VOTER NEWS NETWORK NAMES 2005 SCHOLARSHIP RECIPIENTS
June 1, 2005 

BIRMINGHAM – Success comes in pairs for six of the 2005 Voter News Network Scholarship recipients.  Three sets of twins are among the 30 talented graduating high school seniors selected this year to receive the honor.

Among the recipients are Catricia D. Ford and Latricia D. Ford of Fairfield High School, Darnita L. Lee and Shernita L. Lee of Ramsay High School, Elias Hendricks of the Altamont School and his sister, Shia Hendricks of Jefferson County International Baccalaureate School.

For the second year, Voter News Network, an independent political information network, is presenting scholarships of $1,000 each to students who have excelled academically and plan to enter the fields of business management, entrepreneurship or leadership.

Other scholarship winners are: 

Kyndra J. Adams, Parker High School;  Michael Bell, Carver High School; Tiffany D. Blevins, Ramsey High School;  Terry Carter, Jr., Minor High School;  Callie Finney,  Ramsey High School; Cortez O. Ford,  Fairfield High School;  Barbara D. Gratton, Ramsey High School; Hollie Gray, Ensley High School;  Crystal Harris, Ramsey High School; Matthew S. Harris, Ramsey High School; Courtney Howard, Ramsey High School; Ashley J. James, Ramsey High School; Kendra King, Ramsey High School; Royia D. Marsh, Ramsey High School; Charita Merchant, Ensley High School; Shina Miles, West End High School; Ambrice Miller, the Alabama School of Fine Arts;  Stephanie A. Mitchell, Ramsey High School; Debra R. Moore,  Carver High School;  Julian Q. Smith, Erwin High School;  Davida Spencer, Huffman High School;  Karla T. Turner,  Ramsey High School;  Jackson R. Vaughan, Mountain Brook High School; and Clinton P. Woods, Shades Valley High School.

“We are excited and encouraged by the accomplishments and levels of energy displayed this year by our scholarship recipients,” said Sharon Childs Long, VNN president and director of the scholarship program. “It is our hope that these students will return to our area in a few years and continue working to make a difference in their community.”

Scholarship recipients were selected from the schools is the Birmingham, Mountain Brook, Fairfield  and Jefferson County school systems as well as some independent schools.

“We wanted our scholarships to be open to students throughout the area,” said Donald V. Watkins, VNN founder. “We realize that our community is not just Birmingham. It takes people working throughout the region to build a better place. These students will be part of a new direction for the metropolitan area and for this state.”

Scholarships winners will be honored with a dinner on June 5, hosted by Alamerica Bank. Watkins, a leading lawyer and businessman, will also speak at the event to encourage the youths to achieve their goals and continue to excel.

From the Associated Press
U.S. Can't Account for $100 Million Spent in Iraq
By Matt Kelley, AP

WASHINGTON (May 5) -- U.S. government mismanagement of assets in Iraq, from the lack of proper documentation on nearly $100 million in cash to millions of dollars worth of unaccounted-for equipment, are setting back efforts to fight corruption in the fledgling democracy, auditors and critics say.

Iraq became awash in billions of dollars in cash after the U.S. invasion two years ago, often with few or no controls over how that money was spent and accounted for. From the $8.8 billion provided to Iraq's interim government to millions provided to U.S. contractors, investigations have detailed a system ripe for abuse.

The latest indication of that came Wednesday when investigators released a report saying $96.6 million in cash could not be properly accounted for. The total included more than $7 million that was simply gone, according to the report from the Special Inspector General for Iraq Reconstruction.

It said $89.4 million in cash payments in south-central Iraq were made without the necessary supporting documentation, the investigation found. Indications of fraud and other wrongdoing are the subject of separate, continuing probes.

Wednesday's report accused civilian contract managers of ''simply washing accounts'' to try to make the books balance. Staffing shortages and the quick turnover of those responsible for the cash contributed to the problems, the report said, echoing the findings in previous reports.

