Hond Financial

Posts Tagged ‘recession’

One piece of economic news seems to be contridicted by the next? “Green Shoots.” A “U Shaped Recovery.” Layoffs slowing. Unemployment rates won’t come back down. More financial institutions expected to be closed. The Chinese starting to get rid of dollars.What is the deal with a rising gold price and why should I be interested?

We can get overly hopeful and reject any news that doesn’t fit with what we hope for and want to believe. If you are a stock investor, you look for news of rising profits. If you are in construction, news of possible increases in building permits brings a good feeling. It’s normal to get excited about good news. It’s not unusual for us to somehow not notice news that doesn’t fit our plans. Our perspective goes off balance and our decision-making abilities are hampered.

Our economic future might be very bright in a couple of years, but things are likely to be a bit rough for a while. I do believe political forces desire to massage statistics and reports to further political agendas. Forecasting is made difficult by that lack of unbiased economic data. This is not new. This also explains why forecasts are all over the place.

What’s the point?Responsible folks will take reasonable preparations.

This blog’s purpose is not to focus on the negative. The purpose of this site is to help you to succeed with your finances regardless of what happens to the economy. And I’m sure that developing some extra income streams is one of the best things you can do.One more is getting the hang of getting rid of unnecessary spending. Call it“financial insurance” if that makes sense to you. If the good news is right, you’ll have extra cash for something you really wanted. If the news is unsettling, you’ll be ready for it with extra cash. What’s the hang-up with that approach? Nothing, other than it does take some time and work.

Want specifics?  Then grab a copy of my free report, 75 Painless Ways to Save Money at Home which you can download from my blog, Money Talk Daily.

Craig Bennett

I have read various reports in recent days stating that we may well be through the worst of this current recession. Over the last couple of weeks I have been asking my business contacts whether they have started to see any of those green shoots, the famous starting sign of a recovery. Here is what they said:

Out of all of the people that I asked or surveyed for want of a better word only fifteen percent stated that they had seen the first signs that things were starting to improve. I would have preferred it if this percentage had been some what higher. From the people I have spoken we may well be on the road to recovery however that this recovery is happening at rather a sedate pace. This recession has cut quite deep and any wound this deep can not heal overnight.

More surprising and perhaps worrying is the fact that sixty percent of those people interviewed thought that the economic situation had become even more severe over the last three months and that their businesses were finding it increasingly tough.

I am by no means an expert in the field of the economy however I do have a number of business interests including ones where people are able to obtain cheap calls and also with a group of cost reduction consultants. My main expertise however is with helping people to overcome their stuttering speech impediments.

So when can we expect the recovery to really start in earnest? Well this answer is, of course, very difficult to answer and calling the bottom of the market can only ever be guess work. I will however give my opinion, for what it’s worth. I have my own opinions that 2009 will continue to be a struggle, that we will see improvements in 2010 and that 2011 may well be a much more fruitful year.

The above opinion is given due to what we already know, if there is a lot more bad news out there of which we have not yet been told of then this opinion will no doubt have to be reviewed.

Small Businesses and Contractors Largely Affected by Nation’s Struggling Economy

Many industries and small businesses are struggling indirectly because of this nation’s economic recession.  Some of the most talked about issues have stemmed from the financing and loan programs, stock market, banks and the nation’s property value decline.  Many major U.S. owned companies, that employ millions of Americans, are also being affected by the recent decline in these important industries.

At the epicenter of the housing market and property value decline is Phoenix, AZ – one of the hardest hit locations in the United States.  These buyers all have property that has greatly depreciated in value over the past two years (sometimes being down 20 to 50 percent).  Home foreclosures are on the rise, repossessions are common place, and people are just walking away from their homes because of lack of equity. 

Just when Americans think they have not been affected by this national recession, they find out they are mistaking.  When most homeowners desire to make enhancements to their homes, they require the need for financing or some sort of financial loan.  This home improvement loan generally comes from a local bank, credit union, or credit agency.  Swimming pool, landscape, and home improvement companies have not had the fortune of getting it’s prospecting buyers approved for these financing programs.

