Last month Peggy and Mike Badger and myself were October’s guest speakers of the Connestee Fire Rescue  Auxiliary meeting speaking on the state of the current real estate market.  We divided the topic in three areas – Real Estate Statistics, Today’s Buyers and Sellers, and Marketing taking into account the economy, today’s buyers/sellers, and marketing in and around the internet.  The methods of buying and selling real estate of 10/15 years ago are gone as we become un-tethered as we all carry our smart phones & tablets everywhere we go.  Recalling 15 years ago we had MLS PAPER BOOKS while today we are marketed globally across the internet.

This is the first of three posts with Lynda Hysong reporting on Real Estate Statistics.  Mike Badger will report on Internet Marketing. Peggy Badger will report on Today’s Buyers and Sellers.

REAL ESTATE STATISTICS:

To answer the first part of the question, we reported the number of homes closed began dropping between 2006 and 2007 with 2009 being the bottom. We saw a slight increase in 2010 with 2011 following suit. While the median selling price has decreased from 2007 highs, we find ourselves at 2004/2005 levels. Median selling price is defined as the point at which half of all homes are sold for more and half are sold for less.

National Association of REALTORS reported in mid October our southern region saw the least amount of slippage compared with the rest of the country:

In the Northeast, the median price dropped to $244,100 from $245,600 in July, and it fell 5.1 percent since August 2010;  The median price in the Midwest declined to $141,700 in August from $146,300, and fell 3.5 percent from the previous year;  In the South, the price inched down on a monthly basis to $151,000 from $152,600, and also slipped down 0.8 percent in a year-over-year comparison; The median price in the West took another big hit, falling to $189,400 from $208,300 in August and fell 20.6 percent from the year before.

For the second part of the question how many of the listings are Foreclosures? According to a November article in the Charlotte Observer North Carolina ranks among the states with the lowest number of foreclosures, coming in at No. 34 with South Carolina raking 13th. Filings were issued on 2,939 homes statewide last month.

Drilling down a bit more notice the chart above illustrating  Transylvania County having the least number of foreclosures in comparison to its neighboring counties of Henderson and Buncombe.

Stay tuned for the continuation of our report by Peggy and Mike Badger over the next few weeks.

According to RISMEDIA dated, December 20, 2010—The credit card fee changes of a few several months ago are designed, like previous changes, to protect consumers by adding clarity and transparency to interactions between card issuers and holders.

However, as these new rules take away revenue opportunities for card companies, issuers are raising other fees or creating new ones to compensate. Money resource Bills.com cautions consumers to be aware of the new rules and also learn how to avoid new fees.

In order to avoid these fees, personal money resource Bills.com shares the following strategies consumers can employ to better avoid additional charges that have arisen because of changes outlined in the Credit CARD Act.

1. Monitor your communications from your credit card issuer. One of the best ways to stay abreast of changes specific to your cards or situation is to closely monitor information sent from your issuer. New regulations require much greater disclosure on all changes, so any update will be sent to your attention. Be alert for all mailings and read them carefully before throwing away or destroying.

2. Maintain prompt payment status with your credit card company. Despite all these changes, the simplest way to avoid fees is to pay your credit card bills on time. By missing or being late on a payment you will incur fees, potentially increase your interest rate and lower your overall credit score.

3. Pay down high balances to improve credit card utilization. This will show that you can responsibly manage your credit limit, minimizing the chance of higher tiers of interest rates or reductions in credit limit. Additionally, better credit utilization will help boost your credit score.

4. Maintain activity on your credit card accounts. By using the revolving credit lines that you need or want to keep and promptly paying on them, you can help avoid cancellation of those credit card accounts. This will also help avoid faux inactivity fees and help boost your credit score, while having a long existing credit line closed could lower your score.

5. Avoid over-limit fees through responsible spending habits. Credit card issuers have begun to charge fees for opt-in over-limit coverage. By remaining aware of credit limits and balances, consumers can avoid a need for this service and these fees altogether.

6. New regulations do not apply to corporate or small business cards. This means some small business owners might consider using personal cards for business expenses because of fee and rate limitations. However, these owners should remain cautious because their personal credit scores could suffer in the event of missed payments or defaults. Conversely, be aware of companies that are increasing solicitations for corporate card members to avoid new regulations.

According to a RISMEDIA, dated December 15, 2010—Consumers today are expert comparison shoppers, always on the hunt for the best deal, but when it comes to their mortgage, borrowers often lock in their first home loan offer.

