MMA account? Mortgage acceleration?

Alright- My wife and I are seriously thinking of trying out the MMA account from UFirst. Like many people, we dream of paying down our mortgage and being FREE---having no debt. So, periodically, I will have some posts on this.

The first process was meeting with a UFirst rep. We also watched the DVD. We are going to use a line of credit instead of a HELOC to work the program. I basically will go from a 30 year mortgage to a 15 year mortgage. So, we are pretty excited I will keep everyone posted.

Ed McMahon's House is in Foreclosure

First , there was Slade on the Housewives of the O.C. and now the guy on Johnny Carson! Apparently, he is $644,000 in arrears, (but he is trying to work something out with the lender). So, how do you negotiate that large of a figure?http://www.cnn.com/2008/SHOWBIZ/TV/06/04/mcmahon.foreclosure/index.html?iref=mpstoryview

My carpooler is PSYCHO!

As I posted previously, I am trying to cut the money that we spend on gas. I thought that the best idea would be to carpool. My carpooler even agreed to pay for gas, as long as I drove. GREAT! This would save me at least $200 a month at current gas prices. So, it turns out the reason that I am the one driving is because the carpooler got a DWI. Ok, no problem-everyone makes mistakes, right?! Well, the next day he tells me that he can't drive for at least a year because he fled the cop who was trying to pull him over for the DWI. That is definitely a serious offense. The very next day, he tells me that he thinks he is under surveillance for a drug bust and that he has to "do time" in his house. He tells me that the state is going to come in and put the ankle bracelet on him so that he will be under electronic monitoring.

I decide $200 a month isn't worth me carpooling with a PSYCHO. I was literally searching under my car seats once he left to make sure he wasn't trying to hide some kind of contraband.

Pain at the pump

This is a small news segment and show how consumers are suffering because of $4.19/gallon gas. Gas has yet to go near that price where I live, but it soon may.

This chart on oil is INSANE.

Here is a chart posted on cnn.com (see link below) of the price of oil on a one year basis. It is stunning! I am really interested in talking with people to see how gas prices have changed their lives. I am trying to think positive. I did create a carpool, and my fellow carpooler seems like a nice guy and pays me $50 a week. I am looking for an additional carpooler to cut costs further. At these prices, I may have a few takers.

http://money.cnn.com/2008/05/22/markets/oil.ap/index.htm?postversion=2008052203

Gotta Be Positive: Millionaires in the Making

A family member reviewed my site and said that while they liked the topics; I had to be

more positive. OK-point taken. I was trying to find more examples of average people who are MAKING IT WORK in today's economy. I found this article on cnn.money.com. It shows a new family who makes $90k a year with plenty of savings and little debt. I posted the article at the end of this article because they are an inspiration to all of us. One big takeaway that I had with this couple is that from an early age, they have tried to be frugal. They each never had student loans. They also have 2 older cars that are not in the luxury category. Good reading.

http://millionaires.blogs.cnnmoney.cnn.com/2008/05/15/millionaires-in-the-making-the-wisneskis/

CNN article: Barely Surviving on Credit Cards

Now that Americans can't tap their home equity, they are increasing their credit card usage. This is problematic because typically credit cards have higher interest rates and lack taxation advantages like some home equity lines. The story is pretty grim and has a picture of a 71-year-old, retired professor, who has to go back to work because savings and social security are just not cutting it.

Credit card deliqencies are at a 4 year high as well. This is scary because I do believe that lenders of all kinds will probably tighten credit even more.

http://money.cnn.com/2008/05/09/news/economy/creditcards/index.htm?cnn=yes

EXIT POLLS PROVE THAT HILLARY CLINTON IS BEST FOR ECONOMY

Subprime crisis affecting even THE O.C.

People who know me hassle me about watching the "Housewives of the Orange County" (Yeah, I know it is cheesy.) The show profiles the lives of wealthy women in one of the most expensive zip codes in the country. However, the O.C. has gotten a different reputation lately. Apparently, it has one of the largest foreclosure rates in the country. The reason is because The O.C. is home to lots of subprime borrowing companies, like New Century Financial and Ameriquest. These companies have went out of business and fired O.C. residents, which is causing record foreclosures.

Going back to the "Housewives of the Orange County", one of the men who dated two of the housewives, Slade Smiley, is now is having his home foreclosed. If you want to buy his former O.C. property, prepared to pay $1.7 million.

If even reality tv stars can't escape foreclosure, what hope does the Average Joe have?

http://www.businessweek.com/bwdaily/dnflash/content/apr2008/db20080415_242666.htm

Americans' Spending Squeeze

In a CNN poll, 78% of Americans saw gas going to $4-$5 gallon this year. I have to say that this is probably a reality. The thing that scares me is that gas prices fundementally affect other parts of the economy like cost of groceries or even house values. For example, if it costs companies more money to ship food, we will pay a higher price. Or if you have a house that is a farther commute to a major city, it could be less valuable as gas prices go up.

I am doing some brainstorming as to what I can do to save on gas and groceries. I mentioned in a previous post that a grocery store is having a promotion where you get a $30 gift certificate for every $300 that you spend. However, I think I may have to get drastic. I have a small car, but we know that this gas situation is going to get worse. I may put an ad on craigslist to see if I can car pool with others. I am not sure what I think about going into strangers' cars and dealing with leftover McDonald's wrappers and pet hair (gulp!), but what choices do I have if things get more expensive?

Barack gives the Top 10 on Letterman

This is pretty witty.

Gas Tax Holiday-Heck-why not?

I know it is probably just campaign rhetoric, but I will take a break from high tax prices. This is a picture of Hilary Clinton in the back of a pick up truck, discussing her Gas Tax Holiday. Apparently, McCain also backs a Gas Tax Holiday. Obama has said that she is just doing it to win a campaign, not solve problems.

I have to say though-heck-why not? I would be game for a little "gas tax holiday". Is it a political ploy? Sure. Does that mean that I won't enjoy capitalizing on it? Absolutely not. I think many people understand that the steep gas prices are something that can not be solved easily, but a temporary reprieve would really help the Average Joe.

In our household, we spent $540 last month on gas! ( Honestly, it is something in the budget that I can't axe, since there are few commuting options for us.) Gas Holiday? You Bet!

I wish I was Warren Buffet!

As you may know, "The Oracle of Omaha" had his annual shareholder meeting this week. Asked what's in store for the economy, Buffett said he doesn't have a clue and doesn't care.

"I haven't the faintest idea," he said. "We never talk about it, it never comes up in our board meetings or other discussions. We're not in that business [of economic forecasting], we don't know how to be in that business. If we knew where the economy was going, we'd do nothing but play the S&P futures market." ( quoted from "Buffet to Investors: Think small" on cnn/money.com)

Although, I admire Warren Buffet, I wish that I could toss off this economic downturn with the same cavilier response. In my household, my spouse and I are now talking about buying meat in 30 lbs. packages to save on grocery costs. We also are reducing our spending and (gulp!) our savings.

Right now, the plan with the economic stimulus check is to buy groceries with it. A local grocery store is giving you a $30 gift certificate for every $300 gift certificate that you buy. You can buy up to $1200. I don't know about you, but that's gonna help us.

Consumer Bancrupcies Soar 48% in April

This article posted on CNBC.com today: http://www.cnbc.com/id/24426985

With foreclosures and bancrupcies at an all time high, do we believe that things will get better? Will the economic stimulus package REALLY stimulate the economy or will this get much worse?