Normally this kind of advice would go against the grain for me - if you’ve got a hobby you enjoy, I’d say you should stick with it, because life is about enjoying your time. However, the advice from the No Credit Needed blog about giving up hobbies while you’re trying to get out of debt does sound like a good suggestion. (more…)

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Amongst all the bad news, it’s good to know that there are still areas around the United States where house prices haven’t taken such a beating. A Smart Money survey recently summarized seven cities where the real estate market is looking reasonably healthy:

1. Seattle - helped by its low unemployment, partly due to having strong employers like Boeing, Amazon and Microsoft located in the area.
2. Des Moines - suffered through a real estate bubble in the 80s, and diversified its economy which stood it in good stead for this crisis.
3. Raleigh - had job growth during the slump thanks to a lot of high tech companies moving into its Research Triangle.
4. Salt Lake City - The Church of Jesus Christ of Latter-Day Saints helps out here by providing a lot of steady employment; but in general it’s a diverse, “pro-business” city.
5. Philadelphia - house prices here didn’t soar high but had just a steady growth, so now they haven’t fallen far.
6. Birmingham - plenty of strong employers here (including Mercedes and Honda plants, and a large university) have kept the economy here relatively stable and house prices have followed.
7. Denver - like Des Moines, already suffered a bust so the economy wasn’t ready to go wild; that’s kept things relatively stable and the housing market is already acting at a level many experts consider normal.

photo credit: acme401

Losing your job is not something anybody likes to think about, but in economic times like these it’s something more and more employees have to face. Some recent tips from Yahoo Finance are depressing but important: they listed a few tell-tale signs that might mean your job is under threat. The things you should look out for are:

• Some of your colleagues lose their jobs - then lay-offs are clearly in the air, and even if a company says that they’re finished, nobody can be sure.
• The company stops hiring new employees - if there are suddenly no job ads (and especially if you see vacant positions where people aren’t being replaced), the company could be just a small step away from letting some current employees go.
• Your company is failing to reach targets - when a business isn’t performing well, lay-offs are often part of a solution to help the business run better.
• There is less training on offer - a company which knows it will reduce its staff numbers soon won’t spend money on training these staff.

Keep an eye on these situations happening in your workplace. Of course, they can happen for a number of reason, but being prepared for job loss by keeping your finances in order, having an emergency fund and keeping an eye on other job opportunities can make a terrible time a whole lot better.

With numerous fees to be found on a detailed statement from any mutual fund, it’s hard to be sure you’re not paying too much in fees.

When you are trying to make a decision on which mutual fund to choose, the easiest way to think about fees and charges is to look at the fund’s expense ratio. It is usually easy to find and easy to understand because it simply combines all the possible fees together and presents a percentage of your investment that will be used for fees.

But if you want to know what some of the actual fees are, a recent Financial Planning summary helps us out:

• Management fees are basically what the fund uses to pay its management and employees, and they’re usually less than one per cent per year.
• Administrative fees cover other costs of the fund, including mailing, record keeping and communications, and they are on average less than half a per cent per year.
• Sales charges or loads are a percentage applied to the purchase in a fund - although some now offer ‘no-load funds’. Pay attention to these because some funds charge up to five per cent per year.
• Marketing and distribution fees also exist for some funds, but not all.

With financial woes circling the world, there are bound to be bargain hunters looking to pick up a stack of shares at low prices, but how can you be sure when you’re actually getting a bargain? Some tips from Carolyn Bigda can help you avoid getting burned:

1. Check the forward P/E of a stock - compare this to similar companies or the industry benchmark, and you want a ratio that is lower than average (but not super low)
2. Check the trailing P/E for the same kind of ratio as the forward P/E - so that you can be more certain that the company was operating similarly before any stockmarket crash
3. Check the price-to-cash ratio and compare it with similar companies again, and again look for a ratio that’s just a bit lower than average
4. Check the company’s balance sheet and figure out the stability by dividing the total assets by total equity - if the ratio is 2 or lower then you’re on a good thing
5. Check the news - because of course, all of the good ratios in the world mean nothing if there’s some scandal or huge lawsuit hitting the company whose stock you want to buy.

photo credit: ninjapoodles

Saving money on supermarket bills is something a lot of us are striving to do, but if you’re a “foodie” and don’t want to give up your gourmet tastes, that’s a bit tougher. But a foodie can be frugal according to Mint and here are a few of their recommendations for cheap but essential foods to gourmet up your mealtimes a bit:

• Sambal Oelek chili paste - it costs less than $4 but is pure chili and you can mix it with other ingredients to make incredible dipping sauces or spreads.
• Whole grain mustard - rarely more expensive than the standard stuff and you can make your meals look fancy, or make a sandwich taste special.
• Greek yoghurt - it is sometimes a little higher in price than other yoghurts but it is always unsweetened, creamy and thick and can be used to make dips, sauces and even in curries.
• Fresh ginger - you only ever need a little bit so ginger isn’t too expensive, but using fresh ginger is just like using fresh garlic - the taste is amazingly better than using any kind of preserved or dried version.
• Fresh dill - although this goes for all herbs - they’re usually better fresh - dill is inexpensive and can be used in all kinds of dishes.

