College Stimulus Plan

New benefits for college students which include an increase in Pell Grants and a higher education tax credit. Maybe this is the time to go back to school and learn new a school or further develop and existing one?



News Release

FOR IMMEDIATE RELEASE
STIMULUS PLAN OPENS COLLEGE DOORS TO MORE STUDENTS AND MAKES HIGHER EDUCATION MORE ACCESSIBLE

“And so tonight, I ask every American to commit to at least one year or more of higher education or career training. This can be community college or a four-year school, vocational training or an apprenticeship. But whatever the training may be, every American will need to get more than a high school diploma. And dropping out of high school is no longer an option. It's not just quitting on yourself, it's quitting on your country — and this country needs and values the talents of every American. That is why we will provide the support necessary for you to complete college and meet a new goal: by 2020, America will once again have the highest proportion of college graduates in the world.”
—President Barack Obama, Tuesday, February 24, 2008

IMMEDIATE RELEASE—During his address to Congress Tuesday evening, President Obama urged Americans to lead the world as the country with the largest proportion of college graduates by 2020. These remarks came after the recently signed American Recovery and Reinvestment Act (also known as the Stimulus Plan), which includes two provisions that will provide immediate impact and benefit to college students — an increase in Pell Grants and a higher education tax credit.

According to George Fogel, Rasmussen College, Inc. Vice President of Compliance and Financial Services, the new stimulus plan will benefit college students directly in several ways.

“The stimulus plan includes a $17 billion of additional funding for Pell, which increases the amount that an individual student may receive. Beginning July 2009, students will be eligible for up to $5,350 per academic year, which is up from $4,731. Additionally, in July 2010, Pell will go up again to a maximum of $5,550,” Fogel said.

Fogel explained the Higher Education Tax Credit as a tax credit plan that gives students a $2,500 tax credit every year for paid tuition, which is 40 percent refundable.

“The stimulus plan is opening doors to people who never thought they could afford to go to college,” Fogel said. “President Obama is making education more accessible to Americans, and our responsibility as educational providers is to offer options that will truly benefit our students and the country’s progress.”

Rasmussen College is currently evaluating potential new programs that will support President Obama’s vision for the future of the United States as an economic leader.

“Rasmussen College has been a leader in career-focused education for 109 years,” President of Rasmussen College Kristi Waite said. “We have seen the economy move in cycles, and we are able to consistently deliver academic programs that meet the needs of today’s changing careers. We will continue this progress as our economy evolves under President Obama’s leadership.”

Currently, Rasmussen College offers online and residential programs in the top leading employment markets including Technology and Design, Business, Education, Allied Health, Criminal Justice, and Nursing.

To schedule an interview with a Rasmussen College official, or to get more information on the Stimulus Plan and its impact on higher education, please email Media@Rasmussen.edu. For more information on Rasmussen College, please visit www.Rasmussen.edu. To read the American Recovery and Reinvestment Act, please visit http://appropriations.house.gov/pdf/RecoveryBill01-15-09.pdf.

-30-




ABOUT RASMUSSEN COLLEGE
Founded in 1900, Rasmussen College is a regionally accredited institution of higher learning dedicated to the growth and development of its students, employees and the communities it serves. Rasmussen is a premier provider of career-focused educational experiences serving more than 12,000 students through a network of 15 Rasmussen College campuses in the Midwest and Southeast and virtual campuses operated by its Deltak Edu division. Through these campuses, Rasmussen is able to offer students a broad range of quality programs ranging from certificates to Master’s focused on the areas with the greatest occupation opportunities. To learn more about Rasmussen College, please visit www.Rasmussen.edu.

Atlas Shrugged: From Fiction to Fact in 52 Years

Did you catch the headline in USA Today about Obama limiting executive pay to $500,000 a year for companies receiving federal assistance? I was just about to write yesterday about how livid I was reading how Citibank spent $50M on a private jet after receiving $45B in federal bailout funds of our tax payer money. Since I helped pay for their jet, do you think they will give me a lift to New York for my next business meeting?

I read this Wall Street Journal article yesterday titled Atlas Shrugged: From Fiction to Fact in 52 Years. My husband asked me when Atlas Shrugged was written because he started to get the eerie feeling that it was a prophecy of our current time. So I googled it and the WSJ article appeared.

I am starting to a feel a bit torn between two sides: those of the brilliant minds and those on the side of socialistic fairness. I can't exactly articulate what that means right now without setting off a series of flame-mails. And some coming from my dearest friends who seem to have sworn off personal wealth in the name of fairness. Being Ms.Money means I will never do that. If I make less money does not mean the world will be better off. In fact, the more money I make, the more money I give away. For every $2 of disposable income I spend personally on myself for my own gratification, I give $1 to charity (to help make the world a better place).

Let's suffice it to say, I have been an entrepreneur for most of my working career and if the government started to limit how much money I made, I might stop being an entrepreneur and go live in an Ashram. After all, why take the big risks if there is no big rewards. I think there is a lovely little community nestled in the hills of Colorado (with Harry Potter's visibility cloak covering it up so no one can find me and the other creative fun entrepreneurs) just waiting for me to go flip tofu burgers and do yoga all day in peace and quiet versus the chaotic stressful life of an entrepreneur helping to advance the world in a myriad of ways.

Ok - I would be happy making $500,000 a year and still be an entrepreneur so those executives better not be whining about any pay cuts during these tough times.

Atlas Shrugged was the most influential book of my early 20's as I was starting my entrepreneurial life. The heroin was a woman too. Read it ... it might change your opinion about "fairness" and "brilliance" in a way you never thought possible.

Globat.com Fraud - Do Not Give Your Credit Card Number

Globat.com advertises they will register a domain names for $7 and then illegally uses your credit card to charge you $49.95 several times a month for what they call upgraded hosting whether you signed up for this service or not. I was charged $49.95 twice in one day and $49.95 a week earlier. I am sure they would have continued charging if I had not seen it on my statement and complained.

Call Visa International to file a complaint: 800-847-2911
Call Mastercard to file complaint: 800-622-7747
Call Your State Attorney General to file a complaint also. You can get their number online.

Green to Gold: How Smart Companies Use Environmental Strategy

I finished the book last week: Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage, a timely book by Daniel C. Esty and Andrew S. Winston. The authors have captured the most effective ways to "green" your business and stay ahead in the environmentally conscious business trends.

With the depressed economy wearing heavily on the minds of business leaders, there couldn't be a better time for this book to come out. A common misconception is that going green consumes a lot of green backs to accomplish. This doesn’t have to be the case. Executives who can see the forest through the trees realize there is a pot of gold at the end of the rainbow. They only have to creatively devise a strategy to create conditions that cause rainbows. Though it may take time, energy and research, it doesn’t necessarily have to consume a lot of cash.

We know how difficult cash is to come by with the credit crunch not only hitting consumers, but also affecting companies. As consumers turn greener and greener they are demanding the products they do actually open their wallets for should be consciously produced. One way for companies to gain a competitive advantage in the minds and hearts of consumers is to pay attention to their environmental footprint on the earth and to minimize their overall detrimental impact. In the end then, everyone wins: the company, the consumer and Mother Earth.

I have included an excerpt from the book below that outlines ways in which companies can jumpstart their greening process through smart partnering.

