Must admit, this was a new one.  In the midst of following up on the status of "short sale" I have in progress, I was informed by the bank that they were still waiting for some "internal documentation".  Hmmm...I wondered.  Didn't they feel they had enough by now?  After all, I'd sent them 167 PAGES of all sorts of documentation!  Everything from soup to nuts (SPEAKING OF NUTS!!!!!....)  At any rate,I kept my cool and politely asked "could you be more specific...I want to be sure I understand where we are in the process".  At first my contact said "well it appears we're still waiting for the BPO".  I said that sounded very strange since I'd met the agent at the property so she could do her BPO over 3 WEEKS ago.  My contact politely apologized and said "yes, I'm sorry, the BPO actually IS in the system.  What we're waiting on now is RMV".  HUH????  "What on earth is that?" I asked (I should have known better!)  She tells me "why that's our recompiled market value". 

Recompiled?  Did they not like the way it was compiled in the first place?  Was the appraisal not sufficient?  Or the exhaustive CMA...all 31 pages of it?  I suppose I should be greatful they don't rely on the tax assessors "value"....out Short Sale contract would NEVER get approved.  Oh, if ONLY....could we maybe get that tax assessor to buy the house???  If they did, we wouldn't NEED to do a short sale! 

Now, I'm not a stranger to this idea of conflicting versions of "value".  I wrote about it at some length some months ago in In the Eye of the Beholder. What a buyer thinks, what an appraiser thinks, what a lender thinks, etc., are all rather subjective, shaded by each party's particular needs and motivation.  What has me dumfounded, though, is how adding yet another layer of opinion is likely to solve anything at all?  Who has the "right" answer anyway? 

 

Maybe this is why these Short Sales are taking so long to get processed ... apparently the banks don't believe their appraisers, or their BPO agents, and they most certainly don't believed the detailed CMA from a listing agent!  So, in their infinite wisdom they've decided to have SOMEONE ELSE (or is it SOMETHING else ... perhaps a series of algorhythms applied to the already massive amount of accumulated data) make that determination so they can "decide" whether to run with the contract on the table.  It's not enough that the home was on the market for 18 months.  It's not enough that there were 6 offers on the table.  It's not enough that each of those buyers was bidding against other offers and was told to bring "highest and best".  Wouldn't you THINK there was a message in there somewhere???

Many of us are paying a lot more attention to the details lately, and in an effort to reduce some of my expenses I modified my cell phone plan last month.  Today I received an email that my bill was available online so I logged into my account, excited to see how much my bill (normally about $120 per month) had been lowered.  When I clicked on the "view my bill" link, the new bill was over $129!!!!!  My minutes were well within my plan, so, no, I had not gone over my minutes.  So, why was my bill so high???

As I reviewed the details of the bill, something REALLY STOOD OUT....MONTHLY SUBSCRIPTIONS!   A charge of $54.96 added to my bill.

HUH?????!!!!

	Subscription Name	Code	Provider	Renew	Charge
03/29/2009	Flycell Downloads	69999	Flycell	04/29/2009	19.99
04/12/2009	Mobile Messeng:40544#11712	n/a	m-Qube Inc.	05/12/2009	9.99
04/12/2009	Digital Content	77888	PlayPhone Inc.	05/12/2009	14.99
04/12/2009	Mobile Messeng:86455#4658	n/a	m-Qube Inc.	05/12/2009	9.99

The first thing I did was call my carrier, AT&T to ask about it.  I told the representative that I'm seeing charges for things I never ordered, and the representative said they always send you a text message with their "offer".  I admitted I had seen some advertising messages (which I'd never gotten before, to my knowledge) over the past few weeks, but I figured it was some sort of spam and deleted them.

GUESS WHAT FOLKS ... 
If you do not PRO-ACTIVELY "REFUSE" THEIR OFFER
THEY ASSUME YOU'VE ACCEPTED IT!
.... AND THEY WILL BILL YOU ... MONTHLY!!!!

