PRESS RELEASE:

Pittsburgh, March 2007 — Russ Thornton has been awarded the Accredited Investment Fiduciary® designation from the Center for Fiduciary Studies. The AIF designation signifies training in fiduciary responsibility and follows a two day course and examination.

Thornton, a resident of Atlanta, GA is President of Thornton Wealth Management. He specializes in providing investment management solutions to individuals, trusts and corporate retirement plans.

The Center for Fiduciary Studies is the first full-time training and research facility for fiduciaries. The Center, associated with the Center for Executive Education, Joseph M. Katz Graduate School of Business, University of Pittsburgh, teaches fiduciary standards of care and investment best practices designed for trustees, advisors, and other investment professionals. They also offer an Accredited Investment Fiduciary Analyst? designation signifying the ability to perform fiduciary assessments. Programs are offered throughout the year at the University of Pittsburgh?s Center for Executive Education, Stetson University?s Celebration Campus in Orlando, Florida, University of Washington in Seattle, Rice University in Houston, and the Wharton Business School of the University of Pennsylvania?s West Campus in San Francisco. Courses are also available internationally in Canada, Singapore, New Zealand, and Australia. For more information on future events, training programs and fiduciary products, visit www.fi360.com.

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In the American Revolutionary War Colonel William Prescott admonished his troops not to fire till they saw the whites of the enemies’ eyes. Bottom feeders in this tanking real estate market are trying to show the same discipline, but it’s tough. As early as mid 2007 we were reading all sorts of stories about vultures swooping into overheated markets like Miami and Las Vegas to gobble up properties that had tanked in value. Funny – we don’t really see too many stories about what happened next.

But we know what happened next – they continued to tumble, and the bottom feeders who jumped in too early took a beating.

Today Case Shiller reported a 15.8% drop in their housing price index. This isn’t really news, actually – it’s the twenty second consecutive month that the index is down. And if I were a betting man I’d count on it being down next month too.

Foreclosures are hammering the market as banks unload their inventory of REO’s, pushing down the averages. There are some indications that Congress and the Fed are ready to step in – witness this week’s housing bill. This will reassure Wall Street, but it remains to be seen if the positive impact that this has on credit liquidity is neutralized by banks reevaluating the risk of the government unilaterally resetting the terms of the loans that they make.

I’ve remarked in earlier posts that there is a difference between investing and speculating – and that either one may be ok for you, but the danger is when you think that you’re doing one but you’re actually doing the other. “Investors” out there who are trying to catch the bounce aren’t investors; they’re speculators. In my view it’s more important than ever for investors to evaluate the risks, take a sober look at a potential cashflow that an investment will produce, and ask themselves what kind of return their investment will yield if they’re forced to hold for a few years.

Finance Findings is Binary Dollar’s periodic link dump.

• My Personal Saving and Investing System [Sun’s Financial Diary]
• What Have You Got Against Credit Cards? [Tao]
• Curb Appeal: One Of My Best Investments Yet Or How I Turned $80 Into $5,000 With Minimal Risk [Digerati Life]
• Understanding the Fine Print of a Loan Can Save You Money and Grief [Generation X Finance]
• Alternative Income Streams Progress - June 2007 [Lazy Man and Money]
• Are Real Estate Agents Worth the Money? [Money Smart Life]
• The Best Online Brokers [Free Money Finance]
• Eight Things To Consider When Buying Someone Out [Mighty Bargain Hunter]
• Four Reasons You Should Get A Payday Loan [Blueprint]
• Eco-Friendly Energy Savings [Five Cent Nickel]

Send your submissions for Finance Findings to henry@binarydollar.com.

Sponsor: Parlayer - Henry and Matt blog about sports and stuff.

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By taking a shape, by having a visible plan, you open yourself to attack. Instead of taking a form for your enemy to grasp, keep yourself adaptable and on the move. Accept the fact that nothing is certain and no law is fixed. The best way to protect yourself is to be as fluid and formless as water; never bet on stability or lasting order. Everything changes.

