Wow, the dearth of bad news continues. The S&P 500 hit it’s lowest point in 11 and a half years.

Ouch. Ouch. Ouch.

Good news for homeowner’s facing foreclosure though, Fannie and Freddie are suspending evictions until after the holidays. 

This is such a weird, almost twilight zone episode like time for me. I won’t lie, I stil keep on eye on the FOREX markets, and some of the moves lately….I’ve never seen before. Just incredible.

Having a party is one of the great moments in life, especially if it’s a good one. But if you’re budget is tight, you might be afraid that you won’t be able to afford throwing an amazing get together. The good news is that’s not the case. Below you’ll find money saving tips for various aspects of the planning process that can help you be an amazing host without spending the most.

Location, Location, Location

If your apartment or dorm is too small for a great party, you’ve got to find another option. Try to track down a friend who has a roomy basement or backyard that could be used for the event.

If that doesn’t work, consider checking out your public parks. These can be great choices and won’t cost you a dime in terms of location rental. Do remember that you usually can’t serve alcohol in these places, although people can bring their own. If you do have to rent a location, ask each person to pay a small amount of money to help cover the costs.

Entertainment

No party is going to exceptional unless you have some eye-popping entertainment. Booking a band or even a DJ can be expensive. Even renting a karaoke machine for the evening can be costly. The good news is there are some options. First, talk to your friends who have portable computers and large music selections. Add a couple of speakers and put someone in charge of the iTunes and you’ll have an affordable DJ.

Another idea is to bring in some video game systems. If you’re having the party in a home, hook them up to the biggest television and bring along games like Dance Dance Revolution, Karaoke Revolution, Guitar Hero, or Rock Band. Any game that is going to combine music, interactivity, and fun is going to be a good idea for cheap party entertainment.

Refreshments

Now that you’ve got a place and some entertainment, you’ll need to feed the hungry masses if you want to be a beloved host. The good news is most people aren’t coming to the party for a sit-down dinner or anything fancy.

All you really need are some bowls of chips and pretzels. These can be purchased in bulk at affordable prices, especially if you avoid name brands. If you want something more meal-oriented, choose a cheap meal like hot dogs or hamburgers. Let guests bring some side dishes and desserts of their own if you want but most of your guests would probably prefer to keep it simple.

And don’t forget the beverages. You’re always going to be better choosing a BYOB approach since alcohol is never cheap. You should, however, offer some non-alcoholic options, such as soda. (for non-drinkers like me! ~ debtkid)

I’ve had a number of situations lately where I’ve been meeting a lot of new people. This is both a good and bad thing for me. It’s good because it’s pushing me outside my comfort zone and it’s bad because it’s outside my comfort zone.

I’ve identified a few times when my confidence seems to absolutely shrink up, even though I know it really shouldn’t.

1. Talking about work - I often feel when people talk about work, they really just want to know what you do so they can figure out where you “rank” socially, and how much money you make. Both those are contentious issues for me.

I run a small business, I have a few part time employees. I made like 14K last month. None of those things are normal for a 25 year old. I realize that.

Now, combine that with the fact that I had a 300K debt hole. Do you see why work is exactly the last thing I want to talk about with people? Especially girls. My work implies that maybe I’m quite “successful” which, is sorta true I guess. Bottom line, with new people especially I don’t want to talk about anything job related because it gives people the wrong idea that I’m quite financially stable, when in reality, I am not. Whew, that got long.

2. talking to pretty girls - This definitely happened this weekend. I really think I go out of my way to sound as least impressive as possible when talking to a girl I find attractive that is new. This one I’m not quite as sure why I do.

My theory is that if I actually don’t downplay my strengths the girl might be interested in me. And since I could be interested in her, this creates the awkward tension of her believing I’m something I’m not. At some point maybe I will get over this, but at least this last weekend, it wasn’t happening yet. I also think part of it is that I just need more opportunities in situations like this : )

Slept on it last night. It was amazing. It’s a Sealy Latex, Twin XL.

Thank God for the Twin XL. My feet don’t stick over now! I finally bit the bullet and got a decent mattress. I’ve think I’ve figured out why I have such a difficult time spending money on certain things, but more on that later.

