Steve Says

Last week it was stores closing, this week it's bankruptcy... here's my warning for consumers who may be so inclined to hit the "sales" at Circuit City.

Be careful when shopping the "sales" at a store closing event.  First off, the VERY BEST deals still won't be posted for at least a couple of  weeks.  Circuit City is likely to start with VERY minimal price drops on select items (remember the idea here is to make as much money as they can).  The bigger, more significant price cuts are still to come- in fact, there are those bargain hunters on the web who say that the "discounted" prices at Circuit City locations that are closing are actually higher than regular sale prices were just a few weeks ago before the company filed for bankruptcy.  Will this keep me from at least going to look at what kind of sales they have?  NOPE!  But it may keep me from buying.

It is very important to keep in mind that when a company is having a store closing sale like this that they no longer technically own the merchandise inside the store.  In this case Hilco Merchant Resources and Gordon Brothers Group have come in to oversee the sale of goods- what does this mean for you?  It means, at Circuit City stores that are having closing sales, there are NO, count them NO RETURNS- at all.. ever.. ZERO.. NONE!  You won't even have the option of taking merchandise you purchased at a "closing sale" store and return it at a "non-closing" store.  Even if the merchandise you purchase turns out to be damaged you will be required to work through the manufacturer to fix the problem. 

Bottom line?  Before you get distracted by the promise of deep discounts because a store is closing, keep in mind the deals may not be as good as you thing (yet) and the hassle of fixing problems (through the manufacturer) may make you wish you just paid full price to begin with.

That's just my two cents... you know the rest.

Here is the official word from Circuit City concerning store closnig sales and Chapter 11 Bankruptcy as sent to me in an email from the company.

LIQUIDATION FAQs for Media

NOTE:  a complete list of the 155 Circuit City stores that are being closed is available at http://investor.circuitcity.com
Click on “breaking news” for the list and other documents related to the Nov. 3, 2008 restructuring announcement from Circuit City Stores, Inc.

Please remember that Circuit City continues to operate 566 Superstores in 153 U.S. media markets.    Here’s information about liquidation sales underway at the 155 stores that are being closed:

BASIC QUESTIONS:

When did the liquidation sales begin?
Liquidation sales began on Wednesday morning, November 5, 2008, and will last as long as it takes to sell through the merchandise at each of the 155 affected stores.  We expect the sales to wrap up before the end of December.

How much will merchandise be marked down, and can customers negotiate prices for the merchandise?
There will be clearance pricing, but specific discounts are not being announced.  All sale prices are at the discretion of the liquidator.  Prices are non-negotiable and all adjustments must be approved by the liquidator’s on-site managers.

What payment types will be accepted at the liquidation stores?
Stores in liquidation will accept cash, most credit cards, and Circuit City gift cards. Personal checks will not be accepted.  

Will Circuit City’s price matching policy or the One Price PromiseSM apply during the liquidation sale?
Because the liquidation company is in charge of the sales at the closing stores, their policies are in force.  So, One Price Promise does not apply during liquidation events, nor does the company’s Unbeatable Price Guarantee.  All sales are final.   ("Total Inventory Sell-Off" sales are underway in NY:  local regulations apply)

Will customers be able to buy products online at circuitcity.com and pick up purchases in the liquidation stores?
No.

SERVICES QUESTIONS:
 
Will delivery service be available for products purchased from liquidation stores?
No.

Will Circuit City offer home theater installations during the closing sale?  
Yes.  It’s business as usual for home theater installations during the closing sale.

Will Circuit City offer PC services at liquidation stores during the closing sale?  
Services already underway at the liquidation stores will be completed promptly, but no additional jobs will be accepted at these stores.

Will car electronics installations be available at liquidation stores during the closing sale?  
No new car installations will be offered.  


Will Circuit City’s extended warranties still be available on products purchased from liquidation stores?
Yes, we’re making no changes to our Circuit City Advantage® warranties.  Coverage is national and purchases will still be protected just as they always were.  In addition, All Circuit City Advantage® warranties are secured by third-party financial institutions including GE Capital.

What if a customer purchased products at one of the closing stores and the product needs service?
Circuit City has made no changes to our Circuit City Advantage® warranties or any customer commitment.
For products covered under the Manufacturer’s Warranty, customers should call the manufacturer.
For products covered under Circuit City Advantage®, guests have two options:
Call the toll-free number that is printed on the bottom of the product receipt
Or, visit any other nearby Circuit City store.
For other Circuit City Advantage® questions, guests can call (888) 333-2333.


Is there a phone number customers can call if they have additional questions?
Yes, the toll free number is 1 800 THE CITY (843 2489).