- Edwin, CashTheChecks.com

Yes! What if your wallet is lost or stolen? Many of us have our driver's license, social security cards, etc. in them. Chuck Jaffe at MarketWatch lays out why credit monitoring is a good way to know whether your identity has been stolen....

Full article: http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid=%7B5D8BA284-55D6-49AC-8DCD-9E15E6EEB064%7D&keyword=

This is a guest post from my wife, and features a story I’ve come to look forward to updating every summer: the tale of two entrepreneurial girls.

Last weekend I explored Portland’s beautiful Eastmoreland neighborhood during its annual 140-family garage sale. In the past, I’ve come away with major bargains, but this year I had to be content with enjoying the first day of summer with a couple of friends. We admired the homes, gardens, and assorted cast-offs of the well-to-do.

Many of the adult garage-salers were raising funds for charities. Sidewalks and curbs were also strewn with young entrepreneurs selling their wares: homemade cookies (still warm from the oven), beaded jewelry, rice-krispie treats, iced bottled water, and grilled hotdogs.

Over the past two years, J.D. and I have had fun meeting one pair of entrepreneurial sisters who rise above the run-of-the-mill baked goods and soda. I was pleased to see them once again. In 2006 they were selling jokes:

Last year they were selling stock tips:

My friends and I each bought a cup of lemonade, which we downed while questioning these young businesswomen about this year's products. The elder girl was selling bottle-cap magnets — each individually created and carefully crafted — at two price points. She told to us some of her inspirations, and compared the relative strengths of the magnets. (The one dollar bottle caps had stronger magnets than the seventy-five cent magnets.) She was proud of her creations, but, like any good salesperson, she didn’t oversell. I selected one with a cancelled 26-pence Queen Elizabeth stamp and moved on to see what her younger sister was selling.

The younger girl had created two issues of a neighborhood newspaper: The Lofty Times. Typed on an actual typewriter (without correction tape!), the publications bear phonetic misspellings and creative punctuation, but are brimming with enthusiasm and real journalistic gusto. We purchased a copy of each issue, did some negotiating to arrange limited re-print rights for Get Rich Slowly, and exchanged email addresses. Here’s a sample story from The Lofty Times, reprinted by permission of 8-year-old author Grace:

the Eastmorland goroge sail

Thouthins of peaple look forwerd to this moment in Eastmorland it is the garage sale! A man named Jared Seger is selling different parts of a house, such as windows, doors, and other things.

In th past years my family has allways gone big on the garagesale. one year DAD beleave it or not bot a hool stack of inapropryite gossap maggaseens, it was hollywood gossap and lemenaid, every year it was a tradishon to have lemenaid.

Other years were forchentelling, jocks, stack priceed, and so many more things that even if I tried, I probly could not name them all! this year is going in a todaly different path. AT ages of 8 and 10, my sister and I have lerned so many things, I, as you can see am making my newspaper. Madeline is making bottlecap prodex.

I have many, many good thouts about the garagesale, I hope you do to.

The girls and their mother gave us a crash course in their annual entrepreneurial endeavors. Their parents loan them seed money for the projects, which the girls must pay back from their profits. Any profit is theirs to spend. With parental support and guidance, these sisters are well on their way to understanding the value of money and the joy of making and selling their own goods — as well as knowing how to stand out in a crowd!

I’m sure that it would be easier for these parents to just give their daughters spending money, but they know that the lessons learned here are priceless and the extra efforts worthwhile.

My friend Rhonda and I later discussed the merits of each girl’s choice:

• The magnets clearly had higher start-up costs, but broader customer appeal.
• Yet the newspapers were well-worth the cover price for entertainment value.
• Both projects showcase the imagination of the creators.

I wish I could eavesdrop on these girls as they consider, reject, and perfect ideas for each year’s merchandise. And I hope that by the end of the weekend, Grace and Madeline were both sold-out! May they return next year with their contagious entrepreneurial spirit, and Bravo, parents!