I had been sleeping on a twin mattress (on the floor) that I got off craigslist last year for $30. This one was a bit more expensive (around $450), but I think its a good investment in me.

I feel blessed. A place to sleep and food. What more does a (debt) kid need? : ) : )

Well, about a quarter mil would do.

We all know the law: almost every state in the United States requires car insurance before you operate a vehicle. Although the amount of automobile insurance varies from state to state, if you don’t have it then you’re going to wish you did if you get involved in an accident or if you get pulled over by the cops for any traffic infraction.

For drivers under 25, car insurance rates are notoriously pricey. However, there are some good ways to cut your costs.

• Safety – This one is obvious but it deserves to be mentioned. If you don’t have accidents, your rates are going to be cheaper. Being under 25 and having only two accidents on your record can be enough to put you in the high risk classification. That means you’ll be paying a fortune even for minimum coverage. And, obviously, getting DUIs is a huge no-no if you want to cut your insurance costs.
• Grades – Insurance underwriters believe – and rightly so in most cases – that students who care about their grades are less likely to be the ones taking big risks at the wheel. Whether you’re in high school or college, a high GPA is usually going to cut your rates. Don’t forget to ask your agent about these discounts.
• Cheap Cars – Who doesn’t want to be driving around in a sweet ride when you’re under 25? But living the dream is going to cost you higher premiums. Those underwriters were young once and they know nicer cars bring out the risk-taker in all of us. Plus, nicer cars are going to cost more to repair and to replace when involved in car accidents.
• Double Up – Maybe you don’t only need car insurance. If you have an apartment, you’d be wise to invest in renter’s insurance to protect your belongings. Maybe you want to start early with a life insurance policy. Either way, most insurance companies offer discounts when you purchase more than one of their products.
• Take Safe Driving Classes – In some states, optional safe driving courses are being offered to people who want them. If you complete the class with flying colors, you automatically receive discounts on your automobile insurance. That’s a good deal. It’s also a good idea to brush up on those defensive driving lessons.
• Shop Around – Even though young drivers are going to pay more because of their inexperience behind the wheel and higher accident rates, you should still shop around to find the best deal possible. You might be surprised. Be careful about companies promising you low cost coverage though. You want to make sure you are buying a policy that will protect you when you need it, and sometimes these cheap policies don’t do the trick.

The best thing you can do if you are an under 25 driver is to talk to your insurance agent about how you can lower your premiums. Not only can they give you tips like the ones above but they may know of other programs or options through their company that could assist you.

wrote this wed. night, forgot to post…

Although I started this week with a nasty head cold, I’m starting to feel a bit better tonite. I had some twitter suggestions on getting over a cold ranging from tea to whisky. In the end I tried going for a late night run last night and that seemed to kick the cold out pretty well. My nose is still more of a faucet, but I’m feeling better overall.

I’m also feeling more confident than I have in a long time. It feels good.

Especially going into the holidays, its nice to be a stable. To have a little cusion. My family doesn’t spend much money wise for Christmas anymore. Which is nice. We made a conscious decision a few years ago to make the holidays just about spending time with one another vs. spending money on one another. It make the holidays way more fun, and virtually stress free. Which I appreciate.

I’m liking my new position at Lending Club. It’s a bit of a change having a boss, but so far so good. I still have half the week to focus on my own business stuff, and so far it’s working out well. Plus, I don’t have to pay for my own health insurance now, which is great. So, yay.

Most of the time when say to save money they usually mean give up the things you love. For millions of us – me, included – that means video games. I don’t have to tell you that video games are a very expensive hobby. Even if you’re lucky enough to get the system as a Christmas gift or something, you’re still looking at $50 to $60 per game. And that doesn’t include the increasingly popular and pricy DLC (downloadable content). The good news is there are some ways to cut corners without abandoning your love of video games.