Important Notice:
Statements made in this document, other than those concerning historical financial information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties.  These forward-looking statements include, without limitation, statements regarding the company’s expectations concerning the bankruptcy process, the continuation of day-to-day operations and payments to vendors and employees in the ordinary course.  Actual results may differ materially from those included in the forward-looking statements due to a number of factors.  Discussion of factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations is set forth in the press release issued November 10, 2008 that can be found on the company’s investor information Web site at http://investor.circuitcity.com .  Discussion of additional factors is set forth under Management’s Discussion and Analysis of Results of Operations and Financial Condition in the Circuit City Stores, Inc. annual report on Form 10-K for the fiscal year ended February 29, 2008, the quarterly report on Form 10-Q for the fiscal quarter ended August 31, 2008, and in the company’s other SEC filings.  A copy of the annual report is available on the company’s investor information Web site at http://investor.circuitcity.com.

GENERAL QUESTIONS:

Circuit City has filed for reorganization relief under Chapter 11 of the U.S. Bankruptcy Code.   Does that mean Circuit City is going out of business?  
No.  This is not a closing or liquidation.  Chapter 11 is a process through which the company should strengthen its balance sheet, create a more efficient expense structure and, we believe, position the company to compete more effectively.  
We hope to emerge as a stronger business with an improved national distribution channel for our vendors and a more compelling offering for our customers.
It will be “business as usual” at Circuit City with stores, Web and call centers operating as normal.   We will continue to provide our guests with great consumer electronics products and services and exceptional guest service.
Circuit City has negotiated a commitment for a $1.1 billion debtor-in-possession (DIP) revolving credit facility to meet the company’s current financial needs and be sufficiently stocked for the important holiday selling season.
We have requested from the court customary authorization to honor our commitments to our associates, pay them in the normal course and continue various benefits.  We expect to pay vendors in full for goods delivered after our filing date.  These requests are typical of the restructuring process.  

Why exactly does Circuit City have to file for Chapter 11 protection?
Filing for Chapter 11 provides the legal framework that allows us to keep the business running normally while we restructure our financial obligations.  Operating under the protection of Chapter 11 will provide the company’s vendors with assurances that they will be paid for merchandise the company receives post-filing so we can be sufficiently stocked for the holiday selling season.  A restructuring also should allow us to strengthen our balance sheet, create a more efficient expense structure and, we believe, position the company to compete more effectively.  
We hope to emerge as a stronger business with an improved national distribution channel for our vendors and a more compelling offering for our customers.
We completed a careful analysis of a full range of alternatives before deciding that reorganization under Chapter 11 provides us the best opportunity to leverage our market position and the strength of our brand to restore Circuit City to solid financial footing.

It was just a week ago (Nov. 3) when Circuit City announced the company was closing 155 stores in a restructuring effort.  What happened in that one week that required filing for bankruptcy?
Despite aggressive efforts to secure vendor support, vendor concerns about the company’s liquidity and ability to pay for its purchases in this difficult economic climate have escalated considerably since the company provided a liquidity update on November 3, 2008, further impairing the company’s ability to conduct business and provide service to its customers.  
Faced with the need to secure ongoing vendor support and to ensure adequate merchandise flow to stores during the important holiday season, the company has determined that it would be in the best interest of its stakeholders to file for reorganization relief under Chapter 11.  
Operating under the protection of Chapter 11 will provide the company’s vendors with assurances that they will be paid for merchandise the company receives post-filing so the company can be sufficiently stocked for the holiday selling season.  
Further, the company intends to create a restructuring plan that should allow Circuit City to emerge as a stronger business with an improved national distribution channel for its vendors and a more compelling offering for its customers.
The company recognizes that, to achieve these objectives, there is a critical need to create more efficient chain with a streamlined cost structure.


Will the Chapter 11 filing affect liquidation sales underway at the 155 stores that CC announced it would close?
No, those liquidation sales will go on as scheduled, and our remaining 566 stores will continue to operate in a business-as-usual fashion.  A complete listing of the stores that are being closed can be found at http://investor.circuicity.com.  Just click on “breaking news” to access of additional information.

What is the effect of the Chapter 11 filing on Circuit City’s efforts to maintain the support of its vendors and stock up for the holidays?
We hope that Chapter 11 will help us to secure ongoing vendor support and to ensure adequate merchandise flow to stores during the important holiday selling season.  Restructuring should allow us to strengthen our balance sheet, create a more efficient expense structure and, we believe, position the company to compete more effectively.  We hope to emerge as a stronger business with an improved national distribution channel for our vendors and a more compelling offering for our customers.