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Related Articles at Get Rich Slowly:

• Accidental Entrepreneurs Turn Hobbies Into Livelihoods
• Resources for Would-Be Entrepreneurs
• Some Thoughts on Discouraging Materialism in Children
• Sponsor Get Rich Slowly for Blogathon 2006
• Marketing Affects How Children Perceive Food

You may or may not have heard the term ?ethical will?. But, for those who care about making their values and ethics part of their legacy, it is a tool to consider when planning your estate.

Unlike a ?last will and testament?, which provides for the distribution of a person?s material assets, or a ?living will?, which contains instructions for how you want to be treated medically at the end of your days, an ?ethical will? is designed to let someone preserve and share their values, principles and beliefs for heirs and future generations, though it?s not legally binding.

According to Personal Legacy Advisors? Web site, an ethical will is a letter that transmits the non-material assets that are also of great importance: your values, your story, the lessons life has taught you and the other information that is too valuable to risk being lost. Your ethical will is the tool that enables you to address the question, ?What do I want my loved ones to know??

As a concept, ethical wills are not new. The first written reference to ethical wills occurs in both the Hebrew and Christian Bibles. Examples are Genesis, chapter 49, and The Book of John, chapters 15-18. Over time, they evolved into written documents. While ethical wills were traditionally shared after death, along with the reading of an individual?s last will and testament, today they are often shared during the author?s life.

While exact figures aren?t available for how many people are writing ethical wills, they are on the rise, based on increased Web activity and sales of ethical will resources. They have gained impetus particularly in the wake of tragedies like the September 11 terrorist attacks.

Why create one? People are inclined to write an ethical will when facing a challenging event, or at a turning point in life. Some examples are facing the loss of a loved one, birth of a grandchild, expectant parents, becoming an empty-nester or approaching the end of life. Other reasons to create an ethical will include:

• Your reflections will confirm what?s important and renew appreciation of your life to date
• You will create a personal message to those you love, of priceless value in the event of your absence
• If you do not tell your personal (and family) stories, they may be lost forever
• Your material assets can be given within a personal context
• You will mitigate confusion and hurt feelings with a personal explanation of potentially controversial elements of your legal will
• Your spirit will be expressed on paper, living beyond you in a timeless way
• Your words will link the past, present and future generations of your family
• You will enjoy peace of mind knowing the most important things will have been said.

Pros and cons. The pros of an ethical include having an opportunity to influence future generations. Through the process of writing an ethical will, the writer can gain self-knowledge and come to an understanding of what?s most important to him or her. This is valuable information not only for their families but their professional advisers as well. Another pro is that ethical wills are private documents. Unlike a will, which if admitted to probate will become a matter of public record, an ethical will is a private communication and will not be made public unless the author (or recipient) so desires. The con is that an ethical will is not enforceable in a court of law. Those who want to provide specific instructions, such as who is to receive which asset or how assets are to be distributed and under what conditions, would need to put the instruction in a will or trust.

Setting up an ethical will. Ethical wills come in a variety of forms, from a short letter to a lengthy autobiographical statement, from an audio-recorded message to a bound album. There are three basic ways to create an ethical will.

1. Begin with an outline and list of suggestions. Once you?ve created a rough draft, you can review and personalize it as much as you wish.
2. Begin with guided writing exercises. For example, start with phrases such as ?From my grandparents, I learned?? or ?I am most grateful for??
3. Begin with a blank sheet of paper and write down whatever is relevant about your thoughts, experiences and feelings. This is an open-ended approach. Eventually you should be able to create a comfortable structure for your ethical will. For one-on-one help, an organization like the Association of Personal Historians may be of assistance.

Other tips from Personal Legacy Advisors include the following:

• Start today: If you were not here tomorrow, what is the most important thing you would not want left unsaid? Write it down - now you’ve begun
• Relax: You are not trying to write for the Pulitzer Prize. The letter is a gift of yourself, written for those you love
• Ask yourself: What do I want to make sure my loved ones know and have in writing
• Take it topic by topic: Don’t try to write it all at once
• Be yourself: You cannot bequeath what you never owned to begin with
• Be careful, be loving. The reach of this letter is unknowable.