The Leading Guide to Driving Growth and Profits Through Green Strategy -- Now Revised and Updated

Two experts from Yale tackle the business wake-up-call du jour-environmental responsibility-from every angle in this thorough, earnest guidebook: pragmatically, passionately, financially and historically. Though "no company the authors know of is on a truly long-term sustainable course," Esty and Winston label the forward-thinking, green-friendly (or at least green-acquainted) companies WaveMakers and set out to assess honestly their path toward environmental responsibility, and its impact on a company's bottom line, customers, suppliers and reputation. Following the evolution of business attitudes toward environmental concerns, Esty and Winston offer a series of fascinating plays by corporations such as WalMart, GE and Chiquita (Banana), the bad guys who made good, and the good guys-watchdogs and industry associations, mostly-working behind the scenes. A vast number of topics huddle beneath the umbrella of threats to the earth, and many get a thorough analysis here: from global warming to electronic waste "take-back" legislation to subsidizing sustainable seafood. For the responsible business leader, this volume provides plenty of (organic) food for thought.

Eight Lessons Learned on Partnering
by Daniel C. Esty and Andrew S. Winston,
Authors of Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage


In analyzing dozens of partnerships, some successful -- and some less so -- we've identified the following series of fundamental lessons.

1. KNOW YOUR OWN SITUATION WELL BEFORE PICKING AN APPROPRIATE PARTNER
Be clear on your environmental issues when you sit down with others. AUDIO analysis is a good place to start. Then educate yourself on your business's key problems, and learn which groups specialize in the issues you face.

2. KNOW WITH WHOM YOU'RE DEALING
All partners, especially NGOs, are not created equal. Sustainability expert John Elkington has developed a playful, but useful, typology of NGOs. He breaks them into sharks, orcas, sea lions, and dolphins. Sharks are always on the attack, smelling blood and weakness from miles away. Orcas use fear and bullying. Sea lions play it safe and stay close to issues they know well. Dolphins are intelligent, creative, and can help fend off sharks. The point is that some NGOs are easier to work with than others. Avoid the sharks.

3. BE PATIENT
If we could share only one lesson, this would be it. Trust builds over time. It can take years to make the case internally for reaching out. As Chiquita's Dave McLaughlin says, "We aren't making Tang here. It isn't just 'add water and stir.'" Nurture long-term relationships.

4. LEARN EACH OTHER'S CULTURE AND VALUES
IKEA spent six months with World Wildlife Fund just discussing values before launching a partnership. The differences between for-profit and not-for-profit organizations can be large, but different values and cultures are not insurmountable. Still, it takes effort to learn to talk the other guy's language.

5. SET WORKABLE GOALS
Partnership goals need to be carefully developed and specified. They must achieve environmental progress that satisfies all the partners but also be relevant to and supportive of core business objectives. Set modest short-term goals and exceed them. And never overpromise publicly.

6. ESTABLISH CHAMPIONS
Each partner needs a clear operational leader for the project and relationship. Backing from the highest level is also vital. IKEA reports regularly to the CEO on its World Wildlife Fund partnership. You also need critical line managers to climb art board. McDonald's work on its supply chain took off only when the supply chain managers, not just the corporate responsibility people, stepped into the process.

7. THINK BIG, BUT START SMALL
The commitment to green the supply chain is a worthy goal, but it can't be done overnight. Pilot programs provide a way to test assumptions, establish trust, and build base for bigger and broader future partnership initiatives.

8. COORDINATE COMMUNICATIONS
Great partnerships can turn sour very quickly when one side prematurely declares victory. NGOs see greenwashing and companies hear gloating. You can't assume that the way you would talk about an issue is how the other side would. In the same spirit, don't announce environmental breakthroughs until you have credible evidence of progress.

Copyright © 2009 Daniel C. Esty and Andrew S. Winston


Author Bio
Daniel C. Esty, co-author of Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage (Published by John Wiley & Sons, Inc.; 978-0-470-39374-1), is the Hillhouse Professor at Yale University and Director of the Center for Business and the Environment at Yale (www.yale.edu/CBEY). Author and editor of nine books and dozens of articles, Dan is one of the world's leading corporate environmental strategy experts with twenty years of experience working with companies of all sizes and across many industries worldwide. He served as senior official at the U.S. Environmental Protection Agency in the early 1990s and is presently Chairman of Esty Environmental Partners (www.EstyEP.com).

Andrew S. Winston, co-author of Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage (Published by John Wiley & Sons, Inc.; 978-0-470-39374-1), advises some of the world's leading companies on how to profit from environmental thinking. He is also a highly respected and dynamic speaker, exploring the business benefits of going green with audiences around the world. Andrew's earlier career included corporate strategy at Boston Consulting Group and management positions in marketing and business development at Time Warner and MTV. See www.andrewwinston.com for more information.

Reviews
"Green to Gold provides the definitive thinking on how business leaders can address environmental issues."
--Michael E. Porter, Professor, Harvard Business School

"The future of our country depends on getting on a sustainable track . . . Green to Gold blazes a trail for businesses of all kinds to follow."
--Michael Morris, CEO, American Electric Power

"Rich with both big-picture thinking and practical suggestions."
--Larry Linden, Advisory Director, Goldman Sachs

"A compelling blueprint for how companies can address critical environmental problems."
--William K. Reilly, former Administrator, U.S. Environmental Protection Agency

"Green to Gold is a must-read for the twenty-first-century CEO."
--Tensie Whelan, Executive Director, Rainforest Alliance

"No executive can afford to ignore the Green Wave sweeping the business world. This book shows how to make sustainability a core element of strategy -- and profit from it."
--Chad Holliday, Chairman, DuPont

Legal Guide for Busy Parents

Wear Clean Underwear!: A Fast, Fun, Friendly and Essential Guide to Legal Planning for Busy Parentsis a terrific book written by California lawyer and mom, Alexis Martin Neely (and fellow champion of women financial empowerment).

The book today launched at #1 in all their categories and #2 on the Movers and Shakers list. It is a must read for you.

Alexis's heartbreaking depiction of what will happen if you don't designate guardians for your children is enough to make you cry. In fact, that is exactly the type of story people need to read to propel them into action. You love your children and want them to thrive not just survive if you don't. Stop procrastinating and buy this terrific book to learn what to do in case the unthinkable were to happen.

For less than $15, you will not only get the straight information on everything you need to know to legally plan for the care of your kids and your money, but you will also get over $3000 worth of bonus gifts that Alexis has put together for you. But, to get the bonuses, you've got to buy the book TODAY!

And, don't think this book is going to be depressing, hard to read or full of legal jargon. It's just the opposite! As you can tell from the title, Alexis has made this topic entertaining,interesting and, yes, even a little bit fun.

By using an easy to read story-based format, Alexis walks you through three stories that guide you to all the right answers for your family.

Her book is a fast read and when you are done, you will know the exact next steps on what you need to do to make life as easy as possible for the people you love most if you were in an accident.

By the end, you will know exactly how easy it can be to legally plan for your family and she even gives you tons of free resources to get you started or fix what you've already got in place. This is a book you must read even if you think you've gotten everything taken care of.

Alexis discovered that of the 30% of parents who have taken action to legally plan for their kids and their money, most have made at least 1 of 6 common mistakes.

So, whether you've done legal planning or not, get a head start and order "Wear Clean Underwear: A Fast, Fun, Friendly - and Essential - Guide to Legal Planning for Busy Parents" right NOW by following this link to Amazon:

Wear Clean Underwear!: A Fast, Fun, Friendly and Essential Guide to Legal Planning for Busy Parents,

America Saves Week & Wachovia

Photos: Dr. Melveaux catching money for charity.

I had the chance to speak with Dr. Julianne Melveaux, who is an economist, author and commentator, and President of Bennett College for Women. She was at the Wachovia America Saves Week event in Union Square San Francisco. I was inspired by her passion to help under-represented communities such as men and women of color build wealth.