According to a new LendingTree survey of 1,317 homeowners conducted online by Harris Interactive in September, 96 percent of American consumers compare prices when shopping for anything, but nearly 40 percent obtain just one home loan quote. By comparison, when shopping for a home computer, consumers research an average of 3.1 models before making a purchase. This explains why fewer than 3 in 10 (28 percent) borrowers are very confident they received the best possible deal on their current mortgage.

Based on a nationally representative sample of current homeowners who were involved in shopping for their home loan, the study revealed 85 percent of consumers use the web to comparison shop, yet just more than 1 in 5 (21 percent) shopped online first for mortgage rates. Additionally, although nearly 40 percent obtain just one home loan quote, more than 9 in 10 borrowers (91 percent) understand interest rates vary between lenders.

Frustration also appears to be at the root of this shopping dilemma. According to the survey, 70 percent of borrowers find shopping for a mortgage frustrating, citing the complexity of the terms (21 percent) and time-intensiveness nature of the process (20 percent).

The survey also reveals:
• Though it is a decision that will affect them for the next 15-30 years, nearly three-quarters (72 percent) of homeowners spent the equivalent of a full working day or less shopping for their home loan. Even more shocking? One in 10 spent the amount of time it takes to brush their teeth.
• Twenty-three percent of homeowners recognize they could save more than $100 a month by reducing their mortgage rate by one percent.
• Women are more than twice as likely as men to say they were not at all involved with shopping for their mortgage or when refinancing (16 percent versus seven percent, respectively).

Before you even make that first swipe on your purchases, you must know these credit card facts which can help you maximize the benefits of having your own credit card:

Credit Card Fact #1 When you open a new credit card account, you are making an impact on your credit score, reducing 5 points from it with each new card. Even if you won’t have it activated, each time you receive a new card in the mail, it will reflect on your credit score.

Credit Card Fact #2 Opt out from the mailing list in your local credit bureau so your name will not be sold to credit card issuers. You can do this by calling 1-888-5-Opt-Out.

Credit Card Fact #3 Reward cards are not free and only a few credit card companies issue it to their clients at zero cost.

Credit Card Fact #4 Paying your bills on time will increase your credit score and makes you avoid large credit card outstanding balances which is bigger than 25% of your maximum credit limit ( considered as red flag by banks or lenders ).

Credit Card Fact #5 Don’t fall into the minimum payment trap and dig yourself out before it’s too late. Paying your balance in full allows you an interest-free loan each month.

Credit Card Fact #6 Although debit cards can also be used for your purchases, know that they don’t offer the same type of protection that credit card gives in cases of product defects and returns.

Credit Card Fact #7 Beware of credit card skip-a-payment plans and universal default. Nonpayment won’t be reported to credit bureaus, but your outstanding balance will still continue accruing finance charges. If your credit card company has a universal default feature, it shall allow your lender to increase APRs or interest rates if you have late payment history with another lender.

Here is the 2nd of six biggest mistakes homebuyers make according to cnnmoney.com;

Buying a car before a house

Anytime consumers open new credit accounts — credit card, auto loan, etc. — their FICO score could drop, according to Craig Watts, a spokesman for Fair Isaac, the creator of FICO scores.

“Hence the admonition to not open other new accounts while your mortgage application is in process,” he said.

A big purchase would use up a considerable proportion of a borrower’s total credit limit, which results in a drop in the score. Lenders often continue to check credit scores in the weeks before closing.

“The lender will likely slam on the brakes if the applicant’s credit scores have suddenly dropped below the minimum required for the requested loan rate,” Watts said.

Here is the first of six biggest mistakes homebuyers make according to cnnmoney.com;

Not knowing your credit score

If you’re even toying with the idea of buying a home, you must find out exactly what your FICO score is. If you find it is less than ideal, wage a systematic campaign to raise it. Too many borrowers ignore this step and get surprised when they get interest rate quotes.

Once you’ve pored over your credit history and corrected any errors, your next step is to pay down revolving debt balances to no more than 30% usage. That will help raise your score significantly.

Why does it matter?

The lower your score, the higher your costs of borrowing. Fannie Mae and Freddie Mac, for example, charge higher up-front fees to borrowers with credit scores below 740.

For a buyer with a credit score between 680 and 700, the fee comes to 1.5% of the mortgage principal. On a $200,000 mortgage, that adds up to $3,000. Someone with a 740 score pays nothing.

