First of all, from the “I could have seen that coming” category, rapper DMX is about to lose his big house due to a trip to the big house.  The police broke the doors down, they stayed down and as often happens to vacant properties, looters came and cleaned the place out.  Living large and breaking the law don’t mix.

But now even churches are facing both foreclosure and bankruptcy.  That’s unfortunate, but inevitable with the parishioners of those churches fighting to stay in their own homes.  Could churches have planned a little better?  Maybe.  But something tells me many churches are conservative with their finances (at least relative to rappers) and the economy is in quite a tailspin to bring them down.

Maybe better evidence of how foreclosure is hitting everyone is to take a look at renters.  When you pay rent, you’d think the landlord would automatically turn around and pay the loan on the property first.  That’s probably the case a vast majority of the time, but things have gotten so bad that renters are losing their home as the property owner is getting foreclosed on.  Should tenants be allowed to run credit checks on landlords?  I don’t think that will happen anytime soon, but here’s some advice from the LA Times if your landlord goes into foreclosure.

It is estimated that 3 million homes will face foreclosure in 2009.  That’s a daunting number.  There are alternatives out there for people in that situation.  Right now, I’m glad I’m not in that situation.

What’s your situation?  Are you facing foreclosure?  Let me know in the comments below…

I’ve compiled a short list of good personal finance links I think most everyone should visit, separated into both free and pay links.  I think they are all worth paying a visit to.  Here’s the list:

Free Links

• Do Not Call List: Keep the telemarketers at bay by registering your number here.  Registration is permanent and should curb most calls.  There are loopholes, such as political campaigns and surveys, but I hardly get virtually no sales calls now.  https://www.donotcall.gov/
• Opt Out Prescreen: Sick of the credit card offers?  You can opt out of the pre-screen list, getting you out of most of those mail credit card offers.  It might also be a way to fight off one source of identity theft. https://www.optoutprescreen.com/
• Annual Credit Report: You can get one report per year for free.  I think that it’s not a total solution, but it’s worth checking what’s on your report so you can correct errors and see if someone’s been using your report for their credit. https://www.annualcreditreport.com/cra/index.jsp
• Mint: Mint is personal finance tracking software and it’s pretty slick.  They’ve updated since my Mint review, including a new iPone app. http://www.Mint.com

Pay sites:

• Chase Identity Protection: With identity theft on the rise, it’s smart to have a solution that works for you 24/7 to make sure theives are at bay.  The annual credit report I mentioned is geat, but a LOT can be done with your identity in far less than 12 months. Chase Identity Protection is run by one of the biggest banks out there, so they have a lot of experience behind them.  Try it free for 30 days and see if it makes a difference.
•  Big Crumbs: I started shopping at BigCrumbs a while back and think it’s pretty slick.  The idea is simple - they offer you a rebate for things you buy though the site.  Think of it as a coupon site, except you don’t need to search for the right coupon, you just shop and get money back.  Tip: sign up as a CrumbSaver and you’d get more money back on what you buy.  Unless you’re really going to get a lot of refrerrals, it’s the best route.

That’s the sites I have so far.  What sites do you know of?  feel free to comment below.

The Carnival of Personal Finance: Fairy Tale Edition has a link to last week’s article about places to sell stuff online, plus a ton of other articles from around the web, so you’ll have plenty to read as you start the new year.  Enjoy!

1. No bonuses for Citigroup Execs: There will be no  bonuses for the top two execs, and reduced bonuses for others.  This is their way of saying “thanks” for the $45 billion bailout.
2. Home prices keep dropping: I guess that’s the good news/bad news of real estate these days.  Great if you want to buy (and have the cash or can qualify for credit) or really bad if you want to relocate.
3. Starting the year out right:  At the time of this writing stocks are up, giving hope that this year’s numbers will be better than last year’s.
4. Let the prognosticating begin: MSN Money gets the stock picking off to an early start with 12 pick for 2009.
5. The Biggest Loser(s): Weight loss is a common New Year’s resolution, but these folks lost the most in their pocketbooks in 2008.  See the billionaires who lost a LOT last year.  A hat tip to Free Money Finance for finding this one.

I do have hope and a belief that 2009 will be better than 2008, if only because we were hit so hard in 2008.  Here’s to a great New Year!

Got a story you thought shaped the week?  Add it to the comments below, or join Afternoon Rally and submit it for all to see.