CUSTOMER QUESTIONS:

Why should customers continue shopping at Circuit City?
We remain committed to doing a better job of taking care of our guests, and making it easier to shop at Circuit City.
Chapter 11 is NOT a closing or liquidation.  The process allows a company to reorganize its business affairs so that it can continue to operate.  
It is a process through which the company can strengthen its balance sheet, create a more efficient expense structure and, we believe, ensure that we are better positioned to compete more effectively.  We hope to emerge as a stronger, more competitive company.

Will Circuit City gift cards still be honored?
We are seeking approval from the bankruptcy court to honor customer programs such as returns, exchanges and gift cards.  Approval of such programs normally is granted.

Will Circuit City still accept credit cards, including Circuit City-branded credit cards?
Yes.  Circuit City co-branded credit cards are offered through Chase Card Services and will not be impacted by this filing.

Does Chapter 11 filing have any affect on the Circuit City Advantage Protection Plans® (extended warranties)?
Not at all.  We have made no changes to our Circuit City Advantage Protection Plans®.  In fact, our Circuit City Advantage Protection Plans are insured by third-party financial institutions, so consumers can be confident their plans will be in effect based on the terms of the contracts.

Is there more information available for customers who have additional questions?
There is additional information available at our investor information home page at http://investor.circuitcity.com.  Click on the link for “Breaking News”.  You may call us at 1-800-THE-CITY (1-800-843-2489) or email Consumer_Affairs@circuitcity.com.

ABOUT CHAPTER 11:

What is Chapter 11?
Chapter 11 refers to the chapter in the U.S. Bankruptcy Code that contains provisions for court-supervised reorganizations of businesses.  An organization that files for protection under Chapter 11 is allowed to continue to operate and maintain business that is “in the ordinary course” – or business as usual.  The Chapter 11 filing provides the company with time – and protection from its creditors – while it develops a plan to restructure its debt and reorganize its operations.

Do companies ever emerge from Chapter 11?
Yes, it happens regularly.  

How long will Circuit City be in Chapter 11?
We don’t have an exact timetable, but we hope to emerge from Chapter 11 as quickly as possible.  

On this very busy election day companies are cashing in on consumers who crave free stuff!

From free ice cream to free coffee, consumers will be "rewarded" with free items for doing their civic duty- kind of.

In many states (including Texas) it is against election rules to offer cash for cash equivalent incentives for a vote, so in most cases you may not have to show proof of voting- simply saying that you did or plan to MAY be enough (but be prepared- they may ask)

Please note the offers are subject to change, are only at participating locations and all of that good disclaimer stuff that makes you be proud to be an American in the first place.

Below are links to store locators.  Feel free to add your own freebies to the list!

Go forth and enjoy! 

EAT THE WORLD- FREE ICE CREAM SCOOP

BOOKS A MILLION- FREE COFFEE

TIGERDIRECT.COM- FREE SHIPPING

KRISPIE KREME- FREE DOUGHNUT

STARBUCKS- FREE COFFEE

MTV ROCK THE VOTE- FREE MUSIC DOWNLOADS

NEW LOOK DALLAS- 1 FREE TATTOO REMOVAL SESSION

CIRCLE K- FREE COFFEE

BEN AND JERRY'S- FREE ICE CREAM

I'm working on a story that can save you BIG MONEY while shopping this holiday season and I need a viewer to go shopping with in the Dallas area so we can get reaction to our secret shopping method.

Are you:

Not camera shy?

Interested in saving money?

Free during the week during business hours?

Leave your info below so I can be in touch!

Thanks!

-Steve

A big thank you to the Executive directors of the Miss Dallas and Miss Longview pageants for inviting me to emcee their pageant yesterday.

Congratulations not only to the newly crowned winners below, but to ALL of the contestants for sharing their talent, their beauty and their wisdom (and let's not forget about that "pageant wave").

Meghan Miller - Miss Longview
Elise Martinez - Miss Dallas
Logan McCormick - Teen Dallas
Larissa Bonacquisti - Teen Longview

Here are some pictures highlighting some of the most magical moments from the stage!

Megan Miller Getting ready for the talent competition.

Larissa Bonacquisti - Miss Teen Longview

And your new Miss Longview is....

...Meghan Miller!

Miss Teen Dallas- Logan McCormick

Miss Dallas- Elise Martinez

With Jason Sheeler, Judge- Miss Teen and Miss Dallas.

Tonight I covered a story about a growing consumer trend that may start to effect the validity of political polls- cell-phone-only-callers.

