...And I need your help!

I've seen the signs. I bet you have too. We're in more than a slow financial period. I'm sounding the bells. We're in a recession. We might even be headed into a depression. I don't care about the "real" definitions any more. I posted the real meanings a month or so again, but I've decided I don't care if we really "fit" the definition.

I hated how the media acted like the end was here. They "predicted" the housing bubble for years... but now it seems like they are not as "energized" about the real problem we are facing.

I've noted how my website traffic has soured with troublesome search terms in the past month, but yesterday it reached a high for my humble little website. Action is needed and people need real answers and hope to get through this period. The No Excuse Budget is going to morph in the coming weeks into a real survival website.

Here are the sections I'm working on adding.

1. I am going to have a section just for stories of survival. Stories of hope, but more importantly what exact steps these people took to get out of a bad financial situation and where they are at now. I hate reading stories that say they were near bankruptcy and then they made millions... we need to know how, right? If you have a story to share please let me know. I'd love to add as many as possible. They more I have the more others can be helped.

2. I also will be adding a new blog and website exchange. If you have a website or blog that talks personal finance please email me and let's exchange links.

3. I'll be adding a section on debt prioritization. Assuming you have no emergency fund and you loose your job you need to know which bills to pay and how to handle the ones you can't afford to pay... along with the consequences. This is all to help soften the blow and let everyone know they are not alone.

4. The next section is going to be about the psycological effects of debt. It would be simple to say that debt can feel like you are physically being suffocated by a pillow, but that would be an understatement. I will add links to websites that talk about coping mechanisms for insomnia, panic attacks, suicidal thoughts, marriage counseling and how to keep a "normal" routine for the sake of your children.

5. Losing your home. Understanding the basics of what happens when you can't pay your mortgage. From default to eviction. I won't be able to cover every states individual rules but I will be compiling a list of other websites that do. Again this section is to let you know you are not alone and an overview of what will happen and ways you can save your home.

I don't want to be an alarmist, but I think we are in for very troubled times. It would be easy for me to ignore all the signs like restaurants going out of business, rising foreclosures, gas that cost over $4.00 a gallon, and the unemployment rate sky rocketing. I could easily live in my own little world and pretend it's not effecting my life, but it is. It is effecting everyone whether you want to see it or not. It's time we all realize what is happening and take care of our families before it's too late.

Please email me if you would like to share your story of overcoming financial hardship, and/or with links to your blog or website.

webmaster@noexcusebudget.com

If you are facing a financial emergency right now, please remember that this is a temporary situation. Nothing lasts forever. Everything will be okay. Don't waste away in your troubles. Get out there and take action right now!

I'll keep this short and sweet (well not really sweet).

I think the U.S. Senate provides and encourages drug and alcohol use before they meet. How else can you explain the new suggested $7000 tax credit to anyone who buys a foreclosed home?

The worst part is that they are promoting this as "help" to homeowners and the housing markets. This is a load of crap.

The only ones benefiting from this are the banks. Yes, it's important to the housing market that the banks unload their inventory and get back to doing what they should be, making loans, but this only helps the banks, it helps NO homeowners.

If they really wanted to help homeowners and improve the housing market why not offer that incentive to ANY person that buys a property in todays market? By offering this incentive towards foreclosed, bank owned, REO properties they are hurting regular home owners who need to sell (remember them, the ones that really do need to sell). How can a regular home owner compete? They could drop their price by $7000, but then the foreclosed properties would do the same. There is no was that they can compete.

So to recap, this is a bad idea. Doing nothing would be better and no I don't really think they are drinking or doing drugs on the job... they must be sleeping through the discussion on this one!

What do you all think?

Edited to add: Neglected homes are the banks responsibility. They need to be made to mow the lawn and properly secure the home. It is the banks job to make sure homeless people are not taking over their REO's.

My point is that this hurts regular home sellers. These same people are also being hurt by REO's... I agree, but I'm starting to think that any help that is put towards the housing market is just being thrown down the toilet. I've yet to see anything offered to help homeowners... it's only helping the banks. Help the homeowners or do nothing.

I remember back in early 2001 watching the news say that gas was going to hit $3.00/gallon. I was really worried. We had a little one at home that had to go to the Dr. 2 times a week and the trip was 1 1/2 each way. Between medicine and the actual Dr. bills this was going to push us over the edge. This was when I took shopping with coupons up to the next level and we obviously survived.

Looking back $3.00 isn't so bad when you are currently paying $3.56/ gallon. Wasn't it just a few months ago when I was paying "just" $2.56/ gallon? Oh the good old days!

I'm actually doing okay with my battle over the kitchen (remember my post about being completely pathetic in the kitchen and all those great ideas I was given?). I've mastered (I'm not saying everything tastes great, but it's edible) enough menu ideas that we're not eating mac' n cheese or spaghetti every night. So the food part of my budget is doing well. Now I need to focus on gas.