Sharing your will. It?s a good idea to share your ethical will not only with family and friends, but also with your financial adviser and attorney. Knowing what you value and what?s important to you will help them to develop a personalized plan that can help you to leverage your values in the future.

An ethical will speaks to one?s posterity or descendants long after the legal will has been probated and forgotten. Of note, an ethical will is a dynamic document. Just as a will or living trust document needs to be revisited so does an ethical will, because events occur in ones’ life that have an impact on ones’ value systems.

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I freaking love this.  One of the topics that I have seen frequently on the PF blogosphere is how little financial education there is for America's youth, and how that leads to poor decision making as adults.

In a reversal of roles, High School Freshman and Teen Columnist, Emily Hu, writes For Adults, It's Payback Time.

A brilliant nugget from Miss Hu's article: 

"It comes down to this: Once upon a time, when people were forced to really consider what they could afford and credit actually counted for something, people bought houses they could live in for a few years."

(This is a guest post written by ABCs of Investing, a brand new site for novice investors which offers two short and simple investing posts per week.  Feel free to subscribe to the feed.)

The majority of investors use a financial advisor or broker to help with their investing planning.  There is nothing wrong with getting some help with investing since it is a fairly intimidating subject.  Most people just don’t have the time or the interest to read investment books and become knowledgeable enough to be able to handle all of their own investments.  Do-it-yourself investors forget how much time they have put into learning about finances and think that investing is easier than it really is.

The great thing about investing is you don’t have to choose between being an expert DIYer or a clueless investor who needs an advisor.  You can hire professional help AND know what you are doing at the same time!

A few years ago I bought a basic electrical book.  It showed how to do electrical repair jobs and even how to plan various circuits in a house.  One of the things that I found most interesting about the book was in the introduction; it said that learning the basics of your electrical system is useful whether you do the work yourself or hire someone else.  The point was that even if you end up hiring a contractor to complete your electrical work, any knowledge you have about the electrical system in your house and how it works will assist you greatly.  The same logic applies to investing: the more investment knowledge you have when dealing with an advisor, the better off you will be.  It is worthwhile to spend a bit of time learning about investing.

There are number of areas where some investing knowledge will help if you have an advisor:

• It won’t be as easy for the advisor to take advantage of you.  Let’s face it: some financial advisors, like real estate agents, make money on commission, and unscrupulous ones can rob you blind if you let them.  Knowledge about proper investments and for that matter knowledge about how advisors make their money will help you a lot.
• You’ll have more productive advisor/client meetings.  Usually when a client visits or talks with their advisor, the advisor is telling them what to buy.  If you can spend some time before meetings looking over your portfolio then you can drive the meeting agenda and make sure that your questions get answered.
• You’ll know better what you want from your advisor.  A lot of investors just hand over the financial reins to their advisor and just do whatever they are told.  If you have some investment knowledge then you will be in a lot better shape to determine what you want from the advisor, communicate your desires to them and make sure that they are the right advisor for you.

The single best way to learn about investing is to read.  Read, read and then read some more.  Books, blogs, websites, newspapers are all sources of information.  Talking with friends, relatives, co-workers can also be helpful.  But beware, all the “good” ways to learn about investing can unfortunately also be “bad” ways to learn about investing.  The best way to protect yourself is to read as much as you can and eventually you will be able to figure out where the good information sources are.

Knowledge is power!  Make sure you have as much as possible when dealing with your advisor.  Even a little bit of knowledge is a lot better than none at all.

(Photo credit: net efekt)

How much of your money is in domestic stocks? What percentage of your portfolio is invested internationally?  If you’re like many average investors in the US the majority of your investments are in US companies.

Global Investing Seminar
I attended a seminar on global investing yesterday and it really made me think a little harder about our current exposure to international investments.  I had to keep in mind it was presented by a financial company that runs a global fund, so the point of the seminar was to reinforce the importance of international investing in the minds of current and potential investors.

However, they did cover some interesting statistics that apply no matter what investment vehicle you use to diversify overseas.  They fed us lunch so I didn’t get to write down all the statistics since I was busy feeding my face but I still remember the general concepts.