Since up to 60% of swimming pool owners require financial assistance or loans, Phoenix swimming pool builders have been one of the largest affected industries.  Financial Assistance allows buyers to invest the money they want into each project, and without financing, buyers simply spend much less money or don’t buy at all.  Arizona pool companies have suffered greatly with the downswing in the economy and lack of financing – sometimes even closing their companies, down-sizing, or diversifying into other markets.  Some pool and spa companies have diversified into other venues such as pool remodeling, general construction, and even landscaping.  General contractors have completely gone into other fields, such as sales, marketing, or consulting.  A few Phoenix Landscaping Contractors are expanding into building of hardscapes, such as outdoor kitchens Phoenix, barbecues, fireplaces, and flagstone patios.

Unique Landscapes and Custom Pools, a swimming pool and landscape Phoenix builder, figured out how to diversify it’s products and services many years ago.  As Phoenix landscape and pool builders, along with a general contractor license, Unique Companies are able to provide its customers with many facets of residential landscaping and swimming pools.  “By diversifying several years back into swimming pools, landscaping and general contracting, our company has been able to keep our heads above water during these rough times.  However, the inability for our motivated buyers to get financial assistance or loans has been crippling.”

“It’s tough to think about all the money that was given to banks just a few months ago for these construction loans, and now it’s almost impossible for our clients, who want to buy our products, to get this money” claims owner Chris Griffin, of Unique Landscapes and Custom Pools in Mesa, AZ.  Maybe it’s time for the government to look a little further into some of the struggles of the smaller companies that are greatly affected by this struggling economy.  “Business has been really slow, and over half of our sales leads don’t end up buying at all” says Griffin “It’s frustrating, but Pool loans Phoenix are getting better”.

Before the global recession came about, people all around the world chose to buy into the cheap European housing market. One European country that became extremely popular was Bulgaria, mainly because the prices were so low and were predicted to keep rising.

However, the global recession came as a surprise to everyone and it resulted in home prices across Europe falling. Now because people are feeling the effect of the recession within their home countries, they are choosing to sell or rent their second houses. The reason why they are feeling the pinch so much is because the majority of people remortgaged their homes to invest in a second, however, now they are finding it hard to manage their payments. Having to pay for a second mortgage isn’t the only factor for many people. When it came to buying a second home, people generally forget things like buying insurance for second homes. These little things can make buying your ideal holiday home more expensive than intially thought.

Even though many people can no longer afford their second homes and have had to sell up, this has created a gap in the market for people buying a second home they can afford. If you are able to afford a second home, then buying once, especially during the recession, is a very good investment. Due to prices falling quite sharply, you often get alot of house for your money. Plus, once the recession passes, house prices will begin to rise once again, making it a perfect investment for you if you ever decide to sell up.

Another plus to buying a second home in the recession is that there is so much choice, because of a large number of people selling up, you can pick and choose the best areas. Just ensure you remember to factor in all little costs such as insurance for holiday homes. Added up, the small things can really count for something, plus, no matter where your home is, many of the things are still required whether it’s home insurance Spain or France. Taking into consideration all these things, you should be able to make quite a good investment.

Van leasing is currently helping many businesses to stay afloat during these difficult times. The economic downturn has forced many businesses to look closely at their cash-flow and capital expenditure. Van leasing provides business with a way to finance their essential transport needs with fixed, known monthly payments.

Van leasing and contract hire have become increasingly popular as businesses recognize the benefits of leasing over outright purchase. A few of these advantages are:

• Fixed, known monthly payments enabling businesses to accurately forecast their finances;
• Low initial down payments mean that businesses can secure brand new, top specification vans for very little initial outlay;
• Maintenance and servicing can be included in the lease price which can save a lot of headaches;
• Leasing is a great way to lessen the impact of depreciation;
• The leasing company can often provide commercial vehicle insurance at very competitive rates;
• No problems disposing of vehicles at the end of the lease period;
• There are tax benefits to leasing as it is classed as rental which means that 100% of the lease charge is tax allowable.