Right now between 14 and 22 percent of Americans have only, or use only a cell phone as their means of communicating.  When political polls are conducted via telephone, pollsters traditionally only call landline numbers. They do so because federal law prohibits them from auto dialing cell phones (auto dialing is the cheaper faster way to poll).  If pollsters want to call cell phones they have to hand dial the numbers at a cost that is up to three times more expensive than calling a landline.  Why?

- Cell phone customers pay for their minutes and therefore have to be reimbursed for them.

- Cell phone users have a higher rate of refusal (how busy are you when you answer your cell)

- Cell phone users have a higher rate of error because they are usually doing two or more things at once.

- Cell phone users are harder to track geographically (remember you can port your NY number to Dallas if you move here)

Ok.. so they're harder to reach- so? 

This all potentially becomes a problem when you consider that the majority of cell-phone-only users are male, are minorities and support Barack Obama.  HOWEVER these same consumers are also LESS likely to be registered to vote, and if they ARE registered they are less likely to CAST A vote in the upcoming election.

In an attempt to make up for this "missing" demographic statisticians "weight" polls (counting some answers more than once to make up for under represented groups) and say it all comes out in the wash. 

Considering that "weighting" increases error in data, what do YOU think? 

Do we need to start looking at ways to include more cell-phone-only users in political polls or are the results good and accurate as they are?

Have at it:

     The newsroom is a buzz with reporters and photographers packing up their rain gear and heading to the coast.   There are gallon jugs of water in the back of news units "just in case".   It seems every 5 minutes there is some sort of "Hurricane Ike" meeting- we are all over this!

    I walked in this morning to find that we are setting up a temporary newsroom for our sister station in Houston so their team of reporters can work out of here to follow the story.  Below you can see crews buildnig a temporary weather wall for the KRIV crew.

    Where does that leave me?  Well, believe it or not I used to be a "I-see-you-just-lost-everything-in-a-tornado-how-do-you
-feel?" reporter, but it seems the days of holding on to a lamp post to show how windy it is- are over.

    So- here is my contribution to our hurricane coverage- preparedness information passed along to me that I am now passing along to you.  I invite you to add your own storm-advice in the space below:

FOR THE TECHIE:

- Back up all of your important data.  Power outages may be likely during severe tropical storms and hurricanes and you will need to make sure all of your critical data is stored.

- Print a list of important phone numbers

- But a back up battery for your cell phone

- If you are forecasted for a direct hit, unplug all of your computer and electronic equipment in advance of the storm.  This will keep it safe from a power surge.  This includes computers, monitors, printers, TV's, and fax machines.

- If you are concerned about flooding, cover all of your equipment with plastic and lift all machines off your floors to protect against water damage.

- Have a backup phone handy.

- Keep vital paper documents and records of accounts both personal and professional in a safe and dry place where they can be EASILY located once the storm has passed.

- Gather emergency supplies, 2 way communication, battery operated television or radio, extra batteries, flashlights, first aid kits, emergency tool kit, food water and utensils (remember the can opener if you are stockpiling canned goods)

FOR THE HOME:

- Know where and how to shut off utilities at the main switches or valves

- Move chairs and beds away from windows, mirrors or large pictures.

- Remove heavy items stored on shelves more than 30" high.

- Should a tornado hit your area DO NOT use matches, lighters, or appliances or operate light switches until you are sure there are no gas leaks.

FOR THOSE WITH SPECIAL NEEDS:

- Write down your specific needs- limitations, capabilities and medications- keep this list on you.

- Find someone nearby who you know who will agree to assist you in case of an emergency.  Give this person a copy of your needs list.  You may also want to provide a spare key to your home.

SOME TERMS YOU SHOULD KNOW:

A tornado/storm WATCH means tornado/storm IS POSSIBLE in your area.

A tornado/storm  WARNING means tornado/storm IS OCCURRING in you area.

GET EVERYONE ON BOARD:

- Take a few minutes with your family and develop a tornado emergency plan- this should include a sketch of the floor plan of the building you are in.

- Look for more than one way to leave a room.

- Know where your first aid kit is located

- Show your family how to administer basic first aid and how to use a fire extinguisher.

AFTER THE STORM:

One of the most common questions I get after a storm is this:

IF MY NEIGHBORS TREE FALLS IN MY YARD, WHO PAYS FOR THE DAMAGE? (And of course conversely "If MY tree falls in my neighbor's yard... who pays?")

Before we get to the answer, I'd like to share a couple of reminders for you to help calm your nerves during what can be a very frustrating time. Remember, just like I say on TV- this is MY 2 cents... it's up to you to spend it wisely.


