There is no point in getting complicated when it comes to vacation. Your time off should be simple and enjoyable; it shouldn’t cost so much money that you worry about paying for it. Since we’re in the thick of vacation season, here are some simple suggestions to give you time with the family and away from the daily grind, even for a short while.

Pick places within a day’s drive. You may want a change of scenery, but that doesn’t mean you have to go from Florida to Arizona. Most people can find a nice, relaxing spot to have fun within 100 miles of home. Consider visiting a campground (see below), the park or a lake. If you pack lunch and come back the same day, there are no food or lodging bills.

Get back to nature. OK, we admit … camping isn’t for everyone. But it’s still a cheap alternative that can give you some great family time as well as the chance to experience the outdoors. Get the tents and sleeping bags ready and hit the woods!

Have fun around town. Do some brainstorming with your family or friends and come up with five or ten things that you all want to do during the day or over the weekend. Remember, the only off-limits stuff is the pricey stuff. Putt-putt golf, renting a book or movie from the library, fishing, or heading to the zoo are all fun, inexpensive outings.

Take them out to the ball game. If you’ve got a minor league sports team in or near your town, a game can be a great mini-getaway. Make it a day-long event. Take the scenic route to get there. And don’t take any calls from the office—you are on vacation!

These are some suggestions. You know your family and your town, so get creative and find a way to get away, without letting your money slip away!

Source: Kiplinger.com, CNN.com

Although there’s still some adjusting with the new schedules and such, it’s been something that we’ve all been looking forward to. Even during these times when life’s been hard for so many, we’ve been fortunate enough to not be affected by it directly. And that’s due to the fact that we’ve set ourselves up well, financially.

Here are 5 common mistakes that new parents make, and tips for avoiding them:

Not having a budget – Granted, you don’t need to be a parent to have a spending plan, but money generally gets tighter when you have a baby. One parent may stay home, and there’s an extra person to feed and clothe. The good news is that babies don’t cost as much as society tells you, but the bad news is that not having a budget will still sink you. Write down your income and your expenses before the month begins, agree on it, and stick to it. Your family is depending on it.

Not having life or disability insurance – If you don’t have the right level of insurance, then that baby’s scream is your wake-up call. If something happens to you and you can’t work or breathe anymore, that won’t stop your family’s need to be fed and have the lights kept on. You need 8 to 10 times your income in life insurance and long term disability insurance equal to about 60% of your income. You probably spend more eating out in a week then you’d pay for these insurances in a month, so there’s no excuse not to have it.

Buying life insurance for the baby – this is without a doubt the hardest one to think about, but it is thankfully simple. Don’t get life insurance on your baby. If something happened to him or her, a rider on your life insurance policy would take care of burial expenses. ‘Nuff said.

Saving for college at the expense of retirement – Do your Baby Steps in the right order. Once you’re out of debt and have a full emergency fund, then put 15% of your income into retirement for Baby Step 4. Then and only then do you start funding college. Fight the urge to start saving for the kids until the time is right. Keep something in mind; the difference between college and retirement is that there are other options to help the child get through school. Scholarships, the kids getting a job, going to a cheaper school, etc. What alternative to you have for retirement? Social Security?

Not having a will – stupid, stupid, stupid, stupid. Did we mention it was stupid to not have a will in place for a new parent? Even if you’re not concerned about who gets your money, let’s focus on something else. If you both die without a will that names a guardian for your child, then the courts decide who raises your son or daughter. They don’t care about them as much as you do, so they won’t be as concerned if Billy or Mary goes to live with an irresponsible parent who won’t raise them right. Do you want that future for your child?

Sources: Gazelle Gazette, Kiplinger.com

Tip #1: Study the lay of the land at your local supermarket.
If you’ve ever wondered why you have to walk to the back of the store to buy milk, the answer is simple: It makes you pass displays and goodies.

Be aware when supermarkets reorganize aisles and products because they’re usually trying to steer your focus so you’ll notice something new and be enticed to impulse buy.

