photo credit: Ingorrr

The stock market has had it’s largest decline in 12 years, and news agencies seem to report more layoffs every week. You might be finding yourself checking your stock investments daily, if not hourly, and your not sleeping well at night. How can you relax when financial news is constantly changing each day and you’re concerned about your families financial well being? What if your company is the next major layoff? My family is dealing with a layoff situation now and the news changes each week for us. We are not going to just sit back and hope for the best, but take action and enjoy what we have right now. I want to preface that this is not a list of ways to forget about your financial situation, but ways to refresh your mind and body and possibly relieve stress.

Here are some ways we are dealing with financial stress:

1. Exercise. Get out and go for a jog or run. I love taking my dogs out and giving them a good run. It helps them relax and allows me to think about something else besides money or finances.

2. Talk to a friend. Find a friend who will listen and see if they want to grab a coffee or just chat on the phone. Be upfront with them if you’re not looking for financial advice, just someone to listen. Call your parents or grandparents and find out what is going on with family news. I’m sure someone is having a baby or getting married. Some good news will be a welcome change.

3. Read a book. Find a book you put down and still need to finish. Visit your local library and re-read a book from your childhood. Stay away from magazines or newspapers during this relaxing period. Ask a librarian for a book recommendation if you can’t seem to find anything.

4. Be a kid. Do something you loved to do as a child. Ride your bike, ride a skateboard, roller blade, or roller skate, just do something fun.

5. Take your kids to the park. If your children are still young, run around and follow them on the jungle gym. I love to ride down the slides with my kids and they love to see a big guy try and fit on the metal slide. Build a sandcastle or play hide and seek.

6. Make something for dinner you haven’t had for years. Maybe you have a fond memory of fish sticks and french fries or piggies in a blanket for breakfast. Make a meal for your kids or friends and invite them over to experience your food memories. You might find a friend who shares a similar memory.

7. Watch a favorite movie. If you have a favorite comedy, watch it. I love 80’s movies and they always make me think about high school or old friends. Ferris Bueller’s Day Off is a favorite of mine.

8. Build something. Work on a project you’ve been putting off for a few months. I’m sure you have a list or know someone who has a list for you already. Build a dog house, bird house, or some shelves for your garage. Paint a room or paint a chair. Working on projects makes me focus my energy on the task at hand.

9. Donate your time. Visit a local homeless shelter or offer to assist at a local animal shelter. Working with animals can be extremely relaxing and will probably benefit both you and the animal.

10. Take a nap. If you’re working 40+ hours a week and running your kids around on the weekends or evenings, try and fit in a power nap on Saturday or Sunday. Just 30 minutes could leave you refreshed and able to take on the new work week.

Again, this is not a list of ways to escape financial stress or financial obligations, but some ideas to help you take back time for yourself. In case you are interested in ways to take control of your finances, I’ve also written articles talking about eliminating credit card debt and establishing an emergency savings account. Spending a little time each week for yourself and your family can help you focus on your finances and work situation. After a power nap or watching a favorite movie, you might just find that you are energized and refreshed.

What are some ways that have helped you cope with financial stress?

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I was driving down the road when a commercial came on the radio from a local car dealership. The ad wasn’t your typical advertisement for new or pre-owned cars touting the safety or reliability of the cars, nor was it even an American auto dealer. The dealer had a personal plea to prospective buyers that asked listeners to help jump start the economy and buy a new car. He went on to say that he thought the economy would be fixed if we just went back to doing what we were doing and buy items to help grow our economy. I was amazed that the entire car commercial was about forgetting our financial problems and just buy a high end automobile. His message was clear, we won’t get out of the financial mess until we start buying again.

Several questions came to mind listening to this car commercial.

1. What happens if a customer loses a job? The assumption is that a new car buyer will be employed for the 5-7 years it takes to repay a car loan. I suppose a new car buyer could pay cash for the car, but my assumption is most people need to take out a loan. If the new car buyer loses a job and the car bank takes possession of the new car, how does that help the economy?

2. Is a used car a better investment? Buying a used car that meets your family budget would allow you to pay your other bills on time. Buying a new car might stretch your family budget, increase car insurance, not to mention the increase in our California vehicle license fee.