AT&T did tell me they would remove the charges, they've registered my "dispute", and they've placed a BLOCK on my account so this sort of thing won't happen again.  He then sent me an email with a special "pin" number on it, so there was something I actually WANTED to purchase online, I'd simply add my 4 digit pin to "authorize" the purchase / subscription!  He also told me that he gets 20-25 calls JUST LIKE MINE every day!!!!  Many people, because they are tightening their belts with this enconomy, are just noticing these charges (because they just started WATCHING their bills), and discovered that they've been paying for these "services" for many months and didn't realize it!  Thankfully, I'm not one of those!  Something else though that I noticed was that there additional charges...small...amounting to just $5.22 total that were "data transfer" charges also having to do with those "subscriptions".  AT&T kindly reversed those charges as well!

SO, NOW, WHAT'S IN YOUR CELL PHONE BILL!

UPDATE...

I just saw a post on one of the message boards:

"I participated in an IQ quiz on Facebook. In order to receive my score, I entered my cell phone number. I was unaware of signing up for this service. There was no phone number listed for the company on my bill and the AT&T service person was able to reverse it. She says that Qube is a partner company. I don't like their "sign-up" tactics."

I also took that Facebook quiz!  And guess what...because of the way the results DID NOT appear on my Facebook page, I thought I did something wrong...so I retook it...3 times!!!! Seems to me THAT SAYS IT ALL about MY IQ!!!!     ROTFLMAO!!!!   Boy, do I feel ignorant now!!!

GUESS I NEED TO TWEET THIS, FACEBOOK THIS, LINKED-IN THIS, ETC.!!!!

It "sounds" logical, right?  If you're a buyer looking for a home, why not do your own shopping (properties abound on the web - listed properties, By Owner properties, New Construction!  There's virtually no end to the choices.  And you can talk to some agents, too, have them do some of the leg-work for you.  After all, they likely know more about the areas or the floorplans, so if you get their help you might even do better, right?

You've heard it all before - "two heads are better than one" (so four or five must be even better, right?).  Buyers frequently say things like "I want to do some of my own looking, but if you find me a house first, you'll get the deal" or they'll talk to several agents, give them each enough information to give the agents an idea of what they're looking for, thinking"let several of them look, and whoever finds the house gets the deal".  It can't really surprise anyone that buyers might think this way.  It's pretty much standard practice when shopping for nearly everything.  What do you do when you're looking for a computer, a new coat, a car?  You comparison shop!  Are you "loyal" to one salesman?  Not likely.  If the subject were to come up, you were likely advised to "shop around", "get the best deal", watch out for the "pushy salesman", don't "commit to anything ... you want to keep your options open". 

All of this makes perfect sense when comparing retail products and when dealing with sales people.  After all, it is level playing field.  Those salespeople are charged with one task - to move product.  Yes, it's much nicer when they display social skills, when they sincerely want to help you find the best product you can get.  But real estate is something different ... at least it became something different as soon agents were charged with fiduciary representation. 

Fifty years ago, real estate agents were basically sales people, too.  They "brokered" real estate transactions between the sellers and buyers of real estate.  Remember the phrase "Caveat emptor" (Buyer Beware)?  To perform their role, real estate practitioners earned either a "salesperson's" or a "broker's" license.  Those are still the terms used today which can certainly confuse the issue.  In time, as "representation" became a duty of an agent, all agents initially representated the sellers of property (that was called "seller sub-agency").  Today, that's no longer the case.  Though there are various types of representation today, and the laws regarding the responsibilities of a real estate agent to the consumer differ from state to state, it's important to understand that there are, in fact, such laws, and that working with a real estate agent means something quite different that working with a salesperson at a department store.

