My personal economic stimulus plan...

submitted by Linda White, http://LindaWhitePaHomes.com, LindaWhitePA@gmail.com

Okay, so our country has some serious economic problems. Between what the government says and what the media reports, I'm not sure whom I should believe. And, short of requiring our government and big business to start thinking and reacting like successful small businesses, I'm not sure they have a clue (nor do they care about) how to get our country back in the black. I do believe that we will do further damage to the situation if we all just crawl into our little holes, hold tight to the money we have and stop spending. I do not encourage splurging now but just being in maintenance mode and giving ourselves a little extra something every once in awhile, just to keep from becoming extremely down and negative. It's up to us to keep the economic ball rolling.

If you have a steady and secure job, congratulations! If your employer may have to lay you off, I'm sorry and I pray you'll find something else to tide you over until things improve. If you're on a fixed income, you must keep a tight budget and make your dollars stretch. If you're self-employed (like my hubby and me), you might not be sure where your next paycheck is coming from...keep the faith! My husband sells and services water treatment equipment (Clean Water Systems, Inc.) and I sell real estate (at Keller Williams) and manage our cabin rentals (Warrior Ridge Hideaway). Our business has been steady to strong in the past year and we feel truly blessed. That being said, we know we need to keep a close eye on things; if we falter, I don't think the government will seriously consider our proposed bail-out request!

Consider your local economy vs. the national economy. A big concern for many people is the value of their real estate investment. In central Pennsylvania things don't seem so bad as in some of the big-city areas. As I follow closely the real estate market, I know that State College, PA and the areas around Penn State University have always been pretty stable. A few years ago some major cities especially near resort areas were expanding like crazy, home prices were escalating and builders could not keep up with the demand. Now those areas are returning to normalcy, some below normal. Comparatively around Happy Valley, our home values appreciated more than normal a few years back but now we seem to be right about the normal national average of 3-4% appreciation per year.

So here's my plan, what I propose to do... Please comment and let me know what you plan to do!

Keep a positive outlook. That is, look for opportunities to change things for the better. Don't watch too much CNN (constantly negative news). Be aware of what's going on but don't dwell on it. Did you notice that when the plane landed on the Hudson River and no one was killed, it wasn't sensational enough for the media? They had to hype it up by pointing to all the "what-ifs" so they could make it more of a story. Thank God for a great pilot and the weather conditions which allowed all to survive!

Define what you need vs. what you want. There's nothing wrong with rewarding yourself with a specialty coffee occasionally. Perhaps every morning might be a little frivolous! Just think of the total cost over a year's time and that may alter your attitude. Regarding eating out, every lunch and every dinner might be extreme... learn to cook and enjoy your home. But don't stop eating out completely; this is important in your local economy too.

What about those gas prices? I think we were all pretty happy they came down so much. But many people began to rethink their traveling, carpool, and make each trip count. We are all wise to continue the budget because, sooner or later, the prices will likely go back up.

Shop the sales. Typically in January retailers run sales to clear out the after-Christmas surplus and get ready for spring merchandise. Pick up the decorations and replace those burned-out strings of lights for 75% off and you'll be smiling next Christmas as you decorate the tree! Boots, leather jackets, show-blowers, you name it!

Use coupons for the grocery items you need. When the Sunday paper comes, cut out the coupons first, then look at the fliers from your local grocery and drug stores. Very often the merchants will run special prices and note in their ad that additional discounts may be available from the Sunday coupons. Visit websites like coupons.com and smartsource.com where you can download and print additional coupons.

Stock up on non-perishables when they're on sale. Everyone can find a little extra space for some canned goods, sugar, flour, cake/brownie/bread mix, spaghetti sauce...If you have a large freezer, buy your meats in bulk packs, bring them home, divide them into smaller portions, put them in a freezer bag (labeled with date and item). Make sure to squoosh the air out; the pros say that helps avoid freezer-burn.

Support your local businesses. I know there's a temptation to shop online especially when the merchant offers free shipping. But your friends and neighbors depend on your buying locally to keep the local economy strong. A lot of businesses may be willing to "price-match". If you bring them proof of a business selling the same item at a lower price, they may sell it to you at that price. It never hurts to ask.

Look for price roll-backs. Wal-Mart is famous for this but some of the drug and grocery stores have recently started doing it. Many merchants should be thinking that it's better to get 80% of something than 100% of nothing. They may be better able to ride out the economic challenges by accepting a little less profit in exchange for continued patronage by their customers.

Were you thinking of trading/buying a car this year? Since gas prices have come down, this might be a good time to buy a new or used SUV. Remember when everyone "went hybrid" and the dealers couldn't give SUV's away. This negative demand caused prices to drop. Car dealers in general are struggling with most people holding onto and fixing up the cars they have instead of buying something else. A good situation for a buyer to negotiate price. Did you see the commercial for the car dealership offering to let you return the car you purchase if you loose your job? I'd have to see the fine print on that...interesting.

Did your New Year's resolutions include getting in shape and losing weight? Many gyms and weight loss centers know that this is prime-time for them to acquire new customers. I just saw a segment in the news saying you should ask them to waive the initiation fee for new members. That could save a lot of money. As for me, I do my exercising at home. I have lots of equipment and videos...yes I need to make myself use them more regularly!

Were you thinking about moving? In central PA our home prices are pretty stable. If you're a first-time homebuyer, you may qualify for some programs to help you get into your first place with little to no downpayment. If you want to sell a smaller, less expensive house and move up to a larger, more expensive house, this market will treat you pretty well. Due to greater demand for starter homes, you should have a nice gain when you sell. Due to greater inventory and less competiton from other buyers for the higher-priced homes, you should have some good negotiating power when you buy. Even if you're looking to down-size, keep in mind that you might get less than you'd like when you sell your big house. However, this same market will also proportionately give you a lower price when you buy a smaller house or condo.

Be a friend, a good neighbor or a helping hand to someone who could use it. There may not be an exchange of money in the action but the giver gets a warm, fuzzy feeling and the receiver realizes someone cares. It matters to that someone and hopefully they will pass it on.

I hope these ideas will encourage and empower you to make a difference. Together we can turn things around. Big changes must be made but that usually starts with small changes. Please share your plans...