Let’s face it - 2008 was a real financial stinker.   401k’s lost value, home values fell, credit card debt skyrocketed, unemployment, salary cuts… drink a dixie cup of cheap champagne and say good riddance to 2008.  2009 is the year to get your personal financial house back in order.

Here are some resolutions for thought:

Cutback on Credit Card Usage
Tuck the plastic away and pay cash.  Yes, cash.  It’s that paper and coin stuff in your wallet or purse.  Become friend again with George, Abe and Andrew.  If you aren’t a cash-carrying fan, use your bank debit card.  You’ll be less likely to spend the extra $5-$50 if you know it’s coming directly out of your bank account.

Make a Budget
Strange as it may seems, many people don’t know where their money goes each month.  If this happens to be you… it’s as easy as a notebook and a pen.  Write down what you spend every day for a month.  Track every penny from the electric bill to tipping the parking attendant.  Once you know where you spend, you can start making adjustments.  Be realistic and be ready to cut things - even if it’s for a month - to see if you really miss it.

Make a Commitment to Know and Improve Your Credit Score
If you don’t know what your credit score is, you need to.  It’s like knowing your weight.  If you don’t know what the number is and set a goal, how will you know when you get there?  Find your credit score using sites such as MyFico which is free an provides you with a full credit report.  Improving your credit score by paying bills on time and lowering debt will save you money in the long-run by being rewarded with lower interest rates.  Tip: Mark your calendar to order a credit report every six months to track your progress.

Pay More Than the Minimum
Yep.  If you are only making the minimum payment on accounts, not only are you paying more in interest but you aren’t taking the opportunity to improve your credit score.  Try and pay and extra $10-$15 on credit cards and if you are extremely disciplined, try and pay an extra 5-10% on your mortgage payment (if not each month, every few months).  Over time these extra few dollars can save you hundreds if not thousands in interest.

Create a Snowball Debt Payment Plan
If you don’t know what a snowball debt payment plan is, read past entries to get started.  It’s quite simple to do and will provide motivation and a great deal of satisfaction in addition to saving you - - - - money!  More for you, less for the credit card company.

Create “Found Money” Situations
Maybe it’s participating in a few focus groups over the year or cleaning out the garage and selling items on Craigslist or eBay.  Maybe it’s finding a job on the weekend or a freelance opportunity.  Make 2009 the time to earn some extra income to apply to your snowball debt plan.

Contribute the Maximum to Retirement Plans
The stock market is in the tank but we know it will come back so why not be buying when stocks are on sale?  Invest in yourself and put the maximum you can towards retirement.  If your company has a 401(k) contribution match - take advantage of the free money.  Don’t forget to contribute to your IRA too!

Start an Automatic Savings Plan
Even if it’s $25 a paycheck, put it aside in an ING savings account.  Having it set aside for emergencies will provide a great deal of comfort.

Get Smart About Your Personal Finances
Don’t assume you know everything or stick your head in the sand trying to hide from it.  Face your fear in the comfort of your own chair or in the library.  Read a few self-help personal finance books.  You will learn a few tips along the way and stay disciplined.  I’ve listed a few books below to help get you started.

Bonus Round Resolutions
I haven’t made it this far but someday I will!!!  The two most wonderful resolutions one could possible do is to save 10% of each and every paycheck and to make an extra mortgage payment each year.   This is a long-term goal of mine and not one that I’ll be able to achieve in 2009… but there’s always 2010.

According to a new survey out, 37-41% of people surveyed said they will shop on Black Friday, but expect their overall purchases or ’spend’ to be a lot less than in prior years.   How much less?  The average shopper will spend $546 this as compared to $637 last year.

What isn’t in the study is the number of shoppers buying at places other than retailers surveyed and reporting.  There are hidden numbers - such as purchases made on Craigslist and sites like Etsy.  I’ve spent $37 so far for Christmas - on eBay.  I’m trolling Craigslist for certain second-hand items as well.  Sure, I’ll probably spend a little in the traditional stores, but selectively and with a great deal of hesitation. 

For those of you who are hitting the stores, The Wallet has a great article on saving your receipts for potentially more savings if retailers slash prices even further during the holiday shopping season.

Here’s the round-up for the week:

Today’s Budget (yours truly) still has the 3 $10 Gift Card Giveaway going for Amazon, Borders and Target.

MomFuse has a Guitar Hero World Tour for Wii up on the block, contest ends Nov. 24.  If you haven’t visited MomFuse before, add it to your daily reading list.  Plenty of humor, tips, tricks and reviews on products from Beauty to Baby, Recipes to Recalls.

Unexpected Bliss is giving away a $50 Visa Gift Card for writing what you would do at home on a full weekend without the kids and spouse around.  What would you do with a full weekend of the house all to yourself?

Noobie is giving you the chance to win a Wii just by filling out the form.  Extra chances to win if you send to friends.

A Cowboy’s Wife has a $50 Walmart Gift Card to win, just enter by Nov. 23 

• If you sew - you have a leg up on the rest of the world. 
• If you bake or cook - cookies, jams, a pie are always welcome.
• If you are crafty - hand-decorated frames or ornaments are cheery
• If you write - tell the story of the family tree for others to treasure
• If you fix-it - give a gift certificate of your time to fix that annoying light switch or faucet

What handmade gift ideas can you share?