So, you're asking, what does this all mean to you, the prospective home buyer?  There's a lot more to a real estate transaction than "finding a house".  It's not the same thing as finding a pair of shoes or a new coat...or even of getting a car.  For one thing, there's much more of a financial commitment (and risk) involved with a home.  For another, the purchase of a home involves signing a contract and a whole host of legal documents.  And let's not forget the house.  It's much more than wood and nails on a bit of land.  In addition to things buyers typically describe as important to them (things like the number of bedrooms and bathrooms, how far the house is from work or school or shopping or public transit, etc.) there are many other factors that buyers often overlook.  For example, how "resalable" is the floorplan or does the house suffer from "functional obsolescence"; how is the house priced compared to other homes in the area; how is the house "located" relative to market preferences (does it back to a busy street, high tension wires, a pond, a park, a playground, forest preserve, a factory, a landfill).  Specific location is important, not just for the buyer today, but for resale in the future.

And what about your (as buyer) particular circumstances?  Are you "just looking"?  Do you already own another home?  Is your lease up and you need to decide whether to buy now or renew your lease?  What is your financial situation ... what's your credit like, do you have downpayment and closing funds in the bank or will you need to borrow funds to purchase a home?  Do you receive steady income either salaried or hourly or do you rely on commissions only?  How long have worked in your current field?  Do you receive alimony or child support?  Are you paying alimony or child support?

These are the types of considerations involved in every single real estate transaction, and this list is only the tip of the iceburg!  In other words, there's a lot more to consider than just whether you want to buy a house or not. 

Now comes the question about how to proceed with the home search and buying process, and the impact of having agents compete either with yourself, with each other, or both when trying to find that "right" home.  Let's begin with a simple scenario:

Let's pretend that when you arrive at work next Monday morning your boss calls you into his/her office and says "I have a very exciting project for you!  It's particularly important that you work very diligently and do your very best work ... in fact there is quite a lot at stake for me.  I'm counting on you to put forth your very best effort on my behalf.  When all is said and done, the rewards for you could be quite high, in fact, so it could be very much worth your time to complete the project successfully.

Does that sound good to you?  After all, the boss picked you to do a very special job.  You feel good about the trust the boss has placed in you.  And, in addition, you stand to receive a great paycheck for your efforts, right?  At this point, how inclined are you to do your very best to complete the project?  Would you be willing to work extra hours?  Would you be enthusiastic about the task at hand?   Chances are, the answer would be a resounding yes!  Ok, lets take this scenario a bit further.  The boss then adds:

As a matter of fact, this project is so extremely important to me that I'm also giving the very same assignment to several other people.  Heck, I might even work on the project myself.  After all, as I said, it's very important to me that it get done.  But, just so you know, when all is said and done, only the first person that completes the job will get paid.  That might certainly be you ... or not.  And heck, if I get it done first, then I won't have to pay anyone!

Now how do you feel?  Now how hard might you work to complete the task?  Will you give it your very best effort?  Will you be willing to put in extra time?  How much attention will you give to the details?  How many hours are you willing to work, and how enthusiastic will you be to put forth your best effort when your odds, right from the start, are less than 50/50 you'll ever receive a paycheck at all?  Here's one more consideration to add to the mix.  What if the boss just changes his mind?  What if he decides the project isn't that important after all?  Or what if something happens that, despite all your best efforts, something goes wrong and he simply cannot pay you...even if you did complete everything he asked you to do?

Take a look at your own situation if you're considering buying a home.  While the above description sounds a bit absurd, it basically describes what real estate agents are confronted with on a regular basis ... because, by and large, the vast majority of them receive their compensation as a result of a closed transaction ... irrespective of the time, expense, or effort they make on a buyer's behalf.  If they participate in no closing, they receive no paycheck.  

But WHAT IF ... what if the above scenario were changed a bit.  What if your boss were to say

I've actually discussed this very important project with several different candidates.  After reviewing their work ethics, their training, their capabilities, etc., and comparing them to yours, I'm offering you this opportunity.  I expect it's going to be a lot of work for you, you'd have a lot of responsibilities.  But when all is said and done, you'll be handsomely rewarded for your effort.

Now how do you feel about the prospect of tacking this challenge?  Is your perspective a bit different?  How hard would you work now to do, not just a good job, but a great job!  It's human nature to be willing to work harder when you know you're work is appreciated and that you will reap the rewards of your effort.