Lower-score borrowers also get saddled with higher interest rates, about 0.4 percentage point more for the below 700 borrower. That costs an extra $62 a month — $744 a year — on a $200,000, 30-year, fixed rate loan.

According to NC REALTORS Talk April 1st: The Federal Reserve’s single largest intervention to prop up the American economy, its $1.25 trillion program to buy mortgage-backed securities, came to a long-anticipated end March 31, 2010.

The program has been credited with holding mortgage interest rates at near-record lows and slowing the nationwide decline in home prices that threatened to send the economy into an extended slump.

The purchases caused rates for 30-year mortgages, which exceeded 6 percent in late 2008, to fall to below 5 percent by March 2009. They are hovering slightly above 5 percent today.

Economists had feared that mortgage interest rates would climb sharply after the 15-month program, but those fears have abated in recent weeks. Fed policy makers have suggested that they would consider resuming the purchases if conditions warranted it, but only as a last resort.

“Financial markets have improved considerably over the last year, and I am hopeful that mortgages will remain highly affordable even after our purchases cease,” Janet L. Yellen, the president of the Federal Reserve Bank of San Francisco, said in a speech on March 23. “Any significant run-up in mortgage rates would create risks for a housing recovery.”

Now is a great time to buy a home with the mortgage rates holding at an all time low and just a few weeks left on the extended tax credit ending April 30th.  Don’t let this opportunity past – call a REALTOR today!

The National Association of REALTORS produced this video explaining the different aspects of the new Good Faith Estimate & HUD-1 statement that went into effect January 1, 2010.

Click here to see the new forms from a previous post.

1. Who is eligible to claim the $6,500 tax credit?
   Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.
2. What is the definition of a move-up or repeat home buyer?
   The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. That is, both spouses must qualify as long-time residents, with at least five years of principal residency for each. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
3. How is the amount of the tax credit determined?
   The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
4. Are there any income limits for claiming the tax credit?
   Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
5. What is “modified adjusted gross income”?
   Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and the first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

   To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income. See IRS Form 5405 for more details.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
   Possibly. It depends on your income. Partial credits of less than $6,500 are available for some taxpayers whose MAGI exceeds the phaseout limits.
7. Can you give me an example of how the partial tax credit is determined?
   Just as an example, assume that a married couple has a modified adjusted gross income of $235,000. The applicable phaseout to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $6,500 by 0.5. The result is $3,250.

   Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $138,000. The buyer’s income exceeds $125,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $6,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,275.

   Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?
   The previous tax credits applied only to first-time home buyers and were for different amounts of money.
9. How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
   You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).

   No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and repeat home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.

10. What types of homes will qualify for the tax credit?
    Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

    It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information. Also see IRS Form 5405.

11. I read that the tax credit is “refundable.” What does that mean?
    The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

    For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $6,500 home buyer tax credit. As a result, the taxpayer would receive a check for $5,500 ($6,500 minus the $1,000 owed).

12. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
    Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be after November 6, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April 30, 2010).

    In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date. Be sure to check with a tax advisor in cases where a HUD-1 form is not used at settlement to be sure you have sufficient documentation to attach to IRS Form 5405.

13. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
    Yes. The tax credit can be combined with an MRB home buyer program.
14. I am not a U.S. citizen. Can I claim the tax credit?
    Perhaps. Anyone who is not a nonresident alien (as defined by the IRS) and who has owned and resided in a principal residence in the United States for at least five consecutive years of the eight years prior to the purchase date can claim the tax credit if they meet the income limits. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
15. Is a tax credit the same as a tax deduction?
    No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $6,500 in income taxes and who receives an $6,500 tax credit would owe nothing to the IRS.

    A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $6,500 in income taxes. If the taxpayer receives a $6,500 deduction, the taxpayer’s tax liability would be reduced by $975 (15 percent of $6,500), or lowered from $6,500 to $5,525.

16. Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?
    Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

    Buyers should adjust the withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

    In addition, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a downpayment. Prospective home buyers should check with their state housing finance agency to see if such a program is available in their community. To date, 18 state agencies have announced tax credit assistance programs, and more are expected to follow suit. The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.

17. HUD allows “monetization” of the tax credit. What does that mean?
    It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.

    Under the guidelines announced by HUD, non-profits and FHA-approved lenders are allowed to give home buyers short-term loans. The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages.

    Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent downpayment requirement.

    In addition, approved FHA lenders can purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5 percent downpayment that is required for FHA-insured homes.

    More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.

18. If I’m qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?
    Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year’s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

    Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.