America Saves is a national campaign involving more than 1,000 non-profits, government and corporate groups that encourages individuals and families to save and build personal wealth. www.americasaves.org

I went down to Union Square to partake in some of the activities for America Saves Week last Thursday. It was one of those gorgeous and sunny (nearly 70 degree days) where you just don't want to be sitting in the office. Wachovia made a big splash there with their money machines, giving participants the opportunity to catch as much money as possible to win $2,000.

The charity that Dr. Melveaux caught her money for was EARN. I has the opportunity afterwards to interview the founder Ben Mangan. I had been hearing about this new non-profit startup for years from my friend Alissa Lee who joined their Board of Directors. EARN breaks the cycle of poverty by matching the savings (2:1)of low-wage workers and helping them invest in assets that build wealth, creating a cycle of prosperity across generations. Catch my interview clips of Ben on YouTube: (less than a minute each)
EARN1, EARN2, EARN3

Wachovia gave EARN a $5,000 check. This was on top of $150,000 they gave to EARN last year. Thanks Wachovia! I truly believe in EARN's misson and Ms.Money is donating content to help educate their communities. Watch the video clip of the head of community banking presenting the check to Ben.

I also interviewed Jim Foley, a retail banking executive with Wachovia who described Wachovia's Way2Save(SM), a new savings program that makes saving automatic by allowing you to set up to a $100 a month to be automatically transferred in addition to $1 for every time you bank online or use your ATM or Visa card.

Jim talks about the savings crisis in America in this video.

Jim also discusses the results of Wachovia's survey on American's savings and how women differ from men and what Wachovia is doing to address women's needs specifically.

I feel one of the best ways for Americans to save, who normally have trouble socking some money away, is to do it automatically. If you don't have the money in your hands, you are less likely to spend it. Wachovia's product is a great way to get the savings ball rolling and on the path to financial prosperity for millions of Americans.

Thanks also to Wachovia for recognizing that women's financial needs are in fact different from mens'! (And offering services to meet those needs). You can read Wachovia's survey below.

________________________________

MEN MORE LIKELY THAN WOMEN TO SAY
THEY ARE SAVING ADEQUATELY

Women Less Likely Than Men To Cite “Impulse Spending” And
“Spending To Feel Good” As Barriers To Saving

Washington, DC – In survey research recently undertaken by Wachovia and the Consumer Federation of America (CFA), more men than women said that “impulse spending” and “spending to feel good” were barriers to saving.

“We were quite surprised to learn that men are more likely than women to believe their impulsive shopping hinders saving,” said Kathryn Black, SVP and Savings Director for Wachovia. “After all, there is a powerful stereotype in our society that women are least likely to exercise restraint in shopping.”

The survey was designed and analyzed by Wachovia and CFA from data collected by Opinion Research Corporation in interviews conducted November 8-12 of more than 2,000 representative adult Americans. The margin of error was plus or minus two percentage points.

Men More Likely Than Women To Report They Are Saving Adequately
Men are more likely than women to say they are saving adequately. Forty-eight percent of men, but only 43 percent of women, reported that either they are “saving adequately to meet all their financial needs” or “have already saved enough to meet their needs.” Moreover, 20 percent of women, but only 14 percent of men, say that they “cannot afford to save at the present time.”

When asked how adequately they have saved for specific goals, again more men than women report that they are saving adequately:

• 72 percent of men but only 64 percent of women say they have adequate savings to pay for unexpected expenses.

• 62 percent of men but only 55 percent of women say they have adequate savings to pay for several months of regular expenses if a job is lost.

• 55 percent of men but only 51 percent of women say they are saving adequately for retirement.

The key factor accounting for these differences is disparity between economic status. More women than men cite, as barriers to saving: low or unreliable incomes (48% versus 40%), large regular expenses (39% versus 34%), and unexpected expenditures like car repairs (39% versus 34%). Other research indicated that these economic differences are not just perceived but are real.

“The correct perception of women that their financial status is less secure than that of men explains much of the differences in saving adequacy,” said Stephen Brobeck, CFA’s Executive Director.

Women Less Likely Than Men To Cite Social And Psychological Factors As Barriers To Saving

The perception held by some that women are more likely than men to be impulse shoppers was not supported by the Wachovia-CFA survey. Thirty-nine percent of men, but only 34 percent of women, said that “impulse spending on things like entertainment and clothes” was a reason they have difficulty building savings.

And women are also less likely than men to say that “spending to feel good” is an important barrier to saving – 26 percent of women but 34 percent of men. Moreover, fewer women than men (6% versus 10%) reported that playing the lottery or gambling discouraged saving.

“There are two competing stereotypes about differences between women and men in their shopping habits,” noted Wachovia’s Black. “One is that many women have more trouble than men restraining their impulse to buy things while the other is that women are the ones most carefully managing family expenditures. Our research suggests that the second stereotype is more accurate than the first.”

Research Supports CFA-Wachovia Savings Education Program To Be Launched During America Saves Week

The survey’s findings of savings inadequacy among both women and men support a new savings education program that CFA and Wachovia will launch throughout Wachovia markets during America Saves Week beginning February 24. This program will be one of many savings activities undertaken by hundreds of government, non-profit, and business groups during the Week. The 2007 America Saves Week last February was a pilot program in which national organizations, such as the Federal Reserve Board, Department of Defense, Internal Revenue Service, Cooperative Extension, and United Way, participated.

“In 2008, we are expecting significant participation in the Week by hundreds of national, regional, and local organizations,” noted CFA’s Brobeck. “In several years, we hope that during America Saves Week, thousands of organizations will persuade and assist millions of Americans to evaluate and improve their savings capacity.”

*****************
Wachovia Corporation (NYSE:WB) is one of the nation’s largest diversified financial services companies, with assets of $754.2 billion and market capitalization of $95.3 billion at September 30, 2007. Wachovia provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services to 13 million household and business customers.

CFA is a nonprofit consumer organization that, since 1968, has sought to advance the consumer interest through research, education, and advocacy. It manages the America Saves organization and, with the American Savings Education Council (ASEC), the America Saves Week.

Ready to buy that $700 Gucci Purse?

My original emotional response when I heard that Gucci was opening its largest store in the US was that they were being insensitive to the crisis so many American's are facing right now as worries of the economy weigh heavily on everyone's minds.

Whether you are a stock trader on wall street wearing Gucci shoes or a Gucci Purse toting soccer mom worried about making your mortgage payment, the economess is making you think a little more about where you are spending your money (and how others are spending theirs). You don't want to be bragging about your $10,000 shopping spree at Gucci when your neighbor just lost six figures in the stock market that day.

It appears that Gucci recognizes the backlash from the public of promoting the frivolous of their luxury goods at a time when America is deeply pensive about the problems it faces from electing a new President, the war, and the economy. As a result they are promoting their big 46,000 megastore launch in conjunction with a celebrity party featuring Madonna, Sting, Alicia Keys and dozens of Celebrities to raise money for Madonna's charity Raising Malawi and UNICEF.

Otherwise I think the attending celebrities, who are more in tune with America's national situation than a French Conglomerate touting an Italian Brand, would be more reluctant to celebrate the superficiality of this luxury super-brand knowing the distaste it might leave in their fan base's mouths because the timing is so off.

With Gucci's sales last year in China being up 130%, you have to wonder why they would choose New York as the destination for the largest store. With bonus cuts and job losses not just in New York, but across the country for what I might call the low to mid-wealthy, you have to wonder if they are really going to be in the mood for the Gucci warehouse of goods. The uber-wealthy are certainly recession proof when it comes to luxury goods but that only makes up a fraction of Gucci's overall sales. Even I have a Gucci purse and I certainly am not uber-wealthy.