Note: Shoppers making quick trips to the market for a few specific items usually purchase more than they planned. Grazing and/or impulse buying makes up more than 50 percent of a customer’s purchases.

Tip #2: Generic Store Brands?
Don’t shy away from store-brand products; many are actually top quality brands packaged under a different name.

Tip #3: Coupons and Hidden Costs
Coupons are great, but not always the best deal. Sale prices without a coupon are often less than the brand name with a coupon.

Tip #4: Eye-Catching Displays
Beware of dazzling floor displays. Some of the showcased products may be bargains, but the complementary items won’t be.

Tip #5: Breakfast and Lunch Savings
Make a batch of homemade pancakes/waffles or breakfast burritos and freeze. And if you spend $5 a day on lunch, you’re spending $100 a month ($1,200 a year), so pack your lunch at least a few days a week.

Source: GroceryGame.com

I Ain’t Buyin’ It
By Billy and Akaisha Kaderli

Banks are closing, and unemployment’s up. We have record foreclosures and sky-high gas prices. Everywhere we turn, there’s gloom and doom — on the newspapers, the nightly news, radio; every media outlet is full of these stories.

Retirees are concerned. And if that gloom and doom was my only source of information, we might be concerned, too.

But frankly, that baloney is sliced way too thin, and we ain’t buyin’ it.

The cup half full
Sure, a recent unemployment rate of 5.5% is up sharply from last year. But it means that the U.S. employment rate is still 94.5%. That’s a lot better than you see in many other countries, like Germany, France, and Canada.

In addition, how many people do you personally know who currently have their homes in foreclosure? I have done informal surveys of friends and acquaintances, and no one has direct knowledge of anyone in this predicament. Yet the media can’t stop talking about all of these hard-luck stories.

No doubt some people are in over their heads and should not have qualified to purchase homes in the first place. But even as default rates increase, only a small minority of America’s homeowners are having trouble making their mortgage payments.

Meanwhile, we’ve been through this before. The savings-and-loan crisis of the 1980s wasn’t pretty, but real estate recovered. Enron fell apart, and stocks eventually hit bottom but recovered strongly. Airlines have had plenty of financial trouble in the past, yet through bankruptcy and consolidation, they always seem to keep flying.

People are still spending
Yet just when we thought consumers would give up spending, we saw a news item that gave us hope: record ticket sales for The Dark Knight. Apparently, fans paid as much as $100 to see the film in its opening weekend. That doesn’t sound like something that would happen if the economy were truly struggling.

So if you’re retired, about to retire, or just dreaming about retirement, know that the world isn’t coming to an end. If you’re still nervous, take these four pieces of advice:

1. Take a break from the media’s evening litany of negativity. Get a balanced perspective by choosing news from other sources. Remember, misery likes company, so use your common sense and realize that negative news sells. The bad news doesn’t mean there aren’t positives out there.
2. Take a look at where you are in your retirement goals. Get an accurate picture, not an emotional one. If you are on track, stay on track, no matter what someone else says the horizon looks like.
3. Do something positive in your life. Volunteering for those less fortunate can take the focus away from your own perceived lack and make you feel much better about your own situation.
4. Get out and exercise. Get the endorphins running, and the world will indeed look brighter.

We’ve all survived scenarios such as this before, and we’ll survive this one just fine. So turn off the talking heads and enjoy your life. There’s a lot more to it than gloom and doom.

Source: I Ain’t Buyin’ It Yahoo! News

Here are some of the reasons I don’t think things are as bad as the media is saying.

iPhone 3G:
Just launched on Friday, July 11th and as of today, the new Apple gadget has sold out in 21 states. That’s more than one million units sold at a minimum $199, not including taxes and actual phone service.

Wall-E and Iron Man
Even with gas prices souring, Disney Pixar’s Wall-E and Marvel’s Iron Man brought in $180,202,418 and $150,652,108 respectively in their opening weekends.

Grand Theft Auto IV
This little blockbuster sold 3.1 million units on its first day and grossed more than $500 million in the first week.

