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Fancy cars, big houses, luxury vacations… no matter where you turn, you can see how money influences of us. From things we can’t have to things someone has more of, it’s almost dizzying trying to sort it all out. No matter where we turn our heads, another advertisement draws us in and programs us to want. And as we set our course through society, the confluence of temptation of needs and wants breeds an unhealthy obsession with money.

We talk about it at parties, at the office and even at home. It becomes a topic that we can not disassociate from. Do you have enough to buy those new shoes? Will you have enough for retirement? Can you afford to go out and have a few beers? Whether you like to admit it or not, you are constantly forced to make decisions that continue to feed the fire. You become a hamster on a wheel.

To be honest, I don’t think we can stop, at least not completely. But there are actions we can take to lessen our obsession:

Be frugal: Getting a hold on your day to day finances can give you the first step to mental stability, as it becomes easier to take a moment to reflect rather than feeling pressured to react because you are in the hole. Start to look at living within your means, as your monthly expenses should never exceed your after tax income. Soon after, execute operation “Cheap Living” to harness additional savings in order to pay off credit cards and build an emergency savings account. The closer we are to being frugal, the more we are able to appreciate what we have.

Have an investment plan with a clear path. Money obsession often comes from our fear of not having the resources to help us for our retirement. Will we be working at Wal-Mart when we are 65 or playing golf? Statistically speaking, we will be working at Wal-Mart. Part of people’s obsession also comes from simply not addressing the possibility. Let me be clear. You will not win the lotto, inherit money or die before you want to retire. You will need to develop a plan to save your money and invest your money. By changing this one step to improve the course of your life, you will most certainly ease your fear, and thus your obsession with money.

Better your education. This is a hard one to tackle. Education is not cheap, nor does is guarantee you that you will earn more. However, the odds are in your favor to make more money over time. But making more money is not necessary going to compensate for your obsession with money. In fact, it may actually exacerbate it. On the other hand, should you seek education for the purpose of improving what you do to the point where you enjoy your new pursuit, you may find yourself focusing less on the monetary distractions of life and more on the meaning of how you want to spend your life.

Focus on a goal or hobby. This is along the same lines as described above. Once you take yourself out of the money equation by focusing your interest or skill on something you enjoy, then you stop focusing on such distractions.

Live in the moment. Living in the moment also stops you from obsessing about money. You are not trying to actively solve problems or worry or harp on issues. You are just looking at now and appreciating the moment. Finding the secret to happiness may not come naturally, but I was just reading an article in Psychology Today where they explain by living in the moment, you are able to enjoy life as it comes.

“Cultivating a nonjudgmental awareness of the present bestows a host of benefits. Mindfulness reduces stress, boosts immune functioning, reduces chronic pain, lowers blood pressure, and helps patients cope with cancer. By alleviating stress, spending a few minutes a day actively focusing on living in the moment reduces the risk of heart disease”

–        The Art of Now: Six Steps to Living in the Moment, Psychology Today, Nov/Dec 2008

Two Roads Diverge…

While following all 5 ideas will help alleviate an obsession with money, a path still remains for you to choose. You are left with a decision to either live as you have, continuing to obsess over money each day for the rest of your life, or you can use these suggestions to help improve your financial and emotional life. How do you want to live?

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Now as much as I endorse using ETFs as the cornerstone to your portfolio, I acknowledge that there is a demand from a few of you to use financial newsletters as a guide for your portfolio. Realize that no stock picking newsletter or option picking newsletter has a golden key to profits, nor should any newsletter recommendation ever make up more than a very small portion of your portfolio. Remember, they are not showing you their secret formula for a reason. But if you understand the risks and are committed to doing this, here are 10 unbreakable rules to follow before choosing a financial newsletter:

1.              Look for or ask to have a free trial. A free trial is helpful in determining what you see, what you get, and is it for you. If they are that good, a few days to a month of free service is not going to kill them

2.              Look for or ask for prior trades. If you decide to purchase a newsletter, you want to know if they are good. If they are not willing to give you proof of recent prior trades (and not just the winners, but all trades), be wary.

§         Long term past performance is the NUMBER ONE consideration for your choice. If you can’t readily identify the month to month or year to date performance for several years, forget it.

§         Be sure that their formula hasn’t changed too much over time, which can significantly distort performance

§         Look at their performance during rough times too. This will give you insight how they handle the bad times as well as the good, and should signal whether you can stomach this.

3.              If you choose to use a newsletter, allocate only a small portion (less than 5% total in my opinion) of your total portfolio to its recommendations. This amount should be no more than what you can afford to lose, and nor should you ever skip to another newsletter with another 5%. Draw a line in the sand.