Examples of possible misspending in Iraq revealed in recent months include:

· ''Less than adequate controls'' over $8.8 billion given to the interim Iraqi government between the March 2003 invasion and the hand over of power to Iraqis on June 28, 2004.

· Projected totals of nearly $20 million in missing or unaccounted-for equipment in Baghdad and Kuwait.

· A lack of proper rules governing some $600 million in cash handed out by U.S. authorities.

Critics say the freewheeling postwar spending in Iraq is, at best, providing a poor example for the new Iraqi government to follow.

''A normal citizen couldn't live this way,'' said Danielle Brian of the Project on Government Oversight, an independent watchdog group. ''Until there are serious penalties imposed on agencies that are sloppy with their spending, we're just going to see more of the same.''

A congressional critic of U.S. reconstruction spending in Iraq went further.

''The U.S. risks fostering a culture of corruption in Iraq,'' said Sen. Russ Feingold, D-Wis.

Officials of the U.S. civilian and military administrations in Iraq say they're doing the best they can under the circumstances. The organization now overseeing cash payments in Iraq has clamped down on documentation and is trying to reconcile its past accounts, Col. Thomas Stefanko, the official in charge of that office, told auditors.

Stefanko wrote the investigators that he agreed with their conclusions. Stefanko said his office had corrected or was in the process of fixing or investigating the problems identified in the report.

The money at issue in the latest report is from proceeds from Iraqi oil sales and seizures from the regime of deposed Iraqi President Saddam Hussein. Distribution of the money was handled first by the Coalition Provisional Authority, the U.S.-run occupation government in Iraq from 2003 to June 28, 2004.

After that, the money was overseen by the Joint Area Support Group-Central, which is managed from the U.S. Embassy in Baghdad.

Managers gave the cash to ''division level agents'' responsible for distributing the money for reconstruction programs in a certain area. Those agents were supposed to keep detailed, signed receipts and other documentation for the money they spent, but usually did not, the report said.

Part of the problem was a last-minute push to spend millions on reconstruction projects before the interim Iraqi government took over, the report said. One agent got $6.75 million in cash a week before the hand over, with the expectation that the money would be spent before the Iraqis took power, the report said.

Several of these agents ''were under the impression that it was more important to quickly distribute the money to the region than to obtain all necessary documentation,'' the report said.

Controls over the cash were so lax that two of the agents hired to distribute the money were allowed to leave Iraq before they had accounted for all of it, the report said. Between them, those two had been given more than $1.4 million in cash which remains unaccounted for, the report said.

A different agent failed to provide proper documentation for more than $12.4 million in spending but had his accounts cleared by his supervisors, the report said.

Yet another agent kept distributing money for three weeks after his authority to handle the funds was revoked, the report said. That agent, told that $1,878,870 was missing from his account, delivered precisely that amount to his supervisors three days later, the report said.

That suggests, the report said, that the agent had a reserve of cash and only turned in enough to make his account balance.

From the Associated Press
Poll: Most Want No Social Security Cuts
By Will Lester, AP

WASHINGTON (AP) - Most people say they are not willing to give up some of their Social Security benefits to save the poor from having their payments cut.

About 70 percent of people surveyed do believe President Bush's warning that Social Security is running out of money. But most also say they do not like the way the president is handling the issue, according to an AP-Ipsos poll.

"I'm very concerned that Social Security will run out of money," said Cindy Smith, a 47-year-old Republican from Las Vegas who had reservations about giving up her benefits to protect the poor.

"I would have to have more information about who those worthy lower income people are. We're all here to help one another, but I'd need more information," she said.

Many people are resistant to Bush's proposal to have future retirees who are in the middle- and higher-income classes accept smaller benefit checks than they are now set to receive, in order to protect the benefits of the poorest Americans.

The president argues that younger workers in particular can offset the loss with proceeds from the private investment accounts he wants to establish. Bush has said the current program will not change for workers age 55 and older

The poll, conducted for The Associated Press by Ipsos-Public Affairs, found that 56 percent of respondents are not willing to give up some guaranteed benefits, while 40 percent said they would. Majorities of Democrats, Republicans and independents were opposed to losing any benefits.

