The John Tesh Blog

Worried? Many of us are. Tired of it? You bet. Here's how to cope.

Money worries...you're sick of it! We all are, to whatever degree: whether it's the stress of not enough of your own money, a family member's troubles, or simply feeling the heartache of sympathy for so many in our country today struggling to make ends meet- it's hard, and there is a name for it: money anxiety disorder- the latest American epidemic (the acronym, conveniently, would be MAD.)

According to a survey in October by the American Psychological Association, 80 percent of us find the recent financial crisis a significant cause of stress—up from 66 percent last April—and women are bearing the brunt of the worry, reporting greater concern over job stability and health problems affecting their families, for example, than men are. "Money is a safety net, as in, 'I may not be able to count on people, but I can count on my cash,'" says the APA's public education coordinator for Pennsylvania, David Palmiter, PhD. "Now the thinking's gone to: 'There's nothing between me and the abyss.'"

You can find plenty of advice from financial experts on how to cope. But what about the pervasive sense of panic, which can take a serious toll on health, putting you at higher risk for a host of ailments from high blood pressure to heart disease. Science has shown that exercise and meditation are two of the most effective ways to reduce stress—but you probably already know that, and likely feel too pressured to try either. Oprah.com asked a few experts for other strategies you might not have considered.

Try hypnosis:

For years people have turned to hypnosis for help quitting smoking and losing weight, but the technique is also becoming popular among business types desperate to overcome financial stress, according to a November report in The Wall Street Journal. Generally, in hypnosis, a therapist uses verbal cues to put clients into a deeply relaxed state, where they become absorbed in their inner thoughts, then offers suggestions to shift an attitude so they can better tackle a problem. In this case, the suggestions might be "Money is energy that comes and goes" or "Your net worth doesn't equal your personal worth," to deflect the paralysis and insecurity that financial panic can cause. Ideally, clients learn the process on their own.

"Hypnosis is very similar to meditation," explains Dwight Damon, president of the National Guild of Hypnotists, who recommends trying a professional session before using the method on yourself. "While it won't make you richer, it will help you handle, and feel better about, the money you do have."

Treat yourself- NOW??

Yes! To lower financial stress, set a budget for each day and reward yourself, suggests Alvin Hall, a financial commentator on BBC TV and radio and author of You and Your Money: Mastering the Emotions Behind the Numbers. "Ask yourself: 'What is the one thing I can do that will give me the longest-lasting uplift for the least amount of money?'" During the economic downturn of 1987, Hall's treat was blackberry pie. "I'd think about it all day, and if I came in under my budget," he says, "I'd go order a slice. When I couldn't afford that, I'd visit the museum and look at Van Gogh paintings."

Become a manicurist for a friend.

Or exchange massages with your partner. According to Robert Sapolsky, PhD, professor of neurology and neurological sciences at Stanford University, who has studied wild baboons for 30 years, primates groom each other to reduce stress—and the effect seems to be more powerful for the one who is doing the primping.

Take up knitting...and you might come up with a blanket!

According to research at the Harvard-affiliated Benson-Henry Institute for Mind Body Medicine, the repetitive motion and focus of needlework can elicit what's known as the relaxation response—a calming meditation-like state that slows heart rate and causes blood pressure to drop. In addition, a study published in the Journal of the American Geriatrics Society suggests that knitting is associated with a lower risk of dementia for those 65 and older.

See a bigger picture, or that forest through the trees.

During the Great Depression, "stress took the form of personal shame," according to historian David M. Kennedy, Pulitzer Prize–winning author of Freedom from Fear: The American People in Depression and War, 1929–1945. His own father, he says, had "what we would call a nervous breakdown." Kennedy observes that a much healthier and more resilient attitude for our times is: "Taking some responsibility but seeing this downturn more as a systemic failure and not a personal one."

John

Email John:  johnsblog@teshmedia.com

Check out the new John Tesh Social Network. You can connect with new friends, post your own blog, visit various forums, upload your favorite John Tesh music and share your photos.  To learn more about how to join, click here.

Re-finance? Save money.

Mortgage rates have gone down again, and there are many folks interested, again, in re-financing their current rate. Are you one of them? Maybe you should be. I've got some quick tips here from WalletPop.com- a personal finance site that's helping consumers keep pretty up to date on what you can do to start saving some mortgage money!

For the past year, the mortgage market has taken aspiring homeowners for quite a ride filled with lots of ups, and plenty of downs. Foreclosures have been epidemic, and interest rates have skyrocketed. In recent months, the market looked like it was staging a comeback, thanks to a drop in mortgage rates and new legislation that helped borrowers refinance even when their homes had lost value.

But these much-needed financial breaks appeared temporary -- in mid-October, rates inched back above 5%, and mortgage applications plunged almost 14% over the previous week. Low interest rates help both buyers and owners hoping to finance or refinance. The 30-year fixed-rate loan inched up to 5.07% from 5.02% this week, which is still historically low.

Interest rates had been declining steadily since August, down to 4.92% on 30-year loans and 4.37% on 15-year loans, with fees averaging 0.7 percent. Such low rates enticed new homeowners to get in on the game, but the federal Making Home Affordable plan also helped money-losing homeowners get a slice of the action, too, like one homeowner in Md. whose house value plummeted over $140,000! This homeowner didn't refinance, but qualified for the program, saving about $400 monthly off the mortgage payment.

For those who meet the eligibility requirements of being current on their mortgage payments and owing less than 125 percent of their primary home's value, the legislation can mean saving thousands per year.