On the somewhat, um, lighter side of things… what kicked this off was an email from a friend that summed up current economic conditions:

My Dear Friend,

Somewhat embarrassing to admit, I’m not getting an annual bonus and
Christmas is tight this year. I will be making bedroom slippers for you all
as gifts. Please let me know your sizes. You’ll most likely agree that it’s
a splendid idea, and should you wish to do the same, I’ve included the
instructions below.

How to make bedroom slippers out of maxi pads:

You need four maxi pads to make a pair.
Two of them get laid out flat, for the foot part.
The other two wrap around the toe area to form the top.
Tape or glue each side of the top pieces to the bottom of the foot part.
Decorate the tops with whatever you desire, silk flowers (this is most
aesthetically appealing), etc.

These slippers are:
* Soft and Hygienic
* Non-slip grip strips on the soles
* Built in deodorant feature keeps feet smelling fresh
* No more bending over to mop up spills
* Disposable and biodegradable
* Environmentally safe
* Three convenient sizes: (1.) Regular, (2.) Light and (3.) Get out the Sand
Bags.

Luckily, food manufacturers and marketers have become smarter and that part of my mother didn’t rub off on me.  And in these tough economic times, frugality rules!

Most people think the generic brands taste bad or are of low quality.   On the contrary, the ‘generic’ foods of today, smartly packaged as “store brands” are often times your favorite brands with a different label.  HUH??  Name brand companies compete for the lowest bid to get the store brand label.  From apple juice to grass-fed New Zealand lamb in the butcher case.  It optimizes their factory output and allows them to average out costs of ingredients.  It allows the food manufacturer to hedge their bets in a sense by playing both ends of the grocery shopper market.  

How can you tell?
Look at the label and list of ingredients.  If they are the same or near-same, give the store brand a try.  I’m at the point now that I forgot I used to buy the name brand on some items.  I simply couldn’t tell the difference in a taste test.

Generic Groceries to Buy
Staples such as rice, flour, sugar, salt, milk, applesauce, apple juice, frozen vegetables, frozen juices, vinegar and pull-ups for the toddler all make for great store brand or generic purchases.  Some items I just can’t leave the brand - Kraft Macaroni & Cheese, toilet paper, certain salad dressings… no generic substitutes that are comparable so far.  (Note: if you have children, do not try and swap out the Kraft Mac & Chew or you will forever be stuck with the generic on your shelf.. mine is going to the food bank).

How much can you save?
Plenty!  On average I’m finding by buying the store brand I can save 30% or more on my entire grocery bill.  This does not include store specials or coupons which also come in handy and can help with the grocery budget.  While this post is a few years old, it does a great job of showing the generic v. brand price on the grocery list.

Who’s buying generic?
These days it’s the same as asking “who’s going green?”  The answer - who isn’t?  Even the Wall Street Journal covered our changing habits in frugality at the check-out referencing a report out by Information Resources Inc. (IRI) titled  ”Shopper in Crisis” citing

 41% of upper-income consumers reduced spending on nonessential groceries, and a fourth of these consumers said they gave up favorite brands over six months in 2008. Nearly one-third of high-income shoppers said they bought more private-label products during the second quarter, up from about 20% in the first quarter of this year.

So Today’s Budgeteers - what do you buy generic and what brands won’t you part with, even when it comes to your last dime?

In August I wrote about Back to School Clothes Shopping on a Budget with some simple tips that apply to Christmas shopping as well:

1. Take inventory of what you have in the way of clothes and toys.  Remove items that are too worn of that have been outgrown.  Be sure they are clean and set them aside (important for later).  Do this not only for your kid’s closets, but your own as well.  No longer in need of the size 4 power suit?  Set it aside.
2. Make a list of what’s needed.  Remember, there is a difference between need and want.
3. Set a budget.  It can be per person or in total (in total typically works best for me).  My budget is being set by what I can offset in selling items from Step 1.
4. Swear off credit cards  No credit this Christmas - cash is King and Queen.  If you buy online and put on a credit card, immediately transfer cash from your bank account to your credit card for the exact amount.  Don’t wait, just do it.
5. Make a shopping plan.  Start looking on eBay, Craigslist and local consignment shops.  Shop at stores with layaway plans to help pay over time (rather than on credit).  Place a ‘wanted’ listing on Craigslist (it’s free) to see what you come up with. 

I am in need of gently used size 6 boys clothing. If your son has outgrown his and you were looking for a good home, please let me know. Ideally I’d like a bag of clothes - pants, shorts, shirts, sweaters/pullovers for a fixed price ($x for the whole bag)

How to pay for it…
Remember in step 1 we set some items aside?  List them on Craigslist (free), eBay (small fee) or take them to a local consignment shop.  Consignment shops are doing brisk business in this economic downturn with many people taking items in for cash making the inventory levels higher and more choice for you the thrifty shopper.

More advice?
I’d love to hear from others on how they are managing shopping for the holidays.  Let’s here it in the comments!

There are two ways to enter and you can do both thus doubling your chances! The first is by leaving a comment in this post, telling me which card you would like to win. To enter a second time, post about this giveaway on your blog with a link, and let me know about it.

This contest will run from November 1, 2008 to noon November 26, 2008 (pacific time zone) and is open to global wanna-gift-card peeps.  The winner will be chosen at random. 

The challenge is pretty simple.  Each week you need to repair something that you otherwise would have thrown out.  Go to Rob’s blog each Sunday night and post your repair for the week.  What have you got to lose?  It’s recycling and budget saving in one swoop.

It’s a nice read with loads of gas-saving tips and some inspiration to boot.