Managing Money

edding brunch for 80? Family reunion for 150? It's the perfect season to celebrate life's special events. And because keeping costs down is on top of everyone's party to-do list, we asked the most fun-loving frugalistas we could find to share their secrets. It turns out a big budget isn't nearly as important as big ideas. "Creativity and personal touches definitely outweigh the money you'd spend to do something chic and memorable," says Erika Lenkert, author of The Last-Minute Party Girl : Fashionable, Fearless, and Foolishly Simple Entertaining (Contemporary Books 2003). "The more personal it is, the more impact is leaves."

onsidering cancelling your annual holiday shindig because of cost? No need. "With planning and a little creativity, it's easy to throw a great party without spending a lot of money," says former caterer Denise Vivaldo, author of Do It for Less! Parties: Tricks of the Trade from Professional Caterers' Kitchens and Do It For Less! Wedding: How to Create Your Dream Wedding Without Breaking the Bank. Try some of her favorite themes for successful celebrations on a shoestring. Your guests will never guess that you didn't spend a bundle on them.

et's face it, with the way things are today with gas and grocery prices going up (and just about everything else) most of us are doing what we can to save money on groceries. I know you've heard it all; coupons, shop the sales, using rebates...but I have a simple technique that I have found is the best way to save money on groceries for my family. So no matter how much money you make, or how much you spend, anyone can save money!

etting your offer accepted is half the battle in completing your home purchase.

First and foremost, you want to make sure the property is worth what you're willing to pay for it. Your lender will send out an appraiser to check out the property and compare it to similar properties that have recently sold in the neighborhood.

While the home is being appraised, you'll need to hire a professional home inspector to check out the physical condition of the home. Even though you and your agent may have toured the property several times, looked in the closets, attic and basement and even turned on the appliances, savvy home buyers use an inspector to catch those harder to detect items, like loose roof shingles.

he problem with being a homebuyer these days is that you have the best and worst of home buying all rolled into the current market.

Interest rates are hovering around seven percent, with lower rates available on adjustable rate mortgages. Low interest rates boosts home buying power. At current interest rates, if you have no other debt and some cash to put down on your home, you'll be able to buy three to nearly four times your gross annual income. That's a lot of house, if you can find one.

y friends have just made an offer for a home. At first, the negotiations went smoothly and they and the sellers agreed on a price. But suddenly, the discussions stalled, and my friend was confused.

"We've agreed to their price. Why don't they come back and accept our counter offer?" she asked.

Why indeed? It seems silly that sellers would balk on the final acceptance of a counter-offer when their property has been sitting vacant for the past six months. Wouldn't they want to go on with their lives?

his year, homeowners will spend more than $150 billion on home improvement, maintenance and renovation projects. That number, say analysts, will continue to grow, which will only increase the odds that the contractor or subs you hire to complete your job won't be as talented or experienced as you might like. In fact, one of the most frustrating aspects of home improvement is finding qualified contractors to complete the job.

But someday soon you may be able to get around all that.

hy do people buy fixer-uppers?

They're looking for a real estate investment: Buy a home that needs work, throw some time and money into it, and then sell it for a profit.

Fixer-uppers are a way to buy a home in a preferred neighborhood that may otherwise out of reach financially.

hat kind of loan should you choose? Consider the lower cost and higher risk of an adjustable rate mortgage over a 30-year fixed rate loan.

According to the mortgage industry, the average homeowner refinances his loan or sells his home within 5 years. If you're going to move or refinance your home within 5 years, choosing a 30-year mortgage doesn't make any sense. You're paying for stability you'll never need.

s there a perfect home? Unless you're building it yourself and have an unlimited budget, you're probably going to have to be flexible about what you buy and compromise on some features and amenities.

How can you match what you want and need with the homes available for sale in your area? It's a matter of trading-off those amenities you want with those you can't live without.

ne of the hardest things for homebuyers and homeowners to come to terms with is that no house is perfect. As one home inspector liked to say, "An old house has older problems, but new houses have problems, too."

Moving into a brand new space is magical. And many homeowners want to keep it that way. But inevitably, the shiny new stainless steel sink gets scratched, as do the chrome bath fixtures. The grout in the floors gets stained and windows get dirty. Your kids leave handprints on the walls and here or there you might find the wood molding has cracked or the paint is peeling.

hat's in that jarred baby food in the cupboard? Chances are there's a ton of sugar and preservatives in it, that's what. The majority of baby foods on the market add sugar to everything, even chicken and peas. And that's not counting the extra salt!

