Austin Bank - Is the Austin Bank As Good As Advertised?

If you live in the city of Austin, chances are you've heard of the Austin Bank. Located in the eastern part of Texas, Austin bank is one of the more widely used banks in this part of the state, and if you live here, chances are you or someone you know does business with them. Are they the best, or should you look elsewhere?

Like so many banks today, the Austin bank has been in business for over one hundred years, and therefore experience isn't an issue with them. It's almost a rarity to find a bank that hasn't been in business for at least a century, and Austin is no exception.

While this doesn't make them stand out from others, it still is something to keep in the back of your mind. They know what they're doing-how else could they be in business so long?

The bank has twenty eight different locations, and are constantly expanding, so regardless of which part of Austin you live in, you can find one in easy driving distance.

What kind of financial services can you expect to find with the Austin bank? Hers' a hint-it's not just personal banking. Like just about every bank around the country today, Austin has expanded and now offers home loans, credit cards, investing, and many other services, so no matter what you need, you can get it with them.

Obviously, you will need a higher credit score to get their home loans or credit cards, versus going through another company.

Anytime you go with a bank, you will need a higher credit score, and that's just the way it is. Austin is no exception. However, if you can get one through them, it's definitely worth it, as they offer very competitive interest rates, primarily because they have to. Remember, whenever you are dealing with a smaller bank like Austin bank, they don't have the luxury of screwing around with interest rates, because they need all the customers they can get.

Therefore, if you are thinking about doing business with Austin Bank, they certainly would be a wise choice.

Five Tips For Shopping on a Budget

Sticking to a budget is hard enough, but malls, outlets and grocery stores don't make it any easier; with countless promotions, sales, and strategically-placed impulse-buy items, it's easy to get sidetracked and overspend. Willpower and discipline are great tools to combat overspending, but many people find it hard to maintain them when faced with a great sale. Never fear, there are a few simple tricks and tips you can use to help keep you on track and overcome the temptation to overspend.

1. Always take a list.

While seemingly simple, and even obvious, this is a great way to help keep spending on track. If you have a specific list of items you need, you can shop with more purpose, and avoid unnecessary browsing (which all too often leads to unnecessary buying).

2. Consolidate shopping trips.

Whenever possible, it's best to combine all your shopping into one day. This is a great way to make sure you don't spend extra time in a given store, browsing unnecessarily, or getting sidetracked from your pre-set shopping agenda. Plus, consolidating your shopping into one big outing will save gas in the long run, which is always a good thing, both for your budget, and for the environment.

3. Clip coupons.

Check your weekly paper for circulars and coupons. Be sure to have your list ready when you do this, to avoid adding unnecessary items (remember, just because it's on sale doesn't mean you need it). While you may not find coupons for everything you need, you'll likely find savings somewhere. Over time, even a few dollars a week will add up big time. Look at it this way: if you save just $4 per week, you'll end up with an extra $208 each year.

4. Plan ahead; shop accordingly.

Food is arguably one of the largest costs in any family's budget. It's one that can't be skipped or compromised, and with costs of everyday items like milk rising considerably, it can be a huge drain on any spending plan. While there's no realistic way around this need, there are ways to help maximize your spending. Planning meals a week in advance can help you make the most of your purchases; simply plan consecutive meals that use the same primary ingredients. Buy those ingredients in bulk to save even more. And always, always save (and use) leftovers.

5. Reward yourself.

Regardless of the best intentions, it's easy to get sucked in to unnecessary spending; it's practically human nature. An unexpected sale at your favorite store, a discount on an item you don't need, but have wanted for some time. You can curb overspending by operating on a rewards system. Set goals for yourself, like limiting spending to a certain amount, and make room in your budget for a special treat or reward when you reach your goal. If you don't achieve the goal, leave the reward money in place and try again for next month. Having something special to look forward to will make it easier to exercise self-control and avoid splurging on items you don't really need, or even particularly want.

If My Personal Assets Are Worth Less, Am I Worthless Too?

The biggest problem with defining oneself by one's possessions is unfortunately one's possessions. This follows directly behind the old proverb 'be careful what you wish for because you just might get it.' And later wish you hadn't.

This week we learned the median price of a house in Southern California dropped from $500,000 to $325,000 in twelve months. In my county in the Bay Area the median house price dropped from $770,000 to $582,000 in one year. These drops in price have amounted to almost $200,000 per house in one year.

