How to save money on Halloween ….

Local banks survive the storm

It seems local banks are holding their own during the (crazy, out of this world, worse than anything we’ve ever seen, economic mess that’s slowly trickling down to every other aspect of our lives of a) financial crisis.

In last week’s Ithaca Business Journal, Laurie Linn did a Q&A with Greg Hartz, president of the Tompkins Trust Company, and Steve Romaine, president of Tompkins Financial Corporation. She asked Romaine if there was a difference between big banks and community banks in the economic crisis and he basically said that local banks are fairing much better because they have a connection to the community and would never get caught up in something so greedy and evil risky as subprime lending.

Tristram Coffin, CEO of Alternatives Federal Credit Union, posted a letter to members on the union’s Web site that basically said they’re the good guys. The money you give them stays local so you know it’s not being sold off in securities - they take pride in the fact that they have relationships with the people they deal with.

You know what, I believe the boys. Back in August when I was just-moved-back-to-school broke, I saw the beauty of the trustworthy local bank. I have an HSBC checking account, I’ve had one for four years now and have never overdrawn it - expect once - back in August. So I overdraw like, $2. And when I realize I did, I go directly to the bank with $2,000 check to deposit (basically all the money I planned to spend for the school year - I move it from my savings to my checking so I’m limited to that amount throughout the year). So far, so good. But, I needed to take back $50 (when I say need I mean my gas tank was on empty, my car was parked at an expired meter and i had no cash whatsoever). They couldn’t let me do it since I had an outstanding overdraft fee! So I had to walk a couple blocks away to Tompkins Trust Company where they cashed my check and then I had to walk back through town with $2,000 cash to deposit $1,950 of it into my HSBC account. Insanity. But thanks Tompkins Trust Company.

There have got to be some other perks out there. Readers, are there any? (perks I mean, not readers. I know you’re there …. somwhere …. silent.)

See an excerpt from the Business Journal article and the Alternatives Web site after the jump.

Relapse.

There were a number of factors that took place this summer that put me in the saving-money mindset: I had just blown multiple thousands of dollars in Spain during the spring semester, I was spending close to $400 a month commuting into the city for my internship and that internship happened to be at a personal finance magazine - so I spent most of my day reading about consumer tips and billionaires.

It was about the same time I read this post from my genious money crush, Ramit. He suggested not buying clothes for ONE YEAR. It was a little crazy, but I thought it might just be the kind of lifestyle change I was ready for. I had worked ever since I was 14 years old, and all I really had to show for it was a 1995 Ford Escort station wagon and way too many $12 shirts from Kohls.

Okay so long story short, I took it for a trial run. I made it the whole summer without buying any clothes, even most of the fall. I was well on my way to committing to the full year - and then I joined Mint.com around the same time I decided I “deserved” to let myself buy a few things (a dangerous mindset of overconsumers).

Then, Mint.com so nicely threw this in my face:

The facebook of finance

I’m as much a victim to an Internet addiction as the next person - I fought the Facebook news feed, but now find myself checking in every day, just to quench my boredom. I visit all the sites on my blogroll more than once a day, just to see if they’ve posted something new.

The New York Times has even fed my obsession with tracking things by setting up Times People - which lets you follow story recommendations from readers you know.

Those things are all great. But I’ve hit the motherload. Mint.com, an online money management system. I’ve heard about Mint.com before but was always a little worried about giving out literally all of my banking information. Mint.com now owns my life. But I’m okay with that because it’s fantastic.

Basically, the site links with your bank accounts, savings, investments, loan companies - anything at all you’re associated with that has to do with your money - and puts it all together in a convenient sort of news feed of your finances. AND THEN after you obsessively categorize all your purchases, the site gives you a color-coded pie chart of your spending trends AND ideas on how you can save based on your personal trends. PLUS it compares your spending habits to the national or local average!

So far I see only one drawback, I’ve had an urge to spend money all day just so I can track it.

Simple steps to making more money

And now, the easiest way to make more money that I’ve yet to come by. There are just three steps, three steps!

