Poor Ruth Madoff.

Bernie Madoff’s wife is now crying broke because she has been stripped of all but $2.5 million in assets. In New York her duplex apartment was worth $7 million.

The fascination with money and its excesses are intriguing. Last week, I read an article about the lack of skilled trade workerswho are needed and the positions pay $22 an hour which would be over $45k a year. Additionally there were other engineering positions that employers were having difficulty filling which paid $50k+ a year. In the East, people were crying that you can’t afford anything on that wage. While in other parts of the country $45-50k annually might not get you into a fancy country club but you wouldn’t be broke either.

How far money will go depends on your location in the country. Real estate prices in larger coastal cities may be higher than in the middle of the country, though decent homes in good neighborhoods can still be had for people making $50k a year.

Mrs. Madoff who was allegedly not a part of her husband’s business dealings still gets to keep five times more than the maximum payment that claimants may receive toward their investment losses.

In most parts of the world, $2.5 million dollars does not make you poor. In a relative sense when you had more and lost the majority of your holdings, then a paltry $2.5 might seem like a poverty level when compared to $65 million or more. Yet, for people who lost their live savings to leave with $2.5 seems like a dream.

Ruth Madoff’s salon and florist (among others) no longer want her business, so she may not have to worry about her $2.5 going very fast. Some buildings don’t even want her to live there, so her millions may go a lot farther than originally thought. If people can survive on $50k a year, R.M. should be able to do it as well.

Ponzi schemes. When things sound too good to be true, they usually are. Even if someone is a friend, check out what they are telling you.

Bernie Madoff received the maximum sentence for his crime. Yet, his incarceration won’t bring back the life savings to those that he bilked out of millions of dollars.

He apologized.

“I live in a tormented state for all the pain and suffering I created,” Madoff said. “I left a legacy of shame. It is something I will live with for the rest of my life. Saying I’m sorry is not enough. I turn to face you. I know it will not help. I’m sorry.”

The Securities Investor Protection Corporation already has over $61 million in claims made by nearly 9,000 Madoff investors. The SIPC will also pay up to $500,000 for eligible claimants who lost money to Madoff.  The SIPC works with a trustee in the even that a brokerage firm fails and owes money to investors.  Hardship cases are also being given priority and their claims are being expedited.

The worst part about this is that with so many people out of work, it is possible that there are more similar illegal schemes like multi-level management and Ponzi schemes just looking for more gullible folks to participate. The unemployed need to be wary of “great opportunities” offered by a company seeking salespeople for their products and require that you bring in more people to sell or asking you to refer friends to a great opportunity.

When something is great or horrible you want to tell your friends. It is when things are mediocre that you say nothing. When you have a great experience anywhere you tell others – a great return of your income or a great chance to make more money. Good or bad, check it out.

Investigate on your own, if something doesn’t seem right even if it legitimate, then don’t go any further with a “job opportunity” or investment.  Investments are not mandatory, they are optional. When you want to work and have been out of work for a while, some work opportunities seem great – this does not mean that they are legitimate. With investments, the best option is not to put all of your money into one type of account. Nothing is certain and sincere is are many way that people have spent their money. For a job opportunity ask how much you have to spend in order to get a position. If you are required to recruit a certain number of people or do something that you are uncomfortable with, leave the opportunity.

Still want to enjoy things that you used to like vacations? Dinners with friends or vacations keeping you from some social activities? If you are un- or under-employed you might not have the same amount of money you formerly earned. Or if you were forced to take furlough days or a pay decrease then there is just less money to go around.

As you parents used to say when you were younger, if they are really your friends then they won’t have a problem. True friends don’t want their friends to have financial problems. If you can’t afford to go on a vacation with friends then tell them. If  you were living a larger lifestyle funded by credit cards and are trying to pay down debt, be forthright. People who only like you for your money or won’t accommodate plans occasionally so that you can do something with them aren’t your true friends.

In hot weather, water is your friend.  But after a while, plain water can get boring. No problem! In the summer many stores have lemons and limes on sale. This past week I saw limes on sale, 15 for $1. One lime wedge can give you a little zip to your water.  Limes aren’t the only fruits that add extra flavor to your water. You could also use some frozen mixed berries. Also, there are single serve packages that you can add to a pint or 20 ounce glass or bottle of water, which are convenient for people who have their own bottles of water on the go.

Freezing your own water so that you can take it on a picnic or to have with you at work is a nice treat as well. Some containers you cannot freeze but don’t fill the bottle to the top. Add your lime wedges or other fruit before you freeze your water and you will get a nice little lift to your water for less than the price of packets.

Ever notice how the water in a restaurant always seems like a treat because it is extra cold? Add ice and a wedge of fruit. Even a splash of juice like cranberry, grape or grapefruit will convince you that you aren’t just drinking ordinary water.

There are some good unsweetened water additives, but many are not unsweetened. Check the label. Sugar free does not mean without sugar. Sugarless means no sugar. For people who want a little more zip to their water, try unsweetened beverage mixes (i.e. punch mix) and just use a dash or two. A package that is supposed to make a half gallon or so will work for several quarts of water – this is for flavoring not to make punch.

This morning before 8 a.m., it was 80 degrees.

Last week it was on the cool side for June. This mean it is time to turn on the air conditioner.

