Don't waste your money on unnecessary things; just spend money on those who are really in need

Do you still think Buffet invests like a girl? Let me know your feedback.

Have You Discussed Your Finances as a Family

Finances and family are important because finances is one of the biggest contributors to couples getting a divorce and is one the main reasons couples and families fight. Good money management habits help you prepare for the future, ends fights, reduces stress, and makes your life more enjoyable. The easiest way is to save money or anything you buy or own, comparison shop to find the best deals. Some ways to have good money management skills are: create a budget, begin saving, reduce debt, and educate yourself.

Every family member has to work together to develop a plan to handle their finances, individually and as a family. Families always think they need more money, but they really only need more discipline. Discipline will help them achieve goals so that when their get more money they manage it well and make it last longer.

Effective money management is solely based on how a family spends their money and lives their lives. Money management should include setting short and long-term financial goals. Families should plan for their future such as retirement, college for the kids, purchasing a home, etc. Many times families are so consumed with living day to day or paycheck to paycheck they can't worry about their future but that is the main reason families stay stuck in the same rut. Here are 5 ways to better manage your family finances.

1. Create a budget - First create a household budget or spending plan that includes involves each family member. A budget will show what you earn, what you spend and what you owe. This will help you see right away what areas you need to reduce expenses and where most of your money is being spent.

Hold family meeting to discuss finances and be honest about your financial situation. Many times parents live above their means just so their children are not aware of their financial situation – this is a "no-no".

If you don't know the exact amount spent on a particular item write down your best estimate. If an item fluctuates and ranges from month to month take the highest amount paid thus far and use that same amount in your budget. Buy items on sale and buy only needs. Buy wants periodically after starting short-term goals.

2. Begin saving - Set financial goals with a specific dollar amount and target date for each goal such as: save $1,000 by December 2012. Take each dollar amount associated with a goal and divide by the number of months to reach the target date. This will show you how much money you need to save each month to reach the goal.

Develop short-term goals that can be achieved in 3 to 12 months. Long-term goals are set and should be achieved over a period of time such as 3 to 5 years. For a family the first goal should be to create an emergency fund.

The emergency fund should be large enough to cover household bills and expenses for 3 to 6 months. This will eliminate fights with your spouse or partner and the children as well as prevent using a credit card for unexpected emergencies. Balance your checkbooks, monthly bank statements and credit card statements with monthly receipts to make sure no errors appear on statements on with your bank accounts.

3. Reduce debt - Create a debt repayment plan to pay off all debts. Set a target date for each debt including interest paid, monthly payment, total amount owed and if any bills are late. Start paying the smallest debt first then work your way up to the largest debt. Use the money paid for one bill and apply towards the second bill and continue this until all debts are paid.

4. Educate yourself - Talk to other families who have been successful in managing their finances or read books on family finances such as Family Finances the Essential Guide for Parents by Ann Douglas, Personal & Family Finance Workbook by Craig Israelsen, America's Cheapest Family Gets You Right on the Money by Steve Economides, Your Military Family Network by Military Family Network.

5. Plan for the future – make sure you have health, life and disability insurance. If your job doesn't offer these develop a plan so you can afford to buy them to protect you and your family if a tragic event occurs that affects your finances.

Budgets should be revised often when a specific event occurs such as: promotion, raise, additional recurring expenses, birth of a child, marriage, divorce, etc. Compare your budget with the financial goals set to ensure everyone is on track to meeting the goals.

Do You Have Swipe-itis

Do you use your check card/debit card to make all of your purchases? Have you stopped carrying cash? Do you feel lost without your debit card? You are not alone. There are over 520 million debit cards in use in the United States. Most of them are Visa and MasterCard debit cards.

It can be difficult to resist the temptation of the instant gratification culture of America. Advertisers make it easy for consumers to get everything instantly by creating online shopping, instant cereal, instant coffee, instant meals, instant messaging, and debit card purchases at most stores and businesses. Most Americans who have a debit card buy an item immediately when they see it either in a store or online. This bad habit has caused many Americans to overdraw their account, pay overdraft fees, spend more money than they have, damage their relationship with their bank and may lower their credit score.

