This week, I encountered lots of tips and hacks from all over the money blogosphere. Seems like a lot of people were in a list-making mood.

Personal Finance Reads

• The Simple Dollar: A step-by-step plan for dealing with your debt is right here: The Debtor’s Toolkit. It’s a nice package of simple financial principles to help you vanquish your debt.
• Lazy Man and Money: You know that eureka moment, when you hit upon an idea or a vision that gives you a sudden surge of energy and catapults you on top of the world? Well, I could just see this happening as I read Lazy Man’s post about this new dream he has. Now I’m dying to know what it is!
• Money Smart Life: I love this great, practical list of prudent tips for the new college graduate. I wish I had these reminders way back when!
• Gen X Finance: The weather is getting warmer so it’s time to dust off some warm weather money tips!
• The Sun’s Financial Diary: With gas prices going up up and up, here are some money saving pointers on how we can cut down on our gasoline costs.
• Mighty Bargain Hunter: How do you handle charities that call you up? I’ve turned down many because I don’t accept phone solicitations. And because I try to keep within my charitable donations budget and already support those charities whose causes I care for.
• No Credit Needed: Here’s a very telling tale about store-branded credit cards, proving that there’s some type of upsell that goes with buying stuff in department stores.
• Million Dollar Journey: This article tackles the comparison between Canadian and U.S. retirement accounts. There’s also a handy table that lays it all down.
• My Dollar Plan: Here are some helpful ideas on how to secure your financial future. It’s all in the planning!
• Brip Blap: Simplify your life with these random simplification tips. Learn to cook, don’t buy stuff, adapt to change.

Additional Readings

• The Economic Stimulus Check Means Higher Taxes To Come @ My Two Dollars
• The Checks Have Started Arriving! There Are Better Things To Spend On Than Botox Or Gambling! @ My Investing Blog
• Student Loans Aren’t Always The Enemy @ This Wasn’t In The Plan
• Dealing with the Debt Time Bomb @ Gather Little By Little
• Valuable Gift Ideas for Mother’s Day @ My Supercharged Life

Recent Carnivals

• Dressing For Interviews, Dollar Store Buys and Why Debt Stinks
• Carnival of Real Estate: Thank you to Active Rain for including my post “A Look At Real Estate: Is It Time To Buy?” as a Top 10!
• Bank Holiday Best of Me Symphony
• Carnival of Financial Planning
• Carnival of Money Stories
• Cavalcade of Risk
• Money Hacks Carnival
• Kids and Money Carnival

This is a post from The Digerati Life.

Think back to the time when you’d take on summer jobs or interned while you were still in school. It was fun, easy and earned you some extra bucks. So who says we can’t keep on doing this long after our teenage years are over?

I actually have a family member in an interesting dilemma. He’s a practicing lawyer from a different country and just moved here a year ago. He just took the California bar exams but while waiting for the results (which takes some months), he’s decided to take on some odd jobs to be productive and to make a bit of money. The odd jobs aren’t all that odd if it’s in line with what you’re doing — hence, he’s doing some data entry and office work at a law firm. Sure, he doesn’t need a legal license to be the office manager at a law firm — anyone with office management and computer skills can qualify — but it’s one way to get his feet through the door of the profession he’s chosen, which should work out well for him once he gets all the necessary credentials by passing his exams.

There’s really no shortage of things that you can do. If you’ve got a certain talent, or have education and experience in some form of activity that is “in demand”, there’s usually a way to get paid for it.

Singing The Praises Of Odd Jobs

They’re a great way to supplement your income.

Keep working a full time job and supplement your income by doing the things you love. For instance, you may have a knack for gardening or you may really enjoy caring for animals. Think of something you genuinely love to do. Have you ever thought of capitalizing on it? Times are tough these days and the cost of living is becoming unmanageable by the day. Even if you are working, you may still find it hard to make ends meet. People all over are taking second and third jobs just to keep their heads above water. So if money starts to become a challenge, it may be worth exploring some opportunities to earn extra cash. How do you know what type of “odd job” to take? Well, finding work that matches a talent or passion that you have is a good start.

They can be fun.

Though odd jobs may not pay a lot of money, they may actually work out pretty well if they’re enjoyable and aren’t stressful. Certain jobs are even stress relievers (e.g. see dog walking). How about starting simple? You don’t need to go all out and turn your job into a full-time business. Think about some of the things you love to do and start spreading the word to your friends, family and neighbors. Somebody always knows somebody else who is looking for a person to paint a room, plant flowers, shovel snow, and whatever else you can think of.

People are busy and need help getting things done. Maybe you have an artistic flair? Many people pay good money to have murals or portraits painted. Perhaps there are elderly people in your area that could use some help with errands or cooking dinners. They would be grateful to have someone close by to rely on for odd jobs. The possibilities are endless. Odd jobs are not just for kids: they can bring in some grocery money or help you pay for some new things you’ve had your eye on. Just as long as you keep your rates reasonable and you avoid overworking yourself, you may find that these tasks can keep you continuously employed. I’ve known people who took on side jobs like these to “unwind”, to relax, or even to volunteer their time for the fulfillment that comes with helping others out.