But today's low rates are already inching north and probably won't stay low for long, says David Wind, president of Guaranteed Home Mortgage Company, based in White Plains, N.Y. "We anticipate that the rates will stay attractive for the next three to six months," he says.

A few tips can help homebuyers and homeowners get the best deals.

Boost your credit. Before heading to a lender, examine your credit report, and then ask for help if it needs improvement. "If someone is interested in getting a loan or refinancing, they'll have to have a FICO score of 660 or better to be a good candidate," says Wind. "If their score is too low, they might want to see a credit-counseling service."

Be persistent. Meeting loan qualifications is only half the battle. Conquering the paperwork is the other. "I called two and three times a day to get my lender to process the paperwork," says Schreiber, the Maryland homeowner. "The pleasant persistence paid off. I'm actually using the savings on the refinance to pay off a second loan."

Mind the requirements. Those relying on the Making Home Affordable plan for refinancing help should note that eligible candidates must be refinancing their primary home, have a loan owned or guaranteed by Freddie Mac or Fannie Mae, and show evidence that they can reasonably make new mortgage payments.

Ready to go? Here are a few last tips about refinancing:

• Spend Less -- Refinance Your Mortgage
  If you are stretching to meet your monthly payments on your mortgage, you may need to consider refinancing options. If you can get a lower interest rate than you currently have, you'll be able to save substantially on your monthly payment. The key is to look down the road. Don't get yourself into an incredibly low interest 3 year ARM program unless you plan to sell your home or refinance again within that timeframe.
• Refinance -- Fixed or ARM?
  Refinancing is very popular nowadays, especially since interest rates have been low. There are also several different refinancing options you may explore. For instance, you can opt for a fixed rate or an adjustable rate mortgage. A fixed rate mortgage will usually be for a term of 15 or 30 years and the interest rate will stay the same for the duration of the loan. An adjustable rate mortgage (ARM) means that after a term (usually of 3-5 years), your interest rate can change (usually upwards).
• Home Improvements? Cash Out Refinancing!
  If you have equity built up in your home and you have an expanding family, you may want to improve your existing home. After all, with the way many home prices are going, you might not be able to afford to move back into your own neighborhood! If you decide to improve your home, you can easily refinance and pull out money to add a bathroom, a bedroom or upgrade your septic system. Banks and mortgage companies often offer special incentives for home improvement equity loans. In some cases they even have special loan programs for higher amounts.

Enjoy your home sweet-maybe a little less expensive-home! And have a great weekend!

John

Email John:  johnsblog@teshmedia.com

Check out the new John Tesh Social Network. You can connect with new friends, post your own blog, visit various forums, upload your favorite John Tesh music and share your photos.  To learn more about how to join, click here.

Think Winter's just for snow sports? Saying "I do" could be just the sport for you.

The thing is, once a couple has made promises to one another for a life made together, in the end, it really doesn't matter where, does it? Well, of course, it does, to some degree. Couples have visions of how they want to share their special day with friends and family. And warm weather months certainly hold a great deal of promise for sunshine, and colorful new blossoms of flowers. Guest attendance comes into play, also, making summer the peak season for weddings. But MSN Money lays out some different perks for couples who marry in the winter- namely huge savings.

Peak wedding season falls between May and October in most of the U.S., says Richard Markel, the president of the Association for Wedding Professionals International. During that time, most wedding vendors -- including caterers, photographers and limousine companies -- charge the most because their services are in demand. But in the winter, business comes to a standstill, especially in the northern regions hit with particularly harsh weather, and engaged couples have more room to negotiate for lower prices.

During the winter, the number of weddings throughout the country declines by 40% to 50% below that of peak season, Markel says. And of the roughly 2.2 million weddings that take place in the U.S. each year, only 5% occur in January, he says. That winter dip in demand means that couples marrying during the cooler months compete with fewer weddings for vendors.

Couples who are considering a January, February or March wedding still have time to book vendors, Markel says. "Couples have a major opportunity because the number of weddings that occurred in 2009 has been down by about 5%, and bookings for early 2010 are down as well," he says.

(December weddings aren't as cheap because banquet facilities give priority to recurring customers: conventions and companies planning holiday parties.)

Here are the four types of wedding vendors with whom you'll see some of the biggest winter savings.

The Banquet Facility

The largest wedding-related expense is the banquet reception, which can cost more than $10,000, depending on the number of guests, location and menu, Markel says.

Typically, banquet facilities charge a fixed price per person. But between January and March, the total cost often drops between 20% and 50%, Markel says. (The savings will be lower in states that have warm weather throughout the year, like parts of Florida and California.)

Couples who get married in the Meeting House Grand Ballroom, a banquet facility in Plymouth, Mich., will see big price differences. For weddings between January and March, couples will pay Friday prices for a Saturday wedding, says Randy Lorenz, the owner and general manager. For a party of 200 adults, that's a discount of $2,000; the banquet facility also waives its $300 ceremony fee.

However, not all wedding venues are cheaper during the winter than during the spring, summer or fall. Weddings at ski resorts are priciest in the winter, the venues' peak season, says Elise Enloe, the director of education for the Association of Bridal Consultants, a trade group.

Also, facilities that are popular with corporate holiday parties or conventions tend to be busiest during the winter, says LeLani Mandac, a senior catering manager at the Hilton Anaheim in California.

To save with a winter wedding at the Hilton Anaheim, couples will have to reserve the space no more than six months in advance, she says. Couples who choose an available weekend between conventions could receive an upgraded package at no extra cost, like a $70-per-person plated dinner (the facility's priciest package) at a cost of $65 per person, or an additional hour for their wedding celebration, which usually costs $250, for free.

