29 Ways to Save More Money During The Recession

Not sure how you'll survive the current economic crisis? Stick to these 29 money basics and you'll thrive anytime.

By Beth Kobliner

The financial gurus will be debating for years how we got into the mess we're in-and how we'll get out of it. But while the talking heads are talking, you'd like to know how to shore up your resources so you won't have to worry about every little hiccup in the stock market. Here are time-tested strategies you can master—how to spend less, reduce your debt, make the most of your tax breaks, and finance your retirement. The idea, says William Speciale, a Boston-based adviser with the financial planning firm Calibre, is to focus on what you can control: "Little steps can really make a huge difference."

Taxes
Forget the short form. Most taxpayers-65 percent of us, to be specific-just take the standard deduction. But you may save money by itemizing your deductible expenses. It doesn't matter if you use an online program (like turbotax.intuit.com or completetax.com), a current tax guide, or a storefront preparer. Out-of-pocket health care charges, business expenses (including some for job searches), and charitable donations are just a few of the items you may be able to deduct. Fill out the long form, known as the 1040, and compare numbers. If your total deductions are greater than $5,450 (the standard deduction for 2008 for a single person) or $10,900 (for a married couple filing jointly), you'll save money by itemizing when you file.

Your kids should file a tax return. The Internal Revenue Service (IRS) doesn't care how old they are. If they earn more than $5,450 in a given year (in wages and/or interest income), they have to file-even if you claim them as dependents. And if they make less than that, they should still file because they'll get back all the money their employer withheld. Help them fill out the paperwork. It's a great learning experience that may earn them some extra cash.

Avoid a tax refund. You may feel giddy knowing you'll get a check from the IRS this spring, but you shouldn't. Getting money back means you're essentially lending money, interest free, to the government for the year. Better to have that cash in your account than lend it to Uncle Sam. So if you've been getting big refunds or have had a big life change (a marriage, a baby, a divorce, a radical increase or decrease in income), adjust the withholding allowances on your W-4 form. You can do that for your 2009 taxes now at irs.gov. Use the withholding calculator to determine the correct figure for you. Then print a new W-4, fill it out, and give it to your payroll department.

Avoid "rapid refund" programs. Sure, they sound great. After all, what can be better than getting your money fast? A tax-prep chain might try to get you to agree to one of these "instant" or "anticipation" options. Don't take the bait. This is not your refund. It's a loan—and a very high-interest loan at that. The average for 2008 was 123 percent. If you file electronically, even if it's through a tax chain, the IRS will deposit your refund directly into your bank account within a week or two.

Checking and Savings
Make sure your free checking is really free. A lot of banks advertise it, but read the fine print. If the minimum balance is steep-thousands of dollars, in some cases—look for a bank with no minimum requirement. This could save $100 a year or more. Bankrate.com is a good site for comparing accounts. (And don't waste $2 on ATM withdrawals at another bank's machines.)

Bank online. You'll be surprised how easy it is to pay bills, transfer funds, save automatically, and keep track of it all. In fact, gathering records at tax time will be a cinch. And by setting up the automatic bill-payment option, you'll help protect your credit score. Banking online is actually safer than banking at a brick-and-mortar institution. Banks have spent a fortune to make sure their sites are among the most secure on the Internet. Besides, most cases of identity theft happen the old-fashioned way—by crooks who raid your mailbox.

Keep your money in supersafe places. Aim to amass at least six months of emergency expenses, in case you lose your job or become disabled. Where's the best place to keep it? FDIC-insured bank savings, CD, and money market accounts are still three of the most secure places. (The government recently increased the limit it will insure to $250,000 per account until December 31, 2009.) Money market funds that invest in Treasury bills are supersafe, too, but low yielding. Internet banks and credit unions tend to pay higher interest rates, but go to fdic.gov and check to make sure they offer the same government-insured guarantee. Look into Series I bonds, or I bonds, which are just as safe and are guaranteed to keep up with inflation. They're also free from state and local taxes (and possibly federal tax, if you use them for college costs). The downside? You can't redeem them for at least a year. And if you cash them in before five years, there's a small penalty. Other savings options, including corporate and tax-exempt money market funds, are a bit riskier. Compare yields at cranedata.us.

Debt
Cut up your extra credit cards. But don't close the accounts. Yes, it's smart to reduce your temptation to splurge by destroying your cards. But if you actually cancel them, it could hurt your credit rating. Here's why: Lenders worry about how close you are to using all the credit available to you. If you close an account, you lose its credit line. As a result, you are using a greater portion of the reduced amount you can now borrow. How many cards do you need? While the average American household has nine, two or three active cards should be plenty.