But first, something to set you up for the advice you’re about to receive:

In order to make more money, we need to first understand the essence of money itself. Would you agree? I believe that money is matter not just pieces of paper or coins. Since it is physical matter, it should be handled according to principles of physics.

Got that? Okay, now just try to follow these directions as closely as possible:

You must first have a dream board, and put your dreams onto it. Look at them daily until the goals are achieved.

The second step is constantly telling your subconscious that you are getting richer and richer.

You’re skeptical? Wait, there’s proof:

I once made an audio tape of my goal, and repeatedly played it as a reminder. Within 6 months, my monthly income increased from US 17,000 to US 170, 000, it’s incredible.

And the final step:

Upon waking up and going to sleep, you must fill your mind with thoughts of success and wealth.

But remember:

Generally speaking, thirty days are required for the ideas to be fully incorporated into the subconscious.

Okay, so I know that was completely unconstructive, but I couldn’t resist. If you can handle it, here’s the rest of the absurdity. But really, this anonymous being has answered all my questions …. except one: What’s on Ben Bernanke’s dream board?

Thanks, Alicia!

Consumed by Consuming?

Consumed: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole. How’s that for a book title? A little dramatic? Yes. Completely true? I think it might be.

I recently read this book by Benjamin Barber about how our capitalist society has turned citizens solely into consumers and how a society of consumers is empowering the corporate world to actually manufacture our needs. To be fair, most of the students I know who have read this book found serious faults in Barber’s argument and in general, just didn’t enjoy the book. It was hard to get through (there are 91 citations in the first chapter) but I totally bought his point (pun intended, haha).

I’m not necessarily recommending anyone read his whole book because it was a little painful, but check out the excerpts below and follow the link to a video clip and take his message into consideration - YOU DON’T NEED HALF OF THE THINGS YOU ARE BUYING!

While you’re watching/reading, take this into consideration: In his last book, Jihad vs. McWorld, Barber predicted that religious extremists in other parts of the world would soon feel so trapped by the West’s intrusion into their cultures that they would be forced to retaliate violently (read: 9/11). He’s a regular Nostradamus.

To spend or to save ….

Now that we understand the basics of what’s going on in the economy, it’s more important to know how it’s going to affect us. In one of the latest developments in the financial crisis, the Fed cut short-term interest rates, which is basically an effort to get American’s to spend more money because when interest rates are low there’s no incentive to save …. unless you’re me, and I’m sure some of you.

According to SmartMoney.com, now’s the time to get your money into a CD or a money market - especially if you come across a deal. The current rate for a six-month and one-year CD is 2.1 percent and 2.47 percent, respectively. If you’re not familiar with CD rates, that’s really low!

BUT don’t get wrinkles worrying over that just yet, according to Bankrate.com, some of the top one-year CDs are still offering rates up near 4 percent (GMAC, Capital One and ING Direct) and I’m looking into a 4 percent six-month CD at HSBC.

But the smart people at SmartMoney say to act fast:

Since April, when the last Fed cut occurred, banks have offered relatively high interest rates on certificate of deposits (CDs) and money-market accounts as a way to bring in additional funds, says [Greg McBride, senior financial analyst at Bankrate.com]. That will start to change quickly.

“Over the next couple of weeks you’ll see CD yields unwinding,” he says.

Blogger’s note: Yes, this post links to one of my own articles. Shameless plug.

From Bear Stearns to Bear Market: A look back

Okay, okay, I know this is a personal finance blog and not an economy recap, but it’s sort of unavoidable these days.

Thanks to Two Cents supporter Aaron, I’ve got for you a sweet interactive timeline from MSNBC. It does a good job of summarizing the 365+ days of havoc that are Wall Street. I’m a little late in posting this so it only goes until mid-September, but all the other juicy details are probably right here in this handy blog. Plus, one Mr. Alan Greenspan makes a guest appearance, and how could you not love that face?

Check out the thing.

Also, isn’t there an uncanny resemblance between Greenspan and long-time Ithaca College professor of economics Frank Musgrave?