STAYCATION IDEAS

What is it? It’s simple, stay close to home during your vacation!

We are hearing more and more about Staycation as the economy continues to worry us all. Regardless of what is being said as to we will overcome this recession, we also need to be mindful that times are hard and money is tight. Therefore it is also important to realize that with all the stresses in life we must also take time to relax and recharge.

I was surfing the web for places to visit here in Delaware at no cost or for a small fee and realized what I was missing. Although I was born and raised in the First State I was surprised at how many places I have yet to visit. I have to admit I saved some money during my staycation.

Here are a few suggestions to save you money on your staycation.

-Visit your local park- sit on a bench and enjoy the sceneries
-Read a book
-Have a picnic in your backyard with all the perks, blanket on the grass and a picnic basket, why not!
-Walk the malls –window shopping
-Plant a tree
-Take a ride to Lancaster PA, Amish country
-Walk around the neighborhood and meet some neighbors
-Redo a living space at home and enjoy it
-Visit Brandywine Zoo with the kids- no need to travel far.
-Go to a Blue Rocks game
-Attend a Citizens Bank Shipyard summer concert series- http://www.riverfrontwilm.com/
-Visit a nearby library check out their events calendar
-Check with the local and State parks for events and activities
-BBQ in your backyard
-Go camping
-Visit Killens Pond’s Water slides
-Visit a friend
-Go for a River Taxi Family Night- http://www.riverfrontwilm.com/
-Visit an Animal Shelter with the family, check their events calendar and volunteer your time
-Visit Nemours Theater http://www.theatren.org/
-Go to Newark for a great movie http://www.newarkfilm.com/
-Visit Christmas In Odessa for a self guided walking tour of homes built in the 18th & 19th century decorated for the holidays http://www.christmasinodessa.com/
-24th Annual Mushroom festival in Kennett Pike http://www.mushroonfestival.org/ in September
-Wilmington Hispanic Festival in September http://www.thelatincenter.org/
-Book a sail or tour http://www.kalmarnyckel.org/
-Visit Longwood Gardens for fireworks and beautiful fountain displays
-Visit Old New Castle’s Dutch house, Delaware’s early Colonial Gem http://www.newcastlehistory.org/
-Visit the First Grand Mansion in Delaware, the Amstel House http://www.newcastlehistory.org/
-Hauntings in History, evening walking tours through the town in October 2009 http://www.newcastlecity.net/
-Visit the Delaware Museum of Natural History for Deep Sea Treasures till October http://www.delmnh.org/
-Delaware History Museum at http://www.dehistory.org/
-Candlelight Ghost tours at the Fort of Delaware on September 11, 12, 25 & 26, visits to the most haunted areas of the fort http://www.destateparks.com/

The YWCA counselors encourage you to stay within your budget and start enjoying what you do have and not what you wish you had. You will start to see the savings add up and having peace of mind is worth so much more.


By Iris N. Donato, Homeownership Services Counselor

Tips to Help Manage Summer Energy Costs

While summer is a great time to enjoy warm weather activities, it is not so pleasing to feel the heat of higher energy bills that are often associated with higher energy use. Summer will surely bring hot, humid weather, but with a little effort, you can be comfortable and help stretch your energy dollars too.

• Have your air conditioning system checked by a licensed technician to ensure it is in good working condition.
• If health permits, set your air conditioner’s thermostat between 75-78 degrees. Every degree you move your thermostat up can save as much as five percent on your cooling bill.
• Change or clean your air conditioner filter. A dirty filter causes the unit to run longer and inefficiently.
• Close window shades, blinds, or drapes to keep out the sun and retain cooler air inside.
• Move lamps, TVs, and other heat producing items away from your air conditioner’s thermostat. Turn off electric appliances and equipment when not is use.
• Check that all windows and doors are tightly closed to keep the cool air in and the hot air out. Weather stripping also can help seal air leaks around doors and windows.
• Cook and use other heat-generating appliances such as washers, dryers and dish washers in the early morning or cooler evening hours.
• Wash clothes in cold water.
• Use dishwashers only when fully loaded. Use the air-dry option if your unit has one.
• Consider preparing light summer meals that do not require a lot of cooking. If possible, use an outdoor grill or microwave for cooking.