It's important to look at one other component of this issue because it's something that likely you've heard before.  It's a complaint that buyers sometimes make about agents, saying "they were only interested in selling me something fast", "they showed me all sorts of homes I'd told them I didn't want to see", "they only showed me their own company's listings", "they tried to get me to buy more than I wanted to spend", and the list goes on.  What do you suppose is behind that sort of behavior?  Does it sound more like the action of a "salesman" or that of someone providing "representation"?  Are the agents behaving in that manner concerned more about themselves or are they concerned more with meeting the buyers' needs?  The answers are obvious.

What is the solution for you?  There are a number of things you can do to protect your interests.  One way is to talk with other people who have bought or sold property.  Ask for recommendations, to be sure, but also ask what they liked or didn't like about those agents.  Interview several different agents.  You'll find a wide range of experience, ability, conscientiousness, training, market knowledge among the people you interview.  How much control over the process do you want to have?  What type of communication do you prefer?  How "accessible" are these agents and how does that compare with your schedule?  Once you've evaluated the agents, make a decision.  Choose someone you trust and have confidence in and then prepare to be loyal to them.  The agent, like yourself, will work much harder on your behalf if they know they'll be rewarded for their diligence and effort.  One more suggestion.  Many agents require that a Buyer Agency contract be signed before they'll really go to work for you.  This would be very similar to the Listing Agreements that have been signed by home sellers.  The agreements (whether with buyers or with sellers) outline what the responsibilities are of the agent, what their compensation would be and how it would be paid (buyer's agent compensation is still cusomarily paid out of the transaction through the offer from the listing broker, though other alternatives might also apply), the timeframe for the agreement, etc.  Don't be afraid to request an "easy exit" clause in any agreement that you make that could take effect under certain circumstances.  This is not designed to cheat an agent out of their due compensation, but is designed to protect both buyer and agent from being stuck with a "partner" who is not holding up their end of the bargain.  It should protect both parties.

So, since we know that having good discussions right from the start results in everyone having a better understanding of the implications of various choices, why, as an industry, have the majority of us been so reluctant to have those good "birds and the bees" discussions with our buyers!!!!

• Determining your objectives - This sounds very basic (and it actually is) but it's often one of the most overlooked critical steps in the process.  When you ask a buyer "What are your objectives", they often will say "Well, to buy a house, of course".  But in reality there's a whole lot more to it than that.  What kind of house?  What community?  What floorplan?  What school district?  What about shopping, commute, churches, recreational resources, neighborhood features, etc?  How about size requirements, layout features?  Not only is it important to clarify what it is you're looking for, but also why it's important to you.  Quite often the "why" is much more important than the "what".
• Options for the Search Process - With so much information so readily available online, it's not uncommon for buyers to say to themselves "I can find the house myself...should I even bother getting an agent?"  If "finding the house" were the only reason for having an agent, the answer would be much easier. 
• The "Game Plan" - It's important to recognize that buying a home is a process, not an event, though most people initially embark on this journey without understanding that.  It's very important right from the outset to do your due diligence. There's a lot to take into account, ducks to get in a row, so to speak.  Is this your first home?  What are your financing options?  Have you set aside money for downpayment and closing costs?  How's your credit?  Do you have your preapproval in place?  If you have another property already, will you need to sell it in order to purchase another?  Is it currently listed?  Does it have a contract on it?  When would you want to actually "be in" your new home?  What types of homes will you consider purchasing?  And much, much more
• Are you planning to work with one agent?  Several Agents?  No agents?  When making this decision, it's important that you understand the ramifications of each with regard to:
• Representation / fiducary
• CONFIDENTIALITY
• Market knowledge
• Negotiating skills and strategies
• New construction (WHO sets the price / Value?)
• FSBOs (what are the benefits / risks of working with "For Sale by Owner"s?)
• Foreclosures
• Short Sales
• Exclusive vs non-exclusive agreements
• Ramifications of dealing
• Fees (will you be paying the agent directly, or will their fees be paid out of the transaction through the listing broker?)