We drive a lot for work. It's not unusual for us each to be on the road for 4-5 hours a day and that takes a lot of gas. We bought a sedan a few months ago and sold my husbands truck. We really needed the truck when we bought it a few years ago, but we did not have the same need for a truck anymore and we needed something that was nice to put clients in, but that also got better gas mileage. I'm so happy we did. We are saving close to $700/month since we got rid of the truck, but I can't help but think we could still do better.

My car is an SUV and although it's not the worst in gas milage it's not the best either and I really think about gas whenever I get in it. I'd love to get a smaller car but we need at least one car that can fit the whole family.

Here are the ways I'm trying to save gas... Please let me know yours too!

1. Group trips together- I do the bank, PO, kids pickup and grocery shopping all together whenever possible.

2. Don't speed. The faster you drive the quicker you burn up the gas.

3. Avoid the stop and go. I *try* to schedule appointments for times when I know there's not the usual stop and go.

4. Fill up when I see a good price. www.GasBuddy.com keeps track of gas prices and you can search by zip code.

5. Empty out my car. It's amazing how fast your car can "grow" junk. Not really, we seem to just leave stuff in the car and the more weight the car carries, the less gas mileage you get.

5. The old rule of getting your oil changed regularly and keeping my tires properly inflated.

6. No emergency runs for butter or eggs. It's not worth it to run out to the store for just eggs or butter unless I'm already out and about.

7. I buy my gas with this discover card that gives cash back on all fuel purchases. Link available at www.NoExcuseBudget.com

I think the one that is helping the most is mapping out my day the best I can. I seem to get the most bang for my buck, gas wise, is by not having to warm up a cold engine all the time and it's nice for the rest of my life to get all the errands done together and then spend the rest of the day getting actual work done.

My personal guide to surviving any bad situation is to “Control what you can and plan for what you can’t“.

Before you tackle this temporary financial situation (yes it is temporary no recession has ever lasted forever), access your emotional well being. The psychological effect of financial troubles can sometimes be debilitating. You need to take any and all steps to break out of the fog and start taking action. If you are really feeling blue please see a doctor or other mental health professional. Depression goes hand in hand with your inability to conquer this situation. If you need help, again please seek it.

Typically recessions last 8-16 months. Some say that this one will last 3-4 quarters or 9-12 months which would be similar to the recessions in 1969-1970 and the latest one in 2000-2001. I tend to feel that this one will last closer to 16 months, at least. During the last recession we were sent into even deeper turmoil by the events of September 11th (can you believe that was almost 7 years ago?), the already slow housing market and the internet stock market crash. Some would say that Sept. 11th helped with the recovery from the stock market crash, but I would tend to differ on that one as I know people who lost their businesses soon after due to consumers not spending for awhile after Sept. 11th, they saw no relief soon after these events.

This recession is different in many ways, especially in one big way. We are having a major credit crunch. Home loans and credit lines are not available. It’s one thing not to be able to afford the prices of homes in your area, but it’s another thing to be able to afford to buy a home but not be able to get a loan. Unless you have a very strong credit history and a hefty down payment loans are going to be too expensive, if you can even get approved. That’s not to say that it can’t be done. You can still get a mortgage, but it’s a lot harder and more expensive. The new FHA rules were a move in the right direction but I’ve yet to see it help the real estate market… maybe as we move into the spring/summer buying season we’ll see more market movement. I believe that the credit crunch is the fuel that is continuing to ignite this recession and until the credit crunch is over the recession will continue.

So what can you do to not just survive but thrive in a recession? I posted basic, easy and common sense ways in PART 1. But let’s take it up a notch and see what you can do to thrive in this economic environment.

1. Stay dedicated to your financial goals even after the media declares the recession over. Keeping at it will give you a head start on the next recession. Recessions can also be local instead of national, some areas will recover a lot sooner than others. Don’t get caught letting loose and then realize that you area is last to recover.

2. Buy a rental property is you can afford to and if you learn through research that you can come close to breaking even. Why would I recommend buying a house now? Easy, this might not be the lowest point in the real estate market, but it’s still a lot lower than it was before. As more people loose their homes these same people will need rentals to live in. There will be a need. The best part is that if you can make it “cash flow” then the payments you get every month will go towards the mortgage on the property, therefore paying it down AND during the next high market you’ll be able to sell at a profit or just let it keep getting paid down.

3. Consider changing to a recession proof job. The medical field is booming as the baby boomers age. The outlook for job retention and new hires in the medical field is very good. Why not consider going back to school to learn a new skill in the medical fiend.

4. Think of ways to make money that people always need to buy or do. Opening a restaurant would not be a good idea right now. Restaurants always feel the pain in a recession because customers cut eating out of their budgets first. But there are other business ideas to consider. Among them Debt Collection, Medical Transcribing, Handyman, and Ebay sales, etc.