Even Mark Lee, Gucci's CEO, when he talks about the launch of the Gucci department store is sure to focus the attention away from the glamour of the launch party onto the charitable reasons of solving some of the world's global problems. Mr. Lee points out that he understands Gucci is in a position to give back charitably and therefore they do the right thing.

But is he doing the right thing? Not just from a business perspective but from a public perception perspective. Just because they are selling a Limited Edition Gucci I love NY bag for $700 where 100% of the profits are going to Central Park Conservancy, doesn't mean they diffuse all the negative sentiment around the timing of their store launch.

Gucci's CEO says that he doesn't feel Gucci is reliant on American sales as they used to be because of emerging markets like China and India. I am not so sure. I think foreign companies underestimate the global market impact if we enter a recession. I believe everyone will suffer, including luxury brands whether they have strong international sales or not.

It is a wise choice for Gucci to focus on China and India where the population isn't as interested in being as socially responsible or "green" as we are in the US since Al Gore popped on the green scene. Well at least I like to think we are becoming more socially conscious. We are - aren't we? I know I am. What about you?

Developing countries are still seeking out ego fulfillment and are building their own identities as a people by associating with already identified world brands. The are probably thinking, if I wear Gucci, Prada, Boss, that I have "arrived" to the coveted place of International success.

With America's focus these days on solving the climate crisis and other social issues, it is becoming cool to shop responsibly. Which might mean instead of buying 4 Gucci purses customers might only buy 3 and make sure one of those purses has all the profits go to charity. That still leads to a 25% drop in sales (3 purses vs. 4). Or they might not buy any at all. And where would that leave the new Gucci warehouse? Probably looking for an even bigger space in Dubai or Delhi.

Wealthy Girl Summit a Huge Success

If you missed it this past weekend, no worries. You can buy the entire 4 days of audio and video from the conference and receive dozens of hours of expert advice on how to jump start your career, manage your money and start on the path to a million dollars.

I was impressed with the lineup of speakers that shared the panel with me. Below are just a few of these superstar women.

Christine Comaford-Lynch author of Rules for Renegades

Loral Langemeier author of The Millionaire Maker.

Sanyika Calloway Boyce creator of the "Beyond Money Principles"

Adryenn Ashley - an asset protection specialist (I Like that!) and now a promoter of business women helping turn them into celebrities.

Elizabeth Potts Weinstein - founder of The Wealth Spa.

Gina Stern - the brainchild behind d-parture spa - a spa created to meet the mind-body needs of time-poor and world-weary travelers making their way through airports.

Alexis Martin Neely - transforming family law by teaching her Family Wealth Secrets.

Maryanne Comaroto - A Relationship Advocate author of Skinny Tan and Rich.

Special thanks to Alicia Dunams Founder of the Wealthy Girl Summit 2008, Alicia Dunams is a successful model and single mom turned entrepreneur, real estate investor, author and success coach. She’s the author of Goal Digger: Lessons Learned from the Rich Men I Dated, www.goaldigger.com.

Buy the DVD collection today at Wealthy Girl Summit.

Dangers of Au Pair Care

I have been writing about the hidden costs of Au Pair, as well as the dangers of leaving your child with a stranger that may have not been properly screened by the international hiring agency or the American agencies. It appears to be standard policy with many Au Pair agencies to NOT inform new families of any problems the Au Pair had with a previous family, which could lead to a dangerous situation and in essence hold the Au Pair care agency liable for any damage done.

If you read through the nearly 100 families that have commented to my previous blog The High Cost of Au Pair Care, you will see that the system isn't working very well and could use a reform.

I think one of the main problems is that families pay the Au Pair agency all 12 months of the Au Pair fees up front, instead of monthly when they pay the Au Pair. The agency fees are roughly equivalent to what the Au Pair receives. If it was a pay as-you-go-model then it would create an incentive for the agencies to better manage the Au Pair/family relationships and prevent a lot of the problems that are occuring and we read in the posts.

However, this hasn't happened yet.

I felt that a post by Monica Briens to my previous blog should be highlighted

Monica Briens is calling for more governmental reguation, which might solve the problem another way. If you are interested in participating please contact Monica directly at monica.briens@gmail.com. Please keep this post updated with any of your comments so that the public can stay aware of the progress.

My goal is to help the Au Pair system THRIVE and allow Au Pairs, Families and children to build loving relationships. Perhaps this blog will help figure out a way for that to happen. As it is now, the Au Pair system appears to be flawed. However, with a little help, we can work together to fix it so everyone benefits.

Monica's Post:

I just found this blog now, and would like to ask if anyone would be interested in commenting on a piece we are putting together around some of the systemic issues across au pair programs. Some of the issues are serious.

Specifically, this is a piece on a number of federal government regulators and how they lack the manpower, authority, and management required to govern the entities they are charged with overseeing. The State Department and the cultural exchange program is my beat. With the election year, politicians have addressed the program issues regarding illegal immigration for which the au pair program has been identified as a path for illegal immigration.

Additionally, other systemic program issues have been raised such as child welfare issues, negative impacts to U.S. diplomacy and false advertising practices locally and abroad. Questionable profit driving methods that compromise child safety have also been raised. Many charge this a money making program, quite in contrast to the cultural exchange program for which the agency's receive a privledged status of from Congress.

There is talk on the hill regarding changing program status and this is the motivation for the coverage.

If you would like to comment in any way, or have any information you'd like to share, please email me at:

monica.briens@gmail.com

Tiffany Bass Bukow Joins Marci Shimoff, featured in The Secret at Wealthy Girl Summit

If you would like to join in the Webinar at the Wealthy Girl Summit for this Sunday only from 6-8pm, I was able to get a special rate for my MsMoney readers of only $97!

This will allow you to view the 2 hour event and give you ...
drum roll please ... $2,500 in Bonus Gifts, including something from yours truly.

Buy Tickets through this link only Wealthy Girl Summit and use the MsMoney Promo Code: LIVE

Here is the Ms.Money Press Release that went out today about the event. You can also find here: http://www.shinemedia.com/wealthygirlsummit.htm.

For_Immediate_Release:
January 23, 2008 -- Tiffany Bass Bukow, a 4-time entrepreneur who has raised millions from the venture capital community to create successful companies, is joining a panel of wealthy women revolutionaries who have transformed the way American Women look at wealth building.

Ms. Bukow joins Marci Shimoff, featured in The Secret, to share her beliefs in how you can use the laws of attraction to obtain abundance and achieve the life of your dreams. Ms. Bukow shares her story about how she turned her vision of having the First Lady Hillary Clinton at the launch of MsMoney.com into a reality and a multi-million dollar PR benefit.

Ms. Bukow also joins other successful women entrepreneurs who will share their stories on how they attracted their first million for their business and their lives.

All this takes place at The Wealthy Girl Summit, hosted by Alicia Dunams, the Author of Goal Digger, in San Francisco from January 24th-27th, 2008. Participants can view online or attend the live San Francisco taping on Sunday January 27th.

Tiffany Bass Bukow will be speaking 3 out of the 4 days at the conference on the strategies, tips, and tools to help you on your path to accomplishing your financial goals, how to get retirement planning on track, and on building, creating, marketing and leveraging your business to become a millionaire.

You can purchase tickets for the Wealthy Girl Summit at www.msmoney.com

______________________________________

About MsMoney.com
MsMoney.com teaches people the fundamentals of financial health, wealth building, career expansion and life skills that relate to money issues. MsMoney.com Inc. not only provides content on consumer Web site, www.msmoney.com, they also offer specialized consulting services and customized content to others who want to build online financial education centers. MsMoney's clients include Wells Fargo, Peoples Bank, Guardian Insurance, Patelco Credit Union, Harmoney.com and others.

