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The positive changes that have risen from the current financial crisis, and

A few tips on how to surf the recession wave

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Our current recession has been going long and strong since December 2007.

Depending on which financial commentator or expert you ask, they all name different causes, but they all pretty much come down to the following:

•Burst of the housing bubble – State of California•Deregulation of credit defaults - Subprime mortgages•Fraud – Madoff Investments Securities, AIG, Fannie Mae•Negative growth in GDP – decline in consumer spending•Decline in bank deposits, savings, reserves - Bear Stearns

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Transparency:The government put in place requirements and regulations for financial institutions and loan companies to follow so that all transactions are reported under a single standardized accounting procedure.

Institutions are required to prove that they have sufficient assets to meet their contractual obligations through reserve requirements, capital requirements and other limits of leverage.

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Financial awareness:Spending money carelessly is a thing of the past! Simply because you have money today, does not mean that you will tomorrow.

People are questioning fees, prices and shopping around for the lower, more appealing deals financial institutions and retailers haveto offer.

People understand the importance of teaching financial responsibility and accountability at a young age. Some schools have begun to add finance classes to their curriculums, making it mandatory that high school students learn at least the basics of maintaining a budget.

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Family:Now that we are forced to cut back expenses and make wiser purchases, we have remembered that spending time with the family is not only as fun as a night out on the town, but crucial for building trust and teaching good habits; not to mention free.

Cooking your family a balanced meal instead of going out to eat is not only less expensive for your budget, but healthier for those growing bodies.

Camping trips, road trips and remodeling the home have become the new and awaited vacation. No more overspending on travel and fighting about the location, NOW it is all about spending time with the ones you love, in the place that you built together, and doing the things everyoneenjoys.

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Health:As the saying goes, “if you don’t have your health, you don’t have nothing”

No more eating fast food everyday and buying coffee every morning. We’ve realized that eating out is not only expensive but detrimental to one’s health.

Making your breakfast and lunch at home and sharing recipes with your coworkers is in. Buying a greasy, salty lunch is out.

Walking half an hour at lunch or walking your dog after work has replace expensive gym memberships.

Smoking and drinking is expensive. More and more people are giving up their habits and replacing them with sports, volunteer work and family activities.

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Wants vs. Needs:Now that we don’t have the spending allowance that we once did, we have become better at differentiating what we Want vs. what we Need.

We are learning once again to prioritize our finances. What is more important, having a place to live or buying a brand new pair of shoes?

Learning how to bargain and settle for things that may not necessarily be the brand that we were accustomed to, but serve the same purpose for less money is becoming wide spread.

Fashion will always be fun, but use is the new fashion.

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Going green is in:The environment and the impact we’ve had in our world has always been important. However, because of the lack of extra income and the rising cost in utilities and natural resources, being green to save some green has become more important than ever.

Recycling has taken a whole new different meaning. We no longer just recycle bottles and cans, we recycle clothing, furniture, and even cars by buying used andor trading on internet web-sites such as craigslist and freecycle.com

Even the government is encouraging us to recycle and conserve energy. Programs such as the Cash for Clunkers program where people get a rebate of up to $4,500 for trading in their old, fuel inefficient vehicle to buy a new fuel efficient one is notonly serving its purpose, but surpassing expectations.

Home owners can obtain rebates for using recycled products to remodel their homes, for replacing their grass with water efficient landscaping and for purchasing energy efficient appliances and bathroom fixtures.

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Don’t spend what you don’t have

Learn to differentiate - Wants vs. Needs

Credit cards are not money, they are debt

A home is not a short term investment

Money that is easily made, is easily lost

Saving is key – take control of your finances

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