Although van leasing provide some clear benefits to business there are some things that should be borne in mind. One important thing that you may need to do is to estimate your anticipated maximum mileage over the course of a year. You should always check to find out if there are any penalties for exceeding the stipulated mileage and maybe look for an unlimited mileage contract.

Another important aspect of the contract to consider is exactly what is included in the maintenance agreement. Some lease contracts include replacement tires and even replacement windscreens, but always check the details.

Always gather several quotations when shopping around for a good van leasing contract and compare them in detail. Be sure that you are comparing the exact same models with all of the same features.

Like company car leasing, van leasing is increasingly recognized as a financially viable option for providing a business with the transport needed to stay in business.

When Will This Credit Crisis Ease?

They talk about the green shoots of recovery; well I have not seen any, have you? I personally think that it is a form of increase confidence trick; an attempt to make people believe that the worst of this current recession is over.

They, and when I say they I am talking about the Government and business leaders, are no doubt hoping that this new confidence (false as it undoubtedly is) will spur people on to start spending money again; to start buying houses etc. In reality the only way this credit crunch will ease is when the banks start to lend money again, at reasonable interest rates. Already we hear stories of the bankers going back to their bonus culture, will they never learn? In a way a more important question is why is our Government allowing them to get away with it? There is a real lack of leadership at the moment and it is about time somebody at the top started to crack the whip.

Now I am not some financial whizz kid who thinks he has all of the answers. I am in fact just an average working class guy from the UK who runs a web promotion company and who also has a partnership in a company that offers a professional DVD duplication service. I do however watch and listen in amazement at times when I see what some of the politicians and greedy bankers say – they really are not in the real world – they probably would have absolutely no idea as to the average cost of a pint of milk or loaf of broad – they are complete jokers and a waste of space.

I personally believe that this current credit crisis will last until the end of 2010, at least. I know that this seem rather negative but it is just my opinion on the situation. I may well revise my opinion if we were to change in Government or a new stronger, dynamic leader? Bring in Vince Cable I say as the new Labour leader!

Economic downturns aren’t ever much fun, but as Adam Smith noted over two centuries ago, these cycles of paucity and plenty are a fact of life. Although none of us can say for sure when this latest slump will reverse, there are at least sure ways of stretching your cash in the meantime. Here are some penny-preserving techniques tailored to our 21st-century lives:

1. Plenty of people are in the habit of cutting out paper coupons, but even though many of us do part of our shopping online now, not as many of us seem to have learned to coupon-hunt on the Internet. Sites such as CouponCabin.com, CouponMountain.com, and DealofDay.com list thousands of current offers at retailers across the Net.

2. Use price-comparison websites like Shopping.com, Pricegrabber.com, Google Product Search, and mySimon.com to find the best deals online.

3. When you’re at a brick-and-mortar store, send a text message to 46645 (Google’s number) and enter the letter “f” and then the name of the product you’re considering. Google will reply with a text quoting its online prices. To compare prices at local stores, use ShopLocal.com.

4. If you don’t already belong to one, consider joining a warehouse club like Costco or Sam’s Club and buying in bulk. This can be especially helpful if you have a large family.

5. Buy generic instead of brand-name products. A lot of the difference is usually in the marketing hoopla and not the products, anyway.

6. Withdraw your money from surcharge-free ATMs, which can be located on AllpointNetwork.com and MoneyPass.com.

7. Buy locally-sourced food at farmer’s markets or stores that sell local produce and meats. Prices there are usually lower because the food doesn’t have to be transported far.

8. Shop at dollar stores. You shouldn’t have a hard time finding them since they’ve been popping up all over the place in the recent past.

9. Purchase discount prescription drugs at online pharmacies. You’ll often end up paying less than half as much for the generic pills available at these discount prescription drug stores than you would for the same brand-name pills at brick-and-mortar pharmacies.

10. If your vehicle is seven or more years old and/or worth less than $2,500, consider dropping comprehensive and collision from your insurance.  Your deductible may be closing in on the value of your vehicle anyway, in which case a major collision would send your car to the junk yard and you to the dealership.

11. Keep cell-phone expenses under control. Today’s kids love to text message, so save yourself from unexpectedly high bills by paying the flat monthly fee for unlimited text messages.