§         Read the disclaimer that these newsletters mention before purchasing. They are written not only for their protection, but for yours as well.

4.              Look to see if the newsletter covers both sides of the market (long and short). If a financial newsletter only goes long, then it’s telling you their systems are set up for bull markets. If so, find out how they handle bear markets or trendless (flat) markets.

5.              Ask if they have an email alert system. Getting emails is a lot easier than going to their site every day. Some newsletters even offer an auto trade service, by which your discount broker trades the financial newsletter recommendations on your behalf without you physically putting in trades every time. Be warned! Most brokers don’t allow this feature not only because of their potential liability, but they also don’t want their clients losing money with some half baked scheme. Auto trading is only for those who have a previous long term relationship with the newsletter, and can afford to take those risks.

6.              If you can, perform online research of the newsletter to read independent reviews. Bear in mind that some independent reviews tout others in place of, so there are not really independent.

7.              Costs for financial newsletters can range from $50 to $150 a month. Don’t pay for more than a month unless you have had an existing relationship and proof that the newsletter works for you. And if you are not making at least what you are paying, cancel them immediately.

8.              Read their cancellation policy. If you can’t get your money back or a prorated portion within a few days or by the end of the month, don’t sign up.

9.              Fraud warning: There are some so called “financial experts” who are paid by companies to push their stock. They submit newsletters or spammed emails glorifying a stock. Never trade off of a spammed email. Never trade off of a newsletter that is paid to push a stock. Filtering out all bulletin board or penny stocks eliminates 90% of these.

§         Another hint of these fraudulent newsletters is promising you a certain percentage, or worse, glorifying a percentage through 408 testimonials. A few testimonials are fine, but if you feel that the only thing pushing a newsletter are the testimonial returns, be very wary.

10.         These days, their newsletters should be able to be accessed online. Your newsletter of choice should have a phone number, email address and physical address for you to contact them in case of a problem. In fact, you should contact them with a few questions before you start using their service, and see what their response time is. Slow or no response to your query can signal potential danger.

Following these tips will hopefully filter out many of the financial newsletters that are simply not worth the aggravation. Don’t become tempted by over stimulating yourself with outstanding past performance.  I, too, can put together a list of wonderful returns that may or may not be true. Remember that it is easier to sell shovels than dig for gold. This is good reason to follow the entire list of rules to catch yourself before you lose time and money. I am always interested in hearing your opinions, reviews or thoughts. Are newsletters worth the paper they are printed on?

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This is a very interesting read about 10 popular myths concerning your credit report by David Ruocco, who is a veteran and expert in the mortgage industry.

In today’s credit tightened environment only about 60% of people qualify for a mortgage based on their current FICO score. That is a far cry from 18 months ago when seemingly everyone qualified. As such, improving and maintaining a good credit score is even more important during these times, and not just because you may want to buy a house someday.

Maintaining good credit scores are important for auto loans, credit cards, short terms loans, utility bills, or even screening for certain jobs. Relax… fixing your credit report may not be as difficult as you may think. Here are a few myths to consider:

Myth No. 1 – It is easy to dispute a credit report. Consumer’s can resolve their own issues.

To be honest, it is simple to challenge a credit report. However, as an everyday person, it’s amazingly difficult and frustrating to get results from the credit bureaus. Here’s why.

This is a little-known fact. More complaints to the Federal Trade Commission involve credit bureaus than any other type of company. The major credit bureaus have paid fines of $2.5 million over the years due to failure to respond properly to charges.

The main objective of credit bureaus is to protect their profits. They are NOT government agencies. They are for profit organizations. Anytime they have to investigate a consumer disputes it eats into those profits. Investigations take up time and energy too. The credit bureaus do everything in their power to make restoring your credit exceedingly difficult, short of sparking more massive lawsuits.

Attempting to restore your own credit means you must be willing to spend time learning about the process. This is why it is so difficult when you are inexperienced. It most cases you may be less effective than if you hired a professional. Realize that credit restoration will most likely take longer than you expected.

Myth No. 2 –A negative item that is successfully removed from your credit report will simply reappear again.

The reality is that a creditor has 30 days to verify a dispute. If the credit bureau has not heard from the creditor within that time frame, they must delete the item from your report. Sometimes the bureaus will perform a soft delete. This is where they delete the item from your report but, will reinsert the item if they hear from the creditor within a week or two of the 30 days.

If this happens, the item can be disputed again. However, most of the time, once an item is deleted, it is gone for good. By using our preferred attorney’s, you can be sure your item will be disputed over and over again until it is removed. We have experienced a 96% success rate with this.

