Money Saving Tips

Thursday, May 27, 2010

Recession Causes and Stocks


The causes of recessions are crisis theory, financial crisis, currency crisis, overproduction, and underconsumption. I am not very sure what crisis theory is, but financial crisis is when a business or asset loses a lot of its value. A currency crisis is when a currency loses a lot of its value. Overproduction happens when a company produces too much of one product, so it can lose value (in terms of supply and demand, possibly expire, and become unusable. Underconsumption is when a buyers or customers in the entire nation don't buy enough of a certain single product, or just any product overall. This will cause a stop in the flow of money in the economy.

Dow +284.54/+2.85% 10,258.99
Nasdaq +81.80/+3.73% 2,277.68
S&P +35.11/+3.29% 1,103.06

Wednesday, May 26, 2010

Franklin D. Roosevelt, and Stocks


Apparently, Franklin D. Roosevelt made it so money was not backed by gold in 1933. I don't know what would happen had he allowed it to remain as it had, but it is most definitely different from what is now.

Dow
-69.3/-0.69%
9,974.45

Nasdaq
-15.07/-0.68%
2,195.88

S&P
-6.08/-0.57%
1,067.95

Tuesday, May 25, 2010

Value of the Dollar, and Stocks


The value of the United States dollar has been changing since 2002, but has gone up vs. the euro. Between 2002-2008, the U.S. dollar fell 40% in value. It went back up 22% in 2008, but fell another 20% in 2009. In 2010, it has risen 6% against the euro. In 2002, a euro was worth 87 cents vs $1.35 on April 17, 2010.

Dow -22.82/-0.23% 10,043.75
Nasdaq -2.60/-0.12% 2,210.95
S&P +0.38/+0.04% 1,074.03

Thursday, May 20, 2010

How To Help Your Economy and Stocks


1.Focus On Basic Expenses - Determine what you HAVE to have (food, shelter, clothing, transportation, healthcare) and don’t worry get distracted by anything else.
2.Pay Off Any Debt You Can Eliminate - If you owe any debts with small balances, pay them off so they can be gone for good. This will provide you with a psychological boost AND it will free up some cash in your budget.
3.Keep All Other Bills Current - More than likely, you are carrying debt on, at least, one account that is not a neccessity (credit card, cell phone account, installment loans). After the basics are paid, do whatever you have to do to keep all other bills current. This will keep you motivated and making financial progress.
4.Don’t Add To Your Debt Balance - Obviously, you cannot control the external factors that effect your finances. You can, however, control your debt. During the short-term, at least, commit to not adding additional debt to what you already owe.
5.Be Proactive - IF you find that you are falling behind and/or if you see that your finances will change in a negative way, make the first move. Use any “emergency” funds you have set aside and contact any creditors you may need to work with for payment modifications. They are more likely to be willing to be patient if they don’t have track you down!
6.Stay Home - One of the major expenses of family budgets right now is gasoline. Oil prices continue to set records and lots of Americans are not driving vehicles that are fuel-efficient. A great way to lower costs (and help the environment) is to stay home. Shop online, carpool and group your errands more efficiently so that you are spending less time on the road and less money at the gas pump.
7.Boost Your Income - Find some way to generate some extra income, even if it is temporary. Have a garage sale. Sell something on eBay. Volunteer for overtime. Get a 2nd job. Whether you put this money toward bills or use it to pad your emergency fund, it will be instrumental in getting you through the economic slowdown.
8.Don’t Wait On The Government - Yes, the government is going to send some help. Economic stimulus checks should start arriving in May. To make them most effective, you should have a definite plan for their use. Also, you can spend the time between now and then making adjustments to your budget to allow the stimulus check to truly be a bonus and not a “rescue”.
9.Make Small Sacrifices - Without question, everyone’s economy is facing some difficult days. The good news? Cutting back doesn’t have to be extreme. Making small sacrifices (i.e. taking lunch to work, cutting back on Starbucks runs, renting movies instead of going to the theater) will add up quicker than you imagine and you’ll find more room in your budget than you expect.
10.Stay Positive - This is not the first time the country has faced economic difficulties and it won’t be the last. That fact should give you a reason to maintain positive thoughts during this time. No matter how bad it gets; it’s temporary. Fair warning though…you may have to stop reading the paper and turn off the TV and Internet to NOT hear all the doom and gloom!



Dow-376.36 points, -3.60%.
Nasdaq-94.36 points, -4.11%.
S&P 500 -43.46 points, -3.90%.

Wednesday, May 19, 2010

The Start of the Economy and How it is Doing Now


Strong government regulation in the U.S. economy started in the early 1900s during the time of the Progressive Movement. Before this, the government was only promoting economic growth through protective tariffs. Progressivism is the advocation of change, the promoting of change or reform, through the political attitude. In other news, the economy did not so well today. Dow -66.58/-0.63%; now at 10,444.37
Nasdaq -18.89/-0.82%; now at 2,298.37
S&P -5.75/-0.51%; now at 1,115.05.

Tuesday, May 18, 2010

Economic Drop in 2008


The "recession" that began in 2008 started because investors lost faith in mortgage-backed securities, so there was a reduction the capacity of loans by banks. This most likely made people lose their jobs, so they couldn't pay for investments in mortgage-backed securities, making banks able to loan out less, and the cycle will continue for this and many other factors unless something is done. I am mostly sure something has been done, because that was 2 years ago, and our economy is back on track now.

Monday, May 17, 2010

Natural Disasters


There is a giant difference between the average damage done by natural disasters to developed nations vs. undeveloped. Developed is, on average per disaster, $318 million. For undeveloped, it is $28 million.

Friday, May 14, 2010

Debt


The United States is currenly $12,250,000,000,000.00 in debt. Don't worry, this probably isn't completely current, but it's a rough, close estimate. We'll get out of it. We have beaten every obstacle in our way previously, so we can get over this.

Thursday, May 13, 2010

Lowest Unemployment Rate


The state with the lowest unemployment rate is North Dakota. It is currently at only 4% unemployment. Also, this is my very first blog post for this blog. Congratulate me!