1. Half.com - I discovered Half.com when a one of my co-workers (a former professor) sold his mountain of old textbooks online.  He made a lot of money at Half.com, so I checked it out.  I pulled out a bunch of old books from my basement and have made a few hunderd bucks selling them over the years.  Half.com makes it easier to list than just using eBay or a similar site as you don’t have to put a picture up.  You just enter the books ISBN number and you’re off.  They even calculate shipping.
   What’s better is you can sell music, movies, games and game systems as well, though I haven’t tried that part.
   Pro Tips: 
   1. Give an honest rating of your item’s condition.
   2. Price the lowest in its condition to sell fast
   3. Computer books and texts sell for a lot, but you can find all kinds of in-demand items.
   4. You won’t make money on shipping.  The shipping reimbursement is pretty accurate.
   5. You can buy books there cheap.  We returned some Christmas gift books and may buy the used versions at Half.com
2. eBay: Everybody’s at least heard of eBay.  I’ve sold items from around the house here and it’s still the best place to go as far as I’m concerned.  You do have to post your photos and such, but that’s the nature of the game with how many items can be sold on the site (nearly anything).
   For those in an entrepreneurial mood, eBay also lets user set up online stores.  I’ve heard people make a living doing this.  In fact, I have a nice new Nike golf club I got cheap at an eBay store.  It’s worth a look if you’re shopping for something new or used.
3. Craig’s List: Some people swear by it (with billions of page views a month, apparently many do), but I’ve heard horror stories as well.  My own bad experience stems from selling an SUV there.  I got some lookers, but not a single serious customer.  One person wanted to pay me monthly as if I was a bank.  Um, no thanks.  I used Auto Trader, paid the fee and had a legitimate sale soon after.
4. Etsy.com: OK, this one is a little different.  If you’re a crafter or an artist, this is the place to sell your stuff.  My wife makes some great items there and does pretty well for an Etsy beginner.  The rules are simple, the stuff you sell must be made by you (no mass production).  There have been a few stories of crafters who’ve done so well, they’ve had to leave Etsy to mass produce to meet demand.

Well, that’s my four main sites.  What sites do you use to buy and sell stuff online?  Let me know in the comments below.

With that in mind, this blog is really about you.  Sure, it’s my “reflections” on finance, but I really do hope that somehow I help people, even if it’s just knowing there’s someone else out there who is facing the battle to make ends meet.  So here’s my SMART goals to make the site better for you in 2009:

• A better look: My goal is to redesign the site to provide a better look and feel. I’ve already put up the new design, but I’ll keep refining it as the year goes on.  Let me know what you think and what changes I need to make.
• More content: My goal is 1 post every working day, which is about 200 in a year.  That should give you something to dive into.  I’ve also noticed something else.  The more I write, the better I get at it.  Hopefully we both gain something on the way.
• Build a community for you to converse with:
  • Write guest posts on other blogs: My hope is to get out there and find the real thought leaders in this part of the “blogoshphere.”  The more people who read this site and comment, the better the discussion becomes.  My goal is to guest post once a month, depending on who’s looking for guest posts that week.
  • Blog Carnivals: If you’re unfamiliar blog carnivals happen when one blogger summarizes posts from dozens of different blogs in one post on their blog.  Its a great way to find out who’s out there. My goal is to submit to at least two blog carnivals a week.
  • Host a Carnival: My hat goes off to those who host carnivals, because it is a lot of work.  My goal is to host at least 2 in 2009, maybe more.
  • Afternoon Rally: I’ve created a social financial news site called Afternoon Rally.  The idea is simple, you join and submit your favorite financial news stories from blogs, news sites, wherever you can find them on the internet.  Join Afternoon Rally today and get the latest financial news from across the internet.  My goal is to maintain Afternoon Rally for a full year and see where it goes.
• Commitment: My goal is to extend the registration on this domain for at least 5 years out. It’s a symbolic move, but I want to show that I’m not slacking off anytime soon.

What’s missing?  I know one thing that many bloggers include - traffic and revenue projections.  Sure, I’d love to have thousands of visitors a day, but I know I can get that by creating solid content and providing a great environment for people to read and share.  My goal is to provide just that all through 2009.

Unemployment:

November 2007: 4.9%
November 2008: 6.9%
(from http://www.bls.gov - Bureau of Labor Statistics)

I personally know a few people who’ve lost their job in 2008, myself included.  Fortunately I found a new job, but at a sightly lower pay rate than I was making before.  Some other people I know haven’t found a new job yet, and for one it’s been months.