• Consider using a ceiling fan with your window air conditioner to spread cooled air to other rooms. Be sure the air conditioner is large enough to help cool the additional space.
• Install a whole-house ventilating fan in your attic or in an upstairs window to help circulate air. Although not a replacement for a central air conditioning system, a fan is an effective way to stay comfortable on milder days.

Electrical Safety Is A Year-Round Effort

■ Have your home wiring inspected by a qualified electrician if you notice problems such as flickering lights, or
buzzing from outlets – especially if you have an older home.

■ Use the right power strips, cords and surge protectors for the intended electrical load.

■ Avoid overloading circuits with too many appliances plugged into a single outlet or power strip.
■ Replace frayed cords and damaged electrical equipment.

■ Follow the manufacturer’s instructions for using appliances and equipment.

■ Use extension cords only temporarily. Consider installing additional outlets if necessary.

■ Remember that water and electricity don’t mix.

POWER ENERGY SAVINGS TIP

When you need a new water heater buy a high-efficiency water heater; purchase a unit with a high Energy Factor (EF) rating. EF ratings—such as those of .91 and above—correspond with greater efficiency. The higher the rating, the more efficiently the unit will operate

Sources: Delmarva Power: Energy Savings Tips http://www.delmarva.com/
Images courtesy of http://www.googleimages.com/ and www.greenworld365.com/

Submitted by: Barbara Williams, Administrative Coordinator, Department for Economic Advancement, YWCA Delaware.

Getting a Mortgage Loan: The 4 C’s of Credit

To decide if you are a good credit risk, a lender looks at four things,

referred to as the 4 C’s of credit.

CAPITAL, CAPACITY, CREDIT HISTORY & COLLATERAL

Capital – The amount of cash you have available is your capital. The more cash you have in savings accounts, certificates of deposit, bonds or other places where you can get to the money quickly if you need it, the more comfortable a lender is that you can cope with the financial emergencies that may arise after you move to your new home. Lenders will ask you to prove how much capital you have and it’s source. This is called verification of deposit. You will need to show that you have at least enough capital to pay for the: Down payment, loan fees, closing costs, escrow impounds, reserves, moving expenses

Capacity – Your ability to earn enough income to make the new mortgage loan payments and still pay all of your other living expenses is called capacity. Lenders need to see that you have the capacity or ability to repay the loan. When lenders look at capacity, they look at several things; your current income, your income history, your earning potential and the amount you owe.

Credit History – One of the best ways for a lender to tell if you will repay your home loan is to look at how you have handled other debts. If you have always repaid the money you have borrowed on time, if you generally pay cash, saving credit cards for large purchases and emergencies, you are probably a good credit risk. On the other hand, if you have many loans and credit cards and struggle to make the minimum payments that are due each month, you may need to improve your credit history before a lender would be willing to make you a home loan. If you have had credit problems in the past, you’ll probably have to convince the lender that whatever caused those problems has been corrected and demonstrate that your credit has improved with at least a 12 month history of payments on time and in full. The lender may ask you to explain even a single late payment.

Collateral – Your new home will be the collateral or extra security for your loan. Your lender will look carefully at the value and condition of the house to make sure it is worth at least as much money as you are borrowing and to be sure that the house does not need major repairs that could cost you more money than you planned to spend. Generally lenders determine value by hiring an appraiser. You will be asked to pay for the cost of the appraisal. The appraiser uses his or her professional training to estimate the fair market value of the house.

So before applying for a mortgage loan, look at yourself and ask yourself:

1. Do I have a history of saving?

2. Do I have enough cash in the bank to make a down payment and pay the other costs of buying a home?

3. Has my income been steady, and do I earn enough to make the new payment and still pay my monthly bills?

4. Have I handled credit responsibly? If I had some credit problems in the past, have I solved them and improved the way I borrow and repay?

5. Is the house I want to buy worth the amount of money I would be paying for? And is it in good shape?

6. Would making a loan to me be risky for a lender who must be sure to get the company’s money back? If I were a lender, would I make a loan to a person with my financial habits?

The YWCA DELAWARE has counselors that can work with you to help you get to where you need to be when considering buying a house. Please contact us today by calling 302-224-4060 Ext. 200.

Submitted by Carmen Ortiz
Housing Services Counselor, YWCA Delaware, Department for Economic Advancement

Source: Realizing the American Dream by Neighborworks America, 3rd Edition.