Global Growth Trends
One of the graphs was from a Morgan Stanley study that looked at the total value of US public companies compared to the total value of international companies.  The graphic showed the value in approximately 20 year time intervals: 1988, 2008, and 2030 projected. 

I wish I had the exact numbers but the overall trend showed a global economy that was dominated by American companies in 1988, maybe about 2/3 of the global corporate value was in the US,  but the estimates for 2030 approximated US companies making up only a quarter of corporate capital markets.

Of course the numbers aren’t exact but I think the trend is definitely accurate and that the US position as the world’s financial superpower is slipping.  While this may not be great news for us as consumers or workers, it does present an opportunity for us as investors.

Evaluating International Markets
The speaker worked for a global fund, his role is to fly around the world visiting and evaluating companies that the fund is considering putting money into. He walked us through his fund’s investment positions in the various global regions, explaining their reasoning behind being underweight in places like Great Britain and overweight in places like Taiwan and South Korea.  He definitely pointed to Asia as the region with highest potential for growth over the next two decades.

He gave some staggering statistics on the sheer size of the Chinese consumer and business market and the enormous potential for growth there.  He also commented on the enormous currency reserves the Chinese government has built up and all the money they need to spend on infrastructure.

However, the speaker went on to warn us that the Chinese markets are overpriced, in his opinion, due to a massive runup in the stocks of Chinese companies over the last few years.  He had the same caution for stocks in India, that the price earning (PE) valuations were higher than they wanted to pay.  His company is looking for opportunities in areas like Taiwan or South Korea where the PE ratios are much lower.

Risks of Investing Internationally
The truth is we live in a global economy and changes around the world can effect how US companies perform so even domestic investments are influenced to an extent by international markets.  However, if you decide to put your money in a foreign company your investment is suddenly influenced heavily by regional events, currency fluctuations, and the policies of the foreign government. 

If you’re investing in an emerging market where there is large amount of growth there’s also typically a lot of change both economically and politically that can potentially put your investment at risk. Although there are risks associated with global investing, in my opinion they are definitely worth the opportunity to benefit from the growth in economies around the world. 

You wouldn’t want to put all of your money into international companies, just make them a part of your investment portfolio.  Several years ago about 10% of our portfolio was in international funds when I increased it to around 15% and now I’m looking to raise the percentage even higher.  How much exposure you want to international markets is up to your situation but it’s definitely something you should at least look into.

How to Invest Internationally
So how can you put your money into companies overseas?  The easiest way is to buy an international ETF or mutual fund.  The approach I decided to take several years ago was to invest in multiple international funds.  I choose an option from my 401k, Dodge & Cox International Stock (DODFX), one from my wife’s 403b, American Century Intl Growth (TWIEX), and also opened a non-retirement account with Oakmark International (OAKIX).

Dodge & Cox International Stock has done the best for us. American Century Intl Growth has been decent but nowhere near the performance of the Dodge and Cox fund.

Oakmark International had been going gangbusters until last December when it took a big hit.  I had been debating between the Oakmark fund and the Vanguard Total International Stock Index Fund (VGTSX) back in early 2003. 

Our financial advisor recommended Vanguard but I went with Oakmark instead.  As the graph shows, I’d be wealthier if I’d have listened to her, I guess hindsight is 20/20.  The Total International Stock Index Fund is actually composed of investments in three other Vanguard international indexes:

• Vanguard European Stock Index Fund
• Vanguard Pacific Stock Index Fund
• Vanguard Emerging Markets Stock Index Fund

The fund is a simple way to gain exposure to a variety of markets all over the world.  There are many other international funds available so you have lots to choose from.

One other option I’m considering for investing overseas is opening an account with ETrade to take advantage of their online global trading.  This would be a different approach than the mutual fund route which would require more research and carry more risk.  It would allow me to invest directly in companies in Canada, France, Germany, Hong Kong, Japan and the United Kingdom.

