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.

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.

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.

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.

NFL Players are Just Like Us When It Comes to Money

Many NFL players go from a low to middle class lifestyle to upper or wealthy lifestyle in an instant and are not taught how to manage their finances and are not sure who they should or should not trust. Many NFL players are taken advantage of because of their financial status. In other instances they succumb to guilt from family and friends to take care of them, peer pressure, impulse shopping, unable to say no to those asking for money, living above their means, trying to impress others, being overcharged, or bad investments which causes them to lose their homes, have their cars repossessed or file for bankruptcy due to their bad spending habits and poor financial choices.

Many players buy things that have no value and have very little assets. Some forget to pay taxes, don’t keep track of their finances, make bad investments, get caught up in scams and lack basic business knowledge. This lack of financial experience and financial literacy education causes NFL players to buy things they can’t afford and try to portray a certain image that is difficult to live up to.

Approximately 40% of NFL players end up bankrupt after retirement. According to MSNBC approximately 380 players of the total 1,700 players live paycheck to paycheck. The average rookie salary is $320,000. When players get paid, after they pay taxes, pay their agent, publicists, accountants, lawyers and others on their payroll, pay for their lavish lifestyle with a home, multiple cars, jewelry, clothing, helping family and friends they have very little left.

Some NFL players are borrowing money from friends due to the lockout. Some players are getting payday loans called “lockout loans” provided by lending agents. Lockout loans for more than $60,000 can have interest rates as high as 36%. The NFL Players Association in advance of the lockout advised players to save at least 3 game checks and find additional ways to make money but many did not follow this advice. The NFL Players Association also provides financial seminars and classes for players who do not heed the advice provided or may not understand the advice provided.

Many players get caught up in the media frenzy and hype and want to give the appearance that they are wealthy when some are just one paycheck away from bankruptcy. Some players retire and don’t realize they are in financial ruin and need help until they retire.

Many players feel guilty by pressure from family and friends to take care of them financially which can cause a heavy financial strain on players. Family and friends see players on television and don’t realize how many expenses players have each month due to their lifestyle.

Many rookie players try to keep up with the spending habits of some of the veteran players and end up filing bankruptcy or foreclosure on their homes. In many instances players are taken advantage of by lawyers, accountants, agents and others who steal or do not keep their clients informed about their spending habits. In other cases, clients are advised about their poor spending habits but continue to spend until all their money is gone. The NFL Players association, lawyers, accountants, publicists and all who are on the payroll of the players as well as the players themselves are to blame.

My advice to all NFL players, read all books written by Warren Buffet who has lived in the same house for 50 years, drives himself everywhere, does not have security or a bodyguard, never travels by private jet, does not socialize with high society, makes popcorn and watches television, does not carry a cell phone, does not have a computer on his desk, buys clothes from the department store and is an expert in managing his money. You are experts when playing on the field, now it is time to be experts in managing your money – you owe it to yourself.

10 Tips to Manage Your Money

Everyone fears the word budget but don't be afraid. A budget is your lifeline to financial peace. A budget helps you know how much money you earn and spend each month. A budget is called many different names but the main goal of a budget is to help you live below your means. Nothing stays the same forever which is especially true today. Here are 10 helpful tips to help you manage your money.

1. Needs vs. Wants – buy more needs vs. wants to help reduce expenses.

2. Reduce spending – buy in bulk, on sale, at discount stores, online or use coupons, buy generic brands. Try websites such as groupon.com, coupons.com, freecycle.org, ebay.com or craigslist.com to find bargains.

3. Groceries – don’t go shopping when you are hungry, buy items on the lower shelves and ask about specials, join store clubs to get alerts on discounts.

4. Banking – open accounts with little to no fees, ask about discounts and specials, and establish a relationship with the branch manager to get alerts about specials and new products and services that could save you money. Don’t use check cashing stores or cash checks at the liquor store.

5. Driving – buy gas in the morning, combine nearby trips on the same day, keep the trunk empty, keep tires at the proper pressure level, get regular maintenance on your car, look for the cheapest gas and buy a gas efficient car, ditch the gas guzzler. Drive the speed limit to also save money on gas.

6. Medical – buy at least basic medical insurance for you and your family, get a prescription card and fill prescriptions at discounts stores such as Wal-Mart or Walgreens to save money, negotiate medical services to save money and ask about programs for uninsured or low-income patients.