Why should you go homemade? For starters, you'll know exactly what's going into it that way. You'll be able to tailor the ingredients to what your baby needs and likes. The food will be fresh, free of extra sugar and salt, and prepared with good ingredients, as opposed to jarred ones which are often made from bruised fruits and vegetables with chemicals added to even out the taste. The killer reason for me? Homemade baby food isn't only better for baby, it's not only easy to make--but it's incredibly cheap!

ne of the best things about fall is so many more homes come on the market. Indeed, the change of seasons can help you in your search for a home -- if you know when to look.

Spring is the hottest home buying season, particularly March, April, and May, as families want to get settled before the start of the school year in September.

Fall is the second-hottest home buying season, with September, October and early November being the busiest times.

have never won the lottery. Not really sure what I would do if I did, really. I think I would pay down the house, and maybe buy a new bicycle. I think I would buy Lynn and I a couple of new laptops, and certainly, the kids would get new bikes as well as some new clothes, but I am not a big car kinda guy, nor am I a big house kinda guy. I don't drink, and I don't gamble, and I have no desire to buy into horses, boats or racecars. I have a sneaky suspicion that Edward Ugel would hate me.

ou think you've found the right home. But is it really worth what the sellers are asking?

Before you give away your hard earned money, do some thorough research.

First, ask your agent to prepare a comparable market analysis (CMA). This is a compilation of sales prices of homes similar to yours in the neighborhood which have recently sold.

You'll also want to check out the school district, crime statistics, and whether property values have been generally rising or falling in the neighborhood. Visit city hall to learn about future development plans for your new neighborhood.

veryone says a renovation will cost more than you expect and take longer to complete. And that's completely true in most cases. But you can hold down the costs--by making tough choices ahead of time.

ouses are akin to living, breathing objects that need to be regularly maintained. Everything from typical wear-and-tear to weather to natural disasters can cause roofs to leak, basements to flood, and dollars to drain from your bank account.

Even if you're handy or have a relative who is a contractor, house maintenance and upkeep can be costly. How costly depends on whether you maintain your home along the way or wait until a small problem becomes a big problem.

hen they finally decided to build a new home, Linda and Jimmy hired the best-known (and most expensive) builder in their area. They paid the premium for his services, because they assumed there would be few, if any, real problems with the construction.

Wrong. When it comes to building or doing a major renovation on your home, there are always going to be problems, no matter how much you pay your contractor.

recently, there has been a subtle shift in the residential real estate market. In some communities, in some price ranges, home buyers are finding there are more homes available for sale, and they are taking longer to sell than they did six months ago.

What's happening? Although interest rates are low, the economy is stalling. Consumers are nervous about job layoffs, and some have put off looking for a home. When demand goes down, the air starts to go out of a seller's market.

ou've found the house you want and, fortunately, you can afford it. Now it's time to shop for a loan, akin to car shopping.

How do you find the right lender? Play one lender against the other to get the best rate. The task can be daunting, however, with so many competing lenders and mortgage types from which to choose.

n most states, homebuyers have the option of working with a buyer's agent, who owes the buyer his or her fiduciary duty, as opposed to the seller. A conflict of interest could arise, however, if the buyer's agent also accepts the seller as a client. If the agent takes a homebuyer to see one of his or her listings, the buyer may soon be without any representation because the agent is then a dual agent.

To avoid such a conflict, hire an exclusive buyer's agent (EBA) because they never represent sellers. Occasionally, your EBA might represent two buyers who are interested in the same property. In that case, another EBA in the agent's office can help one of the buyers make an offer.

hen shopping for a home in a hot seller's market, it's important to move quickly when you spot a good deal. But if you don't know how much you can afford, where you want to live, and what your "must have" items are, you may see that home slip away to another, better prepared, buyer.

emodeling isn't cheap. In fact, it always costs more than you think it will. But there are some simple ways to shave remodeling dollars on the materials you'll use and the labor to complete the project.

The best and probably simplest way to cut costs on a remodeling job is to gather multiple bids from contractors. Few homeowners actually collect more than one bid. Even if you don't choose the cheapest bid, the difference can be in the hundreds, if not thousands, of dollars.

any homebuyers and sellers think they can better negotiate than the other party in the transaction. This often leads to a frazzled and protracted negotiation for a property, which leaves tempers exhausted and sore feelings.

The best way to negotiate is to sit back and think about what you really want to get out of the deal.

n summer, garage and yard sales blossom like wildflowers all over our neighborhood. I bet it's the same in yours. If you're thinking of getting in on the action, go for it! It's a great way to clean out your house and make a little money on the side. Here are thirteen steps to garage sale success.