Sources:
Fortune: Apple 2.0 iPhone 3G: Sold out in 21 states
Weekend Box Office
Reuter’s: Take-Two’s Grand Theft Auto 4 sales top $500 million

This is probably one of my longest posts. Mainly because it contains the transcript of a call to The Dave Ramsey Show on Monday, July the 7th in the 51st minute of the 2nd hour. For all of you who live in Mobile, Alabama and are looking for a realtor, beware of this woman:

Dave: “51 minutes after the hour, Rhonda is in Moblie. Hey Rhonda, what’s up?”

Rhonda: [chuckles]

Dave: “Rhonda, how are you?”

Rhonda: “I’m fine how are you?”

Dave: “Good, how can I help?”

Rhonda: “Um, I’m just a bit curious here. Um, I know that you teach, um, the principal of paying off your mortgage and being debt free..”

Dave: “I do.”

Rhonda: “..and that’s what everybody needs to be.”

Dave: “Mm heh”

Rhonda: “Um, but I’ve also heard you blast the United First Financial program and I just am wondering ..”

Dave: “I just finished blasting them”

Rhonda: “I know.. I heard you and I think you’re incorrect sir. And I just want to know, has anybody ever shown you how this works? Because it is not a ‘magical’ software, it is mathematical..”

Dave: “It’s useless.”

Rhonda: “..not magical.”

Rhonda: “And it is helping homeowners, in this country, save their homes from going into foreclosure..”

Dave: “No it’s not.”

Rhonda: “Yes it is.”

Dave: “Oh, that’s bull.”

Rhonda: “Well, okay. Is Earnst & Young reputable to you?”

Dave: “Baby doll..Earnst & Young hasn’t got anything to do with this.”

Rhonda: “Earnst & Young has named the company Entrepreneur of the Year”

Dave: “Basically, software does not keep people’s homes out of foreclosure.”

Dave: “Listen .. listen .. I know you’re caught in the multilevel cult thing..”

Rhonda: “It is not multilevel..”

Dave: “Yes it is!”

Rhonda: “You don’t know what you’re talking about!”

Dave: “Absolutely I do!”

Rhonda: “You do not know what you’re talking about.”

Dave: “Lady, you got .. do you not recruit people to go into your business?”

Rhonda: “Absolutely not!”

Dave: “You don’t recruit a soul to go into your business?”

Rhonda: “No. I do not recruit anyone. I show .. a software product ..”

Dave: “You’re business does..United First Financial recruits people .. they recruit .. they have hierarchies.”

Rhonda: “No they don’t Dave. You don’t know, that’s why I’m asking you, I challenge you..”

Dave: “I challenge you. I’ve been all through your website. It’s exactly what you say you do.”

Rhonda: “No, it helps people ..”

Dave: “No, no, no .. you recruit people ..”

Rhonda: “No, I do not recruit anybody .. all I do .. is share this with people .. and, then whenever they get on the program ..”

Dave: “.. to sell. Well, maybe you didn’t, but the business model is.”

Rhonda: “.. and see how much, how fast that they’re paying off their mortgage ..”

Dave: “It’s not paying off their mortgage, they are.”

Rhonda: “Of course they are. I mean ..”

Dave: “Do you know how they’re doing it?”

Rhonda: “.. the program doesn’t do anything except analyze ..”

Dave: “.. cause them to manage their money”

Rhonda: “.. your set of numbers, because everybody’s numbers are different. It simply calculates, because our brains cannot do that fast enough ..”

Dave: “Oh, we can’t use our brains..”

Rhonda: “.. and it tells you when is the most opportune time to utilize your money, not the bank’s money, but your money .. that equity is the homeowner’s money ..”

Dave: “Wait a minute .. stop a second ..”

Rhonda: “.. and if they’ve got equity in their home ..”

Dave: “.. stop a second ..”

Rhonda: “.. why can’t they use it whenever a, uh, state of the art ..”

Dave: “State of the art?”

Rhonda: “.. state of the art, computer program says, “Okay, Mr Ramsey, if you transfer this amount of money right now, straight to principal, you’re gonna save 7.6 years ..”"