7. Insurance – buy insurance for health, life, disability and your home. Buy bundled services to save money, buy homeowners and car insurance with the same company and ask about discounts.

8. AAA – triple AAA offers lots of discounts with partner companies that are not advertised, ask each company you do business with if they give discounts to AAA members.

9. Compare – Comparison shop before making a purchase to get the best deal. Use sites like bizrate.com, nextag.com and pricegrabber.com.

10. 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.

Financial Planning for the Elderly

Many elderly Americans struggle to make ends meet due to their limited fixed income, increasing prices and inflation. Some elderly Americans file for bankruptcy, have to downsize their home, move in with family or friends or get a roommate to stretch their income.

According to Alliance to End Homelessness, in 2008, 43,000 elderly age 65 and over relied on the shelter system. According to AARP, an excessive amount of debt and increasing medical bills have caused bankruptcies among the elderly to increase by 150 percent from 1991 to 2007. The percentage is even higher for those aged 75 to 84 years of age. The highest costs for the elderly are medical bills, medical services, prescriptions, food and housing costs. Here are some tips on how to save money on a fixed income.

Utilities
1. Invest in energy efficient light bulbs to save money on power bills
2. Improve home insulation to reduce heating and cooling bills
3. Use coupons when they truly represent a saving opportunity
4. Insulate hot water heater
5. Rinse clothes in cold water
6. Take luke warm baths or showers
7. Keep heat at 68 degrees Fahrenheit, keep a/c at 78 degrees Fahrenheit
8. Keep hot water heater at 120 degrees Fahrenheit

Household goods
1. Watch for the items you use to go on sale and stock up when prices are at their lowest
2. Submit available rebate offers for products you use regularly
3. Buy generic vs. name brand
4. Bulk items on sale or “day old” items
5. Use coupons or shop at discount stores such as Sam’s Club, BJ’s, Costco, Wal-Mart or Target

Electronics
1. Craigslist
2. eBay
3. freecycle.org

Healthcare
1. Free Dental Clinics www.freemedicalcamps.com
2. Operation Blessing International, 800-730-2537
3. Ask about discounted Dental programs www.dentalplans.com, www.choiceplusdentalplans.com, AmeriPlan, Aetna, Avia
4. Flat Fee clinics or sliding fee scale – search for “flat free clinic and the state you x”, x is the state you live in to find a clinic near you
5. Medicare supplement, 877-494-9296 Code: TIG
6. Prescriptions – buy generic, fill prescriptions at discount stores – Wal-Mart, Target, Walgreens

Food
1. Plan meals around items that go on sale or that are in season
2. Look for the items you use to go on sale and stock up
3. Comparison Shop
4. Don’t go shopping when you’re hungry
5. Generic vs. name brand
6. Shop at the dollar store for household products, spices, packaged foods and other foods
7. Feeding America Food bank - 800.771.2303 (nationwide)
8. Meals on Wheels 703.548.5558 (nationwide)

Finances
1. Create an emergency fund – with enough money to cover expenses for 6-9 months
2. Downsize – downsize to a smaller home, trade in a luxury car for a cheaper model
3. Get Tax Preparation Assistance – VITA Volunteer Income Tax Assistance 1-800-906-9887
4. Needs vs. wants - buy more needs vs. wants
5. Reduce spending – don’t buy things you don’t need or just because something is on sale
6. Budget - Create a budget and track spending daily or weekly
7. Reduce expenses – use coupons, buy in bulk, buy on sale, coupons.com
8. Debt – pay rent/mortgage, car payment first, then setup payment plans for collection accounts, judgments, tax liens, then everything else
9. Transportation costs – do you need a car, can you carpool or take public transportation
10. Insurance – do you have adequate health, life and disability

Housing
1. Reverse mortgage, 800-569-4287
2. Co-elderly housing, 812-618-2646 (nationwide)
3. Housing Information - www.seniorliving.com, www.SeniorsForLiving.com, www.aplaceformom.com, SeniorLivingSource.org/Housing, SeniorOutlook.com, www.seniorresource.com/ageinpl.htm#other
6. Low income apartments – www.rent.com, section8-help.com

Other
1. Aging Services Network - 202-872-0888 (nationwide)
2. Discounts - www.seniordiscounts.com/newsletter.aspx, seniors.lovetoknow.com/Are_There_Any_Discounts_Senior_Citizens_Receive
3. Aging Services - www.seniorresource.com/ageinpl.htm

Freebies
1. seniors.lovetoknow.com/Freebies_for_Senior_Citizens

Saving is the New 20

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 is it 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.