See also my list of 50 Ways To Make More Money

5. Make yourself invaluable to your employer. Give your boss 150%, not just 100%. Work harder, smarter and more. Make yourself invaluable for job security. Make yourself invaluable and make your company more money. Make yourself invaluable and ask for a raise.

Here is the first part in my "surviving a recession" series... As always I like to hear your thoughts and comments! You can find more on tomorrows post and at http://www.NoExcuseBudget.com


With all the the recent turmoil in the housing market, stock market and the rise in gas prices it's normal to wonder how you and your family can survive a recession. You should be happy to hear that you are already on your way to not just surviving, but thriving in a recession, "why" you ask, because you actually have taken time out of your life to read this and care. The first step to learning how to do anything is to want to know and to search out answers.

From here there are many ways to survive any adverse economy. Lets look at some basic ideas.

1. If you have a job do your best to keep it. If you don't have a job, get one, even if it's not your dream job.

2. Consider taking on odd jobs to either pay down your debt or to build a safety cushion fund in case you do end up loosing your job.

3. Redo your budget. Write every expense you have on the No Excuse Budget Forms. Go line by line and eliminate or lower every possible expense.

4. Contact all your creditors and ask for lower rates. Call your credit card companies, your phone company and your bank, ask them all to lower your rates or fees. If they say no call them once a week until they give you something.

5. If you have a high interest rate loan or one that is about to reset, and you plan to stay in your home for any amount of time, call a trusted mortgage broker and see if your mortgage can be refinanced into a fixed, lower rate mortgage.

6. Don't put all your eggs in one basket. Don't count on your job always being there. Don't count on your credit lines still being available and if you are self employed don't count on always getting work from your biggest client. There is a reason that you hear the saying "diversify" and "multiple streams of income". Think of other ways you can bring in money and do it now. Start right now. I can't tell you how many times I have heard people say they wish they had started ____________ sooner. It takes time and money to make money, start right now.

7. Save any extra money in a high interest savings account. I like The Orange Savings Account It all adds up and every penny counts. As interest rates are lowered your local bank will offer lower and lower rates. Put your money in the highest interest account you can find. If you have more than 6-12 months living expenses you can afford to put the remainder above your emergency savings into more aggressive places like stocks and bonds.

8. Put your kids in public school if you have decent schools. Buy a better fuel economy vehicle if you can get a loan that has a good rate and/or you drive a lot.

9. Rethink your insurance. Make sure you have enough and that you are getting the best rates. Shop around. Nothing can be a budget killer like not having or not having enough insurance.

10. Watch for signs and act before they act for you. Is your current job showing signs that you might not have a job for much longer? Are your paychecks late? Are sales down? Start putting together your reseme and possibly even start interviewing. If you do lose your job immediately file for unemployment and start looking for another job. This is no time to feel sorry for yourself. Act immediately.


Remember it's all about money. Money coming in and money going out. Your goal is to bring in as much money as possible while, save as much of that and limit what goes out. Easier said than done at times, but you get the idea.

Here are more easy ways to save without crimping your style :-)

Get rid of any reoccurring charges that are not absolutely necessary. How many subscriptions to random things are on your credit card?

Consider getting your hair cut at a discount chain instead of your normal salon, even alternating between the two can save you money. Just for the record I get mine cut for less than $12 ($7 if I have a coupon) and I never thought I could leave a salon and a long time hairdresser, but I like the way the budget salon cuts it more... same with my nails!

Make your coffee at home. Even if you have to have Kona coffee or another expensive type making it at home at save.

Eat at home.

Use your coupons.

Buy an entertainment book.

Find a mechanic that is not only good at fixing cars, but does it for a good price.

Indulge in small ways. If you see flowers on sale for a cheap amount buy them every once in a while. Seek out ways or places to buy things that make you happy that offer them at a good price.

Use a reward credit card and actually use the rewards. My favorite credit card gives me rewards to book stores and animal supply stores... needless to say I never "buy" books or pet food... I love the library but sometimes I want to buy a reference book, or a special book for my kids, and I save the gift certificates for these reasons.

Don't become the local animal shelter. A lot of animal lovers are faced with this real problem. Once the word gets out that you are animal friendly, your home suddenly becomes a zoo. Don't let this happen to you.... it's expensive and counter productive. Instead make arrangements with an area non-kill animal shelter to bring in these homeless pets and spend your time helping at the shelter. The shelter has arrangements with Vets, food suppliers and more so your donations can go farther than they could if you opened up shop in your home.

Shop at thrift stores. This is the hardest for most people. There is a bad connotation with shopping and using stuff from thrift stores. As long as you really clean your finds you can get absolute bargains! When my children where younger I was able to buy those big plastic play structures for about 10% of their "new" cost. I cleaned the heck out of them till they shined like new.... and then sold them for a profit when my kids where done playing with them!