In New York, winter is typically slow for caterers and other wedding vendors, says Andrea Correale, the president of Elegant Affairs, an off-premise catering and event-design company. As a result, couples marrying there have more room to negotiate meal prices during the cooler months. A caterer's price difference between a winter and summer  wedding in New York is, on average, $50 per person, Correale says.

Another option, of course, is to skip dinner. Lunch or brunch can save you 50%.

Flowers

Couples set on a particular color or type of flower should keep an open mind or prepare to drop a lot of cash.

The average cost of wedding flowers ranges from $2,000 to $3,000 in the U.S., says Baxter Phillip, the executive vice president at Phillip's Flowers & Gifts in Chicago. To save with a winter wedding, choose flowers that are in season, like irises, orchids, lilies and most roses, he says. Hydrangeas and peonies are the most expensive in January, and red and white roses are the priciest in the two weeks leading up to Valentine's Day and during the holiday season.

Also, find out where the flowers are coming from. Their starting point and shipping costs factor into the price. Seventy-five percent of wedding flowers (primarily roses) come from South America, whose summer season is our winter, Phillip says. Those flowers often are more affordable for winter weddings in the U.S. than, say, flowers imported from Holland, which shares our winter. Distance is also a factor.

Photography and video

Fewer weddings mean fewer requests for photographers and videographers.

For weddings between December and March, many of these professionals discount their custom packages by as much as 10-25% of identical services for summer weddings.

Transportation

Limos are at their most expensive during prom season and peak wedding season -- periods that winter weddings avoid. So expect to pay 10% to 20% less during the winter than you would in May or June, Markel says.

Many companies lower the price on their fleet of limos and luxury cars for most weekend weddings between the first Saturday after Thanksgiving and the end of March. Couples could see savings in a typical stretch limo- as high as $475 in season, down to $400 in the off months.

The day of the week you choose for your Winter Wedding could save money also. From Sundays through Thursdays during the winter, Reston Limousine, based in Washington, D.C., offers a fourth hour free on any vehicle rental at least three hours.

If you and your "to be" have hearts set on those beautiful warm months, then as long as you have a plan for saving, stay with your original ideas. But if the idea of starting your married life off with a little more money (or, in many cases- a lot less debt!), then consider asking your family and friends to celebrate with you in clothes made of warmer fabrics (and wear a coat!)

John

Email John:  johnsblog@teshmedia.com

Check out the new John Tesh Social Network. You can connect with new friends, post your own blog, visit various forums, upload your favorite John Tesh music and share your photos.  To learn more about how to join, click here.

It's not pleasant to think about, but what would happen if you became injured, or too ill to make your own decisions?  Would those now fall into the hands someone you trust implicitly, or a legally closer, yet obscure, family member chosen by the state?  Liz Pulliam Weston, a personal finance writer, advises to not wait.  Make your decisions known, and soon. 

Take this scenario: your mother, out of state, suffers a severe stroke. In the final months of her life, every decision, outside of perhaps picking a daily outfit to wear, is made by someone else. Decisions regarding her life- what she'll eat, how her bills are paid and how hard her caregivers should fight to keep her alive- are now being made by others.  Would you, let alone your mother, feel comfortable with this?

Most Americans don't have wills, but that's not the crisis that many in the estate-planning industry would have you believe. With a few exceptions, which we'll talk about below, most people's quality of life won't be much improved by a will.

Who would pay your bills or wrangle with insurance companies about your care? Who would decide whether to sue that driver who hit you -- or to shut off the respirator that's keeping you going?

The state will eventually find someone to fill these roles, after a potentially costly and time-consuming court hearing. But it might not be the person you would want. So at a time when you're most vulnerable, life-and-death decisions could be made for you by a stranger -- or an estranged, distant or greedy relative.

That's why you need the following documents:

• A durable power of attorney for health care, which lets you identify who will make medical decisions for you. (This is also known as an advance directive or health care proxy.)

• A durable power of attorney for finances, which designates who'll handle money decisions.

• A living will, which tells doctors exactly what kind of care you do and don't want to receive if you're terminally ill and incapacitated. (Some states, including Kentucky, Minnesota, Oklahoma, Oregon, South Carolina, Virginia and Wyoming, combine the living will and the durable power of attorney for health care in the same form.)

Fortunately, you can get these documents, plus a basic will, drawn up by an attorney for $300 to $500 in most areas. You can also buy software, such as Quicken WillMaker, for about $40 if you want to do the work yourself.

The point is, just do it. Strokes and accidents don't happen just to other people.

If you need more convincing, consider the case of Robert Wendland, who was severely injured in a 1993 car crash at age 42, sparking a gut-wrenching court battle between his wife and his mother that ended up before the California Supreme Court.

Wendland was in a coma for 16 months before recovering what doctors called "minimal consciousness." He could catch a ball and play with infant toys but couldn't speak, eat, walk, recognize his family or comprehend a Saturday morning cartoon. Doctors said his condition was not terminal but would never improve.

Wendland's wife, Rose, whom a court had appointed as his conservator, decided he wouldn't have wanted to live as he was and asked doctors to remove his feeding and hydration tubes. Wendland's mother, Florence, went to court to keep him alive. Eventually, California's top court sided with the mother -- a few weeks after Wendland died of pneumonia, after surviving on life support for eight years.

Although courts have allowed family members to disconnect life support from unconscious, terminally ill patients who didn't express their wishes clearly, the California justices were reluctant to set such a precedent for "minimally conscious" patients.

