Getting ready for winter

The rural community where I lived for many years has many homes whose average age is 60 or more years old.  Many of these homes were built with below ground basements that served as the foundation of the home.  They are unfinished and usually quite dark with just the small windows at the base of the home and one overhead exposed light bulb. They are not considered as living space but rather a place to house a wood burning stove, canned goods, camping equipment, or freezers.  They are often susceptible to flooding in the winter.  Needless to say there is not a lot of quality time spent in these basements.  An occasional trip up and down the stairs to retrieve an item is the extent of their occupancy so often the basement may have no visitors for long periods of time.

A friend recently shared with me the story of another friend who made the journey down the stairs only to find that it had been completely taken over as a storage area for the squirrels.  Imagine her surprise when she came down the stairs and in my friends words "every pine cone in the county" had been deposited in this ladies basement.

Secrets of Extreme Savers

Link to story:  Yahoo! Finance - Financially Fit

Sometimes looking at how others live can be quite surprising. We hear so much about unemployment, debt, and difficulty that we begin to think that is all there is.

Sometimes the sunshine comes through the clouds and we become aware that there are different choices that can be made.

For millions of people the financial crisis has been a time where they need to start over. Though it can be difficult it can be the cloud with the silver lining!

In this article the featured families have been able to save between 20% to 60% of their income. The story tells how they were able to do it and how it affected their lives.

Exciting!

Are you ready? A call to action.

I've done a few serious posts lately.  This is in response to the current changes in the economy and the impact of benefits running out for many unemployed Americans.  After this post I'll try to keep it light for a while. 

You would almost have to have the TV off and ignore the newspaper to miss headlines like these:

All Bets Are Off If 'Jobless Recovery' Becomes True 'Double Dip', Catalano Says

Posted Jul 13, 2010 07:45am EDT by Keegan Bales in Recession
http://finance.yahoo.com/tech-ticker/%22very-toxic%22-all-bets-are-off-if-%27jobless-recovery%27-becomes-true-%27double-dip%27-catalano-says-519277.html?tickers=^GPSC,EEM,^DJI,TBT,TLT,GLD,FXE

Though apparently the experts couldn’t see this second dip coming they are now pummeling us with the news. I have mentioned this before and would like to add some additional thoughts:

Are you ready? What can be done to prepare to the best of our ability? Here’s my opinion of a bare bones checklist. I have listed them in the order that I think is most important but a review of your own situation is needed to decide how you would establish the priorities or if you even need to make any adjustments at all.

1. Minimum Basic Budget. Have you completed one yet? Have you found the lowest amount you could live on if needed? Have you identified what your change strategy would be if your income were further reduced? If you are not sure of the answers you might want to pick up a copy of In The Trenches and review the purpose and the process. If money is tight right now you can print the worksheets by clicking the coins on the right sidebar. Later in the month I will be giving away a couple copies of the book to those who need but cannot afford them. Watch for the information in an upcoming post.

The difference between saving and investing by Personal Fianance by the Book

Personal Finance by the Book has a very good dialog going on regarding the difference between saving and investing.  Joe Plemon has written a post that removes the gray from the subject and his readers are hashing out the pros and cons. Here's the link so you can join them in progress and put in your ideas.


http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/


Joe and his wife are also working on a home redo investment.  Watching the progress is interesting.  Joe's blog is written from a Christian perspective and covers Bible topics as they relate to managing finances. 

Book Review - The Ultimate Depression Survival Guide by Martin D. Weiss

There is more that I don't know about the stock market and common forms of investments than I do know so it is not a subject that I plan to write much about on this blog.  I prefer my investments to be something I can feel, see, and touch such as small business, real estate, or metals.  And, I certainly would not turn over all my money to someone else to manage.  If someone were to lose my hard earned money it would be me.  However there are those out there who are experts in investing and I would certainly put Martin D Weiss in this catagory.  Between he and his father there are almost eighty years of professional and personal experience through the the first and second great depressions and everywhere in between.  Martin D Wiess has spoken before congressional leaders and provided answers to their own questions about the where and hows of the current economic crisis.

This book and the cd may be more detailed than many In The Trenches readers may want to pursue but for those who do it will be a tremendous learning experience.  By understanding the basic concepts he presents it will help you to have a much greater knowledge of the big picture of what's going on so that you can make sound decisions about what you should do in your current situations.  I think this is especially true if you are nearing retirement and have lost your first investments.  Don't be convinced that the crisis was just a fluke and it will all get better.  This book does not promise miracles but it does outline a basic strategy that can help you be years ahead of the pack in the recovery process.

I believe that the information in this book is important enough that I may write more in the future or do a series on it. And, I hope and plan to implement some of the strategies myself.  In the meantime, I recommend that you get the book or cd's at the library and familiarize yourself at your earliest convenience.  There is a lot to chew on in these ideas. 

The author has written a number of other books as well as his website.  Would love to hear any comments you have on any of them.  To some, his writings may even seem somewhat controversial.  Being right often is.