It's not like me to get real personal. I've shared that I have kids, but not much about them... and I doubt I ever really will. Stay with me on this one. I feel like my cyber friends are my real friends, but really how well do you really know anyone? I'm not willing to put my kids out there and you'll never see a picture of them. I don't "knock" those that do share more about their kids as I do what works and makes me comfortable and others do the same. I can't say if posting about kids publically is good or bad. It's a personal choice.

When I became a REALTOR® I did not put a picture on my business card. I know that most real estate agents do, but I just felt really silly doing it and do I really need everyone to know what I look like? I since realized that future clients really like to see who they are dealing with before they meet you in person and now I have a picture on my website but still not my business card, I just can't do it. I still feel silly having it on my website, but I felt like I had to make the plunge and do it... It's not a "glamour shot" or even a professional photo, just one of me looking like I normally do! I get a laugh out of peoples pictures and then meet them and they look nothing like their picture.... either they are years older or a Pro took the picture and it's had major air brushing (don't get me wrong, I could use some air brushing).... Even the picture I use here on my blog is kinda incognito with sunglasses and such. It's how I really look, and yes I always wear sunglasses, okay not at night, but definitely during the day. I'm just one of those people who is sensitive to the sun, I burn easy too! (now I'm hearing "I wear my sunglasses at night, so I can, so I can... remember that 80's song!)

So my point is that I am a really private person. I fight with this when I write. There is so much I want to share and talk about, but I balance sharing with maintaining privacy for my families sake. When I first started my website I was shocked at the emails I received, both with what others would share with me, a complete stranger and with how my comments could be interpreted. I am lucky that I have not had any truly bizarre issues, but I am mindful of what can happen... I am putting my thoughts and my budget plan out there to the world, literally and anything can and will happen. Having said this, this is a big day for me as I am going to share a very private part of my life. I feel like it's a confession of sorts, but not in a bad way, at least I don't think so.

Here goes. For the past two years I have spent a huge amount of money to have another child. This is the only area in my life where I would ever consider racking up my credit cards. My "story" started when I went to the hospital to have a "normal" "easy" "quick" (you get the picture) test done. The test took all of 5 minutes. I went home and life was normal. Almost exactly 12 hours later I was being transfered from one hospital to another via ambulance and this started a 6 month battle against an infection that left me unable to get pregnant without IVF. Had the ordering Dr. remembered to order me an antibiotic or the performing Dr. not lied that the instruments did not have latex (I'm allergic) none of this would have happened. This was one of those times in life where anything that can go wrong did go wrong. Basically the infection destroyed both of my fallopian tubes. One tube was removed as it was filled with infection after 6 months of antibiotics, the other was lost with a ruptured ectopic. This was just last September and as horrific as it sounds, the rupture and surgery were nothing compared to loosing the baby, that broke my heart, the surgery just "broke" my tube. After this I went on to have two more early losses from IVF, (the last being right after my husbands car accident by the uninsured motorist, two weeks ago). I'm not done yet. I will keep trying, but at what cost I must ask myself.

And here is where my question starts. Are there any really good reasons to rack up your credit cards and go into debt? I want to say yes. Having another child would be worth paying down debt for the next 100 years. I promise you I would never look at the child and say "you were not worth it". I can also imagine using your credit cards to pay for health care of a family member. There is really nothing I wouldn't do for my families health and safety wise. Money is just money. Easy come, easy go. You can always make more.

I used to be a very strict no debt, don't spend more than you make, suck it up, it's your fault you are in debt, kinda person. Having started the No Excuse Budget and thus hearing others stories has changed me. Having gone through this trying time in my life has taught me so much. I am a lot less judging and although I really feel like I can budget with the best of them, and I love my No Excuse Budget system, I also know that I can learn so much from others and that the No Excuse Budget is and will continue to grow from all of this. I still contend that we must be responsible for our actions and that there is No Excuse for not having a budget, but I understand that life throws curve balls and that we must adapt. There is trully nothing we can not overcome and there are no worthy excuses.

On another note, traffic to my website has grown a lot in just the past few months. What is especially noteworthy is that I have done next to nothing to encourage this. I have done no advertising. I have been spending all of my time focusing on making money to fuel my "have a baby addiction" so I was really surprised. The number one search term was "make a budget" and "survive a recession". This worries me. I've made it very clear that I think we are in a recession, at least in certain areas and I think more people are thinking the same way. I'll be adding a page to cover these topics on http://www.NoExcuseBudget.com in the next few days. In case you were wondering, the old terms that brought me the most visitors were "free budget worksheets" and "how to make more money".

So here is my question to all you die hard budgeters and frugal friends... is there ever a good reason to rack up your credit cards? Please share with me your thoughts...