Had Wendland created durable powers of attorney or any other paperwork detailing how and whether he wanted life support to be used, the court battle may have been prevented, legal experts said. That's because the U.S. Supreme Court has ruled that every individual has a right to direct his or her own medical care, even if loved ones disagree with those directions.

And let me tell you: Not having clear instructions, or having to fight with other family members over what you think a loved one would want, is pure anguish.

Of course, thinking about these issues is not fun, which is probably why most people avoid it. You have to ponder some of the grimmest circumstances imaginable. Do I want to be on a respirator if I'm conscious? If I'm unconscious? Do I want food and water withheld? How about pain medication?

There are so many issues to ponder that Weston highly recommends ordering copies of Your Way, a guide created by nonprofit group HELP, to aid you in deciding what you want and don't want if you're incapacitated.

You also have to figure out whom to name as your "attorney in fact," or proxy, to help implement these decisions for you. Keep in mind:

• Two heads may be better than one. You don't have to name the same person for both powers of attorney. In fact, many people find that the people they trust to make health care decisions are different from the ones they want handling their finances.

• Spouses are good, but have a backup. If you're married or in a committed partnership, that person is a logical choice to fill both roles. But you'll still need backups in case he or she is injured or killed in an accident with you, or is unable or unwilling to serve.

• Keep them close. For the health care directive, you'll probably want people who are nearby or at least willing to travel to the hospital to be with you, perhaps for an extended time. The person handling your finances may be able to do so remotely, although you may still prefer to name someone who lives relatively close for convenience. In addition to paying your bills and handling insurance claims, the person handling your finances may also need to sell your home or make other complicated moves that require more proximity.

• Make sure they're tough. With your health care proxy, especially, you need someone who's forceful enough and committed enough to your stated wishes to advocate for you, regardless of what others (including family and medical professionals) might think.

You can change these documents at any time, as long as you're still competent. You probably should review them about once a year to make sure you're still comfortable with your decisions.

Once you make these arrangements for yourself, start bugging your parents to get their documents in order. If you're not sure how to start that conversation, you can tell them about your own efforts to deal with incapacity or relate a horror story from a friend's experience (ask around; you'll find some). If nothing else, print off a copy of this, and attach a "Let's talk about this" note.

Now, back to the issue of wills. Really, many people want more control over who gets their stuff than state law dictates. If you're wealthy, estate-planning documents also can help you reduce potential taxes, which can give you peace of mind while you're alive. That said, there is one group of people who should absolutely, no question, have wills, and that's parents of minor children. Even if you can't agree on who gets the crystal,

you need to agree on who would take care of your children in the event of your death. No matter how icky you feel about planning for your own demise, you owe it to your kids to spare them the potentially ugly and drawn-out custody battle that could ensue if you don't make these decisions now.

Weston, wisely, encourages anyone vulnerable in these areas to go make that appointment with an attorney or buy the software- right now. A small investment of your time could spare you and your loved ones a lot of grief, as well as to be able to give them one last piece of your compassion if they come to a time demanding difficult decisions regarding you.

John

Email John:  johnsblog@teshmedia.com

Check out the new John Tesh Social Network. You can connect with new friends, post your own blog, visit various forums, upload your favorite John Tesh music and share your photos.  To learn more about how to join, click here.

Ready for October? Here's our challenge!

Summertime has passed- we're settling into our newfound Autumn, aren't we? September is nearly gone! October is just around the corner- Thursday!- and with the beginning of October, I've got an idea to throw out to you- ready?  How about a 30 day challenge- beginning Thursday- to not spend money.  Wait a minute- before you tune out- I mean it. It's what personal-finance experts call a no-spend month. Also called a buy-nothing month, it's a 30-day period of superfrugality in which you cut out all extras, buy only basic necessities and spend as little money as possible.

With families facing so much economic uncertainty, it's more crucial than ever to beef up your emergency fund and pay off debt.

A no-spend month can be an effective short-term strategy to pad your savings account, free up extra money to tackle your debt, realign your spending with your values and generally cut financial fat.

Take this example: a Texas family decided to limit all family spending for food, entertainment, fuel and clothing- anything not a regular monthly bill such as a mortgage or car payment- to $250, when they normally spend $350 a month on groceries alone.

This family did it by cooking all meals from scratch, using basic fresh ingredients and food from their pantry, running multiple errands on each car trip, and walking instead of driving whenever possible. Instead of lunch out from the office every day, they also took up brown bagging lunch every day.

This could be an eye-opening experiment for you! Instead of out heading out shopping or doing things that cost money, you may find more free time to take a closer look at your regular monthly bills.  Now's the time to find your inner creativity, friend, by relying heavily on your pantry for meals. Use washable rags instead of paper towels, make your own laundry detergent or floor cleaner (vinegar and water works wonders!) and try using inexpensive homemade alternatives to household cleaners- how much vinegar do you have, and make sure to have a good supply beforehand of baking soda!)

"Anyone can do anything for 30 days," says MSN Money personal-finance columnist Liz Pulliam Weston, the author of "Easy Money: How to Simplify Your Finances and Get What You Want Out of Life."  Liz estimates that a 30-day spending diet could save families an average of $400 and put them in a better position should a job loss or other calamity occur. "If you do this, you have taught yourself what your (financial) weaknesses are, and you have already experienced the difference between a need and a want," Weston says.

If you want to try your hand at 30 days of superfrugality, there are several ways to structure your month of not spending.

• Set a dollar figure for spending for the month and stick to it.
• Cut out all luxuries without setting a dollar limit.
• Combine a 30-day short-term spending diet with an effort to boost your income.