About Tiffany Bass Bukow
Tiffany Bass Bukow is an experienced social entrepreneur whose businesses have revolved around positive societal metamorphosis. She has focused her attention on empowering women and families to live healthy, happy, peaceful and financially secure lives. In the last 10 years, Tiffany has raised money from investors within the venture capital community to implement her life's passions into self-sustaining companies that have a philanthropic focus.


# # #

Listen to Ms.Money Speaking Online Jan 25-27

Tiffany Bass Bukow is speaking this Friday January 25th and Saturday January 26th, 2008 and then a live video presentation Sunday January 27th. Buy tickets today.



Have you ever wanted to become your own millionaire?

ANNOUNCING: Wealthy Girl Summit, January 24-27, 2008

This 4-day virtual conference features the most successful wealth experts and strategists, all of whom are women, who will reveal the critical components and strategies of wealth creation and how they all work together to bring tremendous riches in all areas of life.

This event equips you with both the mindset and knowledge to get what you want, financially and emotionally.

Visit http://www.wealthygirlsummit.com/ to buy tickets right now.

Here’s just a sip of what you’ll learn:

How to invest for your retirement based on your individual circumstances so that you’ll be prepared for abundance in your retirement years.

How to clean-up your debt, improve your credit ratings and access money-saving loans so that you have the financial leverage to invest in what is most important to you.

The nuts and bolts of setting up a company so that you can stop trading hours for dollars and begin making money while you’re on vacation.

What it takes to become a savvy real estate investor with no money down, using other people's money and other real estate investment strategies.

The simple keys already at your fingertips that are the foundation to building all wealth.

January 25th - Friday 6pm - 8 pm PST - 2-hour Live Teleseminar

Personal Finance
with Tiffany Bass Bukow, Sanyika Calloway Boyce, Adryenn Ashley, Alexis Martin Neely, and more

You will learn:

The importance of FICO scores and how to clean up your debt to access money saving loans.
The strategies, tips, and tools to help you on your path to accomplishing your financial goals.
How to protect your assets from your future husband's ex-wife and other pre-nup must-knows.
Estate Planning?!? But, I'm only 35! Secrets of the Old Rich Guys Revealed

January 26th - Saturday, 4pm-6pm PST

Financial Planning
with Tiffany Bass Bukow, Elizabeth Potts Weinstein, and Michelle Alberada

You will learn:

How to self invest for your retirement based on your personal circumstances.
About 401Ks, IRAs and other tax-deferred vehicles that will prepare you for abundance in your retirement years.
Day 4:


January 27th - Sunday, 6-8pm PST Recorded (LIVE 12-2pm PST)

2 Hour 'Entrepreneurship' Webinar “Million Dollar Entrepreneur”
Virtually sit in on a round table discussion with our outstanding speakers: Christine Comaford-Lynch, Loral Langemeier, Tiffany Bass Bukow, Sanyika Calloway Boyce, Michelle Alberda, Elizabeth Potts Weinstein, Adryenn Ashley, Alexis Martin Neely, and Gina Stern as they discuss the critical components of entrepreneurship and making your business a million dollar business.

You will learn:

Business basics, like how to write a business plan, how to find investors and what type of investors are right for you, and how to set up a company.
Brand development and marketing strategies
How to develop a leveragability model and a financial exit strategy
The nuts and bolts of setting up a company so that you can stop trading hours for dollars and begin making money while you’re on vacation.
How to work ‘on’ your business, not ‘in’ your business
Plus, much, much more.

What Does a Weak Dollar Mean?

We need to keep a sharp eye on inflationary pressures even though the economy might be slowing down. The reason is that foreign goods will become more expensive for us and we all know how much we are addicted to Walmart and those Chinese Lead Laced Toys (I should say former "lead-laced")

Inflation is the number one enemy to bonds investors since rising prices chip away at fixed-rate returns. When choosing stocks, it might be wise (talk to your financial advisor) to favor companies that derive some of their revenues internationally (assuming their businesses are not hurt by the weakened dollar). If Europe is offering higher interest rates in some of the financial vehicles and the US is still at the bare bottom, talk to your financial advisor about putting some of your cash there.

A weak dollar could lead to inflation. Inflation can then lead to higher interest rates in an effort to control business activity, however there is a balance that needs to be maintained between stimulating growth and controlling it. How much does the Fed need to cut rates to stimulate growth without sending inflation through the roof? Perhaps another full point, since the last full point didn't do much. As a 4-time entrepreneur, I know I want to be able to get my hands on "cheap money" when I am expanding my business or starting something new and so far I haven't been very motivated to make a big expansion leap.

The upside to the dollar's downslide is that are the US trade deficit is the lowest it has been in years. However, the high price of oil is dampening the overall rise or exports. China has purposely devaluated the yen in order to spur more of their exports. It seems to have worked for them hasn't it? Can you find anything not made in China? Now as more Chinese are looking to obtain the American lifestyle, it will be interesting to see how they manipulate their monetary policy.

Retirement Savings a Challenge for Most

We are of the most educated countries in the world and yet we are severely lacking in financial literacy. As a result most people have no idea how much money they need to save for a retirement. Here are a few of the common mistakes that people make:

* Overspending
* Not putting together an automatic savings plan that goes straight into a savings account you don't touch until you retire
* Not maximizing their IRA or 401k's (especially those that match funds)Thinking they will live shorter than they actually do
* Assuming the government will take care of them
* Assuming their family will take care of them
* Underestimating the impact of inflation
* Underestimating how much money they will need
* Underestimating what their health care costs will be during retirement and what coverage they will have

* Not diversifying their portfolio to allow for more risk early in their savings career
* Not working with a financial professional
* Not providing for a spouse after their death

Who is to blame?

* Those with scant nest eggs should blame themselves when it comes to poor savings habits.
* The government could have stimulated more saving early on with additional tax incentives.
* Corporations could have motivated more people to save by matching 401k funds.
* Educational systems could have provided more personal finance education during our learning years.
* Financial service companies could have spent more money educating their customers about retirement and selling the correct basket of products that would help them create this goal.
* Corporations could have left pension plan funds alone during
bankruptcy (instead they siphoned them off leaving seniors in the lurch).

I don't think it is ever too late to right the ship. One might not be sailing at full speed and be able to retire early or all, however with a good holistic financial plan matched with one's life goals, it is possible to live a happy life. It might mean cutting back to some of the bare necessities in life and foregoing the extras. With a good attitude, a savvy shopping strategy and the ability to courageously make some serious life changes, one can turn a bad retirement situation around.

By 2044, the ratio of workers to retirees could be 2:1. In 2000 it was 3:1.
This will be a heavy burden on the Gen-X/Yer's to cover retirement benefits,
health care coverage and nursing homes for the elderly.

My hopes are that Gen-X/Yer's will rise to the challenge and start socking away more money than their parents did at an earlier age so they can see the benefits of compounding interest and have the ability to take a higher risk. However, we just are not seeing that happen. They are trying to save for their children's college and caring for their parents at the same time as saving for their own retirements. With the rising costs of college and health care for their families as well as the financial burden of elder-care, they aren't coming up with a whole lot of money left over at the end of the month.

These generations did not grow up with the thought that government would take care of them and will most likely treat Social Security as a bonus, if they receive any at all. This should be a big motivator for them to take control of their own financial situation and take advantage of the tax incentives for long term saving and investing. I think it general this crowd is able to adjust to change better than previous generations and will treat retirement as an opportunity to explore new less demanding careers that will still bring in some sort of cash flow during those golden years (since they probably won't be able to afford not working at all).

