Living Well in a Down Economy for Dummie

351 Pages·2011·1.87 MB·English

by  Barr Tracy

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Living Well in a
Down Economy
FOR
‰
DUMmIES
by Tracy L. Barr
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®
Living Well in a Down Economy For Dummies
Published by
Wiley Publishing, Inc.
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Publisher’s Acknowledgments
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02_401170-ftoc.qxp 7/24/08 12:29 AM Page vii
Contents at a Glance
Introduction ...................................................1
Part I: Facing Off Against a Recession .............9
#1: Determine Your Net Worth...............................................................11
#2: Calculate Spendable Income............................................................13
#3: Create a Monthly Budget..................................................................20
#4: Breathe Away Tension ......................................................................24
#5: Tense Your Way to Relaxation .........................................................26
#6: Stretch Away Your Stress .................................................................30
#7: Lift a Finger for Self-Massage ...........................................................32
#8: Practice Habits of Effective Stress Managers ................................35
Part II: Bumping Up Your Bring-Home ...........37
#9: Update and Customize Your Resume..............................................39
#10: Make Your Resume Stand Out .......................................................43
#11: Get Acquainted with New Interview Trends ................................46
#12: Stand Out in an Interview...............................................................49
#13: Nail the Video Interview .................................................................52
#14: Make the Most of a Phone Interview ............................................54
#15: Look for Good Jobs Online.............................................................56
#16: Look into Federal Jobs....................................................................59
#17: Prepare for a Career Change..........................................................60
#18: Figure Out What You Really Want to Do .......................................62
#19: Persuade Your Organization to Let You Telecommute...............65
#20: Find Telecommuting Work .............................................................68
#21: Consider Self-Employment .............................................................72
#22: Get Acquainted with Home-Based Businesses ............................74
#23: Get New-Business Cash Flowing....................................................76
#24: Steps to Take before Leaving Your Job.........................................79
#25: Take Tax Deductions on Home-Based Businesses ......................82
#26: Ensure the Survival of Your Home-Based Business
in Tough Times .................................................................................85
#27: Choose between Itemized and Standard Deductions .................87
#28: Boost Your Household Income ......................................................89
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viii Living Well in a Down Economy For Dummies
Part III: Putting Your Personal Finances
on Firm Footing ............................................93
#29: Avoid Unnecessary Fees.................................................................95
#30: Shop Around for Insurance ............................................................97
#31: Raise Your Deductible to Save on Insurance ...............................99
#32: Save Money on Life Insurance .....................................................100
#33: Qualify for Homeowner Policy Discounts ..................................102
#34: Take Advantage of Coverage You Already Have........................104
#35: Look for Discounts and Premium Credits
from Your Car Insurance ...............................................................106
#36: Save on Medical Coverage Offered by Your Car Insurance......109
#37: Continue Health Coverage When You Leave Your Job .............111
#38: Cap Your Out-of-Pocket Health Expenses ..................................113
#39: Save on Individual Health Coverage ...........................................115
#40: Use Medical Savings Accounts ....................................................116
#41: Tap into Temporary Health Insurance........................................118
#42: Know the Tax Benefits of a 401(k) Plan ......................................120
#43: Continue to Invest, Even at a Reduced Amount........................122
#44: Borrow from Your 401(k)..............................................................124
#45: Let Your 401(k) Roll Over to Avoid Taxes ..................................127
#46: Investigate Tax-Deferred Ways to Save for College ...................130
#47: Squeeze Out Every Drop of Available College Money ..............133
#48: Look into Federal Assistance Programs .....................................137
#49: Make Use of Federal Loans...........................................................139
#50: Defer or Discharge Student Loan Debt .......................................143
#51: Consolidate Your College Loans..................................................146
#52: Find College-Based Scholarships ................................................148
#53: Access State and Local Scholarships..........................................149
#54: Tap Organizations for Scholarships............................................151
#55: Accept Work-Study Opportunities ..............................................152
#56: Negotiate Better Financial Aid.....................................................153
#57: Refinance a Fixed-Rate Mortgage ................................................155
Part IV: Living a Recession-Busting Life.......157
#58: Develop Good Shopping Habits...................................................159
#59: See through the Gimmicks Grocery Stores Use.........................161
#60: Use Coupons Wisely......................................................................163
#61: Target Seasonal Grocery Sales.....................................................164
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Contents at a Glance ix
#62: Plan Your Meals Economically.....................................................166
#63: Save on Snacks...............................................................................170
#64: Stretch One Meal into Two (Or More) ........................................171
#65: Save on Baby Food ........................................................................174
#66: Cook Up Money Savings ...............................................................176
#67: Can It! ..............................................................................................179