• Trade in unwanted games to save on popular titles – When you pre-order many of the top titles at local video game stores, you can receive higher trade-in values for games when you apply that cash towards your pre-order purchase. This is a good way to get rid of games you don’t want while lowering the price of ones you do.
• Join video game rental clubs or stores – Nothing is worse than shelling out $50 on a game that sucks. Instead, rent before you buy. Even if you only take the game for a spin for a day or two, you’ll know whether the investment is a wise one. Remember some games can be beat in a matter of hours so you can complete them and save yourself some cash.
• Exchange games with friends – If you’ve got a few close friends who share your passion for gaming, work out an arrangement that lets all of you swap games from time to time so you don’t have to keep buying all of them brand new.
• Plan ahead – If money is tight, plan ahead. Read the list of upcoming titles and start saving a little at a time so you’ll have the cash on hand when that highly anticipated game comes out. This method also helps stop you from racking up credit card charges on game purchases.
• Buy new – Some people would recommend buying used games but it’s not worth it. For one, the price reduction is usually minimal, especially for newer games. Plus, the trade-in value always seems to be less. Some places won’t even accept used games.
• Avoid the extra – Video games cost a lot of money but so do the extras. For example, if you recently purchased the amazing game Fallout 3 for the Xbox 360 you might have been tempted to shell out the extra money for the special edition version and/or the strategy guide for a whopping $25. Do you need these things? Probably not. Most of the strategy information you’ll need can be found for free on the Internet, and most of that special edition video game swag just ends up collecting dust on a bookshelf. For the extra you might have spent, you could have bought another game.
• Be selective with DLC purchases – If you love Rock Band or similar rhythm games, you already know keeping up with the DLC is expensive. Now other games are getting in on the DLC trend. You really want to be careful about overspending here. Be sure whatever you get is worth the money.

Remember playing video games is a lot more fun when you don’t have to stress about your cash flow or work extra hours to pay the bills.

A second stimulus package is underway. The second stimulus package is being forged by the House Democratic leadership. They are currently working on a $150 billion package to bring relief to the hurting U.S. economy. Some analysts speculate that the second stimulus package could cost as much as $300 billion when it’s all said and done. As the economy continues to see a significant recession the anxiety is building for lawmakers to act quickly.

Stimulus Check? Try Stimulus Jobs

The main emphasis of this possible second stimulus package is the creation and security of jobs. The unemployment rate is at an all time high in the last five years. It rose to 6.1% over the summer and some fear it will continue to climb as high as 7.5% by the end of the year.

Another Stimulus Refund Check. $600-$1200

The second stimulus package will offer a few direct benefits for the consumer:

• A stimulus refund check, along the same parameters as the first. Depending on the income and size of the family, each household can expect a check in any amount from $600-$1200.
• A relief for those who are in need with their mortgages. The stimulus package suggests buying up runaway mortgages, refinancing and making it affordable for the homeowner.
• More jobs may come available for consumers who are in need of work. Those currently in financial crisis will be assisted by the government with extended unemployment benefits and high hopes of more jobs created.

Financial Relief for Local Government

Another potential emphasis of a second stimulus package being explored is to give some financial relief to state and local governments. Some specific areas that have been discussed are energy subsidies, aid in road repairs, assist the unemployment system and give help to the industries with the financial need (banks, automakers, etc.).

Other talks have lead to the spotlight shining on assisting homeowners that are facing foreclosure. These talks follow the suggestions of Senator John McCain’s proposal to buy up faulty mortgages and refinance to a reasonable price the homeowner could afford.

In September, the House approved a second stimulus package, but it was blocked by the Senate. It was a $56 million dollar package, significantly lower than anticipated. After this attempted was blocked by the Senate, there is suspicion that House Speaker, Nancy Pelosi, will call on Congress to continue working on the details. Pelosi said, “I call on President Bush and congressional Republicans to once again heed Chairman Bernanke’s advice and as they did in January, work with Democrats in Congress to enact a targeted, timely and fiscally responsible economic recovery and job creation package.” It will most likely be after the Presidential Election is over and Washington prepares for new leadership.

The Democratic Party has been working closely with Senator Obama, who is in full support of a second stimulus package. The Obama campaigns proposal is to place a separate tax on oil companies to help pay for the stimulus package, although the details of how this would work specifically have not been released.