International Investing Summary
Whatever approach you decide to take, I’d recommend at least reading up on the growth of economies outside our borders and how you can invest in them.  As I mentioned in the beginning, the long term trend is that international companies are growing to compose more and more of the investment options available to you and all the other investors in the world.  In order to diversify your portfolio and benefit from global growth consider taking a look at your international investment options.

June was a difficult month for me. I was busy in Real Life, distracted by home remodeling and by physical fitness. Things are settling, which will allow me to spend more time on the site. On top of that, I now have actual help around here!

• My wife, Kris, is processing the backlog of e-mail.
• My friend, Winston, who is one of the inspirations behind GRS, is doing research and handling publicity.
• Another friend, Lisa, will help copy-edit guest posts. (You may remember Lisa from “Saving with Albert” and other guest posts.)
• Meanwhile, JerichoHill continues to keep an eye on the discussion forums.

Thanks to everyone who is lending a hand. I appreciate it. And thank you for your comments, links, and tips. The readers are the heart of Get Rich Slowly. You keep the site a vibrant place for exchanging money-saving (and money-making) ideas.

Here’s a brief overview of some of June’s top stories on the blog:

• June 3rd: How to take a mini-retirement: Tips and tricks from Timothy Ferriss
• June 9th: Guarding against the invasion of Stuff
• June 11th: The new reader’s guide to Get Rich Slowly
• June 15th: Financial advice from my father (when I was nineteen)
• June 16th: Personal finance made easy: Pay yourself first
• June 20th: Cheap vacation: Be a tourist in your own hometown
• June 23rd: Subscribe to Craigslist search results to grab great deals
• June 26th: The non-conformists’ guide to personal finance (a guest post from Chris Guillebeau)

Best of the Forums
The Get Rich Slowly discussion forums were active again this month, spawning several interesting conversations:

• Living debt free…is it really possible? this is a great thread
• Going (mostly) car-less
• Unusual ways to save money
• Debt snowball vs. emergency fund
• How do you work your clothing budget?

The forums are a great place to chat with your fellow readers. Have questions about emergency funds? Ask! Want to chat about cheap vacations? This is the place to do it. (Since opening a year ago, the forums have 1800 registered users and over 21,500 posts.)

Subscribe!
You may subscribe to Get Rich Slowly via any of the following methods:

This weblog is a success because of you and your support. As always, I welcome reader contributions, either as ideas for stories, or as guest entries. If you have any comments or requests to improve this site, please feel free to pass them on.

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Related Articles at Get Rich Slowly:

• The Best of GRS: June 2007 Edition
• The GRS Garden Project: June Update
• Daily Links: 100 Pushups Edition
• Press
• Daily Links: Technical Difficulties Edition

First, a small disclaimer:  I’m not a big movie-watcher myself.  I’ll take in a movie maybe every two months, possibly less often than that.  This includes trips to the theater and rentals.  As such, I don’t spend a lot on movies, anyway.

Over the next few years, taking in a flick with friends and family will be an affordable substitute for a vacation.  It’s just plain cheaper.  The good news for people who really love movies is that it’s possible to get by pretty cheaply, and if you downsize other areas appropriately it won’t strain the budget that much at all.

So, here are some tips for you movie buffs on how to maximize your cinematic dollar:

• Really pick and choose which movies you see in the theater. One group of movies that might make the cut are ones that absolutely depend on special effects and the latest, greatest sound equipment.  Another group would be movies that might take a really long time to get onto video.  The main point is that going to the theater is the most expensive option for watching a movie, so choose wisely.  There’s the time and gas to get out there, as well as the fact that you only get to see it once for your money.
• Take in a matinee if you can. Some theaters offer off-peak showings at a discount to the price of nighttime showings.  The movie is the same.
• Stay away from the concessions if you can. The movie theater makes its money on the concessions.  Fountain drinks have a markup of a few thousand percent.  Same with popcorn.  A movie theater that lets you bring in your own concessions is a hidden gem; if you can, take advantage of that.
• Stay away from giving to causes before the movie. Movie theaters play off attendee’s emotions.  They have a movie screen at their disposal to play carefully-designed clips that encourage you (guilt you?) to give right there.  If you do, the movie theater writes off your donation, not you.  If you itemize, and give what you would have given directly to the charity, you can write it off (assuming you’re allowed to do so).
• Look into packs of tickets to see if there’s a price differential. Costco.com offers movie ticket packs for four different movie theater networks.  Check to see what network your favorite movie theater is in, and check the price of the tickets in the pack compared with your movie theater’s prices.  (Or, you can of course check for movie tickets on eBay!)
• See if you can get a group together. For example, our church got a bunch of people to see Fireproof this year, and I believe that they got a small discount.  Every little bit helps.