Pay your bills on time. A single late payment means that you could pay a much higher interest rate on any future loans and on your existing credit card accounts. That's because even one missed payment can lower your credit score by as much as 100 points. That plunge means that lenders view you as a risky customer. If you're shopping around for a mortgage, you could end up paying as much as a full percentage point more. That's an increase that could ultimately cost you tens of thousands of dollars in interest. Set up automatic payments to make sure you're never late on your major bills. The sooner you can show lenders you're back on track, the better.

Pay $10 more each month. Most American households keep their credit balances at around $2,000, but about 10 to 15 percent carry balances that are $9,000 or higher. If you paid the minimum $224 required on that $9,000 balance each month, it would take you 31 years and over $13,000 in interest to pay it off. Increasing your payment by just $10 a month, to $234, until you've paid off the balance would save you $8,900. And you'd get rid of the debt in five years. (To check your own balances, try the calculator at bankrate.com.)

Put your savings to work. Many people who are deep in debt usually have some savings stashed in a bank account. They argue that they don't want to use their hard-earned savings to pay off debt. But do the math: It would make sense to keep the money in savings only if the bank is paying you an interest rate higher than the one your credit cards charge. Paying off a card with an interest rate of 13 percent is the equivalent of earning 13 percent interest on your money after taxes. There are no savings or investment options with that kind of guarantee. Experts caution that you still want to keep emergency cash on hand. A good rule is to take 5 percent of your paycheck to pay off debt and put an additional 5 percent into savings.

Pay more on your mortgage. You may have heard that because the interest is tax deductible, a mortgage is a good debt. But even if you're getting a tax break, you're still paying interest—and the longer you've had the mortgage, the smaller the tax break (because you pay less interest each year). As with all debt, paying it off sooner is better. So once you've paid off your credit cards and other high-rate debt, go ahead and add an extra payment each year (or spread it out over 12 months). If you do that over the life of a 30-year fixed loan with a rate of 6 percent, you'll shave roughly 20 percent off the total interest you pay. On a $150,000 mortgage, that means saving about $26,000.

Reduce your credit card interest rate. It may be time to get nervy with the credit card companies. If you pay your bill on time and your credit card company still raises your rates or lowers your limits, call the company's toll-free number (ask for the retention department) and explain that you're thinking of taking your business elsewhere. You may reap a rate reduction. No matter what you've heard about the current credit crunch, banks are still motivated to keep good customers. And check your accounts often. These days, banks are increasing rates even on good customers.

Get your credit report for free. You're entitled to one free report from each of the three credit bureaus (Experian, TransUnion, and Equifax) every year. Beware, though. Many sites advertising "free credit reports" are actually fronts for companies trying to sell you services—credit monitoring, debt consolidation, credit repair-most of which you don't need. The reports are free, but you'll be automatically signed up and billed for these products. Get your reports from annualcreditreport.com, which is sponsored by the three bureaus and the Federal Trade Commission. You can purchase extras on this site, too, but just stick with the free reports. If you want to see your credit scores (a numerical representation of how good a credit risk you are), you'll have to pay $48 at myfico.com.

Insurance
Shop around for car insurance. An online search and a few phone calls can turn up vastly different rates in the same area. You'll also want to ask about lesser-known breaks. For example, even if your kids are grown and out of the house, they might be able to get a substantial discount if they insure their cars through the company you use. One place to start is carinsurance.com. Once you've found the best rate, ask your insurance agent if he or she can match it.

Sign up for an FSA. Many employers offer flexible spending accounts as a way to set aside part of your salary for health care and child-care costs. You can pay for everything from Band-Aids to orthodontic work with pretax money, which translates into a discount of about 30 percent or more, depending on your tax bracket. But plan carefully. If you don't use all the money in your account within the year (at many companies, you have until March 15 of the following year to submit receipts), you lose whatever's left.

Keep grown kids on your health insurance policy. If you're going to end up lending (or giving) your children money for coverage, it's much cheaper to keep them on your policy as long as possible. In some states, you can do this until they are 26, whether they're still in school or not. (New Jersey will give you until they turn 30.) Some states require proof that they are single, without children, and that they live in the same state as you. For the rules where you live, go to statecoverage.net. Even if your state doesn't mandate extended coverage, your plan might, so call your human resources department for details.

Hold off on that long-term-care insurance. The soaring cost of extended nursing care has prompted many people in their 40s and 50s to sign up for long-term-care insurance in order to lock in a rate. It's true that the premiums go up as you get older, but not by the huge amount you might expect. According to data collected by America's Health Insurance Plans, a 65-year-old may end up paying just $126 more a year than someone who bought a policy at age 55. During those ten years, that person would spend close to $19,000 on coverage, even though he or she probably won't need it until age 83 or so (if at all). Depending on your health, the best time to buy is between 60 and 65. Until then, make retirement savings the priority, not long-term-care insurance.