Follow The Money

The particulars of the proposed second stimulus package are still being hammered out, but there are some facts coming out of Washington of how the monies would be used:

• $37 billion used for public works
• $6 billion to extend unemployment benefits
• $15 billion in assistance to Medicaid bills
• And $3 billion in food stamp assistance.

There have also been talks of another tax rebate check, similar to the ones in the first stimulus package. The amounts would the same and so would the eligibility requirements. The hope is that when Americans receive this rebate they will spend it in order to give the economy a boost. Many programs have already been discussed with banks and large, corporate retailers to provide perks for these checks, if a second stimulus package is approved.

President Bush, along with many Republican leaders, were leery of a second package due to the strain already placed on the economy by the first stimulus package, earlier this year. After consulting with a few key advisors the President is now open to a possible second stimulus package. The Federal Government spending more money is currently not a popular notion for those serving Congress, yet it seems inevitable to get our country out of this mess.

One of President Bush’s spokespersons said, “We’re not proposing a second stimulus package right now… We are open to good ideas, we will listen to people if they put anything forward that we think would actually stimulate the economy; so far we have not seen that.”

If President Bush does comply and Congress feels the need to move quickly, then an unusual Congressional session would have to be implemented after the elections.

The argument in Congress is that a second stimulus package would continue to increase the current federal debt. Many on the other side contend that we are in the middle of crisis that needs immediate action to avoid a greater disaster if no action was taken. When we start comparing our current financial situation to the Great Depression, they argue, something must be done. They believe a second stimulus package wouldn’t solve all the country’s issues but it would keep the economy afloat.

U.S. Federal Reserve Chairman, Ben Bernanke, is making his case on Capitol Hill. He has the ears of Congress and the President alike. Mr. Bernanke urges lawmakers and politicians to move swiftly on approving a second stimulus package. He believes the American economy will continue to sink into recession over the course of the next 12-24 months and that a stimulus package would help keep the economy somewhat stable.

Bernanke’s plea was met with criticism from House Republican Leader, John A. Boehner, who contended that any spending plan proposed to the US government with the word “billions” in it, is not in the best interest for the US economy. Boehner believes a second stimulus package would be a cover-up for more lose spending by the Federal Government.

The Federal Government is currently in a frenzy when it comes to financial reform and has immense pressure to move quickly towards a resolution. The Presidential transition may put a damper on the speed in which the government may act, yet there’s no telling how swiftly things can get done in Washington when the pressures on.

More Second Stimulus Resources

• www.cnn.com/2008/POLITICS/10/10/democrats.stimulus/
• http://www.washingtonpost.com/wp-dyn/content/article/2008/10/20/AR2008102000872.html -
• www.msnbc.msn.com/id/23983922/
• http://thehill.com/leading-the-news/progressive-caucus-pushes-for-second-stimulus-package-2008-03-04.html
• www.time.com/time/politics/article/0,8599,1840174,00.html
• http://www.irs.gov
• www.reuters.com/article/newsOne/idUSTRE49K5ZZ20081021
• http://www.washingtontimes.com/news/2008/oct/20/bernanke-urges-second-stimulus-package/
• http://ap.google.com/article/ALeqM5h19_YeGzwzlmJhx42iIA7nJF0_UAD93VRK8O0
• www.post-gazette.com/pg/08295/921476-28.stm?cmpid=business.xml
• http://marketwatch.com/news/story/second-stimulus-check-dont-cash
• http://www.moolanomy.com/692/second-stimulus-check

If we do see another stimulus check, I would once again give mine to my Mother ~ DK

Sometimes I think I’m a trendsetter.

But not in good ways. Right now you can’t watch any news program without hearing about rising debt levels and thousands of people losing their homes to foreclosure.

Hmmm…that definitely sounds like me circa late 2006-early 2007. It seems like such a long time ago, but really, it was a little over a year and a half ago now that my home was facing foreclosure, my water had been turned off, and I had buyers walk in while I was showering.

Looking back, even though I lost the home, I should have never had it in the first place. Plus, I was able to do a short sale and get the place sold before it went to auction. But it was still a very stressful event.