• For the movies that really don’t need to be seen immediately or ones where the big screen doesn’t matter, watch it at home! It’s way cheaper.  You can buy your soda and candy at the grocery store, and eat it during the movie without feeling like you have contraband.  Popcorn is way cheaper and healthier.  We use a Nordic Ware microwave popcorn popping bowl and it does a good job without needing any oil.  A bag of kernels costs a couple of bucks and could provide popcorn for a couple dozen people.
• Like to watch a lot of movies and want a lot to choose from? Netflix is probably your best choice.  They have over 100,000 titles to choose from.  They pay for shipping both ways, and you can cancel at any time.  There are instant downloads available each month as well.  My parents-in-law have a Netflix subscription and they absolutely love it.
• Are you looking to start or expand a collection? Well, good news!  Lots of people are looking to get rid of their collection or decrease the size of it.  There’s nothing wrong with pre-viewed DVDs (unless they’re absolutely trashed).  People routinely sell their personal DVD collections on eBay, and bidding on these is brisk.  More often than not they will list every single movie right in the auction, so you’ll know exactly what you’re going to get.  A fair price point for collections is less than half of what you can get them for in WalMart’s dig-through-the-box specials.
• What if you’re like me and don’t watch movies often at all? Like I mentioned above, I watch only a few movies a year.  A Netflix subscription would be overkill for me.  If you’re a casual viewer, then it’s easier to find good deals in low quantities because the urgency really isn’t there.
• Pawn shops, thrift stores, and garage sales are good places to pick up one or two cheap movies. Three bucks is a good price point.  If you run across something that looks interesting, pick it up.
• Redbox works well, too. I had a good experience with Redbox when I rented Expelled.  It was a very easy process, and the rental was a buck for one night for a movie that was released this year.
• Don’t forget free! There are options for free movies, of course.  Your local library might have a collection.  Your church might.  Hulu.com has a fairly decent free movie selection.  You could borrow one from a friend, or wait until it comes out on network television.

Additional casualties and signs of economic recession: laid off bloggers and your favorite web sites for sale!

Do you see what’s in store for you next year? Well, I’ve peeked at my crystal ball and can see the same thing you’re all seeing, an ugly 2009 as the economy continues to contract. Still no relief in sight (or maybe just a little, with Obama stepping in with a pep talk and an action plan).

Still, the tremors reverberate in the blogosphere.

More and more bloggers are reporting that they’ve been laid off, or are afraid that they will be. Some of the ones I know:

• Trent Lapinski’s Blog: Dear Barak Obama, I?m 22 I Just Got Laid Off, and I Can?t Afford College - Please Help (ugh! This was hard to read.)
• Amateur Asset Allocator: I Was Laid Off Yesterday
• Finance Your Life: Job Security: I Am Safe….Right?
• Shaun’s Real Estate Adventures: This is Why I Want Passive Income
• The Smart Passive Income Blog: Nevermind. I Just Got Laid Off

Judging by the dates on these posts, changes have been coming fast and quick! I’ve also mentioned that TechCrunch has this layoff tracker while Gawker (the online media name that bloggers look up to ) is selling off The Consumerist, and Valleywag (what!? one less Silicon Valley blog?) and trimming its staff. You can see how the online world has been taking its hits.

The trends have been reflecting reality for a while now, so when are they announcing that we’re officially in the dog house?

I’ve also talked about how we’re coping with the recession in Silicon Valley, but whatever else I’ve got to say about this can fill a book. Anyway, it’s been the subject of deep conversation between me and my close friends and family these past few weeks.

