Every month, the COUNTRY Financial Security Index is released. This measure looks at the state of financial security in this country, and how people feel about their finances. The most recent survey results, from October, show that many people are planning on changing their financial habits as a result of the recent recession. Here is what a recent press release from COUNTRY Financial points out about their findings:
One in four (25 percent) say they would like to be less reliant on credit and debt in the future, 21 percent plan to keep a lid on spending on non-essentials, and 18 …read more

This week’s personal finance readings.

Should you fire your broker and get a financial planner?

If you want to learn a little more about personal finance, you might consider signing up for free seminars from the National Association of Personal Finance Advisors (NAPFA). This is a 12-month course, with a single one-hour seminar held each month over the Internet. You will have to RSVP for each session that you want to attend. Each is taught by a certified financial planner. Here are the planned topics for the seminars:
August 7, 2009 –       Money 101: Knowing the Basics
September 4, 2009 – Kids & Money
October 2, 2009 –      What is Financial Planning?
November 6, …read more

Here are some of my favorite places to go when I need help making a personal finance plan

At any rate, this is just more proof, I hope, that Americans are starting to look at their spending and saving habits and make some changes for the better.

I came across this, and thought it particularly relevant these days, since we might be facing a recession.
Former President Ronald Reagan:
“Recession is when a neighbour loses his job. Depression is when you lose yours.”

Today I am pleased to answer a reader question about investing. Here it is:
I’ve heard a lot lately about the advisability of investing in index funds. What is an index fund?
If you’ve been reading advice about investing lately, you might have the same question. After all, many financial planning experts and investing analysts recommend index funds for long-term investing, as well as a good choice when it comes to riding out a down stock market.
An index fund is a mutual fund that follows a specific index. The S&P 500 Index is one of the more popular for this purpose. You …read more

I came across something I found rather interesting today. A report that foreclosure is becoming a mortgage trend that is based on financial planning. This isn’t the sort of foreclosure by Americans in bad financial positions (the folks “economic stimulus” is meant to help). This new foreclosure trend actually includes middle to upper middle class Americans who can afford their mortgage payments. Inman News reports on this rising mortgage trend:
Meanwhile, the homeowners can avoid the risk of more negative equity and eliminate the cost of owning and maintaining their home from their household budget. And since the property now belongs …read more

One of the hardest aspects of financial planning is the discipline it takes to curb your habits and re-focus. And overcoming habit is hard. But at this point, some things seem ingrained in the American consciousness to the point of ridiculousness, as MarketWatch points out:
Yet still, despite falling house prices, soaring energy prices, a credit crisis hitting the financial sector, and increasing concern about more violence in the Middle East, the amazingly resilient American consumer continues to pack malls, restaurants, highways, popular air routes, concerts, and sporting events, as if the bill for all these hijinks will never come due.
More, …read more