STORM CLEAN UP- PROTECT YOURSELF FROM NON-REPUTABLE CONTRACTORS:

First- as you clean up from the storm, beware of fly-by night service providers offering to help you cut down trees. You want to make sure those you employ carry proper insurance and the proper know-how to get the job done right. Any reputable contractor should carry workman's compensation insurance and be able to show you a certificate verifying such. If you hire someone without this insurance, and they are injured while doing work for you, you open yourself up to being sued to pay for their injuries.

Be sure to ask the contractor you are about to hire for references. Then IN ADDITION check their record with the BBB- remember if it is a franchise of a national company, be sure to ALSO check the BBB in the city where the company’s headquarters is based as this is where complaints and records will also be filtered to.


PAYING FOR REPAIR WORK:

Beware of workers who want you to pay up front. Payment should be made at the CONCLUSION of their work (after you have reviewed and approved the job they did).

If ABSOLUTELY necessary, you can give a deposit for HALF of the amount of the estimated total up front- if you do... pay with a check NEVER in cash. This way you can stop payment if the work is not completed.

ALWAYS get a written estimate of any work you are having done. Make sure both parties sign the document AND be sure to initial next to the dollar amount and ask the service provider to do the same. This will ensure that there is no disagreement over how much the job was supposed to cost.

Draw lines through 'extra' boxes on the invoice where additional charges could be plugged in later. You would never write someone a check without ensuring your safety, right? Think of the invoice as a documented promise of the check you will eventually write.

Ask to be notified IN ADVANCE if there are any additional charges that come up during the contracted work.

Remember there very well may be legitimate extra charges (i.e.: a tree that is leaning on a power line, damage that is more extensive than you thought)- just because an additional fee is added on for additional service that is discovered during the work process, doesn't mean it is necessarily bogus.


DOCUMENTING DAMAGE AND REPAIRS:

Take plenty of pictures of the damage and any work you have done (before, during and after it is done). It is always better to OVER document events.


WHAT REPAIRS SHOULD I DO IMMEDIATELY?

In most cases it is best to repair any damage that, if not fixed immediately, will result in further damage.

Save your receipts! Go a head and do MINOR repairs which are needed to prevent additional damage (these are most often able to be reimbursed through your insurance provider) but hold off on doing anything major until AFTER you contact your insurance agent.


WHAT ABOUT MY PIPES?

Pipes that break are commonly covered under your homeowner's insurance policy. If there is an active leak that is causing additional damage, your insurance company may allow you to have it repaired immediately to prevent further damage. However, you should hold off on doing major repairs until after they are approved by your insurance provider. 


WHAT ABOUT THAT FALLEN TREE?

Keep in mind a fallen tree is a TEMPORARY SITUATION who you live next to is a situation that will most likely last years- whenever possible KEEP THE PEACE.

Here is some info for you:

If one of YOUR trees falls and damages a neighbor's property, the folks at the Insurance Information Institute in New York say, generally speaking, it is your NEIGHBOR'S insurance policy that is called upon to pay the damage. Since his insurance is being impacted, you probably won't face an insurance premium increase as a result.

HOWEVER, your neighbor could come after you to cover his deductible. In the interest of neighborly relations you may want to pitch in somehow (maybe at least split the cost of the deductible).

THE UPSIDE? Your neighbor and you are still on speaking terms.

PLEASE NOTE: The American Insurance Association, in Washington, D.C. reports- if a tree falls on your home and the incident happens to involve a COVERED PERIL such as lightning (so yes, check to see if the "ice storm" was covered), no matter whose tree, YOUR insurance company should pay for YOUR home repair.

THE ONLY EXCEPTION TO THIS IS: If the damage happens as a result of negligence (if the tree was dead before it fell and you had proof that your neighbor knew or should have known that the tree was dead) then the damage becomes your neighbor's liability. (Remember the same goes for your trees... so now may be a good time to see which ones are standing strong and which ones have to come down or be cut back)

Please stay safe during what looks like it will be a busy weekend- feel free to add any advice you may have below.

This is the body of an email ai got today- some interesting stuff...  Have I looked any of the stuff that's not common knowledge up to confirm? Nope!

TYPEWRITER  is the longest word that can be made using the letters only on one row of the keyboard.  
 

A  cat has 32 muscles in each ear. 

 
A  goldfish   has a memory span of  three seconds. 

A 'jiffy' is an actual unit of  time for 1/100th of a second. 

 
 
A  shark is  the only fish that can blink with both  eyes.  

 

A  snail can  sleep for three years.  

  

Almonds are a member of the  peach family.    



An ostrich's  eye is  bigger than its brain. 
 
Babies are  born without kneecaps.  They don't appear until  the child reaches 2 to 6 years of  age.  