No matter what form of payment you use you have to keep track of your spending. You should track your spending weekly if you frequently use a check card. This will help to see where you are spending your money and will help you to recognize errors or identity theft quickly. When you see where you are spending your money it is easier to reduce spending and make better choices when making purchases.

There are advantages and disadvantages to using a check card. Some advantages of using a debit card: it is easier to obtain versus a credit card, can be used in place of checks, accepted everywhere, transactions can be made quicker and can be used to get cash from an ATM or retail store that offers cash-back during a purchase. The disadvantages of using a debit card are: you can spend more than you have in your account; you can incur overdraft fees and can become a victim of identity theft. Here a 9 ways to stop swipeitis:

1. Pay your bills first. Put a portion of any extra money left over in a savings account.
2. Alternate payment. Use other forms of payments such as cash when making a purchase.
3. Get a receipt. Get a receipt each time you make a purchase and keep it.
4. Track spending. Take all of your receipts from your debit card purchases and put them in an envelope. At the end of each week add up the receipts to see how much you spent. Use pen and paper, an Excel spreadsheet or Mint.com to enter the data. You can import bank account transactions to your Mint.com account to simplify the process of tracking your spending.
5. Wait. Wait a few days before making a purchase that is more than $100. Go back to the store to see if you still want the item. If you still want the item, comparison shop to see which store offers the best price.
6. Retail therapy. Avoid shopping when you are emotional. This will prevent you from spending more than you have or buying unnecessary items.
7. Create a budget. Create a budget to track your spending daily or weekly. Set aside a specific amount for extra things you want. One reach that amount don’t spend anymore.
8. Leave at home. Leave your debit card at home unless you know you will make a purchase. This helps to reduce the temptation to make an unnecessary purchase.
9. Get cash. Go to the bank and take out the amount of cash you need for the week. Once you spend that amount don’t get out any more money or use your debit card unless it is an emergency.

Bring In the Financial Reins on Independence Day

This Independence Day resist the temptation to spend money that you don’t have, buy more than you need, or buy something you probably will not use just because it is on sale. Many times items that are on sale are not really a bargain. Do comparison shopping to see if you can find the item for a cheaper price at another store or online. Here are 5 ways to save money shopping this Independence Day:

1. Plan ahead. Don't wait until the day before the holiday to go shopping. Lines at the register are longer and the selection of items is limited. Try shopping a week in advance or early in the morning.
2. Budget. Create a budget or shopping list and only buy the things you absolutely need.
3. Ask for help. If you are having a picnic or cookout ask friends and family to bring a dish to help cut downs on costs.
4. Local shopping. Visit local vendors to purchase meats, fruits and vegetables which will be much cheaper than the grocery store.
5. Resist temptation. Avoid going to the department stores or malls. I know it will be hard but take time out to enjoy being with family and friends. Try finding some free events to attend instead of going shopping. Your wallet will thank you.

Financials Lessons From Dad

Sunday is Father’s Day. Many fathers across the country will receive new ties, drills, silly hats or socks, stuff they need or stuff they don’t want. Hopefully you will get your father a gift he really wants similar to the T-Mobile commercial that shows a Dad going to buy a cell phone for himself and signing his baby daughter’s name.

Dads often don’t get the love or appreciation they deserve. After all, they are the other half of the chromosome that creates life. If you haven’t said thanks to your Dad even if you never met your Dad say thank you, he helped create you. Just think what life would be life without you.

Now for my advice, Dad’s alway provide advice to their children, no matter what age. Here are some financial words of wisdom from dads.

