The solution to the real estate crisis is, sorry to say, simple. Build affordable housing!

While its true that $50,000,000 homes are affordable for some that’s not what I’m taking about. I mean we need affordable entry-level housing for entry-level, say someone making twice the minimum wage, workers.

The idea came to me when I recently stayed at a nice but ordinary hotel. The room had two beds, a closet, an entertainment center with a large screen TV, a refrigerator, a desk with a lamp and Internet connection, two chairs, a nightstand, and a bathroom. All it needed for me to live there was a computer and a microwave and/or small gas or electric burner.

We could build on a hotel/dorm room scale and even extend the length of the loan if needed to reduce the payment so people working a full-time job could afford a home of their own.

Then I saw an NBC story just a couple days ago that featured two homes in the Portland, Oregon area. The first was occupied by a 42 year old lady and was 86 square feet. It cost, not counting the land, $10,000. She had no mortgage and felt this afforded her a nice lifestyle. The second home, a luxurious 500 square feet was occupied by a couple that built the home for $50,000.

I have nothing against $300,000 homes but they should not be starter homes. When we build the first step on the housing ladder then we’ll have created a viable pathway to financial well-being.

PS. Since there are many trades people out of work it would create jobs for them as well as business for all the supplies needed. And while we’re at it we could make the homes energy self-sufficient and take a step towards ending reliance on fossil fuels.

Posted under General Prosperity

This is a test. What are your top ten money strategies?

Okay there’s get a job. And then have your spouse get a job and have the kids get a job. Then you can get a second job and then so can everyone else.

The next thought might be to buy a house or to have a retirement, IRA, pension, 401K, plan. These can be good ideas but look at what’s happened lately and you’ll realize they’re not enough.

Consider some of these strategies.

Save money on your regular expenses. Imagine you got paid a percentage of the money you saved. Wouldn’t you take some extra time to make sure you were getting the best deal? Saving even a small percentage on something you buy every week can turn out to be a large amount.

Save money by not buying things you think you need or deserve. This can be a tricky one because it is important to spend money on your self. Just make sure you put some thought into it and don’t rush. You can always spend the money later if it’s important. But you may find what you wanted so badly is no longer so important. So don’t be a pauper but don’t be impetuous either.

Start a business. This is almost always better that getting a second job. The reason? Taxes. You could be a babysitter or you could be the CEO of a babysitting company. The difference being how you think of yourself and how many tax deductions you have. The big mistake is thinking that starting a business is hard or takes a lot of money. Start small and don’t spend more than a few dollars filing for a business license. Then grow your way into wealth…or at least a second income.

Sell stuff you don’t need. Rent out extra space. Buy stuff and sell it for a profit.

Think long-term. A light bulb that costs twice as much but lasts four times as long really costs half as much

Find ways to have fun making and saving money.

Make having money more important than spending it.

These are just my thoughts and are offered as a way to start your thought process. So what are your money strategies? Make a list then expand it. Refine it and put it into practice. No one gets rich by accident but getting poor requires no special effort. So you may as well decide which path to take.

Posted under Credit Reports, My Debt, News Stories, Saving Money, Stress Relief, Welcome

One question has provided me more good answers than any other. Is there another way?

You may have a plan that works but that doesn’t mean it’s the only way to accomplish what you desire. Sometimes the only plan we’ve come up with doesn’t seem workable and we get stuck. Whether you have a workable plan or one that’s unlikely to succeed always keep yourself open to another solution.

Once I needed to move from Chicago to Phoenix and didn’t have the money to hire a mover. I looked for another way and found a car delivery service. I was given a station wagon to drive from Chicago to Phoenix and I packed it up with all my stuff and unloaded to before I delivered the car. My mission was accomplished without spending money because I was open to other solutions.

Any thing that you need to buy may be acquired in a different way. This may not work every time but you won’t know until you try. It’s true with debts too. Maybe you could work off your debt instead of paying it off. Or maybe you could do some additional work with the earnings earmarked to payoff the debt.

Don’t get boxed in by traditional thinking. Before you act put together a plan but before you implement your plan always ask if there’s another way to accomplish the same result.

Posted under Financial Planning, LIfestyle

There is more and more evidence that living a simple life leads to better states of health and happiness. It can also be cheaper. Don’t be swayed by the idea that you have to have the latest and greatest. If you can easily afford a twenty million dollar yacht then go ahead and buy it. If you can fit the big-screen TV on your credit card then you’d better think twice.