Sign up for disability insurance. It helps protect your income in the event you become unable to work for a long period. Ideally, you should have enough to replace 60 to 70 percent of your salary. If your company plan doesn't provide this much coverage, consider buying more on your own. It can be costly, but it's worth it if you can afford it. Visit affordableinsuranceprotection.com or unum.com for quotes.

Think twice about life insurance. If you don't have dependents, you may not need it. If you do have kids or other dependents, you're probably better off with term life insurance until, say, your children are grown and can take care of themselves. It's generally less expensive than whole-life or other types of policies that build up value until you die or cash them in. Agents will tell you that whole-life insurance is a good investment because your money builds up tax-free, but these policies often have very high fees. You're better off putting that money toward your 401(k) and IRA instead. To comparison shop for term life policies, try term4sale.com.

Write your will. Although no one likes to think about dying, you need to. A will doesn't have to be a fancy contract that teams of lawyers slave over. It's just a written record of whom you want to entrust your kids and assets to when you die. You can write one using a simple boilerplate form and then sign it in the presence of witnesses (usually two people who aren't named in the will). The legal publishing company Nolo has a good template and instructions you can download for less than $25. (These templates are valid in all states except Louisiana. Of course, if your situation is complicated or you'd like a professional to look it over, consult an attorney. You can search for lawyers by state at actec.org.) You'll also want to make sure all the beneficiaries on your life insurance policies and bank and retirement accounts are up-to-date.

Retirement
Contribute to your company's 401(k). If your company matches funds, sign up. This will be the best investment you can possibly make. Typically, a company will kick in 50 cents for every dollar you save, up to 6 percent of your salary. That's the equivalent of earning an immediate 50 percent return-a rate you can't get anywhere. Yet incredibly, one in three American workers who are eligible isn't taking full advantage of it. With the matching funds, you can more than double the size of your 401(k) in 20 years, even if the stock market remains flat. For a family making $44,000, your contribution may cost you as little as $30 a week, money you won't even miss after a while.

Put retirement savings ahead of college savings. This sounds crazy to parents who need to come up with tuition money well before it's time to retire. But because of the tax breaks and the flexibility of retirement accounts, you're much better off contributing to a 401(k) or an IRA and taking out loans for college. Many people don't realize that the contributions you put in Roth IRAs can be withdrawn free of penalties at any time. That's very different from the college savings plans, called 529s, that smack you with a significant penalty if the money is not used for college. Another plus: Most schools don't count money in your retirement accounts when assessing how much financial aid they'll offer you. (For more detailed advice, check out Kalman Chany's book, Paying for College Without Going Broke.) Once you've saved the maximum amount that the government allows in your retirement accounts, then research 529 plans at savingforcollege.com.

Say no to company stock. Think of Lehman Brothers, Bear Stearns, and Enron. All were once on top, but when they went under, many employees were left without jobs and with retirement accounts that were overloaded with worthless company stock. You already have a huge stake in the company because you depend on it for your paycheck. Don't risk your retirement money as well. If your employer offers company stock as a 401(k) option, don't take it. If you get company stock as part of your matching-funds plan, sell it as soon as you're allowed to and switch that money into some other type of investment. Ask your HR representative for details.

Don't worry about Social Security. You've probably heard the dire predictions that anyone younger than 35 can't expect to collect Social Security. Even in bleak economic scenarios, though, Social Security will probably pay you 65 to 80 percent of your currently promised benefits. And with some fairly modest changes—like raising the retirement age or increasing payroll taxes for anyone earning more than $250,000 annually-the system can be shored up for decades to come. Make sure you're saving enough so you don't have to count on the program for your entire retirement income.

Stay away from individual stocks. In spite of what you may hear from your cousin the broker, buying the stock of a single company is generally not wise. It's essentially putting all your eggs in one basket-and paying broker fees that could eat up your earnings. In fact, you don't really need a broker. Instead of buying individual stocks, invest directly in mutual funds, which spread your dollars among a group of stocks. It's usually safer, cheaper, and simpler. But remember, you should do this only with money you can invest long term and can afford to lose in the short term.

Stick with index funds. You'll want to go with a special type of mutual fund called an index fund, which buys a little piece of each of the companies that make up established market benchmarks like the S&P 500. One of the best-kept secrets of investing is that in the long run, index funds perform at least as well as the funds that charge high fees and have a professional stock picker making the choices. And how are index funds doing these days? As of early December, they had actually lost less than the average stock fund run by the so-called experts. For a list of low-cost index funds, go to vanguard.com or fidelity.com.