So here are a few tips for staying sane I discovered when dealing with my own home foreclosure:

1. Tell a friend

Once you hit a certain number of payments behind (it varies state to state. Usually around 3), you’re default becomes public information. So, before that even happens, tell for sure your family, and next a close friend. Facing foreclosure is not a process you want to go through alone.

2. You’re not a failure. So let go of your pride.

Maybe you shouldn’t have bought the home. Maybe you lost your job. Maybe this, maybe that. The bottom line is that beating yourself up isn’t going to solve your issues.

Also, trying to keep up appearances is just plain silly. Especially if you’re in a very hard hit area (vegas, california, florida, etc), most of your neighbors are probably in the same boat (if they are still around at all). So let go of your pride, cut your spending as much as possible, and prepare for the future.

3. Line up future housing ASAP

For me, I didn’t have the income to support both a place to live and my office at the time. So I moved into my office and slept there for a few months. I wouldn’t really recommend it. Once you know the last date you have in your home (weather an eviction date, sale date, or auction date), start making plans for housing after foreclosure. Craigslist is probably your best bet….and honesty with a private owner goes a long way.

4. Ignore or laugh at your mail

You’re going to get a ton of foreclosure junk mail. People will promise you the world in this junk mail. Some of it will look somewhat official. Take it all with a grain of salt.

My favorite game was to do a mass opening about once a week and find the most outrageous letter and then just make fun of the sender in my head. Don’t respond to anything you get in the mail. Work with a short sale agent if you want to go that route, but make sure and ignore 90% of that junk mail, and laugh at the other 10%.

5. Learn from this experience

For me, losing my home was just another painful lesson that I needed to go from the selfish, short sided, financially illiterate mess that I once was. Think I’ll ever buy a house again with no down payment? Heck no. Do you think I’ll think twice about renting to crazy roommates? Hes yes.

In nearly every difficult situation, there are lessons to be learned. I know that’s hard to see when you are in the thick of it, but it’s true.

Good luck and if you’re looking for more support, check out the insanely useful comments (300+) on my countrywide short sale post.

Although the price per gallon of gas is sinking just slightly slower than the rest of our economy, deep in our hearts we all expect to wake up one morning to see the numbers rushing like race horses back to $4 per gallon. That means now is a good time to start making preparations by adopting a few habits which could save you money at the pump and which might help you free up cash for more important purchases.

• Know Your Mileage – Those quoted miles per gallon amounts in car commercials rarely tell the whole story. If you want to know how much gas your car is using, you should check on your own. Next time you fill up the tank, make a note of your mileage. When you fill up again, note how many gallons of gas you had to buy and how much mileage you’ve added. Do the math. Chances are you won’t be happy with the results.
• Inflate Your Tires – While it became a joke on the campaign trail, the truth is doing something as simple as properly inflating your tires can save you money in gas. Research done in California found that even having your tires slightly below their recommended pressure can cost you almost $200 a year if you only drive 12,000 miles.
• Drive Legal – Although faster speeds may make your trip seem shorter, ramping up past the speed limit won’t do your gas tank or your wallet any good. Any time you go over 40 miles per hour you are forcing your car to work harder because of the added wind resistance. That extra work lowers your fuel economy.
• Turn on the AC – That’s right – you should use the air conditioner but only in some situations. If you’re on the highway, for example, opening your windows for cooling is going to increase the wind drag on your car. That can cut your fuel efficiency by 10%. The air conditioner in most modern cars, however, uses very little extra power in comparison. Of course, if you’re just driving around town, roll down the windows and enjoy the fresh air.
• Travel Wisely – Did you know that our choice of roads can actually reduce our mileage, even with all other things being created equal? For example, if you have to travel down a gravel road, your fuel efficiency is going to cut by up to 30%! You’ll also need more gas to take those tight curves. Even reversing your vehicle will cost more in gas.

To be fair, none of these alone will save you a fortune on gas but added together you can seriously reduce your gas spending. That may not matter as much when the gas is around $2.50 per gallon but when it starts soaring again you’ll want to do anything you can to reduce your spending at the pump.