Myth No. 3 – Bankruptcies, foreclosures and tax liens can never be taken off your credit report.

Approached correctly, any negative listing can be removed. That is why it is best to work with a professional. They have the experience and know how to remove these items.

Myth No. 4 – The credit agency permits a 100-word paragraph to be entered on an account to explain the situation. Creditor’s take this statement into consideration when they’re weighing they’re options about extending credit.

This seems reasonable, but it’s not correct. When we talk about creditors, we’re talking about companies who are loaning money – for credit cards, mortgages, cars, department store credit cards. Very few of these companies will consider any information you submit in a paragraph explanation. The only items verified on the statement are the negative items on your report.

The first thing we want to delete from your credit file would be the 100-word explanation. In essence, the explanation is seen as an admission of guilt. It’s actually the last thing you want to do. It verifies that something happened. You don’t want to do that.

Myth No. 5 – Paying off a past-due account (like a collection account or a charge off) will change your account to a “paid” status and it will no longer reflect negatively.

It is nearly impossible to completely fix your credit unless you settle your unpaid debts. However, as strange as it may sound, paying off a debt can have a negative impact on your credit rating. Aside from bankruptcy, which can appear on your credit report for up to ten years, negative items may be kept on your report for up to seven years. The date of last activity starts the 7 or 10-year time period. Making a payment “resets” the clock because it is considered new activity. So if this item was two years old, when you make a payment on the collection, the two years are wiped away and you start at day one again. It appears to the credit scoring computer as an item that happened yesterday.

Anything that happened yesterday affects your credit score more than something from two years ago does. This will damage your report, as it looks like the credit bureau forced you to pay up. Since you can do more harm than good, even though your intentions are right, it is always best to work with a professional when trying to restore your credit.

Myth No. 6 – Some people believe that a poor credit report can be off-set by building new credit.

Even one negative item on your credit report can have serious negative consequences. In today’s computer world, the decision to approve a new loan is rarely made by a human being. Your score is determined by a computer program. One negative item can send interest rates soaring.

You can have a small amount of negative credit a year or two ago. The last year or two has been great. A couple of those older accounts, regardless of how much good credit you now have, can cause you to be declined for additional credit, make you pay higher interest rates and waste thousands of your hard earned dollars.

Myth No. 7 – Credit bureaus are part of the government and are unquestionable.

The credit bureaus are in business to make an impression on their stockholders since they are publicly traded companies. They are NOT agencies of the government. In fact, the industry is one of the most heavily regulated. It has recently been revealed in a survey, by an independent group, that over 70% of all credit reports have an error on them. Due to the prevalence of mistakes, consumer protection legislation has been drawn up which allows the consumer the right to challenge the bureaus and force them to remove any incorrect data, information that is out-of-date or data that cannot be verified.

Myth No. 8 – It is against the law for creditors to remove a negative-listing on my credit record. Negative-listings are required by law to remain on the credit report for at least seven years.

When talking to collection agencies, credit grantors or the credit bureaus, keep in mind that you can expect to be given all kinds of quasi-legal drivel by people who are over worked and under trained. The law states that negative information must be removed after seven years. It sets a maximum, but not a minimum. The credit bureau can remove an item whenever it suits them.

Myth No. 9 – Many people share a belief that by getting a federal tax ID or altering a few numbers of their social security number, a new credit file will be created.

It’s extremely difficult to create a new credit file by this scheming, not to mention illegal, activity. A lot of people do it, but a lot of people also get into big trouble for doing it. This is not something that you want to do.

It might have worked 10, 15 or 20 years ago. But because of all the computer linking systems now, giving fraudulent information on a credit report is nearly impossible to get away with, let alone the fact that it’s a criminal offense.

It’s in your best interest to hire adequate representation. Face the music and confront the credit bureaus, armed with the rights that Congress has granted you through the consumer protection laws.

Myth No. 10 – Credit counseling services can help you restore your credit.

Credit counseling services are agencies that are set up to help you renegotiate your credit cards and other debt. They put you on a budget and you make one payment to them. They in turn pay all the bills for you.

People who are in debt or who are trying to avoid going bankrupt can seek help from these nonprofit consumer credit counseling services. (CCCS’s) However, these companies are controlled and funded by the credit bureaus and the credit grantors, like the big credit card companies. They actually fund these agencies.

Your creditors will usually make a note on your credit report if you’re working with one of these consumer credit counseling services. Potential credit grantors are scared off by this almost as much as a Chapter 13 bankruptcy. Some of the worst credit reports out there have been participants in a credit counseling service or similar program.