 
February 1865 is the  only month in recorded history not to have a full moon.  

In  the last 4,000 years, no new animals have been domesticated.  

If  the population of China  walked past you,  8  abreast,  
the line would never  end because of the rate of reproduction.  
 
 

Leonardo Da Vinci  invented the  scissors    

 

Peanuts  are  one of the ingredients of  dynamite!  
 

The  winter of 1932 was so cold that Niagara  Falls  froze completely  solid.  
 

There are more chickens than people in the  world.    

 

Winston  Churchill  was  born in a ladies' room during a dance.  



Women  blink nearly twice as much as  men.  

Rubber  bands  last longer  when refrigerated.  
  


The  average person's left hand does 56%  of the typing.   


 
The  cruise liner, QE 2   moves only six inches for each  gallon of diesel that it burns. 

   
The microwave was  invented after a researcher walked by a radar tube and  a chocolate bar melted in his pocket.  

 
'Stewardesses' is  the longest word typed with only the left  hand  

 
And  'lollipop'   is  the longest word typed with your right hand.  



No  word in the English language rhymes  with month, orange, silver, or purple.  


 
'Dreamt' is the only  English word that ends in the letters 'mt'.     
 
 

Our  eyes  are always the same  size from  birth, but  our nose and  ears never stop growing.   

  
  
The  sentence: 
'The quick brown fox jumps over the  lazy dog' 
uses every  letter of the alphabet. 

 

 
The  words 'racecar,'  'kayak' 
and  'level' are the same whether they are  read left to right or right to left  (palindromes). 
  
   

There are only four words in the  English language which end in 'dous': tremendous,  horrendous, stupendous, and hazardous.  
 
  

There are two words in the English language that have all  five vowels in order: 'abstemious' and 'facetious.'

DECLINE THE UPGRADE: I just got back from a week out of town.  During my vacation I drove from Boston to Vermont- and back-  a good number of miles would be logged (about 600 round trip).  The clerk at the rental counter said- it's my lucky day!  I had been upgraded from the small compact car I reserved to a full size SUV!  I immediately said- NO THANKS!  Due to the great distance I would drive, I was looking for a fuel efficient car.  I needed to look past their shinny luxury upgrade to my own bottom line.  When I declined the upgrade I was told- that's all they had.  I opted to wait for a more fuel efficient car to be returned- while this meant waiting longer at the rental counter for them to locate a more fuel efficient vehicle, I saved money on gas. (an amount more valuable than the extra time I had to wait)

EATING OUT: It was a Monday night and I asked a couple of friends if they'd like to grab a bite to eat- something light on calories and on budget.  Immediately one suggested a restaurant where the grilled chicken salad I was planning on would have cost me upwards of 15 bucks!  YIKES!  I had already told the other friend that I was in savings mode and our dinner plans changed to something more affordable- yes, kind of awkward, but not as bad as having no money at the end of the week would been.  When inviting friends to dinner, I suggest selecting a restaurant that you can afford comfortably, and asking them  to join you there.  This way you can enjoy the  meal without worrying about how it's blowing your budget.  I often find that when I offer that I am trying to mind my money, my guests often admit that they too are in savings mode.  Another tactic I use to enjoy a meal out without breaking the bank is going out to breakfast or lunch (when menu prices are more affordable) instead of dinner when prices are more expensive.  

SAVE THOSE ATM RECEIPTS: My credit union doesn't charge me when I use another bank's ATM, but the other bank does.  I save my ATM receipts and turn them in to my credit union who credits me back the fees that other banks charge.  It saves me AT LEAST 20 bucks a month!  

CASH IN YOUR CHANGE JAR: I avoid the coin machines at my grocery store which charges me a fee to turn my loose change into folding money.  Instead I bring it to my credit union OR I take advantage of the program that the change kiosks often offer which waives the fee if I turn my money into a gift card for the grocery store I am using.  I figure you gotta buy groceries, right? The gift card will never go to waste.  

CONSOLIDATING DEBT: It's been a year of unexpected expenses, and yes, even I can get off track.  I have a few thousand dollar balance on my credit card.  Instead of taking ALL OF my extra money each month and throwing it at the balance (to pay it off quickly), I went on line to find a 0% interest credit card offer which is good for 12 months.  I transferred the balance to the new card and set up an automatic payment every month from my bank account to the card (enough to pay it off in full BEFORE THE rate adjustment after 12 months).  The new payment is less than the payment I had been making because I am now (with no threat of interest for the next 12 months) allowing myself more time to pay off the debt.  I take the "extra" money I now have each month and put it in an interest earning savings account so that I have it to use for unexpected expenses.  Now that I'm not spending every last cent I can find on my debt- I am less likely to run up new charges on a credit card.   