"If I was guaranteed that the poor would get what they're supposed to, that would be fine, but I'm not sure they would," said Margaret Normandin, an 80-year-old Democrat from Laconia, N.H.

A majority of those making $75,000 or more said they would be willing to forfeit some benefits. Younger adults were more likely than older adults to favor an approach giving up some benefits while protecting the poor.

"That would be all right," said Rich Culbert, a 31-year-old engineer who lives near Rochester, N.Y. "But that's just me not expecting Social Security to be there."

There generally is little public support for giving up benefits or paying higher taxes as a way to address Social Security's financial problems.

"We all want to fix the problem, but we don't want to pay much for it," said Charles Franklin, a political science professor at the University of Wisconsin-Madison who closely follows public opinion. "We want the wealthy to pay for it."

Celinda Lake, a Democratic pollster, said persuading the middle class to give up benefits is a hard sell.

"The middle class feels like it's barely holding on," she said. "And Social Security is perceived to be the original middle-class support program."

One of the only proposals that gets support in polls is raising the $90,000 limit on earnings that can be taxed for Social Security. Bush has suggested he might consider this step, which is opposed by many conservatives, including House Majority Leader Tom DeLay, R-Texas.

Republican pollster Whit Ayres, who has done extensive survey work on Social Security, said raising the cap would hurt small-business owners.

When asked whom they trust more to handle Social Security, 48 percent of respondents said Democrats and 36 percent said Republicans.

The president still faces strong opposition to his approach to Social Security, with 60 percent of those surveyed saying they disapprove. Even some who back his approach express doubts.

"I approve - except that he's not getting anywhere," said John Rose, a Democratic-leaning retiree from Fort Lauderdale, Fla. "He should be doing a better job of selling it."

From the Associated Press
New Yorkers Want Senator Clinton to Pledge Full Term
By Marc Humbert, AP

ALBANY, N.Y. (May 5) - The majority of New York voters said Hillary Rodham Clinton deserves to be re-elected to the Senate next year, but want her to pledge to serve a full, six-year term if she runs, a statewide poll reported Thursday.

The Democratic former first lady made such a pledge in 2000 when she ran for the Senate. Clinton, leading in the polls for the 2008 Democratic presidential nomination, has yet to offer such a pledge this time around.

Sixty percent of New York voters surveyed by the Quinnipiac University Polling Institute said she should pledge to serve a full term if she runs for re-election. Forty-one percent said she should run for president, including 17 percent of Republicans.

There was no immediate comment from Clinton.

Clinton had 2-1 or better leads over several potential Senate opponents and 67 percent of voters said she deserves to be re-elected.

"There doesn't seem to be oomph behind any of the Republicans mentioned as possible challengers,'' said Maurice Carroll, director of the Hamden, Conn.-based polling institute.

New York Republicans have been struggling to find a big-name opponent to take on Clinton next year. Republican Gov. George Pataki has said he's not interested and a top political aide to Rudolph Giuliani said recently the former New York City mayor was too busy with private business interests to run for office next year. Both Pataki and Giuliani are believed to be eyeing possible 2008 presidential runs.

Quinnipiac's telephone poll of 1,191 registered voters was conducted April 28-May 2 and has a sampling error margin of plus or minus 3 percentage points.

from Bankrate.com
Dr. Don's 2005 top ten list

To get a picture of the forest, you have got to draw some trees. Take some time during this holiday season to get your financial affairs in order and reflect on what and how you're doing financially, and how it's going to help you get what you want out of life. Have a joyful and prosperous New Year.

Think about your life goals
What do you want out of life? The trend in financial planning in the new century is to work with people to help them determine what they want out of life, and then establish financial objectives that, if met, will facilitate the client's ability to achieve those life goals. Money becomes the catalyst instead of a goal. You can make a cogent argument that financial advisers aren't adequately trained, or even needed, to help you develop your life goals. That's fine. Meet with a financial adviser with your life goals in hand and they'll thank you for giving them a framework to work with to formulate financial objectives that help you reach those goals.