Want to learn more about taking control of your credit report? Then take a look at this very informative video; http://www.35minutevideo.com/.

Dave Ruocco is a loan officer with Apex Lending Inc and specializes in helping release his clients from the “credit prison” that too many people find themselves in. When you or one of your friends finds yourself needing real answers and real solutions to credit issues, you can confidentially contact him at 305-669-1704 or at druocco@apexlending.com. Visit his website at www.flmortgageresources.com/clb-credit 

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Let’s face it. An economic crisis is no time to have money troubles. But, most of us can’t help it. We work hard and try to live the life we want. Sometimes the cards are not dealt in our favor. Even if we have picked up some personal finance lessons along the way, we still seem stuck in mud. We have become blind sighted by our current economic crisis, and need to adjust our situation to live as frugally as possible in order to make what we have last.

Now we may not be able to sell our SUV or home in the next month or two, but there are some alternative ideas to help cushion the economic blow to your wallet.

1 – Buy generic versus brands. Branded items, like Cheerios, Charmin, Christian Dior, are so ingrained in our conscious as superior that we forget that other items exist. Unfortunately, we also forget the impact on our wallets. By starting to buy generic items we can start to see savings of $25 or more on a shop

2 – Rethink entertainment. Instead of buying $10 a piece movie tickets or spending $5 at the video store, consider joining Netflix, where you can download free movies to your computer or get several movies delivered to your door for the cost of less than two movies tickets, or consider other forms of cheap entertainment. $40 a month

3 – Downsize the dinner options. It feels almost luxurious to go out for dinner, knowing others have prepared a delicious meal so you don’t have to. And it may seem one meal won’t kill you but saving $10 by eating at home or skipping the $5 appetizers or saving $5 on tips with counter service can easily add up to $200 to $300 for the entire month.

4 – Dump cable TV. I have eliminated cable a long time ago, and just rely on Internet service. Not having TV may seem hard at first, but the result has been a life changer for me. I am more creative, like writing this blog, and have more free time to pursue the things I want to do. For $50 of savings a month, I can make it without the boob tube.  

 5 – Re-examine insurance. While health insurance for some is a must have, there are supplementary insurance you might pay that may not have a pressing need at this moment. Talk to your insurance professional to see what costs can be reduced or eliminated.

6 – Kid’s allowance. Don’t let them push you around. Yes, you want to give them the best, but in order to genuinely secure a better future for them, determine what is important to them now and what is important to their future.

7 – Electricity. During the summers and winters, this bill can get mighty large. Call your local utility company and ask them what steps you can take to cut your electricity bill. Switching to CFC bulbs (twirly bulbs) is a good start, but more of your electric bill will come from A/C, heat, hot water, the dryer and that new plasma TV you bought. 

8 - Credit Cards. You can’t stop making credit card payments, but at least you can call them to negotiate better rates. Use some of the credit card offers to help negotiate a better rate. $20-$40 or more a month on $10,000 balance

9 – Carpooling/Telecommuting/Bike or Walk to work – All these options can equate to saving a weekly $50 tank of gas, reduce wear and tear, and decrease potential maintenance costs.

10 – Cell versus home phone. Decide which is needed more and eliminate the other. If you can, I would consider eliminating the home phone because there are cheaper options like Skype for home telephone services. And if your phone company won’t give you Internet access without having local phone, give high-speed cable from your cable company a try. For the light computer users, trying going to a free WiFi area or the library, and get connected there.

11 - Ask the boss to go corporate casual or just casual. Wearing casual clothes may not only be more durable and last longer, but you can also skip the pricey dry cleaning bill

12 – Cancel Memberships. If you have gym memberships you don’t use or memberships to organizations you don’t go to, cancel them. Unless you use these types of memberships weekly and it helps you to focus or acts as a personal getaway, take the opportunity to consider alternatives, like jogging, biking, etc.

13 – Storage Facility? Do you have a storage facility that you use for your junk? Sell it and then cancel the storage unit. A recent WSJ article says people who use a facility with short-term intentions end up keeping them for 5 years. $100 month

14 – House cleaning/pool service/lawn service/pest control.  Can you do any of these services on your own? Borrow a lawn mower or pool brush from your neighbor if you have too. $25 or more a month

15 – Sell your stuff. Unless it may be super valuable for eBay, have a garage sale or post your items on Craigslist. Sure you won’t get top dollar in this environment, but you may something

16 – Rent out a room. There are plenty of folks who need a simple place to stay, and renting out a room maybe a good short-term way to raise money. But before you do, I highly recommend preparing a few hurdles for any prospective tenant like a criminal check, a credit check and a rental history check, along with reading a few good books on renting out to a tenant or calling a licensed real estate agent for help. Without the right preparation and legal documents, this too becomes a legal or financial nightmare.