If you want to see my one hour presentation on Retirement (and powerpoint) I
did a few months ago in front of a live audience of 300 visit:
http://www.msmoney.com/harmoney1.htm

Affordable Health Care for Everyone?

Ahhhh Healthcare ... one of my favorite topics as Ms.Money. I just finished a month long investigation into the world of health care insurance and was shocked by what I found. It is not unusual for a 3-person family to pay $1,500 a month for insurance (and not very good insurance at that). That is $18,000 a year. Post Tax! This means many families have to make $30,000 extra just to be able to afford health insurance. I am a proponent for tax credits. It is no wonder 44 million Americans don't have access to health insurance.

I think a hybrid system between the government and private business would work well. Private companies can't be trusted alone, and government doesn't have the expertise to manage the humongous operations of Universal Healthcare. Operating revenue for Kaiser alone is $10B a quarter.

California State health regulators fined Health Net Inc. $1 million Thursday for lying to investigators about paying employees bonuses based on the number of contracts they canceled after those policyholders got sick. Also fined were WellPoint Inc., the parent of Blue Cross of California, $1.2 million and Kaiser Permanente $325,000 for improperly canceling policies. The biggest offender is Blue Shield (my main insurance carrier for the last decade) California State's insurance commissioner is seeking a $12.6 million penalty against Blue Shield, claiming the health insurer unfairly canceled members' medical coverage and improperly processed claims.

An examination of data released i by the Department of Insurance revealed more than 1,200 alleged violations of law, resulting in more than 200 people losing their coverage after they submitted claims for medical treatment.

"Blue Shield committed serious violations that completely undermine the public trust in our health care delivery system," Commissioner Steve Poizner said in a statement.

I filled out the forms for Kaiser and Blue Shield and they are very confusing and open to multiple interpretations. I could see how they purposely keep the questions vague so that they have a case to discontinue health insurance if a big claim comes in.

You might think you have health insurance, when in fact, when it comes down to it and you have a life- threatening illness and you need treatment, you may be denied and have your insurance cancelled.

If the costs are not kept down - somewhere below $1,000 a month per month, American's still will not buy it, so it is critical to come up with a price point people can afford.

I like the idea of what San Francisco is doing with its Universal Health Care plan:

Healthy San Francisco is the first of its kind in the nation and is widely viewed as a model for local and state efforts to expand health coverage in the absence of national legislation.

When fully ramped up, the plan is expected to cost $200 million a year and is due to be paid for with a mix of city and state funds, quarterly premiums and co-payments paid on a sliding scale by participants, and contributions by employers who don't offer health insurance.

As written, San Francisco's ordinance would require private employers with at least 20 employees and nonprofits with at least 50 employees to provide health coverage at certain minimum levels or pay a fee to the city.

I also like the idea of creating a network of Minute Clinics (Your Sick, we're Quick) or similar type clinics, that are covered by a Universal Health Plan. The costs of these types of operations are less than traditional hospitals. An emergency room visit for pink eye could cost $300 and at a Minute Clinic - just $50. Everyone saves.

With electronic patients records, and improved technology for diagnosis, and a wider range of places to receive medical attention, medical costs overall should go down and make a Universal Health Plan more of a reality.

As a society, we can not afford people to drive up the costs of healthcare because they are not willing to handle their own health issues. In the same way we can't sit back and watch consumers create an economess with their reckless spending and saving habits.

Corporations should become more actively involved in promoting theiremployees health. I support what Scott's Miracle Gro company is doing in Ohio with its employees and encouraging them to take an active part in preventative health care measures by employing health coaches and other strategies to get their employees to live healthier lifestyles. Theirtactics should help reduce Scott's overall healthcare burden which wasseeing a double digit rise every year. They were paying over 20% of their profits straight to health insurance companies. Why? Over half of their 6,000 employees were overweight or obese and at least a quarter of them
smoked.

Consumers have this sense of entitlement in this country that they can do anything they want with their bodies regardless of how damaging and society will take care of that damage and fix it. I consider that akin to crashing my car in a tree and then asking my employer to pay the auto body shop to repair it, and doing it again and again. If I drove safer - drove my body a little safer, I wouldn't have to worry about running into tree - or getting sick. With a company plan, I pay the same amount each month being a health-nut who goes to the doctor only once a year, as the obese, smoker, diabetic employee who is the hospital every month for lifestyle induced problems.

Clarian Health Partners, an Indiana hospital chain (I went to high school in Indiana and have a lot of family members there), started fining their employees $5 for smoking, $10 for being overweight and $5 for high blood pressure. It could add up to $780 a year for bad habits. This seems fair to me. If people want to continue their bad habits that lead to high health premiums for everyone, they should contribute to offset the costs. My hope is this will finally be the last straw to inspire them to positively change their lives.

What Does $100 Oil Mean?

With oil hitting $100 a barrel and gas heading to $3.50 a gallon - don't you wish you were driving a Prius right now? Especially if you buy a tank of gas every week.

This isn't the first time we have seen $100 a barrel of oil. In 1980, the inflation adjusted price was equivalent. We also had an economic recession in the early 80's, which we are desperately trying to avoid now.

At $100 oil, you can expect your gas prices to go from around $3 a gallon to $3.50 a gallon this spring, not $4 - however I don't see that number to far off in the future. The prices of oil and gas will rise and fall based on demand, so if the economy slows down and people are using less, prices will drop. Pretty simple. If people start car-pooling (a quick solutions with some nice social benefits), they will save money on gas and overall buy less gas which will drive prices down.

Big Oil is profiting tremendously as a reuslt of high oil prices. Exxon Mobile made $10B last quarter - the largest quarterly profit EVER by any US company and almost double what they made 3 years ago. What are they doing with all that money? Stockpiling Euros as they watch the US market tank? Cruising around on the Super Yachts in the Caribbean and taking their Lear Jets to Italy for a Cappuccino for Breakfast, and then off from escargot and cavier in Paris for dinner?

Perhaps they should take those profits and like Oprah - start giving away cars? $10B should buy around 500,000 Priuses a quarter and 2 million a year. Come on - who doesn't want a nice cute little new blue Prius parked in their driveway? What would their shareholders think of that? We could even give them a few tax breaks for all their generosity. Ha!

Just for the reecord ... I don't own a Prius. If they made a convertible, I might consider it. I only drive a few miles a day so gas mileage isn't as important to me as someone who might commute 30 miles a more a day. I know people in the Bay Area that commute 120 miles a day. Yikes! I bet they aren't too happy about has prices doubling recently.

I don't think higher gas prices is enough to send the economy into a recession on its own. We spend about 6% on average of our paycheck on gas versus 8% a decade ago. Owning a car is expensive - period! From insurance, to registration, maintenance, parking tickets (which I always tell people to budget something for) and of course gas. If you are lower income, like I was in college and around my grad school years, I would suggest not owning a car (like I did) and instead ride-sharing when you need one, taking the bus, train, etc, or finding alternative local activities you can bike to. When I moved to San Francisco, I sold my car and rode my mountain bike all over and had the added benefit of staying in excellent shape as a result (after all I had all those hills to tackle). For me then, it was less about the gas prices, and more about not being able to afford the tickets and parking garages where I lived downtown.

When it comes to flying, if you fly Southwest, you might not see any increase at all. Why? Because a very smart CEO (and one of my favorite) Herb Kelleher bought hedges against higher oil prices (through 2009) when it was just $51 a barrel. What is that worth to Southwest? And to you the flyer? To Southwest over $2B. To you - a much cheaper ticket on Southwest than it will be on most other airlines.