Dave: “Did you know that’s a lie?”

Rhonda: “I don’t think you can do that in your head ..”

Dave: “Did you know that that’s a lie?”

Rhonda: “No it is not.”

Dave: “Yes it is darling. The way a Fannie Mae mortgage works ..”

Rhonda: “Are you calling me a liar?”

Dave: “Yes I am.”

Rhonda: “Well, then you’re a liar .. you’re telling Americans ..”

Dave: “I’m just saying that a Fannie Mae mortgage, and FHA mortgage and a VA mortgage ..”

Rhonda: “.. that this is a rip-off ..”

Dave: “If you’ll listen a second lady, a Fannie Mae mortgage and a VA mortgage does not apply anything instantaneously based on .. based on a piece of computer software. The way you save on interest is once a month. They will not apply principal more than once a month. And there’s not a magical date that’s instantaneous ..”

Rhonda: “I know .. that’s why this program was invented.”

Dave: “That’s a lie.”

Rhonda: “No it’s not.”

Dave: “That’s a lie. That’s the way the mortgages work.”

Rhonda: [inaudible]

Dave: “I’ve been in the business for thirty years lady ..”

Rhonda: “Well, I’ve been a realtor for about twelve ..”

Dave: “.. You don’t have a clue what you’re talking about. You’ve joined a multilevel, you believed everything they told you.”

Rhonda: “And I just know people get into debt. I think that you’re objection to it is that..”

Dave: “$3500 wasted ..”

Rhonda: “.. you’re not making money off of it.”

Dave: “.. is my objection to it. It’s $3500 wasted.”

Rhonda: “No it’s not.”

Dave: “You don’t get anything for the $3500.”

Rhonda: “It is a personalized computer program ..”

Dave: “Whoopee “

Rhonda: “.. that will get you out of debt.”

Dave: “No it won’t ..”

Rhonda: “Yes it does .. it works!”

Dave: “You get you out of debt by living on less than you make.”

Rhonda: “No sir, it’s not about how much you make.”

Dave: “Yes it is.”

Rhonda: “It’s the fact that I don’t really think you understand how it works.”

Dave: “I absolutely understand how it works. I’ve been through the whole thing in detail.”

Rhonda: “You couldn’t and then get on the air and tell Americans, “oh that’s a rip-off”"

Dave: “[chuckles] It is a total scam.”

Rhonda: “This company is .. is .. it’s only been around two years.”

Dave: “It’s a total scam.”

Rhonda: “No it is not.”

Dave: “It’ll be gone in two more years.”

Rhonda: “And for all of the American listeners go to u1st.com and .. I had hoped that I would get somewhere with you, because I’ve listened to you for several years, and I like you, okay? But, I do wonder, has anybody ever really shown you how this works?”

Dave: “Well, no, I haven’t attended your multilevel meeting I can promise you that ..”

Rhonda: “We don’t have multilevel meetings.”

Dave: “.. but we’ve been through every piece of the detail that you’re company will put out. Listen, the simple fact is this, when you buy $3500 worth of software, you still have to live on less than you make in order to apply principal, is that correct?”

Rhonda: “That would be correct in any situation of course.”

Dave: “Okay, so .. why does the software help?”

Rhonda: “Because you get to be your bank. You get to use your money, and you get to stop paying all the interest .. when you buy .. when you get a mortgage you know that the first year on a thirty-year traditional $100,000 mortgage, you’re paying 580% interest. They’re not paying 6%.”

Dave: “That is not true.”

Rhonda: “It is true.”

Dave: “You do not pay 580% the first year.”

Rhonda: “I’ve learned this from my real estate business.”

Dave: “You don’t know how to do math lady.”

Rhonda: “Oh .. okay, okay ..”

Dave: “It’s a simple amortization schedule. Now, an amortization schedule is based on simple interest. Anybody that’s got a finance degree can understand this.”

Rhonda: “This is .. no ..”

Dave: “You don’t even have to have a finance degree to understand it.”