A Top 10 List On How To Avoid Foreclosure

Are you having problems keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them? Please don’t wait! There are several things you can do so that you won’t lose your home. In the spirit of David Letterman’s “Top Ten List” usually read in reverse countdown order, and accompanied by a drum roll at the end, here is our top ten list on ways to avoid foreclosure – for obvious reasons this is done without the drum roll and humorous spin.

Top 10 Ways to Avoid Foreclosure

10. Do not ignore past due notices and letters from your lender

9. Know your budget; review current expenses and cut back on your spending

8. Identify your wants versus needs

7. Think of ways to increase your income

6. Live within your means

5. Have one month’s worth of household expenses in a savings account

4. Contact a HUD approved housing counseling agency as soon as you start having problems

3. Contact your lender and ask for options

2. Do not obtain new credit to supplement your income

1. Consider selling before it is too late (a house is just a material thing)!

Submitted by Beverly Ward, Homeownership Services Counselor, YWCA Delaware

Respect the Budget

What does it mean to "respect the budget"? Ultimately, it means spending within your income, but there are a myriad of temptations to distract you from doing such. According to a recent Money magazine article, for every additional hour of TV watching (per week) you do, your spending is boosted by $200 a year. Why? The article posits that we are no longer keeping up with the Joneses, we're keeping up with the Kardashians. Not to mention the countless other messages we get, subliminal and otherwise, that encourage us to part with our dough. We've heard of them all: how shopping carts are engineered to be larger in an effort to get you to fill it with more junk, how buy one get one free "deals" are sometimes misleading, or that the notion of buying in bulk is good (which we know not to be true in all cases; do the math and look at the per unit costs!). Nevertheless, we have to fight these demons of "spend, spend, spend."

Although the circumstances are unfortunate -I'm no fan of massive layoffs, individuals losing a ton of money in their retirement savings, not to mention, an overall wariness of the banking system- but, this recession has forced many of us to think twice about how we spend our money. Folks are reintroducing themselves to the concepts of spending plans, coupons, and plain ol' doing without.

There are, however, a number of people who are not. Case in point: I went to the mall to help my girlfriend shop for a dress for an upcoming wedding. We spent a considerable amount of time looking for parking (and I doubt that all of those parking spots were occupied by people who worked at the mall); at any rate, I asked aloud, "what recession?" By the looks of it, folks were happy-go-lucky shopping. Now, there may have been folks in there simply window shopping, or getting their walk-around-the-mall-exercise on, however, my eyes did not deceive me. There were bags from Nordstrom's, the Children's Place, and some sneaker outfit. Folks were spending money!

I wish I had such luck. I physically handed over my credit cards to my girlfriend so as to not be tempted to purchase anything. I simply cannot afford it at the time. I did manage to spend $4.12 on a nutty cinnabon (totally not in the budget). In retrospect, I chalk it up to the fact that this was a peer pressure induced purchase. My friend got one, and the thought of a warm, gooey, 1500-calories sweet treat of my own was unbearable. I just had to have one!!! Besides, I hadn't had one since forever ago! My brief rationalization cost me a couple of bucks and worked against any notion of a diet I might have had. You might be thinking, "yeah, but $4.12 isn't bad!" That's not the point. The point is I failed to respect the budget. This expense was not accounted for in my financial plan for the month- this plan, of course, being geared towards me achieving my goals for saving and eliminating debt. So, I take a hit, there's an opportunity cost (that $4.12 could be a part of some larger sum of money doing something more productive.)

So I say again, respect the budget. I warn you, however, that it is no easy feat. In the same weekend that I succumbed to an overpriced treat, I managed to say "no" to eating out for breakfast and offered to cook at my house instead. I already had the ingredients and I saved my friends some money as well. I also declined to go out to the movies, after which my proposal for a rented movie at my house was defeated. Respecting the budget means saying no in anticipation of greater things, or at the very least, finding a less costly alternative. Those anticipated things may be as simple as maintaining your bank balance so that you can pay all of your recurring expenses without going overboard. Those anticipated things may mean having enough money to reach your savings goals or to pay off a debt.

Whatever your financial intentions, I encourage you to respect the budget. Take control of the way you spend money and do so with an awareness of your [financial] big picture.

Submitted by Shani Gibson
Financial Empowerment Curriculum Coordinator
YWCA Delaware

Sources:
Fried,C., Futrelle, D., et. al. "Eleven ways to improve your financial self now" Money Magazine, June 2009.