They can lead to bigger opportunities.

You can parlay this work into something more rewarding, both in the financial sense and in terms of your career development. There is that possibility that over time, you may want to do more with your skills and even develop a business along the lines of your experience. Doing odd jobs is a great way to get your feet wet and see how it feels to get paid for something you love to do anyway. You’ll be more prepared to go out on your own once you get some contacts under your belt and a good reputation for quality work. Keep an open mind about what kind of things you’d like to do and go for it. You may surprise yourself with what you can accomplish.

Are Odd Jobs Really Odd?

The term “odd job” is used to describe the occasional work that is done for relatively easy extra money, no matter what it is (unusual or otherwise). Such jobs have the advantage of being flexible and temporary — you can do them on your own time, pace and convenience. Some typical jobs along these lines: floral arranger, gardener, driver, store clerk, tutor, home aide, housekeeper, babysitter, kennel worker, painter, food preparer, warehouse worker, video game tester, handyman, copywriter.

Cool fact: I found out that Donna Freedman from Smart Spending has herself performed a few odd jobs that I found truly….interesting to say the least! Some curious jobs she’s had:

• Earning $35 to watch a porn film for the sake of research.
• Selling blood to medical researchers.
• Being an all around go-to person in her apartment building.
• $120 for dog-sitting over 4 days.
• Earning $15 to $90 at a time to “mystery shop”.

As Donna mentions, a lot of these jobs have helped her keep afloat. If you’ve got a near term goal such as paying down your credit card bill for one month, or saving money for a special someone’s birthday gift, that little extra you can earn and apply to these goals seems all the more worth your while.

This is a post from The Digerati Life.

• How to Dress For an Interview @ Cash Money Life
• You’re NOT Homeless! @ You Might As Well Burn $5
• Is CPI Manipulated? @ Amateur Asset Allocator

More saving scenarios were offered by The Festival of Frugality #124 which is currently running at the “mother of all frugal sites”, Frugal For Life . The layout of the carnival was simple and straightforward — it’s done in alphabetical order!

• Home Maintenance Tips @ Save and Conquer
• Top 10 Dollar Store Buys @ FIRE Finance
• How To Save By Making Credit Card Payments More Real @ The Personal Financier

Going on to debt slashing topics — we have the 138th Carnival of Debt Reduction over at Rocket Finance with a healthy dose of anti-debt articles:

• Why Debt Stinks: Life Doesn’t Just Stop So You Can Get Out @ Paid Twice
• Congress and Fed Take on Credit Card Industry @ DebtFREE-Revolution

I’d like to thank Rocket Finance for the honor of an Editor’s Pick for my article on saving money by making things last longer!

This is a post from The Digerati Life.

I’m not the most organized person in the world, though I’ve been working on it as best as I can. The funny thing is, I like things to be systematic and like things to be in order, but somehow, I still fall short sometimes, and I end up with a couple of missed bills and a debt collection warning.

But so far, I’ve managed to weasel my way out of any penalties or negative effects on my credit. I suppose some sweet-talking doesn’t hurt, but in all seriousness, when I do get a debt collection notice, here’s what I do:

#1 I don’t call the debt collection agency. I call the creditors directly and make my inquiries to them.

#2 To the company whom I owe money to, I let them know my bill is in collections, then I give a reasonable excuse for this unfortunate eventuality. They’re usually pretty forgiving (even with the “dog ate my payment” excuse) because they really just want to resolve the situation and get paid pronto!

#3 Then I offer to pay up immediately (over the phone, via credit card) and ask them to retract my bill from collections. No questions asked. I pay the credit card bill in full afterward.

And I’m happy to say that this has worked out well for me on those few occasions I’ve had to do this. No harm, no foul.

But the ending may not be as positive for those who are perennially late with their bill payments, or for those who’ve missed or avoided paying their bills altogether, since they’re up against a formidable force with professional debt collectors. Even those who haven’t had any trouble with their payments for some time or who may have forgotten an old debt many many years ago may sometimes find themselves getting contacted out of the blue by someone who is dead set in retrieving their money. Who knows… loans and debts can be bought and sold, so they may resurface to haunt you later.

The FTC tells us that debt collectors are the number one complaint they receive from consumers. With consumer credit delinquencies on the rise, and actually matching the high levels of 1992, collection agencies are doing brisk business. Not exactly the kind of thing that would give you a cozy feeling.

How To Work With Debt Collectors

So what should you do if you ever do find yourself unlucky enough to be harangued by collection notices and phone calls? As consumers, we are covered by the Fair Debt Collection Practices Act, which gives us some protection from distasteful encounters with debt hounds. These pointers are borne of this act, which could use a good review:

#1 Take heed of any notices from a debt collector.

Ignoring calls or letters from an agency will not solve the problem, but in fact, aggravate it. If there’s been an error somewhere and you know that there’s nothing you owe, then an honest discussion with the collector should help you. If you do have a balance you need to pay, then try to work out a reasonable payment plan with the collection agency and get this issue out of the way. You’ll sleep better by doing so.

#2 Get proof of your debt.