When you go on dates or out with your boyfriend or girlfriend your conversations will somehow always lead to discussing your financial problems. The lack of a savings account or retirement account may cause you to stay in a relationship longer than you have to or stay at a job longer that you would like because you are living paycheck to paycheck. If you are out on a date and have financial problems you might slip up and make statements like “I wish I had someone to help me pay my bills” or “I wish I had a man to take care of me” which may be a turnoff especially on a first date.

When you start saving you see your money grow which is a great feeling. When you start paying down your debt you feel like a burden has been lifted off of your shoulders and you can begin creating long-term financial goals such as planning for retirement, starting a business or planning for your children’s college education. Saving money also helps to pay for unexpected expenses and prevents you from going into debt. Saving money and have good spending habits is an appealing quality in a mate.

If you don’t feel sexy try to make yourself more appealing by working hard to save money, fix bad credit and set financial goals. Saving is smart. Investing is smarter. Good credit is smart and sexy. Saving the environment is sexy. Saving is sexy.

Your Wallet Says a Lot About You

Most Americans carry a wallet or a billfold. Did you know that the type of wallet you carry and how you organize it describes how you manage your money and your life?

An old worn or torn wallet may show that your wallet is used to serve the purpose of holding your money and don’t believe a lot of money should be spent on wallet. If your wallet is organized neatly it shows that you organize your money and your finances as well as your life.

If you keep everything in your wallet including receipts from 5 years ago like George from Seinfeld that may show that you are not organized with your money, your finances or your life. Carrying a designer wallet may show that you value image and appearance.

If you never have cash or never have enough cash that is a red flag that you need to adjust your spending habits quickly to prevent a financial crisis such as filing for bankruptcy, foreclosure, judgment, or tax lien.

If you have money in your wallet but never know how much you have you also don’t know how much you spend. This is a red flag that you need to create a budget. I always keep track of how much I spend down to the penny.

If you find money in several places in your home or car that is a red flag that you are not responsible with your money. If you don’t manage the money you have now when you have the ability to earn more you will not be able to manage it which will result in bigger financial problems.

If you have more than one credit card in your wallet that is too many. Carrying several credit cards in your wallet is very tempting and will cause you to spend money you don’t have or don’t need to spend. I only carry my credit card when I know I am going to make a purchase.

Not knowing how much money you have can lead to bad money habits such as frequently using your credit card, bouncing checks or overdrawing on your checking account. This can also carry over to other financial accounts such as your savings, retirements, college savings account, etc.

It takes 23 days to break a habit. If you think about how you spend your money every day or how you manage it, you will be able to break the bad financial habits and become a better shopper, spender and will eventually become a role model for your family and friends.

The first step to managing your money is knowing how much you have and keeping it in a safe place such as a bank account.

My wallet is ten years old and I don’t plan on buying a new one anytime soon. It only matches one of my purses but I don’t care. I will keep carrying it until it can no longer serve the purpose of carrying my money. Until then, I will continue to be unmatched.

Boys vs Girls and Spending

Students between ages 15-21 feel unprepared to face the world. Only 20% of those saved over a $1,000 compared to older teens aged 16-18. According to a Charles Schwab survey, 50% of teenagers say they spend some of their money when they get paid and save the rest, 30% save the money in a bank account. 87% of teens say their parents are their main source of financial education.

According to the Boys & Girls Club of America, teenagers that learned about checking accounts and managing money were more likely to have opened a checking and savings account and to have a budget.

You may have heard that women are from venus and men are from mars. This is evident even among children especially with money. Girls lag behind in finances and with confidence to set and obtain financial goals. Girls show low confidence when asked about money and may avoid the subject or respond by saying “I don’t know, I guess so, or laugh”. Finances are not a high priority on girls’ agendas. They focus more on appearance and use money to go shopping or on entertainment.