Don't buy investment products from your bank. Banks sell a wide range of mutual funds, annuities, and individual stocks and bonds. These aren't FDIC-insured, and they tend to be more expensive than what you could get elsewhere because banks usually charge high sales commissions. Buy directly from mutual fund companies instead. Go with companies like Vanguard or Fidelity, which charge low fees and no commissions.

Build a portfolio. The rule of thumb is to put 50 percent of your long-term savings in stocks and 30 percent in bonds and keep 20 percent available in cash (that means in a savings or money market account where you can withdraw it at a moment's notice). In tough times especially, getting the right mix will depend on the risk you're willing to take and how soon you'll need your money. Stocks are generally more risky than bonds, but there are exceptions. For example, bonds issued by companies that are in questionable financial health-called junk bonds or, more euphemistically, high-yield bonds are a lot riskier than, say, stock in utility companies. Financialengines.com, which charges about $40 for a three-month subscription, is a great site for calculating the right mix.

Bonus
TipTake care of your health. Eat right, exercise, and get plenty of sleep. Says Rutgers finance professor Barbara O'Neill, "The last thing you want in a financial crisis is huge medical bills."

Keep Your Money Safe
Supersafe

• FDIC-insured bank savings, CD, and money market accounts
• FDIC-insured credit unions
• Series I bonds
• Money market funds that invest in Treasury bills

Somewhat Riskier: Corporate and tax-exempt money market mutual funds

Riskiest: Bank investment products not FDIC-insured Individual stocks

***
Learn More
A clip-and-save guide to the sites in this feature.

Taxes

• irs.gov: Calculate withholding, track refunds.
• turbotax.intuit.com and completetax.com: Tax-prep software.

Checking and Savings

• bankrate.com: Compare accounts.
• cranedata.us: Compare yields on investment accounts.
• fdic.gov: Determine whether your bank is FDIC-insured.

Debt

• annualcreditreport.com: For your free annual credit report.
• myfico.com: For your numerical credit score.

Insurance

• actec.org: Search for an attorney to write or review a will.
• affordableinsuranceprotection.com and unum.com: For rate quotes on disability insurance.
• carinsurance.com: Compare rates.
• nolo.com: For templates and instructions on writing a will.
• statecoverage.net: For the specifics on health coverage in your state.
• term4sale.com: Compare term life insurance policies.

Retirement

• fidelity.com and
• vanguard.com: Low-fee, no-commission index funds.
• financialengines.com: Determine the right mix of stocks and bonds.
• savingforcollege.com: Research college plans.
  
  From Reader's Digest
  

10 Popular Myths that the Credit Bureaus want you to believe

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 http://www.flmortgageresources.com/clb-credit

50 Ways to Save Money during a Recession

By Cheap Lee

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.

36 – Need to do some traveling? Use price aggregators sites like Kayak or Trax.com (my favorite) to find lower fares for flights, hotels and car rentals.

37 – Negotiate. When was the last time you tried to negotiate on price? Start with smaller objects, and graduate to hotel rooms and other services or products you buy. If you talk to the right person, you can negotiate almost anything.

38 – Watch the “stupid” fees. These can come from returning videos late to overdrawing your balance to overdue books. Take a moment to figure out what you normally do wrong to cause fees and setup a simple system like using “Post Its” to correct your habits.

39 – Stop the Catalogs. Junk mail, like catalogs, can entice even the ever meager into a full-blown impulse purchase; get rid of the temptations.

40 – Quite Smoking. What a great reason to kick the habit! It costs too much, and your insurance premiums go up because of it.

41 – Re-examine last year’s taxes. If you have the time and gumption, there may have been a few deductions you may have missed. If they are large enough, the government may owe you money.

42 – Walk-In Clinic. For less serious emergencies or injuries, a Walk-In Clinic may offer the same service as a hospital with less cost. But first, see what the local clinic is able to do and not do. Then, take notice of their hours of operation so when an emergency comes up, you can make the right choice. Some pharmacy chains like CVS now have nurse practitioners who can diagnose and prescribe, at lower rates.

43 – Challenge your property assessment. Since the values of homes have gone down in the last few years, you may be able to challenge the city or county on your property taxes. Do some research to see if this is plausible, and then contact your municipality. Weigh your options.

44 – Moving can be a headache, but it doesn’t have to be expensive. You may want to consider alternatives like U-Haul, Penske or Budget Truck. Call all three and negotiate between them. Once a quote is secured, contact a local personnel service that specializes in manual labor to help with the move.

45 – Re-shop for car insurance and homeowner’s insurance. Consider switching carriers. I switched to Geico and didn’t have to change my deductible at all. I saved $40 a month. In addition, talk to your agent about alternatives to your current homeowner’s insurance.