Once you get a call from a representative, make sure that the inquiring agency is legitimate. Check which creditor they are representing and find out how and why your bill has turned up in collections. You also have the right to dispute the debt, request validation and proof of debt. I’ve no doubt that there are individuals who may use this as some sort of tactic to delay payment.

#3 Keep communication lines open.

Communication via written means will probably carry more weight than just phone conversations since you’re creating a paper trail this way. You can always assert your right to privacy by requesting the debt collector to contact you only in writing.

#4 Keep records of payments you’ve already made.

It’s always a good idea to have proof of payment on record with you. If you don’t have the documents (receipts, canceled checks, statements) to show you’ve paid, you can always contact the original creditor and check with their billing department. Sometimes, there may be mix ups with a creditor’s payment tracking process that you may need to straighten out.

#5 Keep track of correspondence with the debt collector.

Like with any other matter of conflict, it is always wise to keep track of your dealings with a collection agency. Things you should take note of: dates and times of any form of correspondence, the name of the representative you are in touch with, and notes of your dialogue.

#6 Know your rights as a consumer.

Be aware of your rights. Try to cooperate as best as you can, but don’t let the collectors step all over you either. There are in fact, limits to what a collector can do when trying to pursue a debt payment. There are both approved and prohibited conduct by collectors that are actually outlined in the Fair Debt Collection Practices Act. Among other things:

• Collectors cannot threaten nor harass you.
• They cannot make your personal information known, except to credit bureaus.
• They can only contact you by phone during certain hours: 8 AM to 9 PM local time.
• They cannot bother you at work if you’ve told them so in writing.
• They cannot contact you directly if you are represented by a lawyer.

If despite your best efforts you do find yourself getting unwanted or belligerent calls, then you have the prerogative to send the debt collector (and not the creditor) a written notice to stop communication about the debt. You can also write that you don’t intend to pay the debt but this does not absolve you of your financial responsibility — if you still owe them money, you may be sued. So you will need to work out an amicable arrangement with them to resolve your payment issues. In short, if you’re looking for relief from constant nagging from these people to get your thoughts together and devise a working plan to address your money problem, then make the written request: don’t expect verbal requests to be heeded.

#7 Watch out for debt repair “specialists”.

Whenever you’re facing some kind of trouble, there’s always some segment of the population who will want to capitalize on helping “solve” your problem. Be careful with whom you’re dealing with, because not all of these helpful entities are on the up and up. There are those who may promise you a quick solution to your debt issues but may actually be preying on your vulnerability. How much are these people charging for their “services”?

#8 Fight back if you are being harassed.

Don’t get intimidated: you can always refer to a consumer attorney for assistance, if need be. The web site for the National Association of Consumer Advocates or naca.net may be able to refer you to someone who can help. For more difficult cases, you can submit complaints to the Federal Trade Commission. Other places you can contact: the National Foundation for Consumer Credit, or the Consumer Credit Counseling Service, which are national organizations that may be able to put you in touch with a counselor from your community.

#9 Seek legal assistance if necessary.

If your case requires it, you may want to contact a consumer lawyer for further advice. For further details on this subject, check out this page on Debt Collection Practices.

Best advice on this matter though is to avoid collections in the first place by paying your bills on time and being more organized — nuggets of financial wisdom I should definitely take more to heart.

This is a post from The Digerati Life.

How tough is it getting out there these days? The general consensus is that it’s been getting economically tougher, with more reports surfacing and providing us newer metrics that prove we’re in the midst of a market decline.

And the latest proof that we’re in a slump? How about a marked increase in the sales of used goods? Apparently, more and more people are unloading their possessions, valuable or otherwise, at various second-hand markets and at a greater frequency than in the past.

And no, people aren’t selling stuff just because they want to declutter their home or have a desire to downsize. What the media is saying these days is that along with the arrival of recessionary forces and the frugality trend beginning to pick up, we’re also seeing this concerning new trend: people selling stuff to pay the bills. They’re actually selling off their goods — including their heirlooms and expensive possessions — in order to raise cash fast. I suppose that with the credit crisis coming to a head and sliding property prices preventing homeowners from using their home equity as a cash account, folks are simply running out of options.

This sounds a bit sensationalistic to me, but here are some points I culled from articles that are trumpeting a new kind of behavior among those who are trying to keep themselves financially afloat.

Selling Household Items For Cash: A Growing Movement

• Supposedly, desperation is driving people to unload their heirlooms just to pay off higher gas, medical and food expenses.
• Individuals with expensive tastes but who’ve lost their jobs are finding themselves in a bind: unloading high-priced, branded clothing like Hermes leather jackets, Versace jeans, silk shirts, handbags, and the like just to be able to pay basic grocery, utility and insurance bills.
• Collectors are unloading their highly prized collections at online auctions in order to pay for necessities. I guess it’s true: you can’t eat art.
• At Craigslist, for-sale listings are up 70% from 9 months ago and doubled from last year. Similar reports are coming from other online auctions and classified ad sites. The number of ads are much higher than normal.
• The ads submitted in online auction and “flea market” type sites are written in a more desperate tone.
• People are using online sites like they do traditional pawn shops.
• Hot items in the second-hand market are cars, clothing and furniture.
• Areas hit hard by high gas prices are seeing higher sales of vehicles in general but particularly those that are less gas efficient.
• Recreational vehicles like campers, trailers and boats are glutting the used goods market.
• Areas hit hard by the housing crisis are seeing more furniture on sale in used markets.
• Unfortunately, Goodwill and the Salvation Army have been negatively affected by the sales trends as donations are down 20% this last quarter.
• Prices of used items are going for 25% to 35% less than they did last year.