Like our example family, you could give yourself a set budget for the month and then try to fit all household purchases into that budget. Recurring monthly bills, such as your mortgage, student loan, car payments, utility bills and credit card bills are excluded from this amount.

The limited-budget approach can require creativity.

How can you spend only $1 on entertainment for the entire month? How about recent issues of your favorite magazine- normally a big impulse by while you're waiting in line at the grocery store- at a fraction of the price at a local thrift store?  Looking for dinner that very night? Look for lower-cost alternatives to meat to stretch your grocery dollars- a markdown of a good quality meat, bulked up with lots of in-season produce.

The second approach to the 30-day spending fast is to forgo the set-dollar-amount budget and simply cut out all luxuries instead. In this case, money can only be spent on necessities.

Weston, herself, took the challenge in 2006, by buying only necessities, and seeing the things she and her husband were spending money on that they didn't need to.  For instance, previously, if she had 15 minutes between meetings, she would fill the time by buying a cup of coffee. And though she rarely bought new clothes for herself, Weston didn't think twice about outfitting her toddler daughter with new duds. "It surprised me how much of my spending was automatic."

The key to making the second option effective is to dig deep to determine what is a luxury and what is truly a necessity, says Harrine Freeman, the author of "How to Get Out of Debt: Get an 'A' Credit Rating for Free."

Of course, this will vary from family to family, but, in general, recurring bills, gas and groceries would be considered necessities while lattes, restaurant meals and new shoes would definitely be off-limits.

The third option is to combine a 30-day spending diet with an effort to boost your income. That can be as simple as cleaning out your attic or basement and selling everything on eBay or Craigslist, Freeman says. "You can use what you save and what you earn to pay down debt or create an emergency fund."

No matter which route you choose, a month of minimal spending can lead to a real, workable and long-term household budget and spur you to permanently cut the fat from your spending.

A 30-day spending diet can be a valuable precursor to a budget you might actually stick to because "at the end of the month, there is a very real, tangible financial benefit. You can actually see how much you saved," says Brad Stroh, a co-founder of Bills.com. "It gives you a sense of empowerment and control over your money that can lure you into the game."

Superslim budgets with no room for fun, though, are doomed to fail. The goal is not to cut out all sources of joy in your life, it's to spend only on the things and experiences that are truly important to you, might improve your life, things you use and enjoy a lot, and that will give you a great internal lift- not just a momentary lift.

You might just be amazed how little (money) you can live on once you have some experience in spending very little.

John

Email John:  johnsblog@teshmedia.com

Check out the new John Tesh Social Network. You can connect with new friends, post your own blog, visit various forums, upload your favorite John Tesh music and share your photos.  To learn more about how to join, click here.

What makes these three money-saving tips so amazing? They're "no-brainer" ideas!

At any time in history, no matter what the current state of the economy, no matter what the current trends, no matter what the unemployment rate is or where interest rates hover, some money-saving ideas remain true, and these are gathered from LifeOrganizers.com.

Some of these ideas you may have heard many times before, in different variations, even; others may be entirely new to you.  But whether you are familiar with these super secrets or not, it could be so worth your while to put them into effect in your own life. The magic they will work on your financial life is guaranteed- where else are we getting guarantees these days?  Makes them worth a try, because big changes come from small steps.  One plus one does equal two.  Adding one from eleven different places, there's a good chance you'll see big results, from some pretty down-to-earth tips.

Amazing Money Tip #1:

The great scientist Albert Einstein once said, "It takes a genius to see the obvious."  What he meant by that is that sometimes the simplest things in life are the most powerful ... but because they are so simple, we tend to ignore them, and not let them work for us.

One of the simplest but most powerful money making ideas is this: keep a daily log of everything you spend.  Go to the dollar store and buy a little notebook and carry it with you wherever you go.  Write down every penny - every single penny - you spend.  It's as simple as that.

If you do this, you will find something magic happening in your financial life in just a few weeks: you'll see what you spend, where, and how much can really be looked at as "necessary."  It makes the flow of money through your life more real and exact.  It shows you simply and clearly just where you are spending your money, on what and why.  Once you know that, it becomes much easier to control your spending. Very powerful, indeed, and quite eye-opening.

For example, a person could realized through examining their notebook that they actually spent nearly $2,000 throughout the year on diet soft drinks, snacks and candy bars!  Since their job only brings in $25,000 per year, they realized that 8% of their entire income was being frittered away on something entirely frivolous.  The person gave up the snacks and drinks, and found they had enough money to take a vacation the following year!  If you had the choice between snacks or a much needed vacation, which would you choose?  Clarity that comes with this insight can help you gain much needed control of your finances.

Amazing Money Tip #2:

Stop credit card spending- otherwise known as deficit spending!  We all know how much trouble Uncle Sam has been creating spending more money than our country takes in.  It's called deficit spending.  Well, don't fool yourself.  The same rules apply to you. Using those evil little plastic cards may be the "American Way," but it's a darn poor way. 

Today, the average credit card holder is carrying $8,000 in plastic debt !

Spending yourself into debt with a credit card is unbelievably easy, as many of you already know.  The reason is psychological.  When you give that clerk a credit card, it's just not the same as handing over a stack of green dollar bills.  Would you as readily hand over a fistful of ten dollar bills as flip a credit card across a counter?

Probably not.

Credit cards put you in the hole and keep you there.  Even for people with good incomes, paying your credit card debt down to zero is amazingly difficult.  And make no bones
about it, credit card debt will sap your financial strength just as readily as an open vein will deplete your physical body of its very life force.  Using a credit card by choice can quickly turn to using it for need.  Once you get to that point, you are already in trouble.