Develop a spending plan
Most people have a pretty good handle on the income part of the equation -- it's the outgo part that remains a mystery. Where did the money go? Plan for spending and you'll know. The economist in me knows that consumption vs. investment decisions are a critical part of allocating income to invest for the future. While I've never been a member of the "Lose the Latte" club, whose members advocate that skipping expensive coffee is the answer to saving for your future, financing a caffeine habit doesn't make any sense either. Strike a balance between instant and delayed gratification. (Dr. Don only owns Starbucks® stock within the confines of his index mutual funds.)

You don't need to have financial planning software and a computer, or even a Web-based worksheet, although both are widely available. A piece of paper, a pencil and a four-function calculator will do just fine. Bankrate's Budgeting 101: Start your own budget is a good place to begin even though it's called a budget instead of a spending plan.

If you're outspending your income, something has to give. Reconsider your spending plan to make room for investing to build your net worth.

Know your net worth
This is another simple exercise that's definitely worth the time spent. List your assets, subtract your debts and what's left is your net worth. What you own, less what you owe, is what's yours. Plan to have your net worth next year exceed this year's number.

Live long enough and life is bound to throw you a setback or two, but you should expect your net worth to increase over time by spending less than you make and investing the difference to build the wealth that you'll use to meet your financial objectives.

Keep a little green book
If you were to die tomorrow, how long would it take your heirs to put together the pieces of your financial puzzle? Just like with a puzzle, being able to look at the big picture makes it easier to fit the pieces together. A notebook with a listing of your bank accounts, brokerage accounts, retirement accounts, pension rights, insurance policies, etc., along with a note letting heirs know where to find an executed copy of your will, is an important list to keep current.

This is also an act of kindness on your part. Let your loved ones deal with their grief, not chase down a statement. Don't have a will yet? It's time to get one, or have an existing will updated.

Any color book, save black, will do.

Build an emergency fund
Keeping some money in reserve for financial emergencies is a sound practice. For most people it's where they should start investing. The three main financial assets are stocks, bonds and cash. The term cash is shorthand for short-term, liquid and safe investments such as a money market account or a money market mutual fund. As you build wealth, you can become more flexible in how your emergency fund is invested, but starting out it's best for the money to be invested in cash.

A common rule of thumb is to have three to six months' worth of living expenses available as cash in your emergency fund. There are plenty of reasons to add, or even reduce, that amount but it's a reasonable target.

Review and rebalance your portfolio
It's important to take a holistic view of your investments. After all, it's all your money. Concentrate too much of your wealth in one investment and you've increased the risk of your portfolio. Two common examples are being house rich and being too heavily invested in your company's stock.

Rebalancing forces you to maintain a disciplined approach to your investments. If your targeted breakdown between stocks, bonds and cash is 60/30/10 and you have 80 percent of your money in stocks, then selling off part of your stock portfolio to get back to your target allocation rebalances your portfolio. You can get yourself in trouble here if you don't consider the tax implications of your actions or don't look at the big picture. Target allocations will also change over time.

Review your credit reports
At a minimum, you should review your credit reports from the three major credit bureaus once every two years. Recent federal legislation requires the bureaus to provide a free copy of your credit report once a year. National rollout of this program started on the west coast in December and is working its way east so everyone is eligible by fall 2005. 

You'll have three options to request your credit report. First, you can visit www.annualcreditreport.com, which is the only authorized source for consumers to access their annual credit report online for free. Or, call 877-322-8228. Lastly, you may complete the form on the back of the Annual Credit Report Request brochure, and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281.

If something's not right then you need to use the dispute process of the Fair Credit Reporting Act (FCRA) to attempt to correct your credit report. The credit bureaus make it easy to file a dispute online, but I feel it's better to make your case in a letter. If you don't give them tangible evidence to go on, it diminishes your chances of winning the dispute. The credit bureaus have 30 days to rule on the disputed item. If you lose the dispute, you can write a short note explaining your position for distribution with your credit report.