Common First Time Home Buyer Mistakes

Looking for a new home? Well, DECLINING HOME VALUES as well as RECORD-LOW MORTGAGE RATES and GOVERNMENT INCENTIVES are some of the factors creating an opportunity for prospective home buyers. Those depressed values, combined with near amazing interest rates and the 2009 stimulus bill that allows for an $8,000 first-time home buyers' tax credit, are enticing more first-time home buyers into the market. If you are thinking of purchasing, be aware that the process comes with plenty of potential missteps. Here are common mistakes first-timers make.

1. Ignoring your credit score
Get a copy of your credit report as soon as you decide to buy. Many contain some type of error and most of these mistakes are serious enough to drag down your credit score, potentially disqualifying you for the most competitive interest rate on a mortgage. Keep in mind, once you find a problem, it can take several weeks and a bit of negotiating to have the black mark taken off of your credit report.

2. Not knowing how much house you can afford
One of the first things buyers should do is talk to a qualified lender especially as you may have observed, uncertain economic times lead to tight lending requirements by all reputable lenders. Before you even start visiting open houses make sure you have a preapproval in hand; knowing how much house you can afford puts you in a much better bargaining position and helps you avoid falling in love with a house that you cannot find the money for.

3. Assuming foreclosures are great deals

Just because the previous owner owed $250,000 on a house before the bank took it over doesn’t mean it’s worth that much now. Values have slipped significantly, so you may not be getting the bargain you think with a foreclosure. Most homes owned by lenders or banks may have been sitting vacant for months and may require extensive renovation or repair due to neglect and or vandalism.

4. Underestimating the costs of owning a home

Many home buyers don't anticipate the additional costs for repair and maintenance, or increase in utility costs. Things to consider include the age of your new home and how well it has been treated by the previous owners. Be prepared to set aside and or start an emergency savings account for annual repairs and upkeep. Make sure you also factor in property taxes –and the likelihood that they’ll climb over the course of your time in the house.

5. Skipping the inspection

As a prospective home buyer about to perhaps make the largest purchase of your life, you want to make the best decision possible to get the most for your money. Of course it is easy to identify the obvious problems in a home, but you also need knowledgeable inspection of the structure, roof, furnace, air conditioner, electrical, plumbing, exterior and interior of the homes, among many other things. Most reputable inspectors are certified by the American Society of Home Inspectors (ASHI), adhere to a strict code of ethics and carry errors and omissions insurance.

6. Failing to include a contingency clause in the contract

In this market it is important to include a mortgage financing contingency clause which protects you if, say, you lose your job and the loan falls through or the appraisal price comes in under the purchase price. Should one of these events occur, you as the buyer would get the money used to secure the property. Without the clause, you may lose that money and may still be obligated to buy the house.

To learn about and avoid these and other mistakes on your homeownership journey, visit our website http://www.ywcade.org/ or e-mail DFEAinfo@ywcade.org to register for our Pathways to Success class; this is the first step in joining the YWCA Delaware Homeownership Education program!

Submitted by Faith M. Mwaura, Program Manager, YWCA Delaware

Your Pathway to Success!

Finding a “Path to Success” is more difficult today than ever before. With all the challenges facing today’s consumers, many people find themselves at a loss as to whom to trust and where to go. The YWCA Delaware provides a safe haven in our Department for Economic Advancement whereby in-house certified housing, business and credit counselors give one-on-one financial consultations in English or Spanish.

Our counselors are experienced professionals who work with you using a personalized empowerment model that gives the motivation and inspiration needed to guarantee success. This blog will bring our expertise right to your home personal computer and give you the information needed to position yourself for success and fast-track your asset and wealth creation goals. Resources you will find here include the following:-

1. How to develop, revise and implement a monthly action plan and budget.
2. How to increase income while lowering monthly expenses.
3. How to recognize and reach your full potential
4. How to gain control of your financial life
5. How to purchase, maintain and preserve your home.
6. Resources and community services available to help you attain your goal.

It is our belief that "Pathways to Success" blog followers will be encouraged to begin the real work of achieving dreams and expectations by taking advantage of all that the YWCA Delaware has to offer.

Submitted by Faith M. Mwaura

Program Manager, Economic Advancement

YWCA Delaware