1. Work hard. Have a strong work ethic which will translate to all aspects of your life. Your finances are an important aspect of your life and you should take great care to maintain your finances – take time to know how much you owe, how much you earn and how much you spend. These basic things will help you to develop a plan to get out of debt and plan for retirement.
2. Save for a rainy day. Life happens. Unexpected events will occur so why not be prepared. Create an emergency fund to cover bills for 9-12 months so when something unforeseen happens you have the money to pay for it instead of using your credit card.
3. Make sacrifices. Dads always make sacrifices for their family. You should too, especially financially. When making purchases consider the impact on your family. If you are single consider the impact to your future. Determine if the item is a need or want. Wants can be bought later.
4. Pay with cash. Dad always paid with cash. He wasn’t too ashamed to skip buying something because he didn’t have the money. He only bought want he needed and a few extras every now and then and he turned out fine.
5. Plan for the future. Dad thought about the future. He went to work every day and paid his bills on time. He didn’t spend money unnecessarily and lived a modest lifestyle. He saved money and had a retirement account. He lived comfortably during retirement and his family’s needs were met.

Share your financial stories from your dad at contests@hefreemanenterprises.com. The winning story will be posted in my July newsletter. The winner will receive a free autographed copy of my book, How to Get Out of Debt: Get an “A” Credit Rating for Free. Entries must be received by June 26, 2011.

Save Money on This Summer's Vacation

Every loves to travel during the summer and many family vacations usually start during the Memorial Day holiday. Unfortunately, the economy has made it difficult for many families to take a summer vacation. We work 10-12 hour days. We rush to work, rush to get the kids, rush home, rush to eat dinner and then repeat the entire process all over again the next day. We never fully take the time to relax. It may seem there are never enough hours in the day to get everything done.

We all need to take time out to relax. Now is a great time to start looking for bargains on airfare, hotels and vacation spots. You work hard all year and deserve take at least a mini-vacation to a nearby beach or hotel. If you can afford to go on vacation without charging it on your credit card and only to still pay for 6 month later – then do it and pay for it with cash. Here are 8 tips to help save money when you are planning for your summer vacation.

1. Plan ahead. Plan in advance to save money. Buy toiletries and other necessities before traveling.
2. Talk to others. Talk to friends and neighbors to find out how they planned their vacation, i.e. ask about any discounts or sales, restaurants, shops, etc.
3. Act fast. When you see or hear about sales or discounts you have to move quickly to capitalize on the deal because they usually don't last long.
4. Shop around. Shop around to find the best deals. Visit websites like hotwire.com, priceline.com, kayak.com or hotels.com to find cheap rates for hotel, airfare and cruises. Purchase services together such as air and hotel or air, hotel and rental car to save money.
5. Safety. Buy traveler's checks which can quickly be replaced if lost. If your credit card is stolen you may not have another credit card available to purchase any necessities.
6. Buy traveler's insurance. Buy traveler's insurance. This will reduce the costs of medical bills that could accrue if you get sick on a cruise ship or flight and prevent you from going into debt.
7. Use restraint. Use restraint while on vacation. Don't buy everything you see . If you know you will be tempted don't even go into the store. Buy items or souvenir gifts at flea markets or only buy items that are on sale.
8. Snacks. Buy snacks and a few drinks and pack them in your suitcase before you leave. This will tide you over when you get hungry while on vacation until you are able to eat a full meal. This will also help you save you money that you would spend on midnight snacks.

If you want to take a vacation and cannot afford it, here are 5 simple things to do in the meantime:
1. Visit local caverns.
2. Camp out in your backyard.
3. Spend the day at a water park or amusement park.
4. Take a road trip and go camping a few hours or at a local camp park.
5. Go sightseeing in your local area.

The most important thing to do while on vacation is - have fun, but don't overextend yourself by splurging on unnecessary items. Create a small list of items you want to purchase and stick to it. The worst feeling is to return from vacation and get credit card statement in the mail for items charged while on vacation.

Do You Really Need a Car

Since the recession many Americans have been forced to make financial sacrifices and cutbacks to reduce spending that they normally would not have considered. One big expense that most Americans have is their car. Consider selling your car to improve your financial situation.

I know, life without a car can be devastating and you will have withdrawal symptoms. You will start considering what people will think if you don’t have a car. Forget about what people think and consider your future. Do you want to be debt free or do you want to be 65 and still working because you don’t have get enough in Social Security to pay all of your expenses. It is never too late to change and take charge of your finances to prevent a financial disaster.