Rhonda: “I have been a realtor with Remax for 10 years okay, and I know what I’m talking about.”

Dave: “No you don’t. I hope to God nobody buys a house from you if you think that 580% interest is what somebody gets charged in the first thirty years.”

Rhonda: “In the first year of the mortgage ..”

Dave: “In the first year of the mortgage the interest rate is five .. the effective yield is 580%?”

Rhonda: “They don’t pay anything towards principal, what $5 a payment goes to to principal?”

Dave: “Do you know why?”

Rhonda: “This is about canceling the interest ..”

Dave: “Do you not know how an amortization schedule works and you’ve been a realtor for eight years?”

Rhonda: “I do know how an amortization schedule works, yes ..”

Dave: “How does it work?”

Rhonda: “It shows you how much interest you’re paying out ..”

Dave: “It shows you how much .. and how much”

Rhonda: “.. and when it ..”

Dave: “And how much of the interest, in the first payment of 360 payments on a thirty year .. how is the interest calculated in the first payment?”

Rhonda: “It is compounded interest ..”

Dave: “No, it is not compounded ..”

Rhonda: ” Yes it is.”

Dave: “It is calculated in amortization schedule on a simple interest basis, that’s how an amortization schedule is developed. You take the .. you take the”

Rhonda: “I’m not .. I just wanted to know ..”

Dave: “.. let me tell you how it works. Let me explain to you how it works.”

Rhonda: “.. if you really knew what u1st was ..”

Dave: “Listen, you need to go back and do the math, ’cause here’s how it works ..”

Rhonda: “No .. I would like for you to ..”

Dave: “You take the interest rate and divide it by twelve .. do what?”

Rhonda: “I would like for you to look at the program again.”

Dave: “I don’t need to look at it again. It’s a total scam.”

Rhonda: “Okay ..”

Dave: “It’s a waste of $3500 of the consumers good money.”

Rhonda: “No, it’s the best $3500 ever spent. If you save $80,000 ..”

Dave: “You save $80,000 ..”

Rhonda: “.. by saving interest ..”

Dave: “.. by getting out of debt early. Lady, you are thick. You are truly thick. You need to get out of the multilevel cult and use your brain again. When you tell people 580% interest in the first year, it really shows your ignorance. It’s really sad. That puts this hour of The Dave Ramsey Show in the books.”

With the summer break upon us, we expected a closed deli until school resumed it’s normal schedule. But, in June, there were some rumors about a new deli. One not run by students, but by a local grocer known for having a good selection of food. Two weeks ago, the new deli opened with polite grocery employees and a good variety of dishes that actually made lunch enjoyable and not so much of a have-to.

With the new deal, however, the cost rose a bit. On average, about $1 more than we were paying before. The nice thing is that we can use our employee ID badges to buy food from the deli and the cost is deducted from payroll. I averaged about $12-15 every two weeks at the deli. Well, I received my pay stub yesterday and it was definitely more than my average. In fact, I spent $27 these last two weeks–more than $10 above my average. I expected an increase, so I got $20 less of my blow money to compensate. Apparently, I missed it just a bit.

My husband asked me last night if I bought a book at work. (I work for a wholesale book provider) I told him what happened and he looked just a tad annoyed. I looked at him and told him that I’m now reducing my deli use to once a week. It just cost way too much. Anyway, because of the increase our budget was a little strained. Sure, we have enough to cover the overage, but that comes out our savings. Something I’m not comfortable with at all.

Falling home values. Soaring oil prices. Sputtering stock markets. A declining dollar. It’s enough to try even the most optimistic souls. My advice for coping: Ignore it all. Yes, you read that right. If you have a solid financial plan in place, there’s no need to lose sleep over today’s headlines.

She continues with a list of 6 financial items she recommends for people to just ignore. Here’s the list:

1. The value of your home

So…get a grip on what really matters—the long-term performance of the housing market. Even when you figure in the past year’s 10 percent dive, the national median price for existing homes has gained nearly 25 percent over the past five years, according to the National Association of Realtors. Over time, housing will revert to its historical norm: an average annual appreciation rate about 1 percent above the inflation rate.