PAYING MYSELF FIRST: There are some absolutes that I MUST pay- these are non-negotiable.  Mortgage, HOA, Taxes, Agent Fees, Car Payment, Gym Membership (ok, maybe not a MUST, but I look at it as savings in the long run as it cuts down on potential health costs).  How do I make sure  the money is always there?  I have 6 bank accounts at my credit union.    - First my paycheck gets direct deposited into my first checking account- (I call it my "Bill Pay" account).  IMMEDIATELY every pay day, my account is set up to transfer money as soon as it is deposited.     - Then I pay myself- money is transferred into my "everyday" account- this is my set budget for spending money to live on- it has to last for two weeks until my next check comes.    - Next, money for my gym membership and for my HOA payment is sent to a savings account- so that it is there ready to go every time a bill comes.    - Money for savings and for my property taxes is sent to another savings account (which I have under a different member number so that I can't "see" it when I check my balance).    - Every time there is 2-thousand dollars in that account for my taxes, I open up a money market account to earn extra interest on that money.  At the end of the year when tax time comes (and yes, I pay my taxes by December 31st so that I can deduct them on that year's income taxes) I don't write a check from that account to Dallas County, instead I pay my taxes with my VISA card which offers me cash back rewards.  I then write a check to VISA instead.  Since I have been saving the money all year, the balance is paid off immediately.  I then use the "cash back" award to pad my tax savings account for the next year.  It may sound like a lot of work, but it only took a few minutes to set up on line- and it is all automatic.

What are YOU doing today to save? 

Kiplinger has posted picks for 30 Fabulous Freebies.  Everything from movie tickets to furniture to cultural events.

Check out their 2008 list by clicking here to see which of these budget minded deals  you get can your hands on.

What are your favorite freebies?  Share them below.

This morning on Good Day I had a segment about back to school computers.  We discussed many options for consumers.

During the segment I misspoke.  We were talking about whether or not a PC will update your iPod.  I said it won't update it. 

I should have been more clear and said that a PC will not AUTOMATICALLY update your iPod when you plug it in, you have to search for updates (as opposed to with a Mac which gives notification of updates automatically). 

Additionally, a PC will require you to download the iTunes software (which is free, and required to use your iPod) to get full software updates for your iPod - this software is standard on a Mac.

There were two viewers who wrote in to clarify the error.

Thank you for bringing that to my attention.

I had a feeling there would be a price difference, but just HOW MUCH of a price difference really surprised me.

We shopped three stores- Walmart, Office Max and Kroger.   Each chosen to represent ONE segment of the shopping market- a deep discounter, office supply store, and supermarket.  We certainly know our list of sources is not comprehensive.

ON THE DAY THAT WE SHOPPED prices were as follows:  (PLEASE NOTE: penny prices at Office Max were part of a promotional sale- Walmart has indicated they would match the advertised penny price.  an * indicates that the item was not the same brand name, but instead the cheapest item we could find.)

#2 Pencils:

Walmart- $.50/10

Office Max- $1.49/10

Kroger- $.99/10

Crayola Crayons (24 count)

Walmart- $.22

Office Max- $1.29

Kroger- $1.99

Crayola Markers (10 count)

Walmart- $.88

Office Max- $2.99

Kroger- $3.49

*Ruler

Walmart- $.97

Office Max- $.01

Kroger- $.99

Westcott Scissors

Walmart- $1.97

Office Max- $2.49

Kroger- $2.49

4 Pack Highlighters

Walmart- $1.50

Office Max- $1.49

Kroger- $2.49

Construction Paper

Walmart- $1.43

Office Max- $1.99

Kroger- $1.99

Mead 5 Star 1 subject Spiral Notebook

Walmart- $1.97

Office Max- $4.99

Kroger- $4.99

*150 count notebook paper- wide ruled

Walmart- $.50

Office Max- $.15

Kroger- $1.00

11/2" 3 Avery 3 Ring Binder

Walmart- $3.67

Office Max- $4.79

Kroger $6.79

PROS FOR EACH STORE:

Walmart- Cheapest prices plus price match guarantee

Office Max- Perks program where teachers get paid back for student spending, plus specializes sales staff and penny promotions which change weekly.

Kroger- Pre-bundled school supplies.  everything on your child's list comes pre packaged at no extra cost- very convenient.

AGAIN PLEASE NOTE: these were prices we found in each store on the day we shopped.  Not responsible for outdated signage or incorrect shelf/scanner pricing.