17 – Renegotiate your mortgage. You may or may not have any money you can refinance, but you can definitely talk to your bank or a mortgage broker about lowering your rate. Although you may incur additional costs, a lower rate may offset them if you can get a significant drop in your rate.

18 – Private versus Public School. If you are paying monthly for private school, you can either put your kid in public school or renegotiate a lower tuition based on your changing financial situation

19 – Beer/Colas/Coffees. These beverage items are the real cost killer when you add it up. Your $4 lattes, $4 beer or twice a day $2 soda or $2 bottled waters add up to $120 a month alone. Tap water is free and healthier for you.

20 – Use coupons. As goofy and “grandma” as it sounds, clipping coupons still works. Sunday newspapers or popular coupon sites are still great sources for coupons.

21 – Change you supermarket. As recent Wall Street Journal article compared several well-known supermarkets chains to a Wal-Mart Supercenter on the exact same food items, and found Wal-Mart to be significantly cheaper. Savings: $15 or more on full grocery shop.

22 – Haircuts. While Supercuts and Hair Cuttery are a great start for cheap haircuts, I can usually find a local barber charging even less. Since they don’t need to pay royalty fees or franchise fees, they can charge a few bucks less. If you are brave enough to do it on your own, go for it.

23 – Dog food. It may be tempting to go for the cheaper brand, but changing a dog’s diet is not healthy for them. Instead, buy the “Costco” size and store in a cool, dry and bug free place.

24 – Pet Medications. I use heartworm and flea medication every month for my dog, Rudy. I order from an Australian company, Petshed.com. They are cheaper for the flea medication and they also offer a generic medication for heartworm prevention. Here are also other things you can do for Fido.

25 – Skip Lotto. In tough times, more people play the lotto lowering your odds of winning, which is pretty low to begin with. If you must, once is enough.

26 – Dental Care. Teeth cleanings are a must, especially if I have to look at you. But taking properly taking care of your teeth will help to keep future costs and recommended visits down. Keep in mind; most times cleaning are done by the hygienist, not the dentist, so your costs shouldn’t be more than $50. I can usually find some specials in the local paper.

27 – Gift cards or cash, instead of gifts. Give a gift card instead of a gift, or better yet, give cash and avoid the transaction fee. You will keep yourself from spending more than you should. If you do decide to buy a gift card, make sure the gift cards aren’t store specific either. While Uncle Fred loves Home Depot, he may need to pay some bills or get food instead.

28 – Canceling certain newspapers. Think about canceling the daily paper, and just have the Sunday paper delivered. The Sunday newspaper can be a goldmine for coupons, and use the online version for the rest of the week.

29 – Downsize the department store. Target, Wal-Mart and other stores can offer substantial savings to those who are in need of clothes. You would be surprised what great stuff they have, but pay attention to those return policies. Goodwill or other consignment shops can also provide some valuable treasures. But, purchase only what you need. Cheap doesn’t mean free for all.

30 – Spend time with the kids. If you don’t spend time with the kids, they will want to spend time with their friends at the mall spending your money.

31 – Washer/Dryer. Use cold only for washing clothes, and hang dry what you can. The hot water and the dryer can get pretty expensive to run.

32 – Electronics. Shut down your computer and unplug electronics when they are not in use. Surprisingly, electronics still drain electricity even when they are off. This includes cell phone chargers, too.

33 – Car Repairs. Having to repair your car when you are already tight on money is no fun. Here are some things I have done to bring down the cost: (1) most mechanics will offer a free diagnostic, (2) call at least 3 other mechanics with the specifics of the problem and ask for a quote on the labor (you’d be surprised the difference in price), (3) ask about using after market parts or bring your own parts and (4) don’t be forced into doing something you don’t want. 

34 – Be aware of ATM fees. A recent trip to an ATM machine costs $3, plus what my bank charges me. Fortunately, I use a discount broker that covers this cost on both ends. If you are not so lucky, find convenient banks to where you normally get funds or just draw out a little more than usual and keep most hidden at home. Replenish as needed.

35 – Pricing out gas. Be cognizant of the differences in gas prices. While a penny may not make a difference, 20 cents for a 20 gallon tank saves $4 every time. Use Costco, Wal-Mart, and sites like Gas Price Watch to help spot the lowest cost stations.