The cost of owning a car includes depreciation, sales tax, gas costs, interest (car loan), maintenance and repairs, and insurance. Depreciation is approximately 46% of the total cost of the car over 5 years. The average sales tax charged each time you pay for maintenance or repairs on your car can range from 3-5%. Filling up your gas tank can be expensive and can cost up to $20,000 over a 5 year period assuming an average of 12,000 miles driven per year using regular gas or 26% of the sales price. The average interest on your car loan over a five year period is 12%. Insurance can range from $1,000 - $5,000 a year or 10% of the sales price. Owners can spend as much as $80,000 in insurance over the life of their car.

According to Edmonds.com, if you purchased a car that costs $21,500, over five years, it will cost $33,438 to drive the car. If you are struggling with debt consider selling your car can help you pay off debt. Here are 14 ways to live life without a car.
1. Cost. Americans spend 20% of their income on cars which can range from $300-$800 a month which includes gas, car payments, insurance, maintenance, registration fees and taxes, parking, tools and repairs.
2. Repairs. Many car owners spend hours at the car dealer or repair shop waiting to get their car repaired. Think about what you could with your time if you didn’t have to sit in the car dealer all day.
3. Rent. Rent a car to go on long weekend road trips. Even if you don’t own a car keep your driver’s license up to date in the event you need to drive a car.
4. Kids. If you have kids it may be difficult to get around and go to all of their activities without a car. In that case, consider carpooling, use a shared car service like Zip Car, public transportation, bike or ride a motor bike.
5. Bad Weather. Don’t try to ride your bike in the snow and use caution when riding in the rain.
6. Eco-friendly. Getting rid of your car is good for the environment and reduces your carbon footprint. It also helps you to live a healthier life by allowing you more opportunities to exercise.
7. Options. Consider your lifestyle to see if selling your car is the right option for you. If you are disabled or have more than one child, it may not be possible to live a life without a car. However, you can reduce your driving your car.
8. Resources. You can use tools like www.walkscore.com to find services and attractions in a certain neighborhood that can be useful if you bike or walk.
9. Alternate. Keep your car as an alternate method of transportation. Do a test to see how much money you can save if you don’t drive your car for a week, and then try it for a month. Use the extra money to pay down debt or create an emergency savings account.
10. Move. Consider moving to the city or a downtown area to eliminate the need for having a car. Consider getting a job that is closer to a downtown area or train station.
11. Bike. Buy a bicycle and look for roads that have bike lanes to travel onto ensure you can ride your bike safely. You can also buy a motorbike or scooter to get around town.
12. Carpool. Consider joining a carpool to get to work or to take children to school events or other events.
13. Taxi. Take a taxi if you need to get somewhere and don’t want to bike or walk.
14. Shopping. If you are walking consider getting a wheeled cart to carry groceries or other items. Also consider shopping online.

20 Ways to Save Money Now

Many consumers nowadays are trying to find more ways to save money. However, some consumers refuse to save money and continue to have bad spending habits that will only lead to financial disaster. Many consumers don’t understand the true benefits of spending less than you have, saving money and creating a monthly budget. These are tools to help you get out of debt, pay for unexpected expenses and prevent you from getting into debt. These are things everyone should embrace with open arms.

Many people want to know why should I save money. I have enough to pay my bills; I can’t take it with me, what’s the point. Different people save for different reasons. You can save for many different reasons such as: unexpected expenses, a vacation, to start a business, pay for education, plan for retirement, home repairs, estate planning, buy a car, a wedding, down payment on a house and more. It is a great feeling to have money to pay for things you need instead of using your credit card and paying the balance off 6, 9 or 12 months later. Here are 20 ways to save money.