My belief is that the next decade will belong to those who develop a lifestyle that fits within their budget and I’m not talking just financial budget I also include time and focus. The less time you spend commuting the better off you’ll be. The more time you spend on what’s really important the better off you’ll be.

The old way was to believe that you had to have the big car because you had the long drive to a long day at work then a long drive home to a short night in a big house that you really didn’t need or couldn’t afford and were never there long enough to enjoy. Now the winners will be those who make the best use of their space and time. It’s no longer big that determines the winners it’s quality and that’s determined by how you design your life.

Posted under LIfestyle

A great way to save money is to make it automatic by creating the habit of saving first. Just like starting an exercise routine the hardest part is starting in a way that makes it easy to continue. I suggest starting small but making a big deal out of it by taking even $1 every time you receive money and putting it into a special account. This special account may only be a bowl or a jar but it should be labeled to distinguishes it from all your other money.

Make the deposit into the account a ceremony that includes a song and dance, or a prayer or mantra. Make it something that’s special for you and makes you feel good doing it.

Then make occasional special deposits when you win, find, or save money. The more you save the more you’ll want to save and the longer you do it the easier it will become. If fact it will become automatic.

Posted under Financial Planning, Saving Money

Yes there is turmoil in the economy but don’t panic. If you remain calm and alert you’ll see great opportunities to make money and position yourself to not only survive the coming hard times but thrive in ways that others may find impossible. The world is going to be handed to those who think and act decisively. Be one of them and enjoy the rewards of shunning panic and embracing opportunity.

Posted under Make More MOney

Last night I watched Killer Stress a National Geographic Special on PBS. Among the things I found interesting was the level scientific documentation that proved that stress has a profoundly negative impact on physical health thus the name of the show.

Financial stress is among the greatest problems of being in debt and it complicates the search for a solution. It can also kill you. So how do you deal with the stress when there doesn’t seem to be a immediate end to your debt?
Make someone happy!

Borrowing the line from the old song you can relieve your stress by doing a good dead for someone else, make just one someone happy. Doing good deeds creates a positive physiological change in the body’s immune system and it makes you feel good too. It gets you mind off your problems for a while and helps you understand that you have tremendous value as a person no matter what condition your finances are in.

So if you are in debt make a difference in someone else’s life and you will benefit. Make a habit of helping and you will create a never-ending flow of positive results.

Posted under Stress Relief

There’s been a lot of talk lately about avoiding the next Great Depression. Personally I think we’re in for a protracted period of financial stress. I don’t think we have to take this course but based upon the decisions we’ve made in the last 20 years it seems likely that we’ll continue down a self-destructive path.

But here’s a secret. A lot of people made a lot of money during the Great Depression.

If you want to avoid the financial crush that’s about to befall most of your neighbors then start thinking about how you can produce or provide a product or service that other’s will need during the upcoming tough times. You don’t have to spend a lot of money in fact I’d recommend you come up with something that doesn’t require a lot of ongoing expense and can be started in a small way.

By having an additional source of income you’ll always make more money than if you don’t. Duh! If you start now and have a loss of income from your primary source later you’ll be in a position to survive rather than to sit and wonder what happened.

Posted under Make More MOney

Well the President is about to speak about the financial crises the country finds itself in and, surprise, it’s your debt! Yes it is and the way I see it the country will be in trouble for a while because we don’t want to make some fundamental changes to our lifestyle, like living within our means, What a concept!

So here’s my suggestion. Take care of yourself by living within your means. This may mean living in a smaller house or having roommates. A smaller vehicle might be part of the solution too. Maybe it’s just paying more attention to financial details and paying down debt instead of creating it.

The Congress and the Administration are going to come up with a national plan. You just need to focus on your plan and make it work.

Posted under Financial Planning

It seems that the downturn in the economy has resulted in more defaults on debt payments. No surprise there. It has also had it’s effect of the debt collection business. It turns out that the debt they buy is less valuable so the people who sell debt portfolios are making less and the collectors are collectors are collecting less. It tuns out that many collectors have turned up the heat on consumers by using illegal tactics. Who would have thought it?

Here’s a link to the entire story

Posted under News Stories