46 – Larger grocery shops. Going to the grocery store once or twice a month will force you to buy only what you need and reduce your urge for impulse buys (outside of dairy, of course). Always make a list before you go.

47 – Use the library. Depending on your location, this can be a great place for books, DVDs and CDs. Some smaller libraries are able to broaden their reach and thereby your selection with other regional libraries. Keep that in mind to find more of what your want.

48 – Go on a diet. I am not talking about joining an expensive diet program, but check a few books out of the library and educate yourself. Diets usually mean less costly food, or sometimes just less food consumption in general, which translates to less out of your pocket.

49 – If you must buy something, use a site that compares prices, like Pricegrabber, Pricescan, Bizrate, Nextag, Shopping.com, eBay and Froogle. One neat site I like is Priceprotectr.com. This site helps you make sure you made a great deal by informing you if your item drops in price up to 30 days after purchase. Price adjustments are good not only for online items, but brick and motor retailers often offer adjustments for many items they sell like clothes or tools for a limited period of time.

50 – Try to fix it yourself first. I never started out being great a something, like fixing the computer, changing the spark plugs, or a number of other things I picked up along the way. But I surprise myself when I first learn how to do these things from a “How To” book or YouTube video. Obviously, you want to start small and simple to help build your skills and confidence. Whenever an opportunity presents itself, always take a moment to consider the possibility.

10 Ways to Save Money During the Recession

By Curtis Ophoven

1) Stay alert as to what is going on in the financial industry. A recession can shake things up very quickly, causing old industries to collapse (like the housing market) and new industries to be born (like the alternative energy market).

The information you gain could save you a lot of money and lead you to new opportunities. Make it part of your daily routine to read a few articles each day and a few books each year. Like author of Rich Dad Poor Dad, Robert Kiyosaki’s, new books called “Financial IQ”. Being prepared for opportunities is perhaps the best strategy you can have. The people who are out of debt and stay informed, could stumble upon a once in a lifetime opportunity.

2) If you don’t already have a budget, it’s time to create one. Use a budget to reduce your unnecessary expenses (which average 30% in the US). A budget could very likely help you save your family from a financial hardship. Here is a great Free Budgeting Tool.

3) Pay down your debt and build a savings account of three to six months of your living expenses. This will be a great help if you get laid off and have to find a different job. Get out of consumer debt as fast as you can.

4) Invest in your children’s education. Education is going to continue to be very important as the global economy has little need for unskilled workers. Most Colleges and Universities are out of touch with the market, teaching skills that have little value in an economic downturn. Your education is too expensive to get a degree in basket weaving. Technical colleges are much better at reacting to market changes, offering programs that are relevant to the current job market – and they are cheaper.

5) Move your investments to lower-risk securities like bonds during the market shakedown, than move back to stocks after the market hits the bottom – in a few years. Another option is to invest in commodities like gold, silver, wheat and corn, which are returning high profits, but they are also very risks, so be careful and don’t bet the farm. The coming inflation and sinking dollar will push long term interest rates higher, paying good returns for anyone that has cash.

6) Your mortgage payment is likely to be your largest monthly bill. Reduce your mortgage with one of the many options including downsizing, doubling up, renting, refinancing or even foreclosing. Here is a good article about this: What to do with Your House

7) Put off dreams with large financial commitments, like remodeling or purchasing a new home. If you have been planning to finish your basement this summer, it might not be a bad idea to wait until next summer – just in case you need the money or run into an opportunity to invest it for a large return or get a good deal on a product being liquidated at a huge discount due to oversupply from the economic slowdown (like a pickup truck, the lots are full of them).

8) Reduce your food costs, by eating out less and buying more food from the grocery store. Plant a small fresh salad and vegetable garden this summer to increase your health and save some money. Food costs are going up for many reasons, Ethanol, population growth, rising cost of oil (falling dollar), increase in natural disasters, etc. A small garden investment could result in a large savings.

9) Create another income stream, even a small one. Maybe you take a second job for a month to pay off a credit card or maybe you sell your baseball cards on Ebay or maybe you find another way to start a small business on the side. Here is a good article about this: Get Your Own Customer

10) Instead of going on an expensive vacation, consider an alternative family vacation this year like - sleeping outdoors under the stars. Many America’s have grown up with an annual family vacation, but it’s time to stop the tradition – at least for a few years. It you don’t have the cash to pay for your vacation, then it’s probably not a good idea to put it on your credit cards.