Though a lot of people have been affected due to job loss and dropping home prices, a lot of those severely affected have also been vigorous spenders in the past. From the aforementioned facts, it seems to me that a good number who are selling today are those who have a lot of extra things they can *possibly* get rid of; I wouldn’t actually consider recreational vehicles, electronic gadgets or branded merchandise as essential to living….

At any rate, this is definitely a sign of harder economic times: where families are affected by job loss and general higher prices across the board. In my own community, we’re seeing $4 per gallon and the $40 I used to spend for a full tank has now risen to $60. I’m sure glad I’m no longer commuting!

So along with higher foreclosures and bankruptcies, you can also consider this, a sign of the times: the indication that the used goods market is heating up big time. Which could be the silver lining to those of you who are frugalists in the market for buying stuff. So if you’re looking to buy anything, you’re in luck, as you’re in the midst of fire sales right about now.

Where To Go For Second Hand Merchandise?

If you’re looking to sell or buy used items, here is a quick list of places and resources to visit:

Online Sites

• AuctionPal.com is a site that helps you sell your items through their partners such as eBay, Amazon, and other specialty auction sites. They are working to partner with Craigslist as well.
• LiveDeal.com is a classifieds and business directory site.
• Craigslist.com is the original classifieds and business directory site, and is also recognized as the biggest one in its niche. Thanks to Craigslist, I’ve sold a couple of cars and also bought myself some furniture, including a nice dining set.
• eBay.com doesn’t need an introduction. For those who want to sell at the original online auction on the web, here are some eBay selling tips! I’ve been a regular buyer here of specialty items myself.
• eBizAuctions helps you with selling your stuff on eBay as “professional and certified auctioneers and appraisers.”

If you do an online search for auction and classified ad sites, there are tons more where these came from. The list goes on. Here’s an easy-to-scan review of auction sites on the web. Auctions have actually been a highly touted place to buy and sell wares, so much so that even houses are sold through auction sites these days! Auction sites have indeed come a long way.

Traditional Sources

• Consignment stores in your own neighborhood are a good place to check out high quality items you need. Furniture, decor and clothing are common products you’ll find available in these stores. I’ve picked up some really beautiful art pieces from consignment centers before.
• Local classifieds are found in your local paper or at local community web sites. Fogster is one that I check out that caters to my neighborhood.
• Flea markets are a traditional way to buy and sell your wares. I visit a few during the spring and summer when the weather is pleasant. Who knows what possible treasures I may stumble upon?
• Holding garage sales is an American pastime that you may want to try at least once in your life. Ok, maybe not — it can be a big hassle and does take some time and preparation to pull off. It’s not my favorite way of decluttering the house, but it’s a good way to get a tan over the weekend while you attend to curious visitors on your driveway. But! I have been known to visit a few estate sales each summer just to see what can be had. Lastly, you can also advertise your garage sale via the web or your newspaper if you want to go this route.
• Participating in storage bin auctions is a rather esoteric way to pick up some used goods. If you’re intent on getting some good deals, you may just find them in these abandoned storage areas. I’m not kidding.
• Your own family, friends and neighbors may be just the buyers or sellers you need to trade goods with (for a few bucks). I’m glad I have extended family around so it’s been easy for us to take advantage of recycling items amongst ourselves for really attractive, bargain prices (if not free)!

Are there any other good sources out there? Please feel free to let us know!

It goes without saying that you’ll need to check out the various resources and see which ones you’re most comfortable working with. Different sites, storefronts and communities may provide different price points for items, so doing some research is key. I’d always start with the places I find most trustworthy and with the best reputations. I’d also score a particular resource well based on convenience and ease of use. For example, selling and buying on Craigslist is something I favor because there’s representation in my local community and my experience with it has been straightforward and simple. I’ve also been happy using eBay as a good source of merchandise.

Given what’s going on with our national as well as our household economies these days, it makes sense for us to buy used, to stop spending on non-essentials, and perhaps to trade in more of our clutter for cash.

 
Image Credit: Wikimedia Commons

This is a post from The Digerati Life.

And before I jump into my reading list, I’d like to give a nod to Get Rich Slowly, All Financial Matters and My Money Blog for taking best marks in the May 2008 Edition of Money Magazine!