To save money but still stay cool, close the blinds or drapes and run the fan. This way the air conditioner doesn’t have to work as hard. The newer more efficient energy star air conditioners make a difference in your electric bill. Just because it is 90 outside, doesn’t mean that you need to have your air conditioning set at 68. Air-conditioning units also remove humidity from the air so a 72 or 74 degree setting with a fan going and shades drawn will make it very comfortable inside.

If you have peak periods of sun near your home, keep the curtains drawn during that time. Even if it is early, the sun can really heat up your home and your air conditioner will have to work harder. Generally, there is enough outside light, so you don’t have to turn the lights on either.

Fans do not use as much electricity as air conditioning units. If you aren’t home during the day, use a timer to turn the ac on an hour or so before you get there, so the house will be cooler. Keep the shades and blinds closed during the day so that your home won’t be as hot.

For walkers, runners and bikers, don’t go out in the peak of the day unless you have to, and drink plenty of water.

Stay cool!

But by the spring of 2008, the financial world seemed to be coming undone, unemployment was rising, and among the fashionistas, cheap was the new black. [Lew] Frankfort and his executives reconsidered. They agreed it was time to create a more “youthful energy” for the brand. “This was an attitude we felt we were missing,” says Frankfort.

Higher end companies and brands are lowering prices to attract customers. Coach has announced a new line of products that cost less, so has J. Crew and Vera Wang. The items are still costly but  seemingly more affordable.

At a certain point, there is a price threshold that demands more. When you spend $200 for a television set you have a certain set of expectations, but when you spend $1000 or $2000 for a television set there are a different set of expectations. The same applies when you are buying an item that is not a necessity.

Cheap can be a pejorative term. Buying a fashion item cheap is equated in my mind with a fad or a trend. Just because something is popular now doesn’t mean that it will always be fashionable. Spending a small amount of money on something that you may use for a short time because it is cheap is generally wasteful. There are exceptions to this rule, but when it comes to spending upwards of $200 or $300 on an item, for most people this amount makes people pause.

If companies are lowering the cost of the items they are selling in order to gain more customers, is it possible that the prices were too exorbitant to begin with?  A person who might not blanch at spending $300 for a handbag may have difficulty spending $1000 for a handbag, or have greater expectations. At $300, will the style be fashionable in two years?  What if you find an item that will be fashionable, but not trendy that costs $450 is that a better investment? Maybe investment would be a difficult term to use but a well-crafted durable item that will still be in style after a few months is definitely worth the price.

The inclement weather has made me think of being prepared for bad weather. Make sure that you have a radio that will work on batteries or one that you can wind up.

Also, have an alarm clock that runs on batteries will also help you just in case the power goes out. Pay attention to the weather forecast, even travel on public transportation may take a lot longer or may be disrupted.

Food? If the power goes out, don’t open the refrigerator, the food that is in there will stay cool for a few hours. You still need to eat right? When the microwave doesn’t work because the power is out, make sure you have some shelf stable food that doesn’t need to be heated such as granola bars.
Pouches of precooked food that can be heated in the microwave or in boiling water may be eaten at room temperature. Having a couple of those would be good just in case the power is off.

Have candles but remember don’t leave them unattended in a room.

Keep your cell phone charged so that when the power does go out you would still be able to have an open line of communication.

If you are delinquent on your credit card bill, it may not be Monty Hall calling to make a deal, it may be your credit card company.

The delinquency rate on credit cards has risen, as have calls from credit card companies to people with high balances. Companies are trying to make deals with people in order to get something rather than nothing.

Even with settling for less than the entire amount, there are still high balances around.

“Revolving credit, a close approximation of credit card debt, totaled $939.6 billion in March. The Federal Reserve reported that 6.5 percent of credit card debt was at least 30 days past due in the first quarter, the highest percentage since it began tracking the number in 1991. The amount being written off was also at peak levels.”

Credit brings a different dimension to this recession.  The unemployed and under-employed do not have as much to lose. When you aren’t making any money, your wages can’t be garnisheered. This does not mean forgoing payment. Although no one can say, yet, how taking a deal from a credit card company will affect your future credit or credit score.

This video tells the story of a woman who did the right thing by paying her mortgage but her house was being sold because the title was listed as someone else’s. Going through the proper channels she had no recourse so she and her husband had to hire a lawyer to straighten things out.

Keeping a paper trail is important especially in the digital file age. Check your records regularly to see if your payment is going to your account. Also have a recent paper copy of your payments in case something goes wrong.

Houses may also be sold for taxes, or pose problems when refinancing if the taxes are not paid. A Chicago area company was taking payments for property taxes and insurance but hadn’t been using the money to pay their customers taxes or insurance.

If people have a record of their payments to the company then they might have some recourse especially if they have cancelled checks. In Illinois, the attorney general’s office is looking into customer complaints by many people who say the company took their money but did not pay the taxes with the escrow money collected.

For payments that are being held in escrow, it is still important to check and see if your payment is being directed to the right place. Check your tax and insurance records to see if everything is being paid on time. Don’t trust that a company is doing the right thing because of the name. Human error also happens. Be watchful and pay attention to payments.

It may not happen often, but there are occasions when you are stuck with some food item that you don’t like. Let’s say you had a party and bought some mustard or other item for your guests. Then you are stuck with it. What to do?

Have you ever had a bottle of salad dressing, or condiment or wine that was perfectly good, just not to your tastes? Use it as a marinade. Even if you aren’t a mustard fan, condiments like mustard have low or no sodium and when mixed with other spices, adds zest to your meat without the regular mustard taste.