How to Use Forums to Promote Your Online Business

By Melanie Marten

1. Post informative and entertaining posts on forums to increase both personal and brand recognition. Personal recognition is useful to establish yourself as an expert in your field, whether it be internet marketing, fashion, or parenting. The large group of forum posters will get to know you as both a source of information and as a friendly, helpful person. These impression will do much to create positive views of your business.

2. Use a memorable anchor test for your website link, a catchy motto, or even a graphic logo from your business as an avatar, and your business will stick in the minds of the other forum visitors.

3. Include a link to your website with a graphic or small amount of information in a signature file. This signature will be automatically added to each post you make. This link and blurb or graphic will attract interested people who will click on the link and visit your website. Posting regularly on a forum will continuously promote your business online.

4. Network with other online business owners and marketers. Not only can you establish friendships, you can also trade advertisements and links on websites, and learn new methods to promote your business online. Social networking is the catch phrase for online promotion these days, and forums are one of the best places to do it.

5 Most Common Business Mistakes!

By Mel Robbins

The 5 Most Common Mistakes

1. Starting a business when under-capitalized.

2. Ignoring gut or warning signs when things start turning bad - (not asking for advice/help).

3. Failing to formalize employee/partner relationships upfront.

4. Failing to grow your network so that you have resources and people to turn to in times of trouble.

5. Cutting corners on book-keeping, legal, the foundations of your busines.

Biggest Financial Mistakes

1. Not paying yourself first.

2. Future spending based on speculation (spending now as if you have already hit your revenue goals).

3. Not keeping overhead low.

4. Spending too much time on things that don't make money.

5. Not charging enough for services.

6. Not allocating enough money to marketing/customer service.

7. Neglecting to set aside money for taxes.

8. Doing nothing when your company is in financial doubt.

9. Drowning self in credit card debt.

10. Starting a business undercapitalized.

11. Not having their spouses by-in which then leads to financial pressure at home.

12. Being niave or too optimistic about sales/revenue and not planning for a long enough ramp up.

6 Simple Ways to Promote Your Online Business Offline

By Laura Spencer

1. Introductions

Pay attention to what you say about your work when you meet someone new. Whenever I met someone I used to simply say, “I’m a writer,” or “I work from home.” Those responses did absolutely nothing to promote my business. Most people think that a writer is the author of a novel and working from home could mean that I telecommute. Now when I meet someone I say, “I own a business that provides web content, writing, and editing services.” With that response, the person that I’m talking to gets a much clearer picture of what I actually do.

2. Friends and family

Make sure that your friends and family understand your business. I know that this can be a tough assignment. Sometimes family are the very last people to “get it” when it comes to how a freelancer earns money. However, if your friends and family do get it, then when they meet someone and describe your work to them that description will be accurate. How many times have you heard someone say that they got a project from a “friend of a friend?” That can only happen when the friend knows what to say about your business.

3. Business cards

Have one and share it with others. It’s amazing how many freelancers don’t even bother to create a business card. Yet, for many people getting a business card makes a business seem more legitimate. When you create your business card make sure to include your name, your website URL, your e-mail, and any other contact information that you may have. Once you have a business card, hand it out whenever you meet new people, enclose it with letters that you send, and give it to friends and family members.

4. Advertise

Advertising doesn’t have to be expensive. You can take out an advertisement in back of the business section of your local newspaper (look for a smaller paper). You may also be able to place an advertisement in a small, regional magazine. Often, sports teams from local schools and civic organizations are looking for sponsorship. For a small donation, the team is often willing to place an ad for your business in their program. Finally, don’t forget to explore the possibility of placing an advertisement in your local telephone directory.

5. Join a group

One of the easiest ways to promote your online business offline is to become part of an offline group. This expands your network of contacts. Most towns and cities have business-oriented organizations such as the local Chamber of Commerce that you can join. However, an organization need not be business-related for you to engage in networking. If you have a hobby or other special interest, then you can join a group that focuses on that particular interest. Even though your fellow group members may not be potential customers, they may know of someone else who can use your services.

6. Direct mail

Prepare an informative packet for a small, targeted group of businesses (or customers) in your local area that could use your services. Personalize each packet with a letter describing specifically how your business can be of help. Mail the packets out and follow through in a few weeks with a friendly call to see if the potential customer received the packet. Ask if they have any questions about the information that you provided.

10 Winning Ways To Promote Your Online Business

By Kristie Tamsevicius, author of the ebook, The Ultimate Guide to Creating and Marketing eBooks.

You've got your website built, it's got all the gizmos and gadgets, and your website is "live" on the server. Now what? How do you get customers to your site? You can register with the search engines and directories. There are several good services out there to choose from. How else can you market your website to make it stand above the crowd? Here's some tips I've picked up along the way.