How to be left alone
Value your privacy as much as Garbo? Sign up for the do-not-call list. Many of you did that with your landlines last summer, but you can put your cell phones on the list too. The Federal Trade Commission's Web site links to www.donotcall.gov, where you can register up to three phone numbers at a time. There was a hoax e-mail that made the rounds this fall warning people that they only had until Dec. 15th to register their cell phones on the registry. That's not true, although it prompted me to register my cell phone.

Stop getting those pesky credit card or insurance offers in the mail by calling 1-888-5-OPT-OUT or by going online at www.optoutprescreen.com. Unless you change your mind at a later date, the restrictions are in place for five years. You'll save some trees and reduce the chance of someone using the mailing for identity theft purposes.

The Direct Marketing Association also maintains listings of consumers who prefer not to receive mail or telephone solicitations. The DMA can provide information about opting out of lists produced by companies that subscribe to its Mail and Telephone Preference Services. There's a nominal charge to request the service online, but it's free if you mail in your request. Visit its Web site for more information.

I don't see the need to register for the telephone solicitation list if you sign up for the national do-not-call registry but signing up for the mailing list should expand the number of firms that know you don't want to be bothered with their marketing pitches.

Estimating your retirement nest egg needs
All the talk about the need for Social Security change this year has me thinking about investing more in my retirement accounts. If you're over 25 and have been contributing to Social Security, the Social Security Administration sends you an annual statement about three months before your birthday that provides you with an estimate of what your Social Security benefits will be in retirement.

Too many people have a $1 million bogey for retirement. They think that if they can build a retirement portfolio of a million dollars they'll be set for life. Pulling a number out of the air isn't retirement planning. If you choose too low a number, you risk outliving your portfolio; too high a number, you stay on the job longer than necessary to meet your income needs in retirement.

Bankrate's Retirement Worksheets take a two-step approach to sizing the nest egg. First you are asked to estimate how much income you'll need in retirement using today's dollars. Take your current income needs and subtract out what you expect to receive in Social Security and pension benefits in today's dollars. The Social Security statement provides the estimate in today's dollars and your annual pension statement should do that as well.

If you construct a spending plan, you could use the total annual expenses as a guide to what you might need in retirement. Financial advisers recommend different things here. Some say you need only 75 percent of these annual expenses in retirement because you're not commuting to work, etc., but other advisers say budget for a full 100 percent because your retirement hobbies and travel will take up any slack. I'm in the latter camp.

Stop phishing
Holy mackerel! Phishing is an Internet scam that uses spam or pop-up messages to trick you into disclosing your bank account, credit cards, Social Security number and personal identification number (PIN) or other financially sensitive information. It's an insidious attempt at identity theft. The FTC has a Phishing guide designed to help you protect yourself against this problem. Here are a few tips from that guide:

If you get an e-mail or pop-up message that asks for personal or financial information, do not reply or click on the link in the message.

Don't e-mail personal or financial information. E-mail is not a secure method of transmitting personal information. If you initiate a transaction and want to provide your personal or financial information through an organization's Web site, look for indicators that the site is secure, such as a lock icon on the browser's status bar or a URL for a Web site that begins "https:" (the "s" stands for "secure"). Unfortunately, no indicator is foolproof. Some phishers have forged security icons.

Review credit card and bank account statements as soon as you receive them to determine whether there are any unauthorized charges. If your statement is late by more than a couple of days, call your credit card company or bank to confirm your billing address and account balances.

Use anti-virus software and keep it up to date.

A firewall helps make you invisible on the Internet and blocks all communications from unauthorized sources. It's especially important to run a firewall if you have a broadband connection. Finally, your operating system (such as Windows or Linux), may offer free software "patches" to close holes in the system that hackers or phishers could exploit.