The difference in how girls and boys view money may be related to how parents and educators teach girls and boys about money. Mothers may take girls to the grocery store to learn about how to comparison shop and budget for groceries. Fathers may take boys to buy a car. Both are good experiences but limit the knowledge that can be shared among each child. Boys and girls should be treated the same when discussing finances and life skills. If a child is not interested, parents must still provide the basic financial and life skills knowledge so later in life children will be able to apply it to their daily lives.

Girls are more emotional when it comes to spending and boys are more results oriented. Boys like to spend their money on big purchases like electronics, cars and technology. Girls like to spend money on things with little to no value like makeup, clothes, purses, shoes, etc. Many girls are taught to find a husband to take care of them which may prevent them from learning about finances, budgeting and investing because they will depend on their husband to have the knowledge.

Parents have to get girls and boys to change the way the think about money. Parents have to tell children If you want to own a home, go on vacations and live a certain lifestyle you have to save your money, invest and make good financial decisions. Boys and girls should be taught financial skills as soon as there are taught how to add and subject to ensure they become financially responsible adults.

How to Stretch Your Paycheck

Unemployment is now at 9.8%. Some Americans have moved down an income level from upper-middle class to middle class, middle class to lower income or lower income to poverty due to the economy and job market. Many Americans are forced to live on less money while other Americans are finding it difficult to live on less for several reasons: 1) they don’t know how, 2) they don’t want to or 3) they are in denial. Here are some helpful tips to help stretch your paycheck in a tough economy.

1. Bulk. Buy items in bulk by shopping at wholesale or discount stores such as Costco, Sam’s Club or BJ’s.

2. Budget. Create a spending plan or budget to see what areas you can reduce spending. Thirty-five percent of your budget after taxes should go towards housing (mortgage/rent, utilizes, repairs), fifteen percent towards debt (credit cards, student loans, personal loans), twenty-five percent towards transportation (maintenance and car payment), ten-percent towards savings, and fifteen-percent towards other expenses (groceries, prescriptions, medical expenses, etc.).

3. Comparison Shop. Look at prices of at least three different companies to see which has the best deal. Ask if the company will honor competitor prices.

4. Online. Look for coupons and specials at online websites such as bizrate.com or pricegrabber.com.

5. Generic. Buy generic brands for food, canned goods, paper products, dry goods and prescriptions.

6. Utilities. Buy the cheapest landline plan available. Turn to the lowest settings when you are not at home and use the recommended settings provided by the utility companies to save money on your monthly bills.

7. Bundle. Bundle services to save money on insurances such as car, mortgage and homeowners.

8. Downgrade. Downgrade all your services such as cable, internet, and cell phone. Downgrade your car or home to a cheaper model. You can sell your car and catch public transportation. If you need a car you can rent a car or use a Zip car.

9. Eat at home. Skip buying lunch every day and eating out. Cook meals at home and take leftovers for lunch.

10. Get assistance. Borrow money from friends or family members. Apply for government assistance, get help from your local church or get assistance from social organizations like the Salvation Army or American Red Cross.

11. Sell Items. Sell new or used items on eBay or Craigslist for extra cash.

12. Multiple Jobs. Work multiple part-time or full-time jobs; work a combination of full-time or part-time jobs to make ends meet. Do odd jobs such as cleaning homes, shopping for the elderly or babysitting to earn extra money.

End of Year Financial Tips

2010 Roth IRA Conversions

1. Funding. Funded with after-tax (post-tax) dollars, offer tax-free growth and tax-free distributions in retirement
2. Distributions. No minimum distributions and no age requirement
3. Income. Can convert to a Roth IRA regardless of your income
4. Pay taxes. Conversion taxes can be spread over two years: 2010 and 2011
Conversions after 2010 will pay the full tax due
5. Conversion. Can convert back to traditional IRA by October 15, 2011
6. 1099. No 1099 is required
7. Deadline. Make conversion by 12/31/10