There is no secret to freeing yourself from the credit card game.  You must take out a pair of scissors today, cut your cards in half, and begin paying them back, slowly but
surely.  Be careful: closing the account could affect your credit score negatively, so you may want to keep the card open- just stop using it!  Be sure to always pay more than the minimum amount due, even if it is just $10 more.  Once you stop adding to the debt , even small payments will eventually add up. You can get out of debt if you are patient and disciplined. Once your card debt is history, you must adopt a strict pay-as- you go policy. Instead of buying now and paying later, save now and buy when you have the full amount.

Once again, this is not rocket science, but stopping credit- oriented consuming is one of the most powerful financial tools available to anyone today.  Why not pick up this tool and use it?

Amazing Money Tip #3:

Sell your junk.  That's right, it's high past time for a major yard sale.  Search through your house or apartment for every single item you don't need, and could sell at a flea market or yard sale.

Take an inventory.  The truth is, most people are astounded by what they own - and how much money they have tied up in useless stuff.  Why let it collect dust in your attic while it could collect interest in a savings account? Good question, huh?

You could easily be $500, $1,000 ... even $3,000 richer by the end of the week.  As an added bonus, you'd have your place cleaned up, and you will have a fresh feeling of starting over.  A garage sale is an excellent way to not only clean out your house, but it often gives a psychological boost that helps people get control of their life and money.

See?  Pretty easy to understand...and here we thought it was complicated, right??  Have a fantastic day today.

John

Email John:  johnsblog@teshmedia.com

Check out the new John Tesh Social Network. You can connect with new friends, post your own blog, visit various forums, upload your favorite John Tesh music and share your photos.  To learn more about how to join, click here.

It's gonna cost how much? Parents of college age kids- saying that a lot these days?

Neither college students, nor the families they leave behind need to subsist on Top Ramen noodles for the next four years (ok, maybe five), but every student and family can trim college expenses, and we're getting a pretty good idea of just how, from Kiplinger's, to make it less painful...as the parent of a daughter looking ahead to college in the next few years, I like the sound of that. The College Board estimates that a moderate budget, including housing and transportation, but not tuition, will be $17,230 for a nine-month school year in 2009-2010, or $11,540 for a low budget. Housing accounts for 49% of those figures.

In a survey by Zogby, students and parents said car upkeep was their biggest expense other than tuition, books, and room and board. You'll save a bundle if your kids hoof it or buy a bus pass.

How to get the books 

Cars may cost more, but the price of textbooks is the most shocking expense to many. The College Board estimates students spend an average of $988 per year on books. To save money, students often share texts or use reserve library copies. The Internet is also fertile ground for textbook bargains. Before you start shopping, get the title, author and international standard book number (ISBN) of each book you need. Then head to sites such as Craigslist.org, eBay's Half.com and PIRG's CampusBookSwap.com. BigWords.com will search the Web for the best prices on textbooks.

Take a look at return policies before buying. Some sellers give a full refund if a book is returned within 30 days -- a boon if the student decides to drop the class. Keep in mind that textbook prices are highest online in August, September, January and February, according to Half.com. So if your kids know they will be taking a class the following semester, they should confirm the text with the professor and buy it online in mid-semester.

Sell gently used books

Students can recoup some money by selling their used books informally or online. But if they plan to do so, they should use their books gently, says Marie O'Malley, of Nellie Mae, the student loan-financing agency.

"Bookstores and students don't want books that are heavily marked, or that have torn pages or broken bindings."

Also keep in mind that college textbooks are updated frequently, so the faster you sell them, the more likely you are to find interested buyers.

Watch that cell bill

Cell phones have become near-necessities on college campuses, and most students use them extensively. One dad complained in the Zogby survey that the most shocking cost he encountered was "that darned cell-phone bill." To avoid surprises, compare cell-phone plans at sites such as BillSaver.com and MyRatePlan.com. And check sites such as Cellreception.com to make sure there's good service on campus.

Some carriers entice students with special discounts or enhanced service.

Above all, let your kids know that if they exceed their plan's allotted minutes, they'll pay the extra charges.  And then stand your ground- we talked about being firm with the fam's budget a few weeks ago.  Have a great, safe, and relaxing weekend- Happy Labor Day!

John

Email John:  johnsblog@teshmedia.com

Check out the new John Tesh Social Network. You can connect with new friends, post your own blog, visit various forums, upload your favorite John Tesh music and share your photos.  To learn more about how to join, click here.

Think there's no way to create your own emergency fund? Could be time for you to simply "re-think" your options!

Got low earnings and no financial cushion?  Can't spare hundreds of dollars a month? Join the club. And find out for yourself that you can nickel-and-dime your way into a comfortable cash cushion, with loads of tips and ideas collected by Peggy Freedman for MSN Money.

Personal-finance experts advise having three to 12 months' worth of living expenses socked away.  That can be overwhelming, even downright scary, especially to folks who could be facing financial crisis already!  Even saving the $500 that MSN Money's Liz Pulliam Weston suggests may seem impossible.

If you're in a low-earning job, it can seem like a futile effort to find your way to that elusive emergency fund.  But here is where a little faith, optimism, with a pinch of creativity tossed in, can help you inch your way there.  Can you squeak out $10 a month from your pay?  Then, my friend, that's where you start. If not, read on.  We're not giving up yet!