Data alone is of little use unless you know which data is significant and accurate, and then how to interpret and apply it properly

 You never know when a nugget will appear!  It has always amazed me how we can often glean lessons from unexpected places, even from unwitting teachers.  This morning, a title by ActiveRainer Kris Whales in her post http://activerain.com/blogsview/859064/How-a-mean-spirited-email-helped-me-orwhat-would-TLW-do peaked my attention.  It was clear that Kris had taken that mean spirited message and turned it into a valuable lesson for herself.  Right off the bat it reminded me of a couple of things worth holding onto:

• Titles are important ... if we want people to read our posts, we must first get their attention (she got mine...hopefully I got yours!)
• Teachers can sometimes appear out of nowhere, and their lessons can go "viral".  That reminds me to pay attention to what lessons I glean as I travel through each day, as well as any lessons I pass along, intentional or not.

In reading her post, an old story popped into my head that I felt a sudden urge to pass along.  I'll try to remember it (I heard it a LOOOONG time ago!), and I hope you'll enjoy it!

There once was a Dad who had two sons.  The boys were young and just about as different as two boys could be.  One son, Philip, was the eternal pessimist.  Every silver lining had a cloud; his glass was always near empty; for every rose there were hundreds of thorns; no good deed goes unpunished; in other words, Philip hated everything.

On the other hand, Philip's brother, Oscar, was just the opposite.  Oscar loved everything and everyone.  Every day was filled with new opportunity; he saw every other person as his "dear friend" and treated them accordingly; whenever something unfortunate happened in his life, he considered it just that ... a brief, unfortunate event, but tomorrow will bring better things.  Oscar was the eternal optimist.

One day the Dad decided to conduct an experiment.  He put Philip and Oscar each into a separate room where he could watch their behavior.  He filled Philip's room with all sorts of wonderful things - the sorts of things that boys his age generally love!  There were great toys and games, all sorts of music and videos, an adorable puppy to play with, and the list goes on and on! What did Philip do?  He moped and complained...everything was too big or too small; too complicated or too boring; nothing whatever seemed to amuse, entertain, or please him.

On the other hand, when Oscar went into his room it was filled with huge piles of manure!  What did Oscar do? (Okay, folks, this is a joke, remember?  Don't get hung up on the manure!)  Oscar was absolutely squeeling with delight. He dug into that manure with so much gusto that his Dad simply couldn't contain himself!  He simply had to find out what was going through Oscar's mind that would cause him so much delight!  Dad opened the door and said to Oscar, "I don't understand it.  Your brother has a room filled with every imaginable delight for a young boy, and still he pouts and mopes.  But YOU, Oscar, here you are playing with that manure like it's the best thing ever!  What are you thinking?"  Oscar's reply was quite simple "With all this manure, Daddy, there's got to be  pony in here somewhere!!!!"

All of this reminded me how much our lives get defined by our perceptions, our expectations.  To paraphrase Henry Ford, "whether you think you can or you think you can't, you're usually right".  Thanks, Kris Whales for jogging my memory and starting my morning with this wonderful nugget!

Today's real estate marketplace is challenging some well-seasoned perceptions.   Think about one of the cliche's you grew up with ... "beauty is in the eye of the beholder".  Actually, from a real estate perspective the phrase is more aptly put "value is in the eye of the beholder".  Over the years you've probably seen some very clever "Your House as Seen By" messages.  They might have left you with an impression something like:

Here's Your House as Seen By .....

     You

    Your Buyer    

    Your Lender 

    The Appraiser    

   The Tax Assessor 

Today, however, it's getting harder and harder for the "beholder" to have even the foggiest clue as to what real value is.  Market value used to generally mean "what a ready, willing and able buyer, being under no undue pressure, is willing to pay, to a ready, willing, and able seller, under no undue pressure to sell."  And loosely, of course, if there is a mortgage involved, it also depends on what the buyer's lender's appraiser confirms it's worth. With current market conditions being so volatile in so many areas, "value" is now considered a "moving target".  To some degree, that's always been the case.  Today, however, that's particularly true.