This is a truly disturbing trend. Let's say my net worth drops from $1,000,000 to $600,000. Do I mentally and perceptually have to scale back my self esteem 40%? "I'm less the man I was a year ago by about 40% or $400,000." What a bummer!

That's not the way it's supposed to go. Everyone said "get moving up the housing equity ladder and sooner or later one would either be rich or have a steady refinancing income." Right.

So a lot of folks one sees walking around the streets of Salinas, Stockton and Santa Cruz are only shadows of their former selves because they truly feel they are less than they once were.

Their elevated self opinions have taken a big hit and they just aren't the hot stuff they were some time back. They are not smiling. They are not happy campers. Life is one big bummer.

Five years of equity growth wiped out in one year. And more of the same down the road.

Fortunately misery does love company and we are not seeing mass suicides by the fact that equity loss is the number one group therapy topic in coffee shops and workout gyms in the Bay Area. This and the uncomfortable realization there is no security. The realtor lied. Houses don't always keep going up.

As a reaction to the widespread fraud perpetuated by subprime loan underwriting, lenders are now actually making buyers come up with a down payment and verify income.

As it looks right now, the banks and investment firms will get the bailout and the government and consumer the tab. So if I really want to be crazy I will still try to be caught up in the moment and buy that dream house right in the middle of a declining market. Right. Smart strategy.

That means I will have to wait until the market bottoms out and then starts to rise before I can hope that it eventually gets back to the point at which I signed the mortgage. That could be 3-5 years in some areas and 5-10 years in other areas. Not much of an investment but like the realtor said, ' it's not just a house, it's equity in your very own home.'

"I lost $500, 000," the victim proudly touts, "and it could be worse next year." Right. That's certainly more likely than you admitting that for the past 20 years you have slaved like a beast of burden to increase your personal equity so you could once and for all get rid of your inferiority complex 'middle class feeling'. Right. And just where do you think you will end up?

In fact you get this sinking feeling that if you had it to do over again you wouldn't do it the same way. Going sideways is not only less glamorous but not very unproductive.

But it's always too late to act and once again, depressed and depraved souls will question their reason for being and cling to their guns and rock and roll to lessen the pain. And maybe a bottle of Jack Daniels now and again.

Those that can't afford the ten dollar shots at the Uptown Deco Lounge will be relegated to sipping Wild Turkey in back alleys and church cemeteries. Men will huddle against the cold and wind as they yearn for the days when at least on paper they were worth millions.

Henry David Thoreau said the farmhouse imprisons the farmer so in the end maybe a really good tent isn't so bad after all. As long as it isn't in the snow. Or mud.

Children will someday ask their parents what it felt like to be paper millionaires as mama's and papa's eyes get glassy remembering when high self esteem matched high personal equity.

"Well son, it felt like being a lot more about being whole and a lot less about feeling worthless." The son is bummed. Short term he realizes he is getting royally shafted.

But not to worry, Junior There is always hope. Not much maybe, but some. If we didn't have hope what would we have except a lot of worthless mortgages exceeding assessed value.

Maybe ours is not to reason why but hope things get better so we can get back to doing what we do best and that is building personal equity. Or perhaps the illusion of building personal equity. When that happens our frowns will turn to smiles and things will start to move in the right direction.

So don't be foolish. Just because you have the chance to get out of the rat race and perhaps discover and actuate the real you, doesn't mean you have to. You can continue on the treadmill until another bust comes along and again takes the wind out of your sails. There is no law prohibiting you from being a complete fool. And there is no reason to live a lie, no?

But no matter what you do never buy the argument that you might be happier living a simpler life without the artificial trappings of status and materialism. If enough people begin to feel that way our way of life will be in trouble.

Keeping Your Money Safe

With everything going on in the financial world lately - the Treasury taking over Fannie Mae and Freddie Mac, the collapse of Lehman Brothers and IndyMac Bank, and the government bailout of AIG - it's no surprise that investors are wondering if their money is safe.

Thankfully, there are safety measures in place for various types of accounts and investments. Here is a rundown of the different safetynets in place for each type of account or investment you may have:

Banks: Bank deposits are ensured by the Federal Deposit Insurance Corporation (FDIC). Basically, the FDIC insures deposits up to $100,000 per owner, per bank. If you have $100,000 or less in your name at any FDIC-insured bank or savings association, you have nothing to fear. Since the limit is per owner, that means you could actually have more coverage than you think (for example, if you and your spouse have a joint account with $300,000 at one bank, $200,000 is insured - $100,000 for each "owner").