12. Use online classifieds to find used items. Sites like CraigsList.org and Kijiji.com are great resources for finding everything you need, from vintage furniture to baby gear. By buying from local sellers, you can save on shipping costs as well.

All rights reserved. Article may be reprinted as long as content remains unchanged and links remain active.

Economic downturns are never much fun, but as Adam Smith observed over two centuries ago, these cycles of paucity and plenty are a fact of life. Although none of us can say for sure when this latest slump will reverse, there are at least sure ways of saving your money in the meantime. Here are some penny-preserving ideas tailored to our 21st-century lives:

1. Plenty of people are in the habit of cutting out paper coupons, but even though many of us do some of our shopping on the Web now, not as many of us seem to have learned to coupon-hunt on the Internet. Sites such as CouponCabin.com, CouponMountain.com, and DealofDay.com offer thousands of current offers at merchants all across the Web.

2. Use price-comparison websites such as Pricegrabber.com, Shopping.com, mySimon.com, and Google Product Search to find the best deals online.

3. When you’re out at a brick-and-mortar store, send a text message to 46645 (Google’s number) and enter the letter “f” and then the name of the item you’re interested in. Google will reply with a text quoting its online prices. To compare prices at stores near you, use ShopLocal.com.

4. If you don’t already belong to one, consider joining a warehouse club such as Costco or Sam’s Club and buying things in bulk. This can be especially helpful if you have a large family.

5. Buy generic instead of brand-name products. A lot of the difference is usually in the marketing hype and not the product itself, anyway.

6. Withdraw your cash from surcharge-free ATMs, which can be located on AllpointNetwork.com and MoneyPass.com.

7. Buy locally-grown food at farmer’s markets or stores that sell local produce. Prices are usually lower there because the food doesn’t have to be transported far.

8. Shop at dollar stores. You should have an easy time finding one since they’ve been turning up all over the place recently.

9. Buy discount prescription drugs at online pharmacies. You’ll often end up paying under half as much for the generic medicines sold at these discount prescription drug stores than you would for the same brand-name medicines at brick-and-mortar pharmacies.

10. If your car is seven or more years old and/or worth less than $2,500, consider dropping comprehensive and collision from your insurance.  Your deductible may be nearing the worth of your vehicle anyway, in which case a major collision would send your car to the junk yard and you to the dealership.

11. Keep cell-phone expenses under control. Kids today love to text message, so save yourself from unexpected high bills by paying the flat monthly fee for unlimited text messages.

All rights reserved. Article may be reprinted as long as content remains unchanged and links remain active.

Economic downturns are never much fun, but as Adam Smith observed centuries ago, these cycles of paucity and plenty are a fact of life. Though none of us can say for sure when this latest slump will reverse, there are at least sure ways of stretching your cash in the meantime. Here are some penny-preserving techniques tailored to our 21st-century lives:

1. Plenty of people are in the habit of cutting out paper coupons, but even though many of us do part of our shopping on the Web now, not as many of us seem to have gotten into the habit of coupon-hunting online. Sites such as CouponCabin.com, CouponMountain.com, and DealofDay.com offer thousands of current offers at retailers all over the Net.

2. Use price-comparison sites like Pricegrabber.com, Shopping.com, mySimon.com, and Google Product Search to find the best deals online.

3. When you’re out at a store, send a text message to 46645 (Google’s text number) and enter the letter “f” and then the name of the item you’re shopping for. Google will reply with a text message quoting the online prices. To compare prices at stores in your area, use ShopLocal.com.

4. If you don’t already belong to one, consider joining a warehouse club such as Costco or Sam’s Club and buying in bulk. This can be especially helpful if you have a sizeable family.

5. Buy generic instead of brand-name products. A lot of the difference is often in the marketing ballyhoo and not the product, anyway.

6. Withdraw your green from surcharge-free ATMs, which can be found on AllpointNetwork.com and MoneyPass.com.

7. Buy locally-sourced food at farmer’s markets or stores that sell local produce. Prices there are often lower because the food doesn’t have to be transported very far.