3. What about your current debt? Even if you purchase a new car with a fixed monthly payment, you might be surprised to find out your credit card companies are changing your rates. Credit card companies are allowed to alter your credit card terms and can increase rates. That new tv you purchased last year for 9.99% interest could increase to 19.99%. Check your terms and conditions of all your credit cards. If you don’t have a copy available, contact your card companies to get the latest terms and conditions. You don’t want to be surprised by your next months bill.

Before making a major purchase like a new car, be sure you have an adequate emergency savings account and that you have a plan for paying down your credit card debt. If you have an adequate savings account, no debt, job security, and your retirements on track, maybe you can consider buying a new car. Or, buy a newer one with low miles.

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photo credit: bubble_gum

Maybe not in this current economic climate, but investing can be educational and fun. Teaching your kids about companies that make the ipod, princess dolls, and even the Big Mac can allow them to understand the basics of investing and wealth creation. It is so much easier to describe to your child the company that manufacturers Big Macs, since you can physically watch them being made at any McDonald’s (MCD) restaurant. They can touch it, look at it, and even taste one if they enjoy hamburgers. Some companies make products that might not be easy for kids to understand and get excited about. Take the time to find something your child is passionate about, then research the company together. If your child is older, maybe you can look at a company like Intel (INTC) or Cisco (CSCO) that make technology components. Maybe you have a teenager that must have the latest clothes style? A junior higher or high school student might look at you a little different if you started talking about the latest fall school fashion outlook at Abercrombie and Fitch (ANF) or American Eagle Outfitters (AEO). What are some other ways you can get your children excited about investing?

1. Listen to your children. You might enjoy municipal bonds funds as a safe investment vehicle that offers a good yield. On the other hand, you want to also have your children become interested in investing and muni bonds might not be exciting for them to learn about. Find out what your kids enjoy. I’m sure you know what they are asking you to buy them on a weekly basis. An ipod or maybe a new toy? This could be a great opportunity to research a company together that manufacturers the product your child wants to buy. You might be surprised how much you might learn about your kids during this stock research process. You can visit the companies website and look for the investor relations tab or link on the bottom of the site. Most companies allow you to download the prior year annual report via pdf. The annual report is full of interesting facts about the company, sales targets, goals, worldwide offices and forward looking statements. You can also create a fun game and try and find companies selling below the product price. For instance, how many shares of Apple (AAPL) could you purchase for the price of an iphone?

This week I want to look at Disney (DIS). Disney is a global brand that many kids will immediately recognize for animated movies and theme parks. Disney also runs cable channels such as ABC and ESPN. Each year it seems the studio releases a blockbuster hit that fuels demand for toys and accessories. If you have ever visited a Disneyland theme park in Anaheim or Orlando, you know that Disney is fantastic at marketing and offering an amazing experience for guests. Disney also reaches out across many age groups. Your toddler might enjoy watching a Disney show like Handy Manny on tv, while a teenager enjoys watching a Disney Miramax movie. Disney could be a good company to start discussing investments and savings with your kids. Both of you are familiar with the products and you can learn more together by researching the company and reading the annual report. See if you can learn about the other Disney parks around the world. Your kids might be fascinated to learn about unique rides in different countries.

This is the first in a series of weekly posts about kids and investments. Each week I will highlight a child friendly stock and would love to hear your stories about teaching your kids about investing.

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photo credit: Clevergrrl

Coming out of a grocery store this weekend, I noticed a sign in front of Pet Food Express advertising a $15.00 self service dog washing center. I had to go in and inspect what $15 would buy and was surprised to find a very nice set-up with clean waist high shower areas and blow driers. Having two labrador retrievers, the cost would be $30 to bath my canine friends. I spoke to an employee who told me they were having a special if you purchased 3 dog baths, the 4th was free. Is it really worth $15 to take my dogs to a store and bath them myself?

What’s the time and cost of washing your own dog?

1. Time. It take me approx 20 minutes to rinse, soap, rinse and dry off one of my dogs. If I got in the car and drove the dogs to Pet Food Express, it would add an additional 10 minutes.