Amidst claims of undue pressure placed on appraisers to determine "value" to meet or exceed a particular price, there are efforts under way to decontaminate the appraisal process.  In a recent post by Regina Brown, she explores how a New APPRAISAL law will affect every Realtor and Lender by May 1st!.  This new regulation approved by the Federal Housing Financing Committee (FHFC) outlines the Home Valuation Code of Conduct which defines what lenders, processors, underwriters, agents, and others can and cannot do relative to the appraisal process.

Despite the measures outlined in this action, however, it's important to understand that the appraisal process itself, though well intentioned, is inherantly flawed.  Though the appraiser (as well as the underwriter for the buyer's lender) has a critical level of influence over whether a loan is ultimately approved or not, we must not lose sight of the factors that color the appraiser's perceptions.  For example:

• Though the appraiser does view the interior and exterior of the property being appraised, and takes measurements, photos, and notes about that property, that appraiser does not see the interior of the properties s/he uses as "comparables" in determining value.  Generally a "drive by" of the comparables is done with an exterior photo and observation of the comparable's "location", but they will not be able to observe the condition or floorplan of the comparable.  Even if they were to get inside those homes, however, they would not be observing it as it stood at its time of sale. 
  
• Square footage is only part of the story.  Two homes could have identical square footage, but with one home being "functionally obsolete" because of its layout, while the other of the same size has broad, flexible appeal.  This can make a huge difference in the buyers' perception of value...after all, they're the ones who have to "live in the house"
  
• There are factors that can make a huge difference on the salability of property that are often overlooked in appraisals.  For example, were there strong odors (cigarette smoke, pet urine odors, strong cooking odors, etc).  What about evidence of mold, damaged or stained flooring, severely uneven flooring?  These are the types of things that appraisers are not privy to ... and they can dramatically impact the sale prices of those comparable properties.
  
• Particularly in a slower market, when there are vary few "good comparables" because few homes are selling, appraisers are forced to either draw comparables from outside the preferred target area or to take comparables that had sold much longer ago than desired.  The further away the property in time or distance, the more "ajustments" the appraiser must make to arrive at a value.  The more adjustments, the more room for error.
  
• The appraiser generally will use comparables that are most similar in terms of size, type of layout (single story vs 2 story, for example) and also the type of sale ("normal" arms length transactions vs "distressed" sales such as foreclsores, short sales, etc).  Traditionally, when there are very few of these distressed sales, appraisers can bypass a "similar" property which was a distressed transaction because they have other comparables from which to draw.  However, when the market has large numbers of such distressed transactions, appraisers may be forced into including those properties in their evaluations, which can have a significant negative impact on the value of the subject property.  This calls into question the validity of comparing the motivation behind a transaction rather than simply the physical characteristics of the properties involved.
  
• When the appraiser does his work, he begins with a copy of the sales contract on the subject property.  In other words, he beings with the end in mind!  He knows the contract price as well as any concessions being made by the seller.  If an appraisal were really to be totally objective and unbiased, the contract price and terms would be irrelevant.  Since, however, the appraiser knows what the buyer felt the property was worth, his job is more or less to "confirm" or not the buyer's determination. 
  
• Many appraisers operate in very large geographic areas.  As such, they are very often quite unfamiliar with the nuances between neighborhoods that often determine why a buyer might select one area over another, even if the selected area is more expensive.  A "similarly sized' property in the less desirable area would then have a negative impact on the appraiser's perception of the value of the subject property.  In other words, sometimes they simply do not know what they do not know!

The appraisal process, in reality, is much more an "art" than a science (though appraisals by and large are weighted in the loan process as though they were, in fact, reliable science).  It's important to also understand that an appraisl is done to protect the lender's interest in the transacton.  After all, when a buyer invests 5% of a purchase price as his down payment, that means the lender/s risk is the other 95%.   Though in many parts of the country real estate contracts do not provide for specific action if the appraisal comes in lower than contract price, particularly in today's precarious markets, it's prudent to include some condition to the sales contract stipulating that the property must appraise at or above contract price.  This at least to some extent would open the door to some recourse in the event the appraisal came in low. 