Be a part of your community (Bonus)
Everyone wants to live in a great community, but it's people, not houses, that make a community great. Be a better person and you get a better community. Volunteer your time and get involved in your community. You'll make a difference and feel great doing it.

from Bankrate.com
Good deeds can also mean good tax breaks
By Kay Bell, Bankrate.com

Donations of goods and cash continue to pour into charitable organizations in the wake of the Asian tsunami disaster. For American contributors, one of the side benefits of all this goodwill is that Uncle Sam will reward you at tax-filing time -- if you follow donation tax rules.

First, you have to keep an eye on the calendar.

If you donated to a tsunami relief fund as soon as you heard the news of the December tidal waves, you can claim your contribution on your 2004 return that's due April 15. Under Internal Revenue Service rules, as long as any donation is in a charity's hands by Dec. 31, it can be claimed on that year's taxes.

But anything you contributed on Jan. 1 or later won't do you any tax good this filing season. You must wait another year to get the tax deduction since the timing of your gift means it will be taken into account on your 2005 taxes, not this year's return.

And just how much of a break your donations will produce also depends on how you file your taxes. Charitable contributions only help you at tax-filing time if you itemize deductions. That means you keep track of what you give and file the long Form 1040 and Schedule A.

If you opt instead to take the standard deduction when you file your return, the choice made by most taxpayers, your donations will still help the organizations you give to, but they won't help cut your tax bill. You can't add your donation totals to your standard deduction to increase that amount.

So how do you know whether you should itemize or claim the standard deduction? Start by finding out which standard deduction amount applies to you. It depends on your filing status:

• $4,850 for single or married filing separately taxpayers;
• $7,150 for heads of households; and
• $9,700 for married couples who file joint returns.

If you have enough deductions -- for example, your donations plus mortgage interest plus real estate taxes -- to exceed the standard amount, it generally makes good tax sense to itemize.

The rules regarding charity tax claims
OK, you've determined that itemizing is the way to go. Now it's time to tally your big-heartedness.

A nice thing about charitable contributions is that, unlike medical or miscellaneous deductions, there is no threshold amount to meet. You can give as little as $5 and still add it to the rest of your itemized deductions.

And you're not limited to monetary donations. You can give merchandise, appreciated assets, count the miles you drive for a worthy cause, even deduct part of the price of a ticket you purchased to attend a charity event.

But there still are a few IRS rules you must follow to make sure your contributions pay off at filing time.

To be deductible, contributions must be made to qualified organizations. This is especially important when disasters prompt giving; too often, con artists use such tragedies to take your money and give nothing to those suffering. Organizations can tell you if they are qualified and if donations to them are deductible. You also can read the charity's literature to ensure that it is fully recognized by the IRS. For complete peace of mind, check out the agency's online list (Publication 78) of exempt organizations or call the IRS at 1-800-829-1040 and ask about the group's tax status.

If you get anything in return for your donation -- merchandise, goods, services, admission to a charity ball, banquet, theatrical performance or sporting event -- you can deduct only the amount that exceeds the fair market value of the charity's thank-you token or benefit. For example, if you give your local PBS station $100 and get a $25 videotape of a Masterpiece Theater performance in return, you can only deduct $75.

When you give goods instead of cash, it's up to you -- not the IRS, not the charity -- to assign a value to your donation. Of course, the IRS has rules on how you decide what a donated item is worth: Claim its fair-market value, or what a willing buyer would pay for that item in its current shape, not what it was worth when it was new.

Even though you generally don't have to include substantiation of your gift-giving with your return, it's a good idea to keep a record of your donated goods as well as cash gifts. So when Goodwill asks, "Do you want a receipt?" say "Yes." If they don't offer, ask for one.

Extravagant giving
Acknowledgment of your largesse is necessary when your gifts are large. For a contribution of $250 or more, you must get a written receipt of your donation from the qualified organization before you can claim the deduction.

When you donate more than $500 worth of goods to charity, you must include with your tax return Form 8283, Noncash Charitable Contributions, detailing your generosity. Take this deduction amount and forget the form, and the IRS could disallow your claim.

In an even bigger giving mood? If you claim a deduction of more than $5,000 for an item, the IRS wants more than just your word. You must have a qualified appraiser provide the value and then attach an appraisal summary (Section B of Form 8283) to your tax return.