Dow Jones Industrial Average:

January 2, 2008: 13,043.96
December 29, 2008: ~8,483.93
(Source: finance.yahoo.com)

That’s right, “The Dow” lost about 35% of it’s value in a year.  The drop is more dramatic when one realizes that the Dow peaked over 14,000 in October of 2007 and was still over 10,000 as late as September of 2008.  My 401(k) is still in shock.

Federal Reserve rates:

Federal Funds Rate: That “is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight” - in short, that’s the rate banks loan each other money.  With the credit log-jam in place, the Fed thought it would shake things up a bit, but dropping the rate effectively to ZERO, in an attempt to get the money flowing again.  I’m not so sure it’s working

December 11, 2007: 4.25%
December 16, 2008: 0.00%

Discount Rate: “The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank’s lending facility–the discount window.” In other words, that’s the amount the Federal Reserve charges banks fo money it loans to them.  Again, a huge drop, to try and get money flowing withing banks, open up lines of credit and get the economy flowing again.

December 11, 2007: 4.75%
December 16, 2008: 0.50%
(Source: www.federalreserve.gov)

30-year Fixed Mortgage Rate:

Jan 1 2008: ~5.49%
Dec 29 2008: 5.22%
(Source: bankrate.com)

That’s the one thing that hasn’t changed too much, but with lower Fed rates, it just might in 2009.  I’m really glad to be in a fixed-rate mortgage.  Sadly, foreclosures still seem to be going strong.

What’s in store for 2009?  I’d love to say I knew it was going to get better.  Or even that I knew for sure one way or the other, but it seems really hard to think the economy is going to turn around very fast.

Update: I just found these articles on Afternoon Rally.  This is apparently the worst year on the stock market since 1931.  Also home prices havd declined at a record pace.

How was your 2008?  What’s 2009 look like?  Let me know in the comments below.

Gladwell makes the case that one key factor in a young Canadian hockey player’s success isn’t just his agility or endurance, it’s how early in the year his birthday arrives. You see, the age cutoff for the youth hockey leagues happens on January 1st, giving those born early in the year a slight size and maturity advantage on those born later in the year.

The advantage doesn’t end there. The older players often stand out relative to their peers and are given a chance at all-star teams, which gives extra practice and more opportunities. The cumulative effect turns that slight advantage into a potential shot at the pros and leaves others out of the loop. It also means nearly 3 out of four potential NHL players are missed, simply because of their birthday.

Gladwell keeps that theme up, exploring how birth dates and years shape the advantages kids seeking college admissions to Bill Gates and New York attorneys.

But if you’re thinking birthday is some sort of lottery into the corner office in the law firm or a shot at the NHL, you’re in for some disappointment. Work is essential to success, no matter what outliers are working in your favor. Galdwell shows that even the most talented work long hours - about 10,000 hours - to achieve a level of mastery to their craft.

The reader is left with that central theme: work. Even the talented have to work and hope that the “outliers” that define them lead to their success. The good news is that we don’t have to go to the most elite schools, have an IQ off the charts (though they don’t hurt), be just have to be good “enough” and still have a real shot at success.

You can buy Outliers: The Story of Success at Amazon.

1. Return it: Unless your aunt Edna just won’t forgive you for returning or exchanging that Christmas sweatshirt with Santa and his elves printed on the front, return it, sell it, exchange it or “regift” it.  If you haven’t exchanged it yet, don’t delay, as there might be a returns policy that will run out.
2. Use that gift card: Some gift cards come with fees for inactivity.  You’re better off using it before it runs out.  If it’s not your kind of store, sell it or give it.
3. Set some goals: With the end of the (tax) year coming up, you might want to consult with a tax pro to see what moves you can make, or just set some SMART financial goals for the new year.

Exchanging unwanted gifts can do more than lift your pocketbook.  It will de-clutter your life, but doing it at the peril of relationships can be touchy.  Hopefully we can all start the new year financially organized and clutter-free.

Here’s a take on Christmas Eve shopping from Austin, TX:

Here’s another from New Haven, CT:

And if you’re way out there, here’s a Nativity scene made out of cheese.  It’s has nothing to do with shopping, but it’s just too odd to miss.

I hope you all have a wonderful holiday break! I likely won’t publish anything again until Monday. Enjoy!