Let's start with your spare change

This includes every penny, nickel, dime or quarter you get throughout a week, and into a jar it goes. (Don't forget to double check pockets before laundry time, and the change that seems to find its way into the couch cushions!) How about collecting cans or bottles throughout the week and selling them, rather than tossing them into your trashcan? You can add to your plan a little more at a time by banking the occasional manufacturer's rebate.

'You can sleep at night'
There are articles aplenty offering great advice about saving big bucks- they may, or may not, provide a solution for your needs.  Some of these bigger ticket tips could be taking a second job, selling a second car in the family, or, for the singles, getting a roommate splits many costs in half!  But just about anybody can shop online for better insurance rates or pick up pennies.

Having an emergency fund can give you a stronger peace of mind.  You can sleep at night knowing if you wake up the next day and something goes wrong -- a leak in the roof, a flat tire -- you can cover it.

Save something- anything- out of your paycheck

Let's get back to that idea of $10 per paycheck going into an emergency fund. Sure, it might be painful to start (I'm joking- saving for your financial safety will not cause you pain!), the easiest way to create the habit is to set up an automatic deposit- out of sight on payday, out of mind, and one more step closer to building your fund.  Place ridiculous rules on yourself for any withdrawal you make that is truly not an emergency- any cash out must be paid back 110% and with an additional 1% interest per month until it's reimbursed.  Stumble once, and with the extra payback and interest, you'll build your fund even faster.

An alternative for how much to save?  Save one hour's gross pay each payday, with your goal to add another hour's pay each month.

Still wondering how to start? Here are more ideas:

• Change your eating habits. Pack your lunch at least twice a week. Take the "pantry challenge": pack your lunches for an entire month from food in your pantry only. Have a meatless Monday. Then figure out what you would have spent and put that in the emergency fund.
• Trim your budget. The less you spend each month, the more you can put away. "Starting Over in NY" hangs clothes to dry and uses local roads instead of a toll highway. Reader M324292 shopped around for home insurance and the $198 she saved went into the fund. De la Pena gave up Diet Coke for a month -- "and I love my Diet Coke" -- in order to bank an extra $12.

• Sacrifice a little. Drop to basic cable for a while or drop cable altogether.  Nix Netflix and get films from a library or Redbox (which can be free on Mondays). Resolve to buy nothing nonessential for two months.

• Make the savings automatic. Usually that means direct deposit. Direct deposit might not be an option at your workplace' make out deposit slips in advance "with the amount already entered for my emergency fund."

• Save the money in a separate account. Funds mixed in a checking or savings account are too easy to spend. Some banks now offer cash incentives ($25 to $100) to open a checking account. You can transfer the money to an online bank later.

• Start a second income stream. This can be anything from creating scrapbook pages to sell on eBay or Craigslist, or any other trash to treasure items in your home.  Maybe you can earn a small sum for odd jobs at work, like buying supplies for the office.

• Save reimbursement checks. Does your workplace reimburse you for miles or meals? If you've already absorbed the cost, bank the check.

• Watch for "occasional" jobs. Can't work a regular part-time gig?  Find an irregular one. Put out the word that you're available to leaflet a neighborhood, throw phone books, defrag computers, walk dogs, rake leaves or clean garages.

John

Email John:  johnsblog@teshmedia.com

Check out the new John Tesh Social Network. You can connect with new friends, post your own blog, visit various forums, upload your favorite John Tesh music and share your photos.  To learn more about how to join, click here.

Your game plan for car shopping

To buy, or not to buy...a car.  Is that your question?  Well, there are many reasons to hang on to "old reliable", we've talked about this before, but maybe, just maybe the time is right.  Cash for Clunkers is now off the table, but recent news from the auto industry is pretty good, and there are some great deals available- if you've decided it's right for you.  There- that's one hurdle.  Now...the car salesman.  Look, they're people, too!  But a little extra ammo in the way of automobile purchasing is never a bad thing, and AOL lines it up, so you can be ready to go in a make a great deal on "new reliable"!

1. Greet the car salesman warmly.

Smile and shake his hand. Be friendly. You want him to like you so that he'll work harder for you.

2. Get his attention by telling him what he wants to hear.

Tell him: "I'll be buying a car very soon." If after this introduction, you find the salesman rude or unwilling to help you, ask to speak to his Sales Manager. Tell the manager that you'd like a more helpful salesman.

3. Tell the car salesman exactly what you want to see.

Be specific as possible. For example: "I'd like to see what you have in a compact car with automatic transmission and a window sticker price of around $18,000." If you're not sure what you want or you're confused by all the choices, then tell him those things that you know are important to you, such as: "I need a four-door car with lots of cargo space and a window sticker price of around $18,000."

Under the guise of trying to help you, the salesman is going to ask you lots of questions. Do not discuss your monthly payments with him.

Then turn the tables on him. Ask him questions about the cars, the dealership and his business. Play dumb and try to learn as much as you can. Get him to like you by pumping his ego: compliment him on what a good job he's doing.

4. Check out the vehicles that he shows you.

When he shows you a car that you like - and that fits your needs and budget - look it over. Do you like the styling of the car? Can you see yourself driving it?

5. If it is a new vehicle, look at the factory window sticker.

The factory window sticker tells you all about the car. Read it carefully because it contains a lot of important information.

The window sticker will give you the predicted gas mileage for both highway and city driving. It will also list all of the equipment that comes standard with the vehicle and then, in a separate column, the options that have been built into the car at the factory with the price of each listed. Look for an "equipment package," a group of discounted options.

At the bottom of the sticker will be the asking price for the vehicle called the "M.S.R.P." which stands for "Manufacturer's Suggested Retail Price". Be sure that this price fits your budget.