1. Pack your lunch for work every day.
2. Buy drinks from the grocery store instead of the newsstand at work or coffee shop or, better yet, drink water – it’s the best thing for your health and it’s free. Reduce all unnecessary spending (i.e. only buy necessary items).
3. Use direct deposit to send your paycheck directly to your bank.
4. If you get a raise, save all or most of the money received from the raise. For example, save $5 or $10 a week or whatever you can afford. Set a goal that you want to save $100 within a certain time period. Once you have accomplished that goal, set another savings goal and continue doing that. The next time you meet your goal, you will realize that you have saved a great deal.
5. Buy what you can on sale, instead of paying the regular price.
6. Use coupons or shop at a wholesale store such as Sam’s Club or Costco.
7. Buy whole foods, such as vegetables, grains, beans and fruits, instead of processed foods. This way you aren’t paying for the processing costs.
8. Check your local health food store to see if you can buy foods, such as grains, seeds, nuts, spices and legumes, in bulk. This way you aren’t paying for expensive packaging.
9. Carpool.
10. Take public transportation to work.
11. Cancel your cable service or get the cheapest plan possible.
12. Cancel your cell phone service or get the cheapest plan possible.
13. Reduce the amount of long–distance calls you make per month.
14. Shop around with various banks to find a checking account with no monthly fees.
15. Buy a midsize or compact car until your debts are paid, because this results in a cheaper monthly payment.
16. Finds ways to reduce home expenses by buying energy efficient appliances, ceiling fans, programmable thermostats, fluorescent light bulbs and lamps, or hot water insulator jackets.
17. Donate items not being used to a charity. The amount can be written off on your taxes.
18. Rent movies instead of going to the movie theater.
19. Turn the lights out when you are not in a room.
20. Turn the heat and/or air conditioner off when you are not at home or set at a low energy saving temperature which can be found be calling your local utility company.

Save Money on Memorial Day

Memorial Day which was originally called Decoration Day, is a day of remembrance for those who died serving in the military. Memorial Day was officially proclaimed a holiday on May 5, 1868 by General John Logan and was first observed on May 30, 1868. The first state to officially recognize the holiday was New York in 1873.

Memorial Day passed by Congress as part of the National Holiday Act of 1971. Memorial Day is celebrated in almost every state on the last Monday in May. However some southern states such as Texas, Louisiana, Tennessee, Alabama, Florida, Mississippi, South Carolina and Georgia also celebrate Confederate Day to honor those who served in the Confederate War.

Many advertisers take advantage of the Memorial Day holiday as another way to make money. Unfortunately they never mention anything about the real reason for Memorial Day. Advertisers should at provide extra discounts for those who have served in the military or are currently still serving in the military. If someone fights for our country, why can’t you give them a discount on a purchase? We should embrace our military and treat them better than we currently do.

Memorial Day is usually the official start of the summer season when pools are opened, families begin cooking on the grill, summer clothes are pulled out and people start heading to the beaches. Many families and friends get together during this weekend. Many people also head to the mall to see what sales are offered. If you have to go shopping or spend money this Memorial Day weekend here are 6 tips to save money.

1. Save money on gas. With the cost of gas prices I have cut back on driving here and there and take into consideration the distance I have to drive. Create a traveling zone when driving. When considering driving use MapQuest to map the address and see how many miles it is from your home or office. If the distance is more than the maximum number of miles you are willing to drive do not attend the event. My maximum is 30 miles one way from my home or work.
2. Food. If you are having family or friends at your home keep the menu simple but provide variety. Use different sauces, toppings and marinades to provide flavor and variety. Ask everyone to bring a dish or dessert to help save money.
3. Fun. Skip going to the movies or amusement parks and play games outside such as volleyball, soccer, cricket, horse shoes, sack races etc. to save money and spend more time with your family and friends.
4. Skip the mall. Don't let the media or advertisements trick you into buying something this Memorial Day weekend simply because it is on sale. Most prices during holiday sales are marked up and a discount is given on the marked up price. If you have to buy something at the mall comparison shop and determine which store is offering the best holiday sale. Check online sites to see if you can get a better deal.
5. Budget. Create a budget or shopping list and only buy the things you absolutely need for the holiday. Visit local vendors, food co-ops or discount stores to purchase meats, fruits and vegetables which will be much cheaper than the department store.
6. Free. Check your local newspaper or listen to your local news station to find free events to attend during the holiday weekend.