Paying Down Debt Now Can Help You Next Year

1. Future. The future is an unknown.
2. Tax Rates. Tax rates may be higher in 2011 which means you may bring home less money. Tax credits may be reduced, child tax credit will be reduced to $500 in 2011, the deduction for mortgage insurance premiums will be eliminated, energy saving improvements will be reduced to 10%.
3. Minimum. Paying more than the monthly minimum pays your balance down faster so you will owe less next year (interest, finance charges, etc.).
4. Shopping. Cut back on shopping to reduce changes of going into more debt or having large credit card balances after the holiday shopping season.
5. Variable. Many credit cards have been converted from fixed to variable rates which means if the federal rate increases, so will your monthly payments
6. Finances. Can improve relationship with your spouse or partner related to arguments over finances
7. Retirement. You can't focus on retirement if you are in debt

Tips to Help You Plan for the Future

1. Change your thinking. Eliminate negative thoughts about money and bad money habits. Follow those who have good spending habits and consult a professional.
2. Emergency Fund. Create an emergency fund to cover bills for 9-12 months.
3. Plan for retirement. Contribute the maximum to get matching contributions. You will need 60-80% of your current retirement salary for a minimum of 20 years to have enough money to cover living expenses during retirement. Save 10-20% each month towards retirement.
4. Pre-retirement. One year before retirement start reducing your expenses to retirement levels to get adjusted to living on a reduced income.
5. SS Income. Don't count on social security unless you are near retirement age.
6. Financial Goals. Sets financial goals, i.e. plan for retirement, children's college education, pay off mortgage, pay off car note, etc.
7. Contributions. Increase retirement contributions with each salary increase

Tips to Plan For Retirement Now

1. Sign up. If you don't have a retirement account, run to your employer and sign up. Setup an account even if you are self-employed (SEP) or stay-at-home mom (spousal IRA).
2. Diversify. Don't put all of your eggs in one basket. Ensure your retirement account is diversified. This helps to offset losses.
3. Live below your means. Reduce spending and create a budget.
4. Pay down debt. Pay off large debts and keep debt at no more than 10% of your monthly income after taxes (credit cards, medical expenses, other loans, etc.)
5. Estate planning. Perform estate planning (will, trust, health care directive, etc.). Hire a lawyer to prepare documentation.
6. Review. Review financial statements on a regular basis to check for errors and stay informed about your account.
7. Backup Plan. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D. Use what-if scenarios.

Financial Survivor or Victim

Many Americans have experienced financial, family or physical tragedies over the past few years. Their financial outlook has gotten worse because of the recession. This has caused many Americans to give up, lose hope, lose faith and become confused, lost, afraid, stressed, anxious, angry and resentful.

These feelings can cause one to make poor decisions and choices in their lives. The first key to dealing with these emotions is to acknowledge them. Once you acknowledge your feelings don’t allow your feelings to control you. Next, think about what you can do to overcome your current situation and find a solution. You can’t change what happened but you can change how you react to it and how you deal with it. To do this you determine if your behavior is that of a survivor or a victim.

A victim:
1. Makes excuses
2. Looks for handouts
3. Waits for someone to help them
4. Doesn’t take responsibility for their actions
5. Doesn’t seek professional help
6. Refuses to change their current situation
7. Doesn’t accept reality
8. Is unable to implement a solution
9. Stays in a spiraling state of emotion (stress, frustration, anxiety, etc.)
10. Doesn’t have a plan of action
11. Unable to recover from a crisis

A survivor
1. Doesn’t make excuses
2. Develops a plan to solve problems on their own
3. Seeks professional help
4. Lives in reality - accepts the current situation but remains focused on future goals
5. Takes responsibility for their actions
6. Doesn’t wait for someone to help them
7. Uses emotional intelligence to manage feelings (eqi.org/eitoc.htm)
8. Uses resources such as self-help books, educational television shows, law of attraction, etc.
9. Survived previous crises and learned from the experience

Here are 8 steps to overcome a financial crisis.
1. Focus on how to solve the problem rather than focusing on the problem
2. Spend money without feeling guilty – you feel guilty because you are not living below your means
3. Use cash vs. credit to save you money
4. Have faith that your financial situation will improve – law of attraction
5. Pay off credit cards at the end of each month to avoid paying interest and finance charges
6. Have a savings account, checking account and retirement account which helps you plan for the future
7. Have at least 6-12 months worth of savings in an emergency fund to help with unexpected expenses or a financial crisis

To become a survivor of any financial crisis you have to change your mindset. “If you do not attract what you want to be, you will be what you are, forever” by Ankur Sancheti.