It's also important to remember that, regardless of what value is attached to a property today, it's a safe bet that the value may well be something different 6 months from now.  It may be higher, it may be lower.  But whatever "number" is attached to a property, it's real value to the owner has other measures.  It's "home"; it's pride of ownership; it's a part of our American Dream.   And particularly now it's good to remember that real estate has historically been a wonderful long-term investment as well.

We all know it...the times right now are challenging.  Apparently the media doesn't get it, though.  For some reason they've collectively decided that sensationalizing bad news, or taking something that isn't bad news and soundbiting it to make it sound bad, must be good for their business!  They want ratings; they want viewers; that's understandable.  Their sponsors want those viewers so they can sell their products.  But if viewers are bombarded with signs that their money is disappearing right from between their fingers, how much are they likely going to spend on those sponsors' products?  What am I missing here?

And as if that's not enough, they seem intent upon bolstering suspicions of scandal in government ... and when they don't find a scandal, the invent the possibility of one.  So we believe our economy is in the toilet; we're suspect of all the folks trying to get us out of this mess, we're inundated with stories of the worst of the worst (over and over again) and we're trying to make sense of it all.  The media claims they're just "reporting" the news.  That train has long since left the station!  Instead of unbiased information, we're getting very biased "infotainment"...just enough fact that we "think" we should believe it, but so jaded and biased and slanted as to have lost nearly all semblance of truth.  And this is the "news" we're supposed to be basing our informed judgements on?

It seems we're in the midst of creating a self-fulfilling prophecy.  The question is whether it's to be one of growth, of hope, of recovery .... or the one the media is defiantly choking us with; one of fear, of loss, of despair!  Maybe if we stop buying what they're pedaling we might actually find our way out of this into a better, brighter 2009!  News is important, to be sure ... but only if it's credible.  And who's giving us that?

Last night I was watching Larry King Live, a rerun he'd done around the Thanksgiving holiday, interviewing celebrities about their "heros".  The focus most definitely was on the TRUE heros...people who make their mission in life to better in ways large and small the lives of others.

It must have stuck in my mind ... the thought of what's truly important in our lives.  When I awoke this Christmas morning, my very first thought was that this is a time where so many around us are feeling a sense of loss and hopelessness.  Now, at a time when many are sharing their time and their joy with loved ones, enjoying great meals, the laughter around them, the spirit of giving ... there are many, many others who are not.  Their circumstances may differ.  Some have suffered the loss of their homes or their livelihood, some are dealing with illness or injury, others are kept far from loved ones because of war, and many are grieving the loss of someone they hold dear. 

As much as the holidays are recognized as a time for love, for giving, for sharing...generosity of spirit and of time, for many the holidays are a cruel and unrelenting reminder of "what should be" or "what could be", but, sadly, what is not.  It seems each year reports appear in the media about the uptick in depression, even suicide, during the holiday season.  Expectations met with disappointment may be part of the reason, or the emptiness felt when one has no expectations at all may be another.  It's a sad commentary on our own "communities" that such could even be the case.

But while we may not be able to make a difference to huge numbers of people at any given point in time, we need only look around us.  Every single one of us has the power to touch SOMEONE...maybe even to make a great difference in someone else's life.  Sometimes it's as simple as taking the time to listen to someone else's story.  Sometimes it's sharing a few words that lets them know that, not only did you hear what they said, but that you connected with them in a very real way.  Whatever we say, whatever we do, treating someone, even when we may disagree with them, with a deep and abiding respect, that act alone can affect a change in them ... and it certainly is good for us as well!

Think about it.  Particularly with all the challenges people in great numbers are experiencing today, there is no doubt someone close to you, maybe very, very close in fact, who needs you!  Who are those people?  What can you do to help them ... to ease their worry, to make their life better, to let them know they're not alone?  Sometimes it all comes down to connections.  Sometimes it's not what you can directly do that will make the difference.  Sometimes it's a simple matter of putting them in contact with the right person ... a potential landlord, a potential job, someone to take in their beloved pet because they can no longer afford to care for them.  You never know what difference you can make until you make a conscious effort. 