Personal Finance Reads

• The Simple Dollar: What’s your take on your kid’s education? Trent offers a comprehensive and well-rounded view of children’s education and personal finance, reminding us that education is not just the stuff taught in schools.
• Get Rich Slowly: J.D. tells us how he shifted from becoming a spender to being a saver. The turning point for him was when he got out of debt and began to realize how thrilling…and fulfilling it is to see one’s savings build and grow.
• Lazy Man and Money: Lazy Man attended Finovate, a business conference that showcased 40 financial startups ranging from Zopa to Trade King. He’s covered the whole gamut of startups and their demos in a series of posts ending with this one (it has links to the all other Finovate articles in the series).
• Money Smart Life: Are you a college graduate ready to face the “real world”? Do you know anyone who is? Going to college may be the point in time when one should think about getting their own health insurance.
• Gen X Finance: Conventional wisdom encourages us to protect ourselves financially, and to be prepared for disaster. But the question is, how much insurance should you really be getting? Should you get disability insurance? It depends on your situation.
• The Sun’s Financial Diary: I love Sun’s recaps on his net worth. Here’s yet another one showing his April 2008 scorecard, which shows a positive turnaround in his net worth trend.
• Free Money Finance: Looking to reduce college costs for yourself or your kids? Here are 10 tips to do it. For those students eyeing college, it sure helps if you load up on advance placement classes while still in high school so you can save on those credits in college.
• Five Cent Nickel: Nickel tackles the concept of financial infidelity or the act of keeping financial secrets from your spouse or partner. A survey mentioned in his article shows a surprising 48% of people involved in a serious relationship have committed such infidelity.
• Mighty Bargain Hunter: Let’s see… what else could we do with our economic stimulus rebate check? Hmmm…. how about buying a “refund-season gift card” from a retailer? Some retailers are offering additional value on their gift cards (up to 10% more) if you buy the higher valued cards — yes, a campaign made to coincide with your receipt of your rebate check.
• No Credit Needed: I just had to bookmark this awesome “No Credit Needed Debt Reduction Guide” index care of NCN. For all those who want to wipe out your stubborn debt, here’s a comprehensive set of articles to help you get on the right track!
• Million Dollar Journey: Financial infidelity seems to be a common topic in the online financial community this week. Here’s another article that ponders the relationship between financial infidelity and divorce.
• My Dollar Plan: We all have different ways of managing our financial goals and money plans. Madison walks us through her custom money plan, showing us how we can weigh the cost vs time vs priority of each of our financial goals.
• Brip Blap: Steve jokes with us about coming across a new tax deduction this week. He just celebrated the birth of his baby daughter a few days ago. Congratulations man! Good luck with no sleep.
• MSN Smart Spending and TipNut.com: Frugality and saving money is in! Thank you to Donna for featuring my post proclaiming that frugality is the hot new trend. TipNut.com also featured my humongous list of coupon usage tips!

Additional Readings

• Save Money On Gas @ Save Money
• Discover Your Investment Style In 15 Minutes @ The Shark Investor
• 15 Things To Do With Your Economic Stimulus Check @ Free From Broke
• The New Frugality @ The Mark of Ashen Wings
• Speak Up to Get A Deal @ American Consumer News
• How I Handled A Collections Letter @ The Wisdom Journal

Recent Carnivals

• Budget Busters, College Costs and Car Buying Advice
• Carnival of Money Stories #57: Thank you to Andy for picking my post on savers who died wealthy as an Editor’s Pick!
• Money Hacks Carnival #10

 
Image Credit: All Posters

This is a post from The Digerati Life.

Before you can consider purchasing your dream home, or any house for that matter, you’ll need to take the all-important step of learning to save for the requisite down payment, unless of course you are just rolling in spare cash. You’ll need to consider this step as your highest priority, or you may find yourself disappointed, perhaps even embarrassed once you end up going through all of the paperwork and red tape only to find out that your mortgage loan application is denied due to insufficient funds.

To start, it is good to get an estimate of the amount you can afford to spend on a house. When you’ve decided on your house budget, you’ll need to calculate what 20% of this budget amounts to, then set that as your down payment goal. This percentage is a safe number for both the buyer and the lender. Lenders are not interested in losing money and typically feel that buyers who cough up a strong 20% amount are less likely to abandon their payment responsibilities. The truth is, the larger the down payment you provide, the easier it will be for you to get a mortgage loan approval, since mortgage lenders are more comfortable working with higher down payments.

If your down payment does come in under 20% of the house price, the mortgage company may require you to purchase Private Mortgage Insurance, also known as PMI, which can add hundreds or thousands of dollars to your annual expenses. The insurance protects mortgage lenders in the event you default on your loan. The cost of the insurance is dependent on the purchase price of the home and usually remains in effect until you have achieved 20% equity in your new home. In many cases, the mortgage company will require an appraisal to be completed — and billed to you — before the PMI insurance can be lifted.

If you find yourself ready to move forward with a home purchase but would like to know how to raise your down payment to 20% or more, then here are some ways to do it.

10 Ways To Secure the Down Payment For A New House

#1 Consider purchasing a less expensive home that will fit your budget.

Don’t stretch — just don’t do it. By getting a smaller house, you’ll obviously have a smaller down payment. Set your expectations to match your pocketbook and go for a home that you can comfortably afford. When determining the size of your home budget, you’ll also need to take into account other costs above and beyond this outlay. You’ll also need to consider additional expenses such as moving expenses, new furniture, repairs, maintenance costs, insurance and possible home improvements you may need on the fly. So when you’re planning for a home purchase, do your analysis carefully. You can’t err by being conservative in your estimates: settle on a home that doesn’t stretch your finances too thinly.