#68: Other Ways to Save in the Kitchen..............................................182
#69: Save on Salon Expenses................................................................184
#70: Expand Your Wardrobe.................................................................185
#71: Remove Stains from Clothing.......................................................188
#72: Reconstruct Your Clothes ............................................................190
#73: Find Fun in Community Resources .............................................193
#74: Have Fun in Your Own Backyard and Beyond ...........................194
#75: Save for a Family Vacation ...........................................................197
#76: Travel on a Few Dollars a Day .....................................................198
#77: Save on Phone Bills .......................................................................202
#78: Stay Cool on the Cheap ................................................................204
#79: Warm Up for Less ..........................................................................206
#80: Make Your Own Cleaning Solutions ............................................209
#81: Replace a Roof Shingle..................................................................213
#82: Find Roof Leaks .............................................................................214
#83: Add More Insulation......................................................................216
#84: Insulate Pipes.................................................................................219
#85: Insulate Heat Ducts .......................................................................220
#86: Test and Fix a Window Air Leak...................................................221
#87: Stop Air Leaks around Doors .......................................................223
#88: Identify Plumbing Leaks ...............................................................224
#89: Improve Water Heater Efficiency.................................................225
#90: Help Your Furnace Work More Efficiently ..................................227
#91: Save on Your Fuel Expenses.........................................................230
#92: Change Your Own Car Oil .............................................................232
#93: Take Care of Your Tires.................................................................236
#94: Hire a Pro without Getting Taken for a Ride ..............................239
Part V: Making the Most of Holidays
and Other Special Events.............................243
#95: Throw a Party on a Budget ..........................................................245
#96: Entertain on a Shoestring.............................................................247
#97: Spend Less on Holiday Decorations and Gifts...........................249
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x Living Well in a Down Economy For Dummies
#98: Get Creative with Gift Giving........................................................252
#99: Give and Package Sweets and Treats..........................................255
#100: Save on Fine Dining .....................................................................258
Part VI: Staying Afloat If the Boat
Starts to Sink .............................................261
#101: Look for Signs of Financial Trouble...........................................263
#102: Understand the Cost of Bad Credit ...........................................266
#103: Get Copies of Your Credit Report and Scores..........................268
#104: Check Your Credit Report ..........................................................270
#105: Dispute Inaccurate Info on Your Credit Report .......................272
#106: Add Positive Info to Your Credit Report...................................275
#107: Bring Credit Card Debt Under Control......................................276
#108: Take Credit Solutions into Your Own Hands............................279
#109: Seek Help for These Credit Problems .......................................282
#110: Work with a Credit Counseling Agency ....................................284
#111: Create a Debt-Management Plan ...............................................287
#112: Talk to Creditors to Work Out a Solution .................................289
#113: Negotiate a Payback Arrangement with Collectors ................291
#114: Avoid Credit-Repair Scams.........................................................293
#115: Keep Credit Under Control While Unemployed ......................294
#116: Use Home Equity to Consolidate Debts....................................297
#117: Take Control When Foreclosure Looms ...................................300
#118: Draft a Plan of Attack to Offset Foreclosure ............................304
#119: Understand Types of Bankruptcy .............................................307
#120: Try to Avoid Bankruptcy ............................................................310
#121: Negotiate with Creditors to Avoid Bankruptcy .......................313
#122: Choose Which Bills to Pay When You File
for Bankruptcy................................................................................316
#123: Negotiate with the IRS ................................................................318
Part VII: The Part of Tens ............................321
#124: Ten Ways to Trim the Money Tree ............................................323
#125: Ten Ways to Handle Financial Emergencies.............................325
Index .........................................................327
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Introduction
sk an economist what a recession is, and you’ll likely
Aget the answer “a decline in gross domestic product
lasting two or more consecutive quarters.” (Gross domes-
tic product, or GDP, is the total value of goods and serv-
ices produced in a country.) At the time of this writing,
America isn’t officially in a recession (although many ana-
lysts say it’s just a matter of getting the numbers that’ll
prove that the second-quarter decline has actually
occurred), but the economy is definitely in a downturn.
Home values are falling, employment is down, real
income is down, and energy costs are skyrocketing.
So how long will this downturn last? No one knows. Some
think it’ll be over in a matter of months; others predict
the recession could last a year or longer.
None of this is good news. Fortunately, you can do more
than cross your fingers and hope for good luck. During a
recession, you have the following main objectives:
⻬ Prepare yourself in case you lose your job. As com-
panies earn less, they look for ways to save money.
Unfortunately, payroll reduction (read “layoffs and fir-
ings”) is a key way to save. Fortunately, by preparing
a resume and seeing this as an opportunity to explore
alternative careers and ways to work, you can be
proactive in protecting yourself in case you find your-
self on the job market.