2. Your investment portfolio

Over the life of the stock market, stocks have gained, on average, about twice as much as bonds or savings accounts. The biggest mistake I see people make is to panic and bail out when the stock market falls. That exposes them to another risk: missing out on its recovery. Don’t stop putting money away for retirement, either. Think about it this way: Investing in your 401(k) when the markets are down is akin to hitting the outlet mall—you get more for your money.

3. Your credit score

Ignore all those TV commercials threatening you with financial ruin if you don’t sign up for a credit-report service. There’s no need to bother with all that. As long as you review your credit-card statements every month for unauthorized charges, you only need to check your credit rating once a year.

4. Unnecessary insurance

..there are plenty of (insurance) industry come-ons you can ignore, now and forever. For example, it makes no sense to buy life insurance for a child or for an adult without an income. You only need life insurance for an income-earner who is responsible for dependents.

Other insurances to skip include:

• Mortgage life insurance – it pays off your home if you die. It’s more simple and cost-effective to take care of this through a term life policy.
• Credit-card-loss insurance – If your card gets stolen, lost, or you become a victim of identity theft, your maximum liability is $50.

Similar items to ignore are extended warranties offered by salepeople when purchasing big-ticket items.

Consumer Reports recently took a detailed look at these and concluded they are typically a bad deal for consumers. That’s because most products don’t break down in the first few years, and if you have a complete lemon out of the box, you’re going to be covered by the standard one-year warranty you get with most purchases.

5. Paper records

This is for all the statement hoarders and receipt keepers whose filing cabinets and closets are bursting with documents from the last century: Let go.

Keepers:

• Big-ticket receipts – TVs, cars, and sofas
• Receipts for major home improvements

Shred:

• Paycheck stubs – you can toss out paycheck stubs once you’ve verified that your W-2 is correct
• Old tax documents – the IRS will only go back 6 years for most audits, as long as you aren’t committing fraud, you’ll be okay
• Investment account(s) statements – for savings accounts, 401(k) plans, and other investments
• Credit card and ATM receipts – check your monthly statements to make sure everything is correct

6. College costs
Why should you ignore college costs for your kids?

It’s simple: You should focus on your retirement, not your kids’ college costs. There’s plenty of financial assistance—about $130 billion every year, according to the College Board—to help pay for your children’s education. But there are no federal loans or scholarships to help out people who haven’t saved enough money for retirement. Make it your priority to build financial security for retirement, and I promise that when the time comes, your kids will be grateful that you don’t need to rely on them.

Don’t forget that it’s alright for your kids to work while they’re in college. Maybe it would help some of these kids to actually invest in their education aside from attending classes. They’ll be more likely to decide on a major that’s not beer drinking if they’re paying out of their pocket.

Closing Note

he single most powerful way to ease your concerns is to stop trying so hard to impress others with your money. Take good financial care of yourself and your family, and I guarantee that you will have much, much less to worry about.

We finished up our shopping, and headed over to one of the local restaurants for a good breakfast. I tell ya, it hit the spot. We even had a sweet server. A bit slow (because they were busy) but just a sweet, sweet gal.

After we finished up the last bit of biscuits and gravy, the server dropped off our check. I grabbed my cash left her a tip, and headed to the register to pay. As I stood at the register, paying for my meal, two restaurant employees were chatting with the guy at the guy at the register. Complaining, of course, about the ‘outrageous’ gas prices in Mid Missouri. “This is ridiculous,” one of the gals said. “I’m gonna write a letter to the president.” The guy proceeds to tell her that he’d never get the letter. “Well, I’ll write a letter to the oil companies,” she retorted. “They won’t read it either,” he tells her.

I decided to keep my mouth shut, but I just couldn’t help but think, “these people just don’t get it!” Since when does the president of the United States control the price of gas? Oh, I forgot, he’s responsible for all of the economic woes in America, so he should fix them. Right. And I’m freaking Houdini. Sometimes I wonder how people don’t understand simple economics. I thought it was required in high school?