Hero's come in all shapes and sizes ... as do acts of heroism.  Imagine the possibilities if each one of us became a hero to just one other person!  Imagine if we did even more!

If ever there was a time to take a long, hard look at the income and the outgo, this is it!!!  It seems like everyone, irrespective of lifestyle, income, job security, etc., is scaling back, tightening their belts, just trying get a handle on how current economic conditions are impacting them.  And probably the single most important step to take in understanding how best to manage our finances comes from a very clear understanding of more than what we spend ... it comes from knowing exactly what we spend it on. 

There are some really great tools available to help us do just that!  Today, with the popularity of Debit Cards, and software products like Quicken and Microsoft Money, getting at the heart of where every single penny we spend goes is a whole lot less challenging than it used to be.  Setting the system up does take a bit of time and organization, but once set up it can save you literally hundreds of hours and considerable money, too! With 2008 coming to a close

How often have you heard the phrase "if you watch the pennies, the dollars will take care of themselves!".   So much of what we spend, we don't even think about.  And when the time comes where we have to tighten the belt straps, we're not even aware of how much "wiggle room" some of those expenditures give us in our weekly or monthly budget.  How often do you make a quick stop on the way home to McDonald's to pick up dinner because your day ran long and you simply don't have either time or energy to prepare a meal?   Or have you thought about the little things like haircuts, manicures, tips, the stops at the local Convenient stores, treats for the kids at the grocery or toy store, movies, etc.  Without tracking all of the expenditures we make, it's so much harder to take a look at exactly where the money has been going ... to know where we might conserve. 

It certainly true, you don't really need any special financial software to simply "track" your expenses.  A basic "spreadsheet" would allow you to list your expenses and categorize them.  And there's no question that tracking that way is certainly better than not tracking at all!  But that sort of tracking has many limitiations...primarily in ease of input and what you can do with that information once you've entered it  Financial software will do so much more than that ... including making tax time a whole lot less challenging!

So, whether you're starting from scratch, or moving information from a basic spreadsheet, or even trying to get a bit more out of your financial software, there's no time like the present to set it up and put it to good use, and here are some tips moving forward:

• Gather all your account numbers and vendor information (things like credit cards, mortgage holders, auto loans, school loans, etc.).
• For things like mortgages, car loans, etc., it's a good idea to have both your initial statement (showing your starting balance, interest rate, start date, etc.) as well as your most current statement
• Also a good idea, have a copy of your last annual tax return - it will help you in setting up some of your default information
• You'll be asked to set up "categories" for all your expenses.  One trick is to start by jotting down a list of every type of category you have...personal, household, business, charitable, etc.  Making that list will make it easier to "subcategorize" to make the system easier to use.  For example, for all my business categories, I place an * before the category name.  That way everything business related stands out from all other categories.
• When creating categories, you'll also be able to identify which categories will be included on your tax return...and on which line!  Taking the time to set up now will dramaticaly simplify tax preparation, whether you do it yourself, or have a preparer do it.  If you have an accountant do your taxes, they'll LOVE the organization of data.  And, since it will take them less time to prepare your taxes, you'll be paying them less as well.

With the above information hand, many of these programs permit you to use your own, real information in walking through their tutorials.  For example, when it comes to a tutorial on setting up checking account information, they'll ask if you'd like to use "your own" information while you practice.  Doing so is an excellent idea...you're creating content WHILE you're learning how to use the program.

After setting up all your accounts, and all your categories, it's a simple matter of getting into the habit of entering data daily, preferably, as expenditures are made.  Making the habit of investing 5-10 minutes a day can save you many hours later on.  If your bank has a download service for your accounts, the process is made even easier because all bank information will be added automatically into your system!  Talk about "user friendly!!!"  Can't get much easier than that!