Money and Markets Website:  http://www.moneyandmarkets.com/

Amazon book link  :http://www.amazon.com/Ultimate-Depression-Survival-Guide-Protect/dp/0470393777/ref=sr_1_1?ie=UTF8&s=books&qid=1273448094&sr=8-1-spell

Living UNDER your means - part 3

Warning.  For some reason the writing of this post struck an emotional cord in me.  I considered not even posting it.  Upon consideration I decided that those who are In The Trenches needed to hear it.  So if you are looking for something lighter you might want to start with Living UNDER your means - part 3 the other version that is below.  This one's from the heart....

Living UNDER your means - Part 3 The other version

It's not a mistake that I've written two posts with the same name. This is the one I intended to write in the first place. The other was written days earlier but I decided to post them at the same time. Pick the one you want to read or read them both. If you do read both I would appreciate knowing which one best met your needs right now. Feel free note your impressions in the comments or if you would like it private you may email me.

Developing a savings plan is just as important if not more important than figuring out how to reduce your debt. The reason for this is that is because even if you could get out of debt tomorrow if you have not disciplined yourself to save, which is the true test of living UNDER your means, you will go right back to the charge cards whenever a minor or major glitch in the plan comes up or you find something you really want. So the time to start saving is now. The initial amount may be small but it can be increased as you develop the habit. Just as we would not expect a runner to start off running 5 miles the small consistent efforts will eventually pay off in increased stamina and ability.

$1 million in savings.

Personal financial management is the talk of the town. The financial downturn has gotten people thinking and talking about their budgets as one of the hottest topics around. It's no longer a hush hush topic. Everyday there are news tips, financial articles, and local talk about how to save and manage money.

The following article highlights the benefits of saving money and I am including it because of the charts that show how quickly $1 million can be saved. Hard to believe but possible for many more people than would ever imagine it. The popularity of stocks for a retirement plan seems to have dwindled with so many loosing so much and good old fashioned savings plans are back in style. http://finance.yahoo.com/retirement/article/107884/turn-small-savings-into-a-big-nest-egg?mod=retire-401k

And, what seems to be the most noted area to find ways to cut expenses? Restaurant meals and mochas. Why do you think Starbucks is getting so rich? We like our coffee. It is that same money that can turn into your own little nest egg.

Savings Bonds

The following article is from the yahoo news. We were just talking about savings bonds two days ago! If you have a little money that you can save this has historically been a great way to go though almost forgotten by the average person. Cost is affordable, it's convenient, return is preset, and if you absolutely need the money you are allowed to cash the bond in early. For as little as $25 dollars you can start your own retirement fund. Years ago I purchased one bond per payday and years later was able to cash them in when I was really In The Trenches financially. Whether you want to buy or sell right now bonds are a good option to consider.

A Source of Cash: Those Old Savings Bonds
by Anna PriorThursday, September 10, 2009
provided by Wall Street Journal
It Might Be Time to Redeem Matured Savings Bonds, But Getting Cash Can Be Tricky
Remember those savings bonds your grandparents gave you for your second birthday?
Now might be a good time to dust them off and see how much they're worth, especially if decades have passed since you received them.
More from WSJ.com: • Credit Scores: What You Need to Know Now• Recent Grads Take Salary Hit• How to Invest in Health-Care Reform
"There are $16.7 billion of matured savings bonds out there that people have not redeemed," says Joyce Harris, a spokeswoman for the Treasury Department's Bureau of the Public Debt. "It's money that can be used in tough times."
Savings bonds are sold by the U.S. Treasury to raise money for the U.S. government and can't be sold to other investors. In other words, you can only redeem them; you cannot trade or sell them.
The bonds never expire, but they do reach maturity and stop accruing interest. Savings bonds that are no longer earning interest include Series E bonds issued from May 1941 through September 1979, Series H bonds issues from June 1952 through September 1979, and Series HH bonds issued from January 1980 through September 1989, according to the Treasury Department's financial-services Web site, TreasuryDirect.gov.
There are several ways to redeem savings bonds. Newer electronic bonds can be redeemed through TreasuryDirect.gov. For older bonds, call the Treasury's Savings Bonds Direct customer-service department at 1-800-245-2804 to find out how to proceed.
The fastest way to redeem Series E, Series EE and Series I paper bonds, says Ms. Harris, is to go to your local bank. But first check with a bank to make sure it redeems bonds. She also suggests calling ahead to see what is required for redemption. Some banks may only redeem bonds for customers with longstanding active accounts.
Also, be sure to check the value of your bonds before heading to the bank branch. You can use the savings-bond calculator found in the tools section of TreasuryDirect.gov. If a bank teller informs you the bonds are worth less than the calculation you received online, call Savings Bonds Direct before authorizing redemption.
If you need cash, you also may want to redeem some of your bonds that are still earning interest. First check their current value and their earnings rate. If you're thinking of redeeming relatively new bonds, know that you can't redeem a bond for at least a year after purchase, and you'll forfeit three months' interest if you redeem the bond in its first five years.
The features of savings bonds have changed considerably over the years. Currently, the U.S. sells Series EE bonds that earn interest at a fixed 0.7% rate. The fixed rate for new EE bonds is set each May 1 and Nov. 1.
Meanwhile, the earnings rate for Series I bonds is a combination of a fixed rate, which applies for the life of the bond, and a semiannual inflation rate. The initial combined rate for bonds purchased from May through October of this year: 0%, reflecting the fact that consumer prices have actually declined.