2. Dog shampoo. I purchased a fairly inexpensive dog shampoo at the store and it’s lasted for almost a year now. Total cost of shampoo was $9.99.

3. Hair Drying. I use old beach towels that we have set aside specifically to wash our pups. The store did have a large hose hair drying that would not require me to wash and dry my beach towels. This would save a little bit of time and resources. I’ll say $3.00

4. Water. If your dog requires warm water baths, it would add a little additional cost to your home utilities. I would imagine it would cost about the same as a long 20 minute shower. If you did take your dog to a self service dog store, you could bath them as long as you like. I doubt though you would want to make a day out of it. An extra money saving tip: you could jump in the shower with your dog and save time and money by conserving water. Just be sure to use the correct shampoo on your pooch.

5. Extras? No need to clean up. You can leave dog hair, water puddles and just walk out the door. How much is this worth to you?

If you have children at home, maybe you can wash your dog together as a family. That would certainly speed up the process and you probably will share a few smiles and laughs together. If you have several children, you could put one in charge of washing and another in charge of drying. Having a labrador that gets dirty constantly, the price could easily hit $30 during the rainy months.

Maybe you live in an apartment and don’t have a large shower or bathtub to wash your dog. Taking your dog to a self service dog wash or groomer may be your only option. Some breeds also require grooming and trimming, but fortunately that’s not needed with our labs. Although, I do have a neighbor that shaves his dogs each summer to help relieve them of the heat. I think my dogs would just run away if I approached them with a pair of hair clippers. Is it worth $15 dollars to make a mess of your yard and use a few towels?

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photo credit: killrbeez

You just found out you’re pregnant and you can’t wait to start building a family and loving new room for your baby. You might be thinking about putting together a baby registry at Babies R Us, Target, Walmart or another department store so friends and family can help celebrate your new baby. Thoughts of the many outfits you need for a newborn, crib, and changing table might give you images of excitement as you imaging caring for little junior. Maybe you’ve helped a friend shop before and the thought of picking out everything from newborn bottles to a new car seat make you lie awake at night with excitement. Have you thought to add a savings account or stock investment to your baby registry?

Picking out newborn outfits and infant bottles can be exciting for new parents, but so is the prospect of starting your child off with a solid financial footing. Wouldn’t it be nice if you could simply sign-up for an investment account the same way you purchase baby clothes or baby toys? Well, it basically is that simple. Many companies like Sharebuilder offer the ability to start an investment account for your child. You can open up a custodial account for your child in a few minutes and get them started investing earlier than you did.

The baby registry is a way for friends and family to celebrate the birth of your new baby. Parents, grandparents, and friends review your baby registry and buy items that will help you build a secure and safe environment for your little one. It’s been a few years, but here’s some of the items I remember from our baby registry:

1. Car Seat
2. Changing table
3. Crib
4. Baby bottles
5. Newborn clothes
6. Diaper champ
7. Diapers
8. Baby monitor
9. Blankets
10. Baby toys

I’ve probably missed at least 20 items, but thought I would highlight some of the most important above. All of these items are so important for a baby to prosper and thrive, so shouldn’t we also consider adding a savings account to the gift list? Imagine what this passive income opportunity could do for your new child.

With the help of my parents, I opened a 529 college saving account within a few months of my first child’s birth. Number two took a few years later, although I have since made up for delay and added additional funds. Any future cash gifts can be added directly to the 529 accounts. Having your bank account information added to your 529 account can also make the process so much easier. Automate your investments and you’ll find one less excuse to start investing as it will allow you to focus your efforts on building wealth and playing with your family.

If you don’t have the funds available to invest in stocks, consider opening up a savings account for your child so friends and family can help them save money. You might be surprised to find out that grandparents, aunts and uncles, and even friends would be interested in helping your baby start a savings account. Even an ING savings account will allow compound interest to grow over time. Imagine how much money your child could earn if you opened a new savings account within the first few months of birth. The point is to get started early and help them save money on a regular basis. Once your child’s savings account is established you can deposit any future birthday checks into the account and watch them get excited with they see the earnings grow.

What was your favorite gift from your baby registry?

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