And while Uncle Sam basically views charitable gifts as a good thing, he has his limits.

In some cases, the IRS won't let you claim all your contributions in one tax year. Generally, your donations cannot be more than 50 percent of your adjusted gross income, although in some instances the limit is 20 percent or 30 percent depending on the type of property you donate and the type of organization to which you give it.

You can carry over your excess contributions for up to five more tax years, but your carryover amounts will still be subject to the original adjusted gross income limitation rules. For most donors, these limits don't pose a problem. However, the total of all your Schedule A itemized deductions could be reduced if you make a lot of money ($142,700 for 2004 returns).

More details on charitable contribution tax deductions and possible limitations are found in IRS Publication 526, Charitable Contributions, and Publication 561, Determining the Value of Donated Property.

from Bankrate.com
5 MONEY MISTAKES EVEN SMART PEOPLE MAKE
By Linda Formichelli, Bankrate.com

When it comes to finances, you figure you're pretty sharp. You know how to comparison shop and you contribute regularly to your 401(k) plan.

But there are common mistakes that even money-savvy people can make. If you've ever let your spouse control the finances, put off examining your credit report or bought peanut butter because you had a coupon and your family won't eat it, read on to find out how to banish cash conundrums from your life for good.

Money Mistake No. 1: Minding the pennies and letting the dollars go.
Have you ever driven across town because you wanted to cash in a 50-cent coupon? Do you spend a lot of time searching out bargains and clipping coupons? "It's sweating the small stuff," says Ginita Wall, director of the Women's Institute for Financial Education and an advisory board member for the GE Center for Financial Learning. "You're concentrating so much on clipping coupons and getting bargains, you're forgetting what your overall goals are. Then you'll take the money you saved and just spend it on something else."

Also, being penny-wise can sometimes cost you more money than you save. For example, you may spend more in gas than you save from the coupon if you have to drive across town to redeem it.

Smart Cents Solution: Think of your goal.
It's fine to save cents by clipping coupons and shopping around for bargains, but be sure to keep your bigger goal in mind. Why are you saving the money? Is it for your kid's college education, your vacation fund, a new car? Then take the money you save and put it where it will do the best. For example, many grocery stores now have banks inside. If you save $6 with coupons, walk over to the bank right then and deposit that $6 into your savings account.

Money Mistake No. 2: Being confused by credit reports.
Whenever you seek credit, whether it's a new store card, a car loan or a mortgage, the lender checks your credit report to determine your creditworthiness.

"Credit reports are the most important decision-making tool for creditors," says Catherine Williams, vice president of financial literacy for Money Management International. Even potential employers and landlords can request your report to find out if you'll be a responsible employee or tenant. That's why mistakes on your credit report, whether they're caused by the credit agency or are the result of identity theft or fraud, can make your life miserable.

Smart Cents Solution: Check your report.
"Everybody owes it to themselves to get a copy of their credit report, and you should know that the 2003 FACTA [Fair and Accurate Credit Transaction Act] has a provision to allow consumers one free copy of their credit report per year," says Williams. The credit bureaus will be rolling out the act in phases: Residents of the western United States will be able to get their free annual copy starting on Dec. 1, 2004. The Midwest will have access on March 1 of 2005, the southern United States on June 1, 2005, and finally the East Coast on Sept. 1, 2005.

You should request a copy of your credit report every year and before making any major purchase. The three major credit reporting agencies are TransUnion (800-888-4213), Equifax (800-685-1111) and Experian (888-397-3742).

Each agency differs slightly in the information it carries, so it's a good idea to check all three reports. You may be able to get your report for free if you're unemployed, if you've been denied credit in the last 60 days or if you live in a state that requires the credit agencies to supply you with one free report every year. The cost varies state by state, with $9 the most you will pay. Even if you can't get a free report, it's worth every penny. The reports come with supporting information on how to read the data and how to dispute mistakes.

Money Mistake No. 3: Letting budgeting get you down.
Feeling guilty that you don't have a budget? You're not alone. Many people find budgeting such a drag that they just don't do it, says Wall.