#2 Research down payment assistant programs.

There are companies who specialize in down payment programs that can help you finance your down payment. These programs generally require excellent credit and potentially high fees and interest rates. There are also programs that vary by state, locality and community, which offer grants and loans to people who need down payment help. Some programs that provide financial assistance for would be homeowners: Fannie Mae and Freddie Mac.

#3 Ask about seller’s assistance.

Deal with the seller. Occasionally owners will be willing to work with a buyer and offer a second mortgage in order to sell the property. However, keep your eyes open for red flags, should a seller be too accommodating with financing. This may be the case because the property has issues of disrepair or major problems that are never discussed. Always get a thorough inspection by a professional before agreeing to anything.

#4 Don’t give up on savings.

Wait until you’ve saved enough. The traditional way to get a down payment scrounged up is by doing some good old-fashioned saving. Save your money on a regular basis, and practice some discipline and self-control. It’s not uncommon for people to save religiously over the course of a few years before they get the amount they need for a house purchase. To free up some money for savings, why not rework your budget and cut out unnecessary spending?

#5 Try not to raid your retirement plan.

No matter what advice you’ve heard, think twice before tapping into your retirement funds — whether it be from a 401K or an IRA. Sure, you are allowed to take loans out against your retirement money, but this can be a dangerous game you’re playing. If you do end up borrowing against your retirement accounts, you’ll need to pay attention to the repayment schedule or possibly face income tax and penalties on the amount withdrawn.

#6 Ask your family or friends for a loan.

Got relatives or buddies with deep pockets? They may just be willing to finance your down payment, especially if they trust you well. By cutting a deal with people you know, you could definitely work out much better terms than by going through the standard lending channels. But when you apply for a mortgage, these other loans will also be taken into consideration by lending agents when determining your eligibility to qualify for a home loan.

#7 Look to social lending sites like Prosper.

You may be able to secure one or more loans through peer-to-peer lending sites like Prosper. Such loans may be available for better rates (depending on your credit score and history) and may be easier to get, compared with loans from traditional sources like banks and other lending institutions. Interested in this route? Then sign up with Prosper.

#8 Request monetary gifts.

Cash may not be the most traditional form of gift, but it certainly can be the most practical. By receiving monetary gifts during big life events such as a wedding or graduation, you may just pool enough for a down payment down the line. Note that gifts are tax free up to $12,000 per giver and per recipient. So technically, your parents would be able to gift you and your spouse a total of $48,000 without incurring tax consequences.

#9 Share a house.

Sharing living space is a common set up in certain cultures, and it certainly is something becoming much more acceptable and popular in the age of expensive real estate. If you can pool your down payment resources with relatives, friends and even tenants whom you’re willing to live with, then this strategy may just be the ticket to score you the house you hope to have.

#10 Offer to trade home equity for cash.

Another novel idea to propel you towards home ownership involves getting others to invest and share the equity of the home you live in. This was how I actually ended up owning my first home: my parents provided the down payment for my first house while I paid for the mortgage and repairs as its primary resident. When we sold the house, we all shared the profits and it was a nice win-win situation. This is a great situation on paper, but in reality, deals and relationships like these can quickly become complicated. To avoid any financial disagreements, make sure that your arrangement is formalized.

Some parting words: buying a home is probably the most involved and costly process you will go through in your lifetime. Take each step very seriously and do not be in a hurry to sign anything without first taking the proper steps. If you anticipate buying a house, make sure you have a solid plan and have all your ducks in a row.

 
Image Credit: Mountaintop Loan Services

This is a post from The Digerati Life.

Here’s a short snippet from a Larry King Live interview with this senior performer — Wayne Newton:

CALLER: May I just say quickly, please, and a quick comment and a question. You look terrific. You should be so proud of yourself with all of your talent and accomplishments, Mr. Newton. May I ask you, please, do you think that this “tap on the shoulder” that you received with your heart problem is saying to you, maybe you should spend more time with your family and possibly, even retire or semi-retire?

NEWTON: Well, I thank you for the question. Number one, let’s deal with the last question, what I think about retiring or semi- retiring, no. I’m one of those people that think that you need a reason to wake up. And to lay in bed and wait for something to happen to me is not where my head is.

There are people who enjoy keeping busy and even holding down jobs all the way till their twilight years. In the course of writing my previous post that discussed the idea of working past retirement, I discovered that a significant number of people are considering skipping out on retirement altogether and instead staying employed for as long as they are physically able.

Yet there are also tons of people who just don’t have a choice but to keep on working beyond the age of 65, simply because they haven’t saved enough for their retirement or didn’t start saving early enough.

So it goes without saying that it would be absolutely awesome if we could retire on our own terms to pursue the things we’d like to do. Taking on a job in our senior years is something that should be an elective and not a requirement. And though the concept of retirement may have changed for many of us — many prefer to continue working instead of relaxing — retirement is still a goal most of us would like to attain, just so we get control over what we’d like to do with whatever time we’ve got left in the world.