8. Shop at dollar stores. You shouldn’t have a hard time finding one nearby since they’ve been turning up all over the place in the recent past.

9. Buy discount prescription drugs from online pharmacies. You’ll often end up paying under half as much for the generic medicines carried by these discount prescription drug stores than you would for the same brand-name medications at brick-and-mortar pharmacies.

10. If your vehicle is seven or more years old and/or worth less than $2,500, consider dropping comprehensive and collision from your insurance.  Your deductible may be closing in on the value of your vehicle anyway, in which case a major collision would send your car to the junk yard and you to the dealership.

All rights reserved. Article may be reprinted as long as content remains unchanged and links remain active.

Economic downturns aren’t ever especially fun, but as Adam Smith noted over two centuries ago, these cycles of paucity and plenty are a fact of life. Although no one can say for sure when this most recent slump will reverse, there are at least sure ways of stretching your cash in the meantime. Here are some penny-preserving ideas tailored to our 21st-century lives:

1. Plenty of people are in the habit of cutting out paper coupons, but even though many of us do some of our shopping online now, not as many of us seem to have learned to coupon-hunt online. Sites such as CouponCabin.com, CouponMountain.com, and DealofDay.com list thousands of current offers at retailers all across the Web.

2. Use price-comparison sites such as Shopping.com, Pricegrabber.com, Google Product Search, and mySimon.com to find the best deals online.

3. When you’re out at a store, send a text message to 46645 (Google’s number) and enter the letter “f” followed by the name of the product you’re shopping for. Google will reply with a message quoting its online prices. To compare prices at local stores, visit ShopLocal.com.

4. If you don’t already belong to one, consider joining a warehouse club such as Costco or Sam’s Club and buying in bulk. This can be especially helpful if you have a sizable family.

5. Buy generic instead of brand-name products. A lot of the difference is often in the marketing hoopla and not the products, anyway.

6. Withdraw your cash from surcharge-free ATMs, which can be found on AllpointNetwork.com and MoneyPass.com.

7. Buy locally-grown food at farmer’s markets or stores that sell local produce and meats. Prices there are usually lower since the food doesn’t have to be transported very far.

8. Shop at dollar stores. You shouldn’t have a difficult time finding them since they’ve been turning up all over the place recently.

9. Purchase discount prescription drugs from online pharmacies. You’ll often end up paying well under half as much for the generic medicines sold at these discount prescription drug stores than you would for the same brand-name medicines at brick-and-mortar pharmacies.

10. If your car is seven years old or older and/or worth less than $2,500, consider dropping comprehensive and collision from your insurance.  Your deductible may be closing in on the value of your vehicle anyway, in which case a major collision would send your car to the junk dealer and you to the dealership.

11. Keep cell-phone costs under control. Today’s kids love to text message, so save yourself from unexpectedly high bills by paying the flat monthly fee for unlimited text messaging.

12. Use online classifieds to find used items. Sites like CraigsList.org and Kijiji.com are excellent resources for finding everything you need, from used furniture to baby gear. By buying from local sellers, you can save on shipping costs as well.

13. Go to matinees. The matinee showing is often more reasonably-priced than peak-time showings.

14. Install Power Planners (see www.energycsi.com/energysmart) to lower the electricity usage of your electrical appliances.

15. For your next date, plan a romantic picnic instead of going to a high-end restaurant. Pack a blanket and a cooler full of your favorite foods and you’ve got yourself a low-cost rendezvous. Spice it up a little with a bottle of vino.

16. Instead of paying for software, look for (legal) free software from places like Download.com and SourceForge.net. Depending on how you use a given type of program, the free alternatives will often be just as good as the commercial versions.

17. If anyone in your house is a student, pick up the Student Price Card from SPCLive.com. It’s only $8.50 and it will get the holder 10% to 15% off in dozens of participating stores.

18. Control your thermostat. Using a programmable thermostat to adjust the temperature will reduce energy usage when you’re sleeping and away. Prices range from $30 to $120, but you’ll lower your bill by 10% to 20%.

All rights reserved. Article may be reprinted as long as content remains unchanged and links remain active.