1. Write A Newsletter.

Newsletters are one of today's best marketing tools. They have great pass along value; if someone likes your newsletter it's easy for them to email it to a friend. It is a credible source of information. The key to doing a good newsletter is to give your readers information they can use. Make it worth their while to read. Be careful not to make it one big ad for your company. That will turn people off.

Newsletters let your readers get to know you. When people trust you they are much more likely to BUY!! Lastly make sure you only send your newsletter to people who want it. People are very turned off by spam. The last thing you want to do is turn off a potential client.
Want to promote your new newsletter? Write a paragraph describing your newsletter and submit it to a newsletter announcement site. Here's one to try: http://www.list-city.com/. If you are interested in writing a newsletter the foremost authority on newsletters is Mershon Bell, at http://www.mershonbell.com./

2. Submit An Article To Other Newsletters And Ezines

Subscribe to their newsletter before you pitch your article to them. When you pitch the author, tell him why your love his newsletter before you ask him to publish your article. Tell him why your article will interest his readers. Keep your article short and the self promotion minimal. Offer to promote their newsletter in turn for them promoting yours. Be sure to thank folks who do publish your article. A little thanks goes a long way!

3. Newsboards And Email-Discussion Groups

Post a paragraph about your products and services and items of interest on your site at newsgroups. Listz is a great newsgroup directory. Dejanews is a top rated newsgroup you shouldn't miss!

4. Links On Your Web Pages

Links are a very cost effective way to increase traffic to your site. Sites you link to should be sites you like, complement your services, and add value to your site. Don't just add links for the heck of it. This will junk up your site and you'll lose the credibility of your visitors. Reciprocating links are a fantastic way to drive traffic to your website. Be nice: don't link to someone's site without their knowledge. A recent survey of ten ezine publishers shows that 80% of their traffic comes from links in other newsletters or at other websites. Many major search engines ranks sites according to the number of sites linking to yours.

5. Give Aways

What "gift" can you give readers who come to your site. Is there a fun quiz for them to take, a helpful article they can read, a bit of humor, a quote, a great book you read, or resources they can use? Make sure that visitors feel rewarded when they visit your site. Change the "gift" now and then. Give them a reason to keep coming back to see what's new and tell their friends about your great site.

6. Email Signature

An Email Signature is a few lines of text that goes at the bottom of emails you send. It acts as your online business card. A good signature will be brief, list your name, company name, what your business does and why it's better. It should also include all ways for people to reach you including e-mail address and your URL. Be sure to make it a hyperlink so folks can click right over to your website!