We all love the idea of stretching our dollar, but sometimes the steps we have to take can be daunting: biking to work? Only possible on casual Friday! Eat more at home? I already do that, and don’t want to feel guilty when I do go out. What most of us need are tips on almost effortless ways to trim the monthly budget, whether by a dollar or ten.

• Reuse food containers & ziploc bags: Lots of food already comes in great, reusable containers: margarine, ice cream, cream cheese, even milk. Instead of tossing your containers (or even once-used zip-up freezer bags), wash them out and run them through the dishwasher for sanitization. They’re a free, environmentally-friendly way to use something you already have.
• Double your dinner: This technique will work for any dinner meal, but is particularly suited to bulk meals, like soup and spaghetti. Make extra — preferably double — what you think your family will eat, and then send everyone off to work or school the next day with leftovers. This will almost always be more cost effective than pricey sandwich meats, and it super convenient.
• Utilized under-used kitchen appliances: Believe it or not, all those appliances you got from your wedding registry are very handy: they save electricity! Your stove uses lots of energy (think of how big it is to heat up), so try cooking in your crockpot, rice cooker, or electric skillet.
• Make your own cleaner: You might be surprised at how efficient a bit of vinegar and baking soda can be!
• Hang your clothes out to dry: Okay, this obviously cannot work year-round, but if you wash on a sunny day, consider hanging your clothes out to dry in the sun - it’ll help you save energy, and your clothes will smell wonderful.

Okay, so you want to save gas, but can’t afford (or don’t want) a hybrid or electric car. If you live an urban or suburban area, you might have another solution at your fingertips: commute via scooter. Scooters are the gas gods of the transportation world - averaging 60-80 miles per gallon, they give you a huge bang for your buck. In fact, some scooters only cost $5 to fill up, and that’s taking into consideration today’s gas prices!

If you choose to scooter up, you must take safety precautions. First and foremost, buy a helmet. Get familiar with your scooter and with your neighborhood drivers. Keep in mind that you’ll be much harder to see on a scooter, so practice (very) defensive driving at all times. Try to travel on roads with slower speed limits, as well - this way, you won’t put yourself in the normal frenzy of high-speed commuters.

Also remember that you may need a special license to drive your scooter, so check with your state DMV for more details. Finally, get insurance — which can be as inexpensive as $100/year — to protect yourself and other drivers. Always be responsible and safe on the road.

MSN Money’s Liz Pulliam Weston doesn’t think that we’re headed into the next Great Depression, but for those who do, she offers some great tips. In fact, many of Pulliam Weston’s tips just make good sense, and help us all prepare to pinch our pennies until they’re wrung dry.

• Live like you’re unemployed: If you had just lost your job, what changes would you make? How would you live? This “austerity budget” is a great way to manage your finances, even while you’re raking in the dough. Spend money on essentials, be frugal, and shop smart. For example, if you wouldn’t keep your cable subscription during a financial crisis, shut it off now.
• Pay off your debt: I know, you’re sick of hearing about paying off your debt. But it really is a priority - while you still have a steady, monthly inflow, you need to pay off debt and eliminate those rapidly-growing interest balances.
• Keep your credit card accounts open: It may seem counter-intuitive, but keep your accounts open. This will help your credit score and give you an emergency exit in case of extreme circumstances.
• Keep your job: It seems obvious, but this means that you should do every, single thing possible to stay employed. Work harder, produce more, do whatever it takes to show the boss that you are worth every penny of your salary.

Even the wealthy have been hard hit by the country’s economic problems — Bill Gates alone has lost more than $1.5 billion — and their luxurious homes are the first to hit the chopping block. CNN Money reports on seven mega mansions, ranging in price from $1.5 million to $15 million, that Sotheby’s auction house plans to auction off on March 28, 2009.

The auction’s most affordable home, which comes in at a mostly-unaffordable $1.495 million, is located in Fort Lauderdale. The 5 bedroom, 3.5 bathroom home is billed as a cottage, and sits adjacent to fabulous golf courses and country club offerings. Marble floors, a golf course view, and a beautiful 30′ by 15′ pool round out the home’s assets.

Sotheby’s most expensive home, also located in Fort Lauderdale, was originally priced at $14.999 million. The 9 bedroom, 9 full bath and 4 half bath home will sell for much less (if at all), and its proud new owners will enjoy an infinity pool, spectacular landscaping, a home theatre, massage room, and even an indoor pool. No word on the mansion’s starting bid price.

Clearly, even the country’s wealthy home owners have seen their investments dive. If you’re one of the lucky few who still a bank account full of disposable income, check out CNN Money’s auction rundown… great deals are sure to be had.