Table of Contents
To Lane, Rebecca, Stephi, Grant, Gretchen, and Gayle, who always bring a smile to my face and are as proud of me as I am of them.
CLARK
For Gina. Gracias por tu amor y apoyo.
MARK
To Cynthia, Mason, Patricia, Paul, and Nick. Thanks for believing in me.
THEO
Introduction
Every day people ask me when I think the economy is going to come back. My response always stuns the questioner. I believe that it could take another five to ten years for us to heal. Neither you nor I can control the economic cycle of the United States or the world. But you can take charge of your own life.
We as a country got into trouble step-by-step, living beyond our means using borrowed money. It was a team effort. Government at all levels promised and spent money it didnt have, banks behaved recklessly and brought great harm to the entire globe, and consumers were happy to borrow themselves into oblivion. If you go back to the 1970s, the typical American carried debt of 65 cents to each dollar they earned. On the eve of the Great Recession in 2007, the average person had debt of $1.36 for each dollar they earned. Today, the debt is down to $1.24 and still falling, but we are only about halfway back to more reasonable levels.
I cant predict when the nation will get healthy. But I can help you empower yourself so that you have your personal financial house in order. That way you can survive and ultimately prosper regardless of the countrys progress. You do it one step at a time, fixing your finances and then building the path to independence and ultimately, dare I say, wealth.
Every day on my syndicated radio show and every weekend on my HLN TV show, I guide you toward saving more, spending less, and avoiding getting ripped off.
I have been serving my listeners and viewers since 1987. Over the years I have written eight books pushing people to become active, not passive, with their wallet. Since 1997 my website, ClarkHoward.com, has provided up-to-the minute guidance for more than 25 million consumers each year. In 1993, I founded TeamClark, our consumer action center, staffed with 155 volunteers who answer peoples questions forty-five hours per week and give callers a booster shot of confidence to stand up for themselves and take charge.
Living Large in Lean Times is your guide for this uncertain, difficult era. I know there are those, when times are tough, who believe things will never get better. I dont buy it. When times turn, this book will help you to be better positioned for success.
There are so many ways to reduce debt, buy smarter, and build a future. Follow my lead. I will get you there.
A word about how Ive structured this book: I have broken it down into thirteen chapters. In the first chapter, I give you twenty-five tips that highlight things you can do right away to make an immediate difference in your finances. I call this section Help Me Now, Clark: Improve Your Personal Finances in One Week.
The next ten chapters constitute the meat of the book and have more than 250 pieces of my best advice on a range of topics from cars to homes to travel. Within each of these ten chapters, youll find plenty of ways to start packing a real punch in your wallet.
Throughout these chapters, Ive included anecdotes from people whove written to me and wanted to share how theyve used specific pieces of my advice to save more, spend less, and avoid rip-offs. If you like the advice in this book and put it to good use, maybe you can be featured in my next book!
Another thing youll see throughout this book: a notation that a particular tip is flagged as either Clarks Greatest Hits or A Clark Favorite.
The tips Ive called Clarks Greatest Hits are classics that Ive told people about for years, the bedrock of my money-saving philosophy. These include ideas such as having a used car inspected by a mechanic before purchase, or refinancing your mortgage into a fifteen-year rate, or starting a Roth IRA to have the benefit of tax-free spending in retirement.
A Clark Favorite is a tip that I love, but that I acknowledge might be a little out there for some readers. So you have things like the idea of flying with a carry-on only to beat luggage fees, or firing your home phone provider and making all your phone calls over the Internet. Likewise, I describe a technique I have to make disposable razors last months and even years so I dont have to spend much on shaving. Plus, Ill tell you how to get ultra-cheap prescription eyeglasses starting at $7 that have lenses ground in China! Just give some of these wacky ideas a try and see how they work for you.
Living Large in Lean Times winds down with what I call Clarks Graveyard. Ultimately, I believe that talking about money should be funny and entertaining. So this section compiles some of the money-saving ideas I loved that died in the marketplace ahead of their time. Youll get a real laugh when you read about bygone vending machines that sold eggs and diapers; busted airlines that offered $9 seats; and even my favorite, a three-wheel car that had no reverse gear!
Finally, the books very last chapter is a recap of important websites mentioned throughout the manuscript, all compiled in one place for easy reference.
Clark Howard
Help Me Now, Clark
Improve Your Personal Finances in One Week
Some consumer problems can be daunting and discouraging. Digging out from under a pile of credit card debt can take years. Saving for retirement is a slow process. But there are a lot of things you can do right away to make an immediate difference in your finances. Then you will have more money to pay off debt, save for the future, or take that vacation youve always wanted but couldnt afford. Ive chosen twenty-five of my very best tips for this section, with a special emphasis on ones you can put to use today. Try a few, and youll get instant satisfaction that will motivate you to try more of the money-saving tips in this book.
1. Search for unclaimed money in your name.
Do you have money in a bank or brokerage house account that hasnt been touched in a while? Or lets say youre the unknowing beneficiary of an insurance policy thats floating around out there, or maybe a late relative you never met left you some stock in a will. After a period of time, the state eventually rules those accounts or policies dormant, and the money is sent to an unclaimed-property office. Which state office it is sent to depends on where the company holding the money is based or where the deceased person lived.
USA Today reports that certain states suffering from budget problems have decided its okay to steal these leftover funds from you. Washington, Delaware, Alabama, Oregon, South Carolina, Louisiana, and Kentucky all changed their laws to make it legal to seize unclaimed money and not give it back. But theres good news. Theres a way to find out whether you have dormant money so you can claim it before the state does! A website called MissingMoney .com allows you to type in your name and see if you are due a refund. You can also check for relatives, but only they can claim money in their name. Do a multistate search to include the state you live in and the states that include the headquarters of all your previous employers. In addition, always search in Delaware and Connecticut, as most stock brokerage and insurance companies are based in those two states.
