“Wednesday’s Personal Finance Daily - Marketwatch” plus 1 more

Wednesday’s Personal Finance Daily - Marketwatch

Posted: 22 Dec 2010 11:25 AM PST

By MarketWatch

Don't miss these top stories:

Existing-home sales rose 5.6% in November, compared with October sales, according to statistics from the National Association of Realtors released on Wednesday.

It's not exactly a Christmas miracle: November existing-home sales were still 27.9% below sales from November 2009.

But the November 2010 figures raise the seasonally adjusted annualized rate of sales up to 4.68 million, slightly higher than economists expected. It's also the third rise in four months, which also suggests a modest recovery in the housing market is continuing.

Read more in today's Personal Finance pages, including why the Santa Claus rally is about to begin.

Another report out on Wednesday from the Federal Housing Finance Agency found that prices rose a seasonally adjusted 0.7% in October. Remember, that's a national figure and not an indication that prices are recovering in every single corner of the country.

But at least it's a step in the right direction.

—Amy Hoak, Real Estate writer

Existing-home sales climb 5.6% in November

The modest recovery in the housing market continued in November, as sales of existing homes rose 5.6%, according to a report released Wednesday.
Read more: Existing-home sales climb 5.6% in November.

ECONOMY & POLITICS

U.S. third-quarter growth revised up to 2.6%

The largest global economy tallies a 2.6% growth rate for the September quarter, according to the government's final revision. This was slightly faster than the growth previously reported, primarily a reflection of companies adding more inventory, but it fails to measure up with analysts' growth expectations.
Read more:U.S. third-quarter growth revised up to 2.6%.

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First Person: Personal Finance and 'The Unexpected' - Yahoo Finance

Posted: 15 Dec 2010 09:03 AM PST

*Note: This was written by a Yahoo! contributor. Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.

"In this business, by the time you realize you're in trouble, it's too late to save yourself. Unless you're running scared all the time, you're gone." -- Bill Gates

I love that powerful quote. It imparts the urgent message about never taking anything for granted in the world of business. I also happen to believe the quote, albeit abrasive, suitably conveys how I feel about my personal and small business finances. Even when times are on the upswing and the checkbook is balanced and fat, I could be and have been one-step shy of an empty bank account.

Here is where fear can play a critical role in protecting the financial aspect of your life or business. Do not take current stability for granted and prepare ahead for the unexpected. I became an expert on this after my business all but buckled in 2008.

I also found out a couple days ago that in two weeks, my husband will undergo knee replacement surgery. This was totally unexpected for both of us.

Economy Takes a Nosedive - Do You Have Money to Get By?

When the New England economy began to spiral downward in the spring of 2008, I was in for a rude awakening. My outdoor play systems business all but ended. Word of a recession in the making slowly, but surely crept through Massachusetts, Maine and New Hampshire.

These are the three states where my husband and I have sole distributorship rights to sell our product. We have had lean years, but not the bone-dry spell we had to push through in 2008 and half of 2009.

Day by day, fewer customers came to shop. The phone in my office, generally ringing off the hook, quickly trickled down to a few rings a day. By July 4, 2008, there was no need for me to go to my office more than a few days a week. We had to cut our long-time workers down to a couple days a week. It was a frightening scenario to watch unfold.

The bills were still coming due, but there were no new sales or service orders coming in. I thanked the powers that be that my husband is an amazing money manager.

Making Ends Meet is No Easy Task

My husband is frugal and always alert to the fact that at any time the business could take a hit. Luckily, we had enough money in our business account to keep the company bills paid. We also had just enough to pay our household expenditures until things picked up slightly in March of 2009.

It was a very trying time. If not for my husband's never-ending caution about money, I have no doubt we would not have made it through.

Be forewarned: As you can see from the state of the country even in 2010, the bottom can drop out at any moment. Pass on foolish extravagances and pad that nest egg now. Like me, you never know when just in case will be knocking at your door.

Unexpected Surgery Dilemma

After years of sports injuries, a car accident, and subsequent surgeries, my husband blew out his knee two weeks ago for the final time. Basically, he has been laid up for those two weeks. He has no option now. The time has come for him to undergo knee replacement.

Normally, while winter puts our business on hold, my husband would continue to do service calls for our company. It doesn't make us rich, but it generates some winter income. There will be no service work for at least a couple months now. That means no income this winter.

Funny thing: We were about to do some home improvements on our house just about the time my husband blew out his knee again. We never got to those projects. If we had, that would have been money spent that we cannot make up in any way this winter because of my husband's surgery and the rehab process to follow.

In reality, we are paying someone money right now to do the work my husband would normally be doing. We are shelling out money instead of drawing it into the business.

I cannot emphasis enough how important it is to be prepared financially for a rough economy or the possibility of a medical emergency. Possessing some healthy fear about personal or business finances will serve you well in the long run.

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Personal Finance

Wednesday, December 22, 2010