For those of us who are not workaholics and who would prefer to retire on time, here are a few recommendations to consider:

How To Get The Kind of Retirement You Want

#1 Start investing early.
This is by far the most important recommendation made to anyone who would like to retire on time. It’s one of the most ubiquitous tips I’ve read about investing, and for good reason: the earlier you start investing, the longer the magical power of compounding can work on your funds, thereby ensuring you a healthy retirement.

#2 Invest for your retirement before you invest for college.
Given the competing financial goals we face — buying a house vs saving for our children’s tuition vs saving for retirement — it can sometimes be difficult to work out our priorities. But there is some conventional wisdom that governs how we should execute our long term financial goals.

I’ve read the arguments that favor saving for retirement over saving for our children’s college education: if you have the money, put it in a retirement kitty first, and save for your other goals later. The reason for this is the fact that many options exist for those going to college: you can get student loans, find a cheaper college, and possibly qualify for financial aid. With retirement, we’re largely on our own (do you really think the government is there to help out?), and having others help us out in our old age is not something most of us will find palatable.

#3 Invest with any amount you can afford.
A lot of people make the excuse that they don’t save and invest because they just CAN’T. I know someone who says he just cannot afford opening a retirement account because all of his income goes to supporting his family. Yet he’s a heavy smoker and drives a fairly expensive car that requires some maintenance. With some adjustments and heartfelt effort, he could very well be on his way to building a decent retirement nest egg. Freeing up even just a $100 a month to put in an investment account is really all that it takes to build a simple, diversified investment portfolio.

#4 Don’t pass up free money.
Those who skip on their 401k contributions do so for various reasons. Most of the reasons are simply excuses along the lines of “not having enough money”, or retirement is just too far away to worry about. But if we’re willing to stoop over and pick pennies off the ground, then we should also be willing to contribute to an employee-sponsored retirement account, especially if matching contributions are being made by your employer. How could anyone possibly say NO to this free money?

Don’t forget too that the tax benefits of retirement accounts allow for your money to grow even faster. Another form of “free money” you should look into is your ESPP plan (if you have one). If you contribute to an ESPP account, you typically get your employer stock at a discount from the market price. You’re therefore guaranteed a certain percentage gain from a stock purchase because of this discount. How is it done? You buy your employer stock then turn around and sell it the very next day for a profit, thanks to the applied discount at purchase; or you can hold on to see if the stock rises, for even fatter gains.

#5 Avoid procrastination and letting life “take over”.
Let’s face it, thinking about retirement and more generally — financial management — may not be the most exciting thing in the world. We’re faced with distractions on a daily basis and we’re living busy, hectic lives. If you’re like me, you’re constantly wondering where all your time has gone, by the end of the day. So it’s way too easy and tempting to have our financial matters take a backseat to everything else; but by going along this path, we may eventually find ourselves in our middle age with meager savings. Being more proactive about our finances and taking a more serious look at our long term financial goals should help us avoid this plight.

#6 Avoid money mistakes.
Sidestepping money mistakes is just as important as doing the right things in order to maintain our financial health and to keep us on track with our retirement goals. There are certainly mistakes that we sometimes cannot help but commit as part of gaining financial experience, but let these mistakes serve as lessons that should not be repeated.

Personally, I’ve made quite a number of financial missteps, ranging from trying out short term market trading and investing with my emotions, to getting involved in silly multi-level marketing schemes that cost a lot in upfront fees. One of the more damaging financial traps that you can easily fall into is the credit trap, also known as getting into too much debt. This robs you of your ability to save for retirement. If you have a lot of debt, you’ll have to retire your loan obligations first before you tackle the issue of investing for your retirement.

#7 Create sensible financial goals and prioritize them appropriately.
Lots of people have financial goals, but many of them are short-term in nature. In our consumerist society, it’s typical for us to myopically prefer to save and invest for material goals such as a vacation, a new car or some other big ticket item. To get ourselves ready for retirement, we’ll need to weigh our retirement goal against these shorter term goals and ensure that we’re not ignoring the important things.

#8 Invest in a way that fits your age and risk profile.
Investing too conservatively, especially when we’re young, can be detrimental to our retirement while investing too aggressively while we’re older may have the same effect. So it’s imperative that we take stock of our risk profile and employ a prudent approach to investing for the long term. Just the right asset allocation for your diversified long term retirement portfolio can be the ticket to keeping your retirement plans and schedule on track.

#9 Get interested in finance!
Having money may be an exciting thing, but managing money can be pretty dry and boring, so much so that people decide to sweep their financial matters under the rug until something unpleasant happens. And even then, many of us live in denial of financial disasters that are lurking in the distance. If we can all muster enough interest to pay attention to our finances more often, there would be less foreclosures, bankruptcies and consumer debt rung up around the nation. If finance is just not your thing, you can still get your finances and your retirement in order by outsourcing some of the work. Why not hire a reputable financial adviser or a professional who can help you work out your retirement matters?