Some dealerships add a second window sticker called a "Dealer Addendum" in an effort to widen their profit margin. If you see one of these stickers, ignore it for now.

6. Ask about other versions of the same car.

Most vehicles come in several different equipment levels usually designated by a letter code such as DX, SE or XL. You might be able to get the same car with the equipment you want on a less expensive version.

7. If you like the car, sit inside.

Is the interior comfortable? How does the interior "feel"?

8. Ask the salesman if you can test drive the car.

He'll be happy to take you for a test drive.

Notice what's happening here: you're allowing the car salesman to breeze right through the steps of his game plan. He wants you to test drive that car. He thinks he's doing great and that he's in total control. What he doesn't know is that you know exactly what you are doing. In fact, you are in complete control here.

9. Drive the vehicle as you normally would.

Don't "baby" the car. If you normally accelerate hard, then drive it that way. If you normally brake hard or corner fast, then do so. Try to drive on the types of roads you normally drive. Be sure to turn the air conditioning on and off to see how it affects the performance of the engine. And don't forget to ask lots of questions.

10. After the drive, ask the salesman for a brochure.

He'll probably ask you something like: "Is there anything we can do to earn your business today?" or "If I could sell you this $18,000 car for only $12,000, would you buy it today?"

You must be firm and clear. Tell him: "I really appreciate all of your help but, as I told you at the beginning, I'll be buying soon but not today. I simply want a brochure and some information. If I decide to buy this particular car, then I will certainly come back to see you."

If the car salesman is a good guy, he'll get you the brochure. If not, he may disappear and then return with the "Sales Manager" who may or may not be the real Sales Manager. In any case, this new guy may try to "reason" with you, persuade you, perhaps even pressure you to buy today. Again, you must be firm. Repeat to him what you told the salesman.

Don't forget that they are playing a game. And you know exactly what game they are playing. So don't fall for their lines. Don't fall for their come-ons. And don't fall for their intimidation. There's nothing personal about this. It's pure business. That's how they see it. That's how you should see it, too. And don't forget that you have the final say. If they pressure you, you can always walk away.

If they won't give you the brochures you want, no worries. You can always get them direct from the manufacturer.

11. Ask the car salesman more questions.

Ask about factory rebates, the factory warranty, dealership service, local sales taxes, license fees and so on. When you're satisfied that you have the information you need, ask the salesman for his business card.

12. Thank the salesman politely -- then leave!

Whatever happens, under any circumstances, don't buy a car yet.

What should you do next? AOL recommends doing more research on the vehicle you drove, comparing it to others in its class and giving yourself time to think about it. As much as it feels like that one car won't be around if you pass it up, there's always another car. Or, you may decide, after some time considering the deal away from the dealership, that this, indeed, is the right car, at the right price, at the right time, for you.  In which case- congratulations!

Welcome to September!

John

Email John:  johnsblog@teshmedia.com

Check out the new John Tesh Social Network. You can connect with new friends, post your own blog, visit various forums, upload your favorite John Tesh music and share your photos.  To learn more about how to join, click here.

Saying yes to back-to-school; no to impulsive back-to-school overspending

It's hard to say no- generally speaking, as parents, we don't want to say no.  You've probably been there- "Everyone has those jeans!" "I'll look stupid with this old phone!"  They wear us down!  But to the rescue- the support you need for staying your ground- here's some great "putting have to's in front of want to's" advice from makinglifebetter.com's Lian Dolan:

Before you hit the stores

Don’t make it about money; make it about responsibility. Think about it: even if you had all the money in the world, would you buy your daughter $250 jeans?  Probably not. Teach your children that the goal is to purchase what they really need, not what they simply want. Spending wisely and eliminating wasteful purchases is an earth-friendly, family-friendly policy. Use this shopping experience to establish good, lifelong financial habits. And don’t forget: be a role model yourself.

“Shop” at home first. Dig through desk drawers and closets, and you’ll probably discover half the items on your list: colored pencils, crayons, forgotten shorts, and books from older siblings. Throw last year’s backpack in the washer, add some cool patches from your summer travels, and voilá, new backpack! Money saved is money earned. The more you find at home, the more money you’ll get to spend on new items.

Delay, delay, delay. Wait a month to buy those gotta-have-it purchases, and the desire might just disappear. Ask your kids: Can you get one more season out of those cleats? Do you need the new sweater today when you won’t be able to wear it for months? How about that new phone for your birthday? Buy the minimum now and supplement later, if needed.

Checkout Lane Tactics

Stick with your budget. Obvious, but not always easy! Set a reasonable budget for the must-have purchases. For teens and older tweens, this may mean handing over a set amount of money for clothes or new electronics and letting them choose how to spend it. One designer item or several sale items?  Resale shop or department store? Give them the purchasing power, and let them live with their choices.  Look at it as providing an opportunity for natural consequences that don't really have the power to do any damage to your child, even if it doesn't take away his disappointment.  Expect more from your son or daughter!  You’ll be surprised at the thrift when it’s their money, or the ability to make better choices the next time around.

No negotiations. Once the budget is firm, no wheeling and dealing.  This, my sometimes weak-willed friend (we all are at times!) means that now's the time to remain firm. If you tend to cave, try a cash-only policy when shopping. That would be much better than simply promoting to your child that whining will eventually get them their own way.  And if the kids try to work that magic they have, that they’ll pay half for more expensive items, don’t agree unless they have the money on hand. No IOUs!

I do believe this:  you'll all be better off for setting limits, and sticking to them...hard as it may be to do when you son just has to have the turbo-charged backpack that doubles as an iPod charger.  Cool.