We can all ease the energy burden by using a heck of a lot less energy than we do now. I just survived several days without power due to the big storms here and it wasn't all that bad. Granted, I don't like to hang out in 48 degree weather in my own home, however I do normally keep the temperature at 61 degrees since I have a
fairly large home and keep the unused areas even cooler. I am also hoping to have solar installed this year so I can raise my temperature to 64 degrees and not feel guilty about that giant oil sucking sound from Mother Earth.

I could go on and on about other ways to ease the energy burden on the planet, but why do that will Nobel Peach Prize winning Al Gore does it so well? Climatecrisis.net.

Should the Government Solve Our Debt Crisis For Us?

Is it the government's job to stop us from having one more drink at that New Year's Party? No. It is just their job to stop us from having that drink and then getting in our car and driving drunk where we could actually hurt someone else with our irresponsible drinking. Yes!

In this case drinking is akin to reckless spending, shopping, retail therapy (whatever you call it), and driving is the equivalent of using our credit cards to achieve the goal ... to get you there. When consumers recklessly rack up their debt and can't pay their bills (including their mortgages), as we can clearly see, the whole economy suffers. This crazy behavior could plunge us all headlong into a recession.

So now think about it ... if consumers can't control themselves and become responsible citizens and are causing harm to others with their behavior (like drinking and driving), isn't it the government's responsibility to force them to stop?

You can't tell an alcoholic to have a few drinks less, or an obese person to just eat less and lose 100 pounds, anymore than you can tell a shopaholic to stop spending and pay off their $100,000 debt.

Our culture has a spending illness and needs to check itself into rehab. But is this really going to happen? No ... so now what should we responsible citizens, who hopefully know better, do to prevent the deleterious economic effects of those of us less responsible?

I remember the old days of lending when banks considered your debt to asset ratio before handing out a credit card or loan. And now ... what happened? Free credit for all? Free candy for all - go gorge yourself and take an antacid in the morning and then do it again over and over. It's fun.

I think it is time to use legislation with market economics and stronger consumer education to put a plan together to curb credit card debt. If the government disallowed usury (excessive interest - which I consider anything over 18%), then credit card companies would be much more careful in screening who have they gave credit cards to and would assess how much debt a person has before they gave them more rope to hang themselves in the debt jungle.

I think it is ridiculous that credit card debt is over $4 Trillion (that is 5 times more than the GDP!). What is even more terrible is that there are millions of Americans who can't ever seem to pay off their credit card debt. A tiny bit of legislation, which I am sure will anger some (mostly those with bad credit), could solve a lot of our debt crisis.

I have never left a balance on my credit cards except for once after graduate school when I was looking for a job. I hadn't worked in several years and was living on student loans and towards the end of the my college career, I charged a little more on my credit card than I could pay off. I quickly corrected the problem in a few months after I started working.

I challenge my readers today. If you have credit card debt, put together a plan to pay it off (or at least pay it down) in the next 3 months and talk to a financial advisor or money coach how you can start living your life debt-free. (A mortgage is ok).

Fed Cutting Rates Again

The Fed is ultimately trying to protect the American Way of Life by cutting interest rates with the hope of stimulating the economy and preventing a recession.

Let's take a moment to think about over-indulgent American way of life and decide if the status quo is worth keeping. What are we really protecting here?

1. 1/3 are obese and 2/3 are overweight
2. 25% don't qualify for prime lending because of irresponsible money habits
3. Most spend more than they make and don't plan for the future

Maybe something is needed to shake things up and snap people into reality that they just can't keep spending money they don't have and they can't keep eating calories they don't need. Where is the self-restraint?

I think American's need a dose of inspiration and a sprinkling motivation to get their lives turned around. Perhaps a new President will do just this by offering hope for change. Go Hillary! (How could Ms.Money not vote for a WOMAN President, especially one who was at the Ms.Money offices for our official ribbon cutton and launch of Ms.Money to the world.)

What will a rate-cut mean for your mortgage? If you have an ARM, expect your monthly payment to get more affordable and you just might be able to stay in your house a little longer. If you are one of those speculators (25% of home foreclosures are on investment properties), this is a good time to take a deep breath and assess the damage and put a plan together for either selling or renting those properties.

To your credit cards? Start negotiating a lower interest rate today on your outstanding balances, if your issuing bank doesn't lower them automatically with the fed rate cut. If you missed a payment or two or have a very low FICO score, don't expect a Fed rate cut to impact you much. I have heard consumers paying up to 36% interest on their balances. Yikes! If this is the case, I would cut up all my credit cards, except one of emergencies (and to rent a car) and pay down that debt immediately.

Your money? If you have stocks, typically there is a rise in the market after the fed cuts rates, however with the housing crash distorting everything, it is hard to say what will happen over the long haul even if rates continue to drop.

Even after a full point rate cut this last quarter it didn't seem to stimulate the economy much or stop the unemployment rate from rising. The unemployment rate is 5% overall, though only 2% in the professional job sector.

Who Caused the Mortgage Crisis?

If you leave a kid alone in a room with a bowl of Halloween candy, do you think he is going to eat just one piece?

Lenders were giving out the candy: sub-prime mortgages and lines of credits to irresponsible consumers who were known not to be able to pay their bills in the past, and wonder why they gobbled them up with nothing left over to pay. What were they thinking? It is a billion dollar travesty learned the hard way that led several lenders into bankruptcy.

They not only deserve a scolding, so does the investment community for snatching up this sub-prime mortgage securities and as a result had to take billion dollar write-offs.

25% of the US falls into this sub-prime market and has some sort of adverse financial situation that would not normally qualify them for the prime market. That is a very BIG market for lenders to ignore, especially as they are jockeying for the biggest pieces of the mortgage pie. So they threw conventional economic wisdom out the door and started competing fiercely in this market space to the demise of everyone.

Lenders thought the risks would be worth the rewards, with interest rates being at record lows they had no way to go except up, so why not lock in these attractive looking adjustable rate mortgages and reap the benefits when rates rise. What they didn't realize is that Mr. and Ms. Consumer were taking full advantage of all this fabulous lending they didn't previously have access to and were going on a spending spree. Not only were they maximizing their mortgages, and lines of credit, they were also maxing out their credit cards. Oooops! What do you mean my mortgage payment went up another $500 because of the interest rate rise? I don't have $500, I already
spent it. Where am I going to put new my flat screen TV if you kick me out of my house?

How could banks think consumers would all of sudden become ultra-responsible in saving for the future or for unexpected interest rate hikes, when they never showed a capacity in the past for this kind of forward thinking monetary behavior.

If you give the car keys to your son and he crashes the car not once, or twice, but three times, you eventually stop giving him the keys to the car. Don't you? Common sense right?

Well with the lending crisis, consumers were crashing their credit histories left and right and no one seemed to care and lenders kept lending. Now, we have George Bush scrambling to negotiate a plan with these sub-prime lenders to give consumers another chance by asking lenders not raise the interest rates on some ARM's for 5 years. Is this really going to help?

Who is ultimately to blame? The consumer! Stop spending more money than you make people. Really ... just stop it. Take a free personal finance education
class, learn to budget and save for the future. You can do it.

Time for Some Stocking Stuffers

I wanted to get this blog out there in time for Christmas and especially by the New Year when those credit card bills are showing up.

These are Brand New Money Books for your reading pleasure and educational enhancement. I have copies of all of them sitting in front of me right now.

The Neatest Little Guide to Stock Market Investing, by Jason Kelly.
With a title like that, how can you go wrong?