Here's your chance to mention new products, or your newsletter. Keep it fresh so it captures your readers attention. Use borders to make it visually exciting! Use your imagination, play with the characters on your keyboard. Here's a few ideas for you:
~~~~~~~~~
*~*~*~*~
<><><><>
************
^*^*^*^*^*^*^*^
'''''''''''''''

7. Banner Exchanges

This is a great way to advertise your site! And many of them are FREE! Here's some to try: TrafficX, Link Buddies, Smart Clicks.

8. FREE LINK PAGES: Free Link Pages

List a link to your site for free on a link page! Try Link Booster.

9. Free Advertising

Take advantage of free classified ads. These are a great way to BE SEEN. Most ads are free with upgrades available for a fee. A hassle free guide to ezine advertising is The Directory of Ezines.

10. Teleclasses

Offer a free teleclass to visitors. Know someone who's a real expert in their field? Ask them if they'd teach a teleclass with you. Renting a telebridge is pretty inexpensive. This is a powerful tool for attract potential customers. You can offer a follow up coaching group on the subject.
This is a great way to add more value, get closer contact with potential customers, and even make some money!

Six Financial Tips For Every Small Business

By Jerry Lynch of JFL Innovative Investments

Starting a business can be one of the most stressful things that any individual can do. It affects their family life, free time, personal finances, their relationships with family members and friends who invested with them, and this is only a partial list. But if the idea is a good one that is executed successfully, the results will more than make up for it!

Especially in a startup business, the owner’s personal finances are totally integrated with the success of the business. Generally there is a period of time from when you start putting money into a business, until the first dollar comes in the door and even more time before you can actually take money out. I have always said, you are not a business owner until you have written a personal check to the company so that your employees can get paid…while you don’t get paid.

As a Certified Financial Planner that works mainly with business owners, my focus is to help owners understand that personal dollars and business dollars are the same. If they cannot pay their mortgage, the business will die, and if they cannot fund their idea, the business will die and their personal finances will suffer.

Prior to starting a business, it is critical to take some time and understand the cost of the project, your cost of living, where you have some wiggle room, and where you do not. Staying power is critical to a startup business and here are some tips that should help:


1 - Don’t buy a BMW, if a Chevy will do.

In a startup company, every dollar counts. Excessive costs in any area such as rent, office equipment or furniture take money away from the core competencies that you need to make your business grow. You do not need a 5th Ave office or top-of-the-line office furniture unless they are necessary to support your core functions.

2 - It’s all ball bearings Everything is related.

Every dollar spent on "Stuff" reduces ever dollar you can spend on marketing, research, or whatever you do to make money. Always look at what you are spending money on and challenge yourself to find a better and cheaper way to do it. Unless that expense is helping you long term, minimize it or eliminate it.

3 - It’s not the shoes.

Always look at everything as a system. The parts of the system need to work effectively. But the overall system and how everything works together is more important than any of the parts. Develop cost efficient ways of running your business. Continue to refine them so that your customer’s experience is positive. This is how you build synergy and get more and more clients

4 - Have a "Plan B."

Virtually everything is more expensive than you estimated the first time, and there are always hidden costs. Whatever you estimate the cost of setting up the business to be, you should set aside as much as 25-50% more, just in case. Begging for money because you can not make payroll next week is not an appealing sales pitch. Getting it up front makes it much easier and avoids a lot of problems down the line. If employees think they will not be paid, they’re leaving and you’re out of business.

5 - Don’t irritate the IRS.

If you upset your spouse, you can always buy flowers. If you irritate the IRS, you have a problem for a long time that may be very expensive and time consuming to fix. Keep good records, get a bookkeeper and a good CPA. Deduct reasonable expenses and document all your costs. These costs are justified from a management standpoint, so you might as well get it done right the first time.

6 - Before you jump, make sure you know your parachute works.

Sit down with a good certified financial planner (not a stockbroker or insurance agent) and understand what you have in place before you ever pull the trigger. How much do you need to survive? Can you fund your start-up? What assets are available to you? There may also be tax planning opportunities, like starting your business early in the year and cashing out your stock options so you are in a lower bracket. Know your options!

A great idea, executed in the best possible way without enough cost efficient funding is almost sure to die. Making sure you understand how your money works and establishing financial priorities will give you a much greater chance of success.

Barry Moltz - Now What? Where To Go Next After A Failure

By Barry Moltz

The only way you can describe what happened is to use one word- "a failure". It is painful to thinkin these terms but there is no way to escape it. You got fired, or you lost your money, or you went out of business or you just plain blew it.

I know how it feels because I have founded and run businesses with a great degree of success and failure for the last 20 years. After being fired, I started my first business. A year later, I went out of business. In my next company, I was kicked out by my two partners only two weeks before my first son was born. I was the poster child for failure until I sold my last business during the heady days of the internet in 1999. I paid back the bank $1.3M and got my wife back at the same time!

So after failure, how do you start to comeback and rebuild your confidence?

7 things you can do:

1. Grieve the Loss.

When you fail, it is important to mourn the failure. Feel real good and sorry for yourself. Cheer the darkness! Throw a pity party starring you! You are entitled. What happened just stinks!

2. Let Go of Failure.

After 24 hours of grieving, you need to let go. Learn what you can from the failure (if anything) then take an action so you can move on. Holding on to this failure can keep you stuck and prevent any action that can move you to a new place where success again is possible.

3. Give Up Shame.

Realize that life is not a straight line. We all have been where you are right now before. Life is a cycle of success and failures. Good times don’t last forever, but bad times don’t last forever either. Most people are not going to remember your failures (or your successes) like you will. Remember a time when you were successful. A lack of credibility in our society does not come from failing (since we all fail). It comes from not being honest about our failures and dealing with them in a straight forward and realistic manner.

4. Face Your Fear About Moving Forward.

Forget about having "No Fear". It is okay to be afraid. You can handle the potential outcome. As my lawyer always told me "The worse they can do is eat you and that’s illegal!" Regardless of the outcome, success or failure, we can always position ourselves for another success by bouncing, and taking a new action. Being in any new place is always preferable to being in this failure state.

5. Set Patient Interim Goals.

Forget for a minute about the grand vision. It may be too daunting at this point! In order to plot your comeback, set patient interim goals. Our culture has unfortunately tossed patience to the wayside in lieu of immediate gratification, but patience can be a valuable tool when re-building your life and career. Small successes will give you the renewed confidence to achieve your long term goals.

6. Focus on one thing at a time.

I jokingly tell people they should "Strive for Minimal Achievement". Focusing on one thing at a time can provide you incredible power in your current state of mind. This is becoming a difficult talent because we are a multitasking culture. Multitasking actually reduces your productivity by 50%.

7. Value Action.

Stop analyzing. Stop waiting for the perfect moment when you have more information. Experience through action builds true business confidence.