As promised here is some advice from the mortgage broker in tonight's story.  Below is HIS advice.  Remember in any large transaction to ask plenty of questions and make sure YOU are comfortable with the details.

First Time Home Buyers and Newlyweds

One of the most important things I tell first time homebuyers, and those getting married, is to plan well in advance of the time period you will want to purchase a home. I suggest sitting down with a mortgage consultant at least 6 months to one year in advance to discuss credit scores, establishing credit lines and the amount of money needed to close the loan. For instance, lenders normally require 4 established lines of credit that show at least a 12 month history. It is important to evaluate what credit lines you currently have and if additional lines of credit are needed you will have the required 12 months to count them in your loan application.

Also, it is important to discuss with your lender the different types of loans and which one may be best for you. As the market place continues to change rapidly we are seeing a return to the long standing FHA loan. This is because many first time homebuyers are finding that they no longer qualify for a conventional loan because of more stringent criteria and the higher credit scores needed.

Another advantage of the FHA loan is that it usually requires a lesser amount for the down payment, and 100% of that money can be gifted from a family member, a governmental agency, or non-profit organization. Additionally, most conventional loans require the borrower to have an amount of up to 6 months payments in liquid assets in reserves AFTER paying the down payment and closing costs, FHA loans require NO reserves. Also keep in mind is that the seller of a property may pay up to 6% of the purchase price toward the buyer’s closing costs, this can help reduce the buyer amount needed to close.

In the past year we have seen Mortgage Insurance, an insurance policy that protects the lender in the event the borrower defaults, going up at an alarming rate. Mortgage Insurance is calculated on the loan balance and can range from .55% to 4.18% on conventional loans, this amount is added to the monthly payment. In comparison FHA charges 0.5% of the loan amount, although they do charge a one time upfront fee of 1.5% at the time the loan is closed, but that amount can be rolled into the loan.

The home buying process can seem complicated, but if you take things step-by-step, you will soon be holding the keys to your own home!

Nine steps to buying a home

1. Figure out how much you can afford

    

2. Know your rights

    

3. Shop for a loan

    

4. Learn about home buying programs

    

5. Shop for a home

    

6. Make an offer

    

7. Get a home inspection

    

8. Shop for homeowners insurance

    

9. Sign papers

    

If you would like more suggestions about preparing to purchase your first home please visit us on the web at www.swfdallas.com

John Collins is a Mortgage Broker and Branch Manager with Southwest Funding located in Dallas, Texas. He currently specializes in FHA and conventional loans, credit consulting and hard money investor loans.

It is said that when a consumer is happy with an experience they tell just a couple of people- when they are UNHAPPY they tell anyone who will listen.

It's a theory I use when sifting through viewer email.  I figure someone who hated a story I did is MUCH more likely to write me and tell me about it.  The "hate mail" doesn't come too often, and when it does, the author is usually straight forward- sometimes offering polite suggestions.

Well.. hold on to your hat!  This is the most "spirited" piece of viewer email I have ever received. It is SO verbally colorful- that I just had to share it with you.

Looks like someone saw my story run in Atlanta and didn't very much care for it.

(just a quick note, I have removed some of the most colorful language- and although tempting- did not correct his grammar, spelling or lack of punctuation and capitalization.   Additionally, he makes reference to experts we hired- we did not hire any experts for this story)

hey steve,

I'm sorry to tell you this but I honestly can't believe you did a story on the save a blade, had so much trouble with one type of blade which the unit was not designed to work well with, and had the (expletive) to end the segment with "we didnt test any other blades". oh gee. how so very helpful steve you MORON!!! you may be a wonderful person, I have no idea - I live in Atlanta and we have Clark Howard. But this story was a joke!!! how could you go to all that trouble and expense of hiring an expert and getting the film crew together and going to a school of mechanical engineering. did it ever occur to you to maybe try a gillette and a schick and maybe a few different ones of each?? I've read about three different stories from local/regional "investigative reporters" and they came to the exact opposite conclusion as you. also, how about trying to shave with it you assclown?!?!?! "of course, we didnt actually try shaving with it, we just looked at it reeeeeeeeeeeeal close"

seriously dude, go do a little bit of research on the internet - it'll take you all of five minutes. maybe have one of your gophers do it and then test a few more blades and this time, screw the engineer guy, actually SHAVE with it. novel idea eh?

your (expletive) reporting annoyed me so much that i had to track you down and tell you how much it sucked. THAT's how annoying it was. and if you look at comments on aol, you'll find I'm not the only one who thinks that story blew. you may be a great reporter in general, but from the one piece I saw, you blow.

sorry, just giving you honest feedback

Alex