Get Real Get Rich. Conquer the 7 Lies Blocking You From Success, by Farrah Gray
Time to get real and get rich in 2008 don't you think? And stop making excuses.

Living Rich by Spending Smart. How to Get More of What You Really Want, by Gregory Karp
One of my favorite topics - smart spending and living your life at half the price.
I know what I want ... a 4 Hour Workweek! Hey - that is the title of another book, which I read and thought it was unrealistic for most people, especially because there aren't a lot of risk takers willing to do what it takes to get a 4-hour work week. However, if you are the entrepreneurial type, like myself, this should be your business manual 101. The gems you find in here are a treasure chest of very valuable information. Thanks Tim! And yes, for some a 4-hour work week is possible. I have done this at various times of my life and it panned out with financial abundance.

The Retirement Savings Time Bomb and How to Defuse It, by America's IRA Expert Ed Slott
Yes, there is a bomb ticking and most people are stuck like a deer in the headlights and not doing anything about it.

The Naked Truth About Your Money. Straight Talk About You and Your Finances, by Bill DeShurko, CFP.
Too many people think saving for the future is too hard and complicated. However, when you pull back the layers and get to the naked truth, you start to figure out, Yes you can do it.

And finally the 23rd Edition of The Ernst & Young Tax Guide for 2008
If you have tax questions then this phone book size tax guide is for you. All the latest tax changes at your fingertips.

Pick up a copy of one or ALL of these books for yourself for Christmas ... or give someone the gift that keeps on giving - a book on how to make money.

Regift or Resell Those Unwanted Gifts

Really? You might ask Ms.Money is it really ok to sell the Christmas gifts I didn't want? Sure! I agree with the eBay folks who provided the article below.

Those looking to recoup lost holiday dollars, they need not look further than the gifts underneath their tree.

With 83 percent of adults receiving unwanted gifts during the holidays, according to a recent eBay survey, disgruntled recipients can turn “not my size” and “what were you thinking?” into cold hard cash.

More popular than ever, 65 percent of all adults view re-gifting or reselling gifts more socially acceptable now than it was several years ago. About a quarter of adults (23 percent) have resold their misfit holiday gifts in the past, and afterwards, more than half of them (53 percent) feel satisfied while 36 percent feel relieved.

_____________________

AMERICANS LACK THE KNACK FOR HOLIDAY GIFT-GIVING, ACCORDING TO EBAY SURVEY

Polite Pretenders: Eighty-five Percent of Adults who Receive Misfit Holiday Gifts Pretend to Like Them

Add one part clueless gift-giver and two parts resourceful recipient and voilà, a recipe for a re-gifting masterpiece!

No one understands this recipe better than eBay which today unveiled the results of its annual re-gifting survey conducted by Harris Interactive, which found that 83 percent of U.S. adults receive unwanted gifts during the holiday season. Nearly one-half of those adults (47 percent) typically re-gift or resell items that are not on their wish lists.

Yet for many, unwanted does not mean unappreciated: nearly one-third of all adults (32 percent) would rather get a present that they could re-gift or resell than not get a present at all, the survey found.

“Re-gifting or reselling on sites like eBay are great ways to let someone else enjoy a gift that isn’t right for you or to earn some extra money,” says Marsha Collier, bestselling author of “Santa Shops on eBay” and other eBay books. “My tip for re-gifting: know the receiver. Not everyone wants a tracksuit or a CD collection, but others may love it.”

Key Findings

· Best in Show: If given an unwanted gift, U.S. adults would be most likely to re-gift items such as food and drink (35 percent), beauty and bath products (23 percent) and trinkets or collectibles (18 percent). Top items to resell include electronics and appliances (18 percent); DVDs, CDs and books (11 percent); and event tickets (11 percent).

· Let’s Hear It for the Girls: Among adults who re-gift during the holidays, women (50 percent) are almost twice as likely to re-gift than men (30 percent).

· Time After Time: According to 65 percent of all adults, re-gifting or reselling gifts is more socially acceptable now than it was several years ago. About a quarter of adults (26 percent) say they are now more likely to re-gift or resell unwanted gifts than they were last year.

· Re-gifting Remorse? Not so. The study finds that more than half of re-gifters and online resellers (53 percent) feel satisfied after they have re-gifted or resold an unwanted gift online. Twenty-seven percent feel relieved after re-gifting and 36 percent feel relieved after reselling. Conversely, upon discovering that someone has re-gifted or resold an item they had originally given, 46 percent of all adults say they would feel indifferent while 26 percent would feel amused.

· Managing Misfit Gifts: Sixty-nine percent of all adults agree that re-gifting or reselling is a form of recycling.

· Matchmaker: Seventy percent of adults who have re-gifted a misfit gift have done so because they feel the item is a better match for someone else. Only eight percent have re-gifted because they were too lazy to purchase another present.

· Friends Forever: Of the 44 percent of adults who have ever re-gifted, the recipients have most often been friends (67 percent).

Fun Facts

· Fruitcake accounts for 15 percent of the food-and-drink items that people would re-gift.

· Trouble with the in-laws? About one in four married women (26 percent) has re-gifted or resold one or more items received from her mother-in-law compared with only 16 percent of men.

· About one out of five adults (19 percent) anticipates re-gifting or reselling holiday gifts even before he or she receive them.

· Thirty-three percent of adults who have ever re-sold an unwanted gift would feel less guilty doing so if they donated a portion of the proceeds to charity.

Survey Methodology

This re-Gifting survey was conducted online within the United States between October 12 and October 16, 2007, among 2,711 adults ages 18 and over.

Results were weighted as needed for age, sex, race/ethnicity, education, region and household income. Propensity-score weighting was also used to adjust for respondents’ propensity to be online.

All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error that are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Interactive avoids the words “margin of error” as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal.

Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the U.S. adult population. Because the sample is based on those who agreed to be invited to participate in the Harris Interactive online-research panel, no estimates of theoretical sampling error can be calculated.

4 out of 5 Not Saving Adequately Says Wachovia

I included an article from Wachovia bank below. Kudos to any organization that takes the time to help solve our country's savings crisis by educating consumers.

The problem with saving is many people think it is just too difficult so they don't save anything. To help overcome this hurdle, I ask them if they can save $1 a day. And if they can do that for a year, can they sace $2 a day the next year. And then $3 a day the following year. If they start at age 25, by the time they are 35, they would be saving $10 a day and have a nice habit of savings. $10 a day is $3,520 a year, which is a nice IRA deposit and will provide for a healthy nest egg at the end of one's working life due to compounding interest.

Wachovia Article:

Holiday shopping season spending increases and consumers head into the New Year with resolutions to do better in 2008, more than half of Americans (52%) say that they currently cannot afford to save or are saving inadequately, according to a comprehensive survey released by the Consumer Federation of America (CFA) and Wachovia this morning (full press release and survey results below).

This in-depth survey examined how Americans view their savings adequacy, major barriers to savings, and successful savings strategies planned. Today’s research reconfirms what Wachovia has learned about consumers’ savings attitudes and behaviors over the past couple of years:

We know from other studies that people don’t feel they’re saving enough, but we were surprised with the data that shows that 4 out of 5 believe that Americans are not saving adequately. Consumers know they should be saving, but they don’t know how to get started. Other consumers have told us they don’t make enough money to cover their short-term financial obligations or they’re not willing to change their lifestyle to set money aside in savings.

Today’s study provides fresh insights around the mindset or psychology of savings – including what keeps people from saving and what would motivate them to save

For young people particularly, “Spending to Feel Good” and “Impulse Spending” were the two biggest hurdles in saving.

We also got additional insi