More Signs of Economic Recession Where I Live

Just to see how widespread the financial pain is, I’ve polled the people I know for their stories and concerns — here are just a few:

• A couple of people I know have been laid off in the last two weeks. These are people who work at smaller companies that are now embarking on cost cutting measures. With the VC spigot closing off, startups that aren’t solvent will be forced to cut back heavily or close down completely. Startups are living on borrowed time. These events are reminiscent of massive layoffs in Silicon Valley in 2000 during the tech bust, so it’s not new to me. I should get used to this happening every 5 to 8 years, I guess.
• Friends of mine who are consultants are experiencing delays in payments. Uh oh. They’ve done the work, but there’s some worry they’ll end up on a long list of creditors waiting to get paid.
• Too close to home! I never thought it would happen, but someone I know pretty well actually is in the process of losing their house. The story is complicated — he was a victim of a drawn out scam that got exposed by the housing downturn. And I’ve heard rumors of acquaintances going on short sales on expensive homes they purchased only a few years ago (and which I had the pleasure of visiting during house-warming parties galore way back when).
• I heard about how there are scores of luxury cars just sitting on Long Beach right now, with no takers. I got this story from a guy who’s well insulated from the crisis because he’s sitting on a huge pile of cash (he’s very conservative with his savings). Yet, he’s concerned about the effect of currency exchange on his international business.
• Some of us self-employed folks are seriously thinking of joining the many out there who’re already chasing what few jobs are around. I read that Cisco’s job listings have dropped by 93% in one week, from many thousands of openings to a trickle of a few hundred.
• I miss “happy” news. Could this be capitulation? Or close?

Break Open Your Emergency Funds

For many whose lives have been viciously upturned by the forces of the economy, it sure feels that this recession isn’t “normal”. But the reality is that this is probably what a “true” recession feels like. The waves of an economic downturn are much like dealing with the effects of an impending tornado. The tornado spares some while it devastates others. You just pray it doesn’t hit your household when it comes, although you can expect it to do a number on your landscape.

This has become a time of emergency for many. Our situation clearly emphasizes the importance of having enough insurance to cover ourselves when such a “disaster” hits — and when I mean insurance, I am referring to emergency funds and enough liquidity to tide you over during the storm. Does this mean we should have at least 1 years’ worth of expenses in cash? Maybe so, especially since nasty recessions can last that long! If you’ve got unemployment benefits covering you for 6 to 9 months plus a one year stash of cash, you could get through this nail-biting ride.

So let’s hunker down in the basement and see if we can ignore the angry winds out there for now. I’m doing it by starting the ball rolling on some portfolio rebalancing efforts (gah!) and selling off investment losers.

So let’s check what else is on the minds of our favorite financial bloggers, shall we?

• Consumerism Commentary: Take Control of Your Finances Part 5: Build A Better Budget
• Five Cent Nickel: Ted Turner on The Economy
• Free Money Finance: Is Your 401k Dying?
• Credit Karma: Are You Financially Prepared For Disaster?
• Rich Credit Debt Loan: Getting Rich By Leveraging Debt
• Lazy Man and Money: Oil’s Well That Ends Well
• Brip Blap: The Results Oriented Work Environment
• Frugal Dad: Looking For Happiness In All The Wrong Places
• Gen X Finance: Is an Extended Warranty on a Used Car Worth It? The Good, Bad, and Ugly of These Service Contracts
• Million Dollar Journey: Common Job Interview Questions
• One Mint: Can You Take A Loan On A Simple IRA?
• My Simpler Life: Fitting In Household Chores
• The Personal Financier: Thoughts on Citi in Trouble, Market Swings, Stock Charts

Notable Mentions Around The Web

• MSN Money Blog mentions our post on 10 signs of a stock market bottom.
• WSJ’s The Wallet Blog mentions our post on last minute gift ideas.

Recent Carnivals

• Carnival of Financial Planning
• Work At Home Blog Carnival
• Carnival of The Vanities
• Money Hacks Carnival

This is a post from The Digerati Life.

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