Smart Cents Solution: Do "spot budgeting." Don't feel that you have to budget down to the last penny. If budgeting is a burden, you can do 'spot budgeting' instead, says Wall. "Pick three or four categories where you think you can trim expenses -- such as clothes and entertainment -- and cut down on those. You don't need to worry about every expense."

Money Mistake No. 4: Letting your money leak away.
Money leaks are those little ways you spend money, usually automatically, without even thinking about it, and often without enjoying it. The daily candy bar at work, the mid-morning cappuccino, the $20 bill you hand your kid whenever she asks for money. "That money might be better used for something you would enjoy, such as saving for a cruise," says Wall.

Smart Cents Solution: Write it down.
Keep a little piece of paper and a pencil in your wallet, suggests Wall. Every time you spend money, jot down what you spent it on and how much it cost. "In three weeks, you'll be able to see where the money is going -- like, gee, the kids are tapping me for $20 every time I turn around … so your kids may be your money leak," says Wall. "Time to corral in the kids -- no more 'Bank of Mom and Dad."'

Money Mistake No. 5: Being out of touch.
Letting your partner have total control of the family finances can spell bad news. If you don't know how much money you have, where key financial documents are stored or how to pay bills or taxes, you could be in for a rude surprise should you ever need to handle the finances on your own.

Smart Cents Solution: Hold money meetings.
Both partners should know what's going on financially, even if they divvy up the financial duties, says Wall. Even if your spouse is in charge of taxes and investments, for instance, you need to have a handle on those areas, and you should keep your spouse in the loop on your bill paying and budgeting duties.

That's why Wall suggests holding monthly "money meetings" where you and your spouse fill each other in on how much you're earning, what your goals are, where your money's going, how much you're saving and any problems that may be rearing their heads.

"It doesn't mean to sit down and criticize what the other has done," she says. "The treasurer is reporting to the board of directors about where the family stands."

National Democratic Party Must Engage In Soul Searching
By Donald V. Watkins

BIRMINGHAM, AL – President George W. Bush will be sworn in for his second term later this month.  After a sweeping victory over Sen. John Kerry last November, the National Republican Party feels that Bush’s re-election demonstrates its solid connection with the hearts, souls, and minds of Middle America.  Few can argue with this assessment.  With a weak economy, and a raging war in Iraq, Bush won anyway.  He stayed on message, and his message was received by the voters who count the most—mainstream Americans.

In the aftermath of defeat, the National Democratic Party must now engage in soul much-needed soul searching, if it is to regain a prominent place in national politics.  It has to offer America leadership that is much better than the last pack of Democratic candidates who ran for president.  Al Sharpton was never a serious candidate.  John Edwards was useless as a vice-presidential candidate.  John Kerry had little or no substance.  In fact, he could never figure out what message he needed to send on any significant issue.  The other Democratic candidates were so embarrassing and weak, they do not even deserve a mention by name.

The reality of the National Democratic Party’s situation is that the dead weight at the top of the Party is taking the whole Party down.  Just ask Tom Daschle, the U.S. Senator from South Dakota and the Senate Minority Leader, who was ousted from his long-time Senate seat last November by a relatively unknown Republican candidate.  There is no question that the National Democratic Party has coattails, but state and national candidates now know that they must cut those coattails in order to survive politically. 

If the Party does not find a real connection with Middle America, it will face extinction on the national level.  It must free itself from the death grip held by the various special interest groups that strangle the very life out of the Party.  It is apparent by now that many of these groups are operating on the political fringes, yet they control the heart and soul of the Party.  In many cases, these special interest groups cannot deliver the votes of their membership. 

Interestingly, the Hispanic-American population, which would be a natural fit for the reformed Democratic Party, is drifting Republican politics.  Additionally, this trend is beginning to spill over to black voters.  In Ohio, a crucial electoral state that went for Bush, black voters cast 20% of the votes in favor of Bush.  These votes made the difference in deciding which Presidential candidate carried Ohio.