19. For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest?
    Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.
20. How can two unmarried buyers allocate the tax credit if one qualifies for the $8,000 first-time home buyer tax credit and the other qualifies for the $6,500 repeat home buyer credit?
    The buyers can allocate the tax credit in any reasonable manner, provided neither claims a tax credit higher than the one they qualify for and the home purchase does not yield a total of more than $8,000 in tax credits. For example, the repeat home buyer could claim $6,500 and the first-time home buyer could claim $1,500. Alternatively, both buyers could claim a $4,000 tax credit.
21. Does a married couple qualify for any home buyer tax credit in the following situation? Spouse A has lived in and owned the same principal residence for at least five years. Spouse B has lived in and owned the same principal residence for less than five years.
    In this situation, the couple does not qualify for any home buyer tax credit. Because the couple is married, the law tests the ownership history of both spouses. Spouse A clearly does not qualify for the $8,000 first-time home buyer tax credit, so neither does Spouse B.

    Spouse A does appear to qualify for the $6,500 repeat buyer credit, but because Spouse B has not owned and lived in the same principal residence for at least five years, neither of them can claim the repeat home buyer tax credit.

• Retail sales rose 1.3% in November 2009, prompting some to suggest consumers were ready to spend in earnest this holiday season
• Americans’ net worth—the value of assets such as homes, bank accounts and investments, minus debts such as mortgages and credit cards—rose 5% last quarter to $53.4 trillion

It was the second straight quarterly increase.

But the recovery remains in its early stages. Since the recession began in December 2007, more than 7 million people have lost jobs, ballooning the unemployed to 15.7 million. And despite recent gains in Americans’ net worth, it remains far below its peak of $64.5 trillion before the recession began. That underscores the vast loss of wealth in the last two years.

Goebel offers the following tips for a financially-healthy 2010.

Examine your goals

What do you want to accomplish with your money besides just making more of it? “Financial issues are, at root, decisions about what is important to us and what is not,” said Thomas Murphy, a certified financial planner at TEMAA Financial in Dallas. “How we choose to spend our money should reflect things which are important and deeply felt, not whims or ego-supporting extravagances.”

Tracking your spending and analyzing your purchases will help you shift your resources to what’s important to you. Knowing where your money is going also will help you break wasteful habits. Murphy suggests documenting every penny you spend for three months. This exercise will create habits that will permanently change your behavior.

Set up a spending plan
“Give yourself an allowance with each paycheck,” said Michael Miller, certified financial planner at Miller Premier Investment Planning LLC. “Put your allowance in an envelope and spend it on discretionary items such as dining out, entertainment and shopping. Once the envelope is empty, you are done until the next paycheck.”

Pay down debt
“Credit cards are great conveniences, but credit card debt is evil,” said Mickey Cargile, a certified financial planner and managing partner at WNB Private Client Services in Midland, Texas. “You will never know personal freedom until you stop deficit spending.”

Get reacquainted with using cash. When you’re counting out dollar bills from your wallet, the price of an item hits home.

If you can’t break the credit card habit on your own, card issuers are leaving you no choice. In advance of new credit card regulations that will take effect in February 2010, issuers are raising interest rates, instituting fees and slashing credit limits. You can’t afford to max out your credit. It will harm your credit score and leave you without credit for emergencies, such as a job loss.

Boost your savings
“The lesson for 2009 is that the things that your mom told you turned out to be true,” Murphy said. “Spend less than you earn and put more money aside for a rainy day because a rainy day will come.”

One convenient way to do that is to set up an automatic savings plan—from your paycheck or your bank account—so you don’t get a chance to spend the money you’d save. “Make sure that you have three to six months’ worth of living expenses set aside in a separate account to take care of life’s unexpected moments,” Miller said. “If you are short, you should create a plan to restock your fund as quickly as possible.”

Have an emergency plan
“Jobs can end at any time,” Cargile said. “Plan for the contingency of losing your job and surviving an extended unemployed period.” Be specific in your emergency plan. “Plan for how you will immediately cut expenses as much as possible,” Cargile said. Cancel subscriptions and cable TV. Eat at home.

Tips for 2010
Here are some tips for developing a strategic plan for your finances in 2010:
-Set specific, realistic financial goals.
-Take control of your finances. Know how much money is coming in, how much is going out and where it is going.
-Create a spending plan for you and your family.
-Lay out a plan to shore up your savings.
-Manage credit carefully; pay down or pay off your credit card debt.