In addition, if you have certain types of retirement accounts, such as an individual retirement account, you're eligible for even more coverage - up to $250,000 per owner, per bank. However, the FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities and municipal securities, even if you bought those investments at an FDIC insured bank.

Credit unions have similar coverage through the National Credit Union Administration (NCUA).

Mutual Funds and Brokerages: Some investors are wondering what would happen in the event that the mutual fund or brokerage company they hold their investments at would fail. The funds that you own at a mutual fund company or a brokerage account are separate from the company's assets. So in the event of a company failure, your assets would not be liquidated to pay the company's debts. If the mutual fund or brokerage company failed, your assets would just be transferred to another brokerage company.

However, if any of your assets come up missing, whether it's due to company failure, fraud or poor recordkeeping, you are protected. The Securities Investor Protection Corporation (SIPC) is a non-profit corporation that protects investors if a broker/dealer defaults. Investors are protected up to $500,000 per account, per brokerage company.

Note that the SIPC doesn't cover all investments. Some that aren't covered include annuities, commodity futures contracts, foreign currencies, limited partnerships and precious metals. Also, the SIPC isn't providing protection against market losses or bad investments. The purpose of the SIPC is to replace securities that are missing from customer accounts, up to the limits of its coverage.

Now that you are aware of the limits, both at banks and brokerage or mutual fund companies, the best way to protect yourself is to make sure that you are not above the insured limit at any of the financial institutions you do business with. If you are, you may need to open different ownership type accounts or open new accounts at different institutions to ensure that your money is safe. In addition, not all CDs and deposit accounts are FDIC insured. Before you purchase an investment, make sure it is covered by the appropriate agency, and do your research to determine if you are investing with a reputable company.

Home Cost-Cutting - Replacement Windows and Eating Habits

In a time of economic downturn your ability to budget the needs and demands of your home is essential to your ability to stay afloat and stay prosperous. Though the US economy may currently be on the brink of serious danger and is approaching levels of income inequality akin to those seen in the year's leading up to the Great Depression, the average homeowner need not feel a 'Great Depression' of their own spirits and ability to properly finance their lifestyle.

Money saving and cost-cutting is a life long habit that needs to be learned and performed on a daily basis for it to have real world affects. Right now during this time of economic hardship, an excellent opportunity presents itself to begin a life-long commitment to living smart and saving money. There are numerous ways to save money around the house but two vital and simple ways of cutting back your monthly expenditures is by outfitting your home with energy efficient windows and cutting back the amount that you eat out.

Investing in Replacement Windows: Purchasing replacement windows is indeed an investment- you will be putting money into a resource in the hopes that it will eventually pay you back. This is somewhat similar to investing in a company, whereby you purchase stock (and initially expend money) with the certainty that that company will prosper and you will see increased returns on the amount of money you put in. In this way, your investment pays off by earning you more money than you initially spent. Similarly, replacement windows initially cost money and are an expense, but if you purchase energy efficient, cost-effective windows, you will save money on your heating and air-conditioning bills on a monthly basis and will make back the difference in no time. The theory behind replacing windows is that with the correct energy-efficient windows, the seal between the window and the windowsill is reduced to a minimum and the amount of air that is allowed to escape from the house (and thus lost) is also reduced. By keeping the temperature-controlled air of your house inside your house you save money on your heating bill.

Eating Habits: Many Americans are guilty of eating out far more often than their budgets should allow, but the problem is that once one gets into a habit of eating out at restaurants frequently, it is very difficult to go back to the grind of making your own meals at home. Here, the replacement window theory may be an effective analogue- one can think of changing one's eating habits as an investment whereby initial discomfort is offset by the eventual gains in both revenue and personal happiness. Though it is sure to be a gradual process, cutting back on the amount of time you spend at expensive restaurants in favor of making home-cooked, cheaper food, is sure to be a successful investment in your life.

While purchasing efficient windows and leading a more economical dietary life are only two of the many ways one can save money in one's home, they are also two of the most effective and sure-fire ways to get more cash in your pocket. Think of these two practices as an investment, stick with them, and you'll be seeing dividends in no time.