#10 Fund all available retirement accounts, if you can.
Say you’ve been able to tame your debt problems and you’re finally ready to invest some money. Once you’re in this position, you’ll need to evaluate your financial priorities. For me though, I’ve always found that putting my money first into accounts where they can grow the fastest is actually more exciting than saving money for the “next big toy”. On this note, the best place for money to grow “unhindered” would be in tax sheltered or tax-advantaged accounts. Employment retirement accounts and IRAs are great places to keep your money working for you without taxes taking a premature bite.

The sooner you apply these tips, the better chance you’ll escape the fate of the working aged. Though I personally think it’ll be fun to keep working all the way to a ripe old age, just as long as you do it on your own terms — maybe just like 66 year old Wayne Newton, who looks like he’s still having fun. Or is he still working because he got waylaid by personal bankruptcy some time ago?

 
Image Credit: Wikipedia

This is a post from The Digerati Life.

• Reduce, Reuse, Recycle (and Save Money) @ Sound Money Matters
• Our Car Buying Experience - Part Three: 5 Lessons Learned to Reduce Stress and Cost @ Chief Family Officer
• Open Letter To A High School Graduate @ Prime Time Money

I’d also like to thank Lazy Man for including my post on earning more and spending less as an Editor’s Pick.

Stories and articles on frugality were showcased at Sound Money Matters in another fabulous edition of The Festival of Frugality #123. This time, the theme is based on a book by Robert Reich (former Labor Secretary under Clinton) called “Supercapitalism”. I enjoyed the carnival collection, which included these posts:

• The Problem with Diet Foods @ Cheap, Healthy, Good
• My Biggest Budget Busters @ Moolanomy
• What Are My Options for My Children’s College Costs? @ Uncommon Cents

Please visit these carnivals for more money articles!

This is a post from The Digerati Life.

The high-tech industry is mostly for younger people — it can be highly stressful since it requires that you be on your toes, learning new technologies so that you can escape the undesirable label of being a tech “dinosaur”.

But during my career as a software engineer, I’ve had the pleasure of working with a few older people — those who are over the age of 60 as I recall, who have surprised me with their work ethic. I also mentioned in an earlier article that one of my older co-workers in his mid-60’s passed away rather unexpectedly late last year, causing me to reevaluate my priorities in life and work. I consider that event as one of those triggering my decision to “retire from corporate serfdom” in order to take control of my own work destiny.

I had only but admiration for my erstwhile colleague, as he was someone who took his job seriously and who thoroughly enjoyed what he was doing; I was impressed by his quality of work, productivity and dedication — the degree of which you’d be hard-pressed to find in many corporate offices.

Nevertheless, there are many more folks like him who plan to work way past their retirement age or who don’t intend to ever retire. It’s actually been reported that up to 68% of employees between the ages of 50 and 70 are in this boat.

You’re A Boomer, Why Continue To Work?

Why are older people still working? These are the people who either never stop working or decide to return to work after a respite of some length of time. There are various reasons:

Money is the most important reason.
The dot com bust has affected a lot of portfolios and can be blamed for causing a lot of older people to return to the workforce. The simple fact is that many people haven’t saved enough for their retirement or their investment portfolios were adversely affected by recent market activity. Not only that — people are living longer, so it’s tougher to accumulate assets that are deemed sufficient to cover the expenses incurred throughout longer lifetimes.

The higher cost of medical care is a concern.
Clearly, with increases in health care costs, there’s a stronger need for people to seek and maintain good medical coverage. I know a lot of people who work mainly for the health care benefits.

People want to feel productive and mentally active.
A lot of baby boomers remain employed or return to the workforce because they want to “have a reason to get up in the morning”. How many people have you heard of who become depressed as soon as they retire? A lot of workers love the routine of their job, the social interaction at work and the sense of fulfillment they get as contributors to a company’s cause.

Workplace Benefits For Older Workers Are Sweet!

Sure, we can’t deny that there’s some age discrimination at play especially when younger managers are doing the hiring. And frankly, there are just jobs that are not a good fit for senior citizens (though there are exceptions, certainly). However, many industries are experiencing labor shortages and have worked to fill their workforce with older people (just as they did with women way back when). In fact, many companies are doing things to encourage boomers to join their ranks. Just as employment perks have evolved to incorporate maternity leave and child care benefits to accommodate female workers, we are now seeing some changes in our work environment, brought about to address the requirements of older workers:

• flexible schedules
• shorter weeks and fewer hours
• telecommuting
• job sharing
• retirement counseling for eligible workers
• phased retirement to help workers ease their way into retirement
• improved training for workers over 50
• special mentorship and pairing of older people with younger employees
• the addition of physical workplace accommodations (not unlike those for the disabled)

And there’s a lot to be said for older employees — they’re experienced and loyal, and their expertise is particularly valued in certain jobs. From CNN Money, this list of top jobs for those over 50 had some spot-on suggestions:

Top Jobs For The Over 50 Crowd

Seems like there are certain job positions that are well suited for the more mature crowd — I can see how jobs in health care, retail and education can benefit from both wisdom and patience, characteristics you normally find in spades amongst the older set.

This is a post from The Digerati Life.