5 surprising benefits a budget delivers - PLUS 6 healthy resolutions that are super easy to keep

Who wants to budget? Nobody! No one likes taking a good hard look at the money going out versus the money coming in. When expenses run up, people just add to their credit card balances and ignore the high interest. But using a budget does lots more than cut credit card interest. Surprisingly, a budget helps you: 1. Meet all your financial needs. A budget lets you fine tune spending to meet all needs: short-term (monthly bills and groceries); mid-term (that summer vacation); and long-term (home down payment, college, retirement). A budget shows the expenses you can't avoid (utility bills) and those you can postpone (another dinner out), so you can cut short-term spending to meet long-term goals. 2. Cut waste. Let's say your budget shows you spend $800 a month on food. But that includes coffee on the way to work, soda from a vending machine, and a sports drink at the gym. Over the month, this adds up to a big chunk. You can cut 75% of it with coffee from home, soda and sports drinks from the supermarket, and a refillable water bottle. Without a budget, you don't know what you're spending, so you can't find the waste. 3. Hit goals. To reach a financial goal: 1) set a time frame: "I'm going to save $_____ for a home down payment by the end of 2015; 2) write down the steps to get there: "I'll double my savings every month." But you need a budget to "find" that extra money (maybe those beverage savings?). A budget also keeps you motivated – you won't mind cutting out some movies if it means a nicer summer vacation. 4. Spend smarter. If your budget shows you spend more than you earn, it can also reveal ways to spend smarter. If your budget shows you earn more than you spend, you can then figure out the smartest way to spend, save, or invest the excess. Without a budget, you can't be sure about that surplus, so the extra money goes to mindless purchases. 5. Be prepared. You want to set money aside for unexpected medical expenses or repairs. These funds can also pay the bills if you're injured, sick, or laid off. A budget will help you set aside something each month to build an emergency fund to cover 3 months' expenses. If this gets hit, the budget can help you shift spending to build your emergency fund back up. HEALTHY RESOLUTIONS YOU CAN ACTUALLY KEEP 1. Get more sleep. Committing to 8 hours a night is an effortless way to feel healthy. Researchers report sleeping burns fat, decreases stress, and boosts your immune system, mood, and alertness. 2. Spend time outside. Get some fresh air every day. Experts say being outdoors relaxes the mind. Take a walk before work or at lunch. Find a spot you like in your yard or a park and spend some time there. 3. Stop staring at screens. Turn off the TV, tablet, computer, and smart phone, and start enjoying the moment. Research shows kids glued to computers, TVs, and video games risk obesity, sleep disorders, and emotional and focus problems. Some experts say the same is true for adults. 4. Stop multitasking. Instead, pay attention to the most important thing you're doing, whether it's eating, working, or listening to the other person. Research shows people who focus on what they do, weigh less, stress less, and smile more. 5. Add to your diet. Instead of taking away sugar or fat, add something good to your diet – a serving of vegetables to your dinner or some protein to a snack. Drink 2 extra glasses of water a day. Healthy additions leave less room for unhealthy things. 6. Take a deep breath. Most people take shallow breaths. This limits oxygen intake and Harvard's Family Health Guide says that leads to increased anxiety and higher blood pressure. Take a moment and inhale deeply, expand your chest, lift your ribcage. Then slowly exhale. The healthy approach to buying a home starts with the financing. We can answer any questions, whenever you're ready to take advantage of today's attractive housing market. We can also help with refinancing your existing home or funding home improvements. Please call or email us any time. We're always here for you.... Have a great day! P.S.: In today's market, mortgage rates are volatile, but remain at historically attractive levels. When buying or refinancing, it's smart to start the process early. Please call or email us to explore the appealing options available now.

Inside Lending Newsletter

QUOTE OF THE WEEK... "High expectations are the key to everything." --Sam Walton, founder of Walmart INFO THAT HITS US WHERE WE LIVE... We all have high expectations for the housing market and it seems they're being fulfilled. Real estate analytics firm CoreLogic reported home prices rose in 2013 at the fastest annual pace since 2005. In December, their Home Price Index was up 11% on an annual basis, the 22nd month in a row of year-over-year home price increases. Their CEO added: "The healthy and broad-based gains in home prices in 2013 help set the stage for the continued recovery in the housing sector in 2014. After six years of fits and starts, we can now see a clearer path to a durable recovery in single-family residential housing across most of the U.S." Also looking at 2014, a national real estate listing site estimates that home values will rise 4.8% overall through December 2014, although their analysts note that local market trends are expected to differ. The site's chief economist elaborated: "...we expect more homes to be available this year, as more sellers enter the market and more homes get built, and a decline in investor competition should make for a more hospitable market for many buyers." Even more optimistic, Standard & Poor's 2014 housing outlook forecasts a 6% rise in the S&P Case-Shiller 20-City Home Price Index. BUSINESS TIP OF THE WEEK... What you give is what you get. Successful networking goes two ways. Give your contacts more referrals and they'll give you more referrals back. Review of Last Week DOWNBEAT JOBS, UPBEAT MARKETS... Wall Street investors took a disappointing jobs report in stride and finished the week with a two-day rally. The modest moves up broke a two-week losing streak for the Dow and a three-week dive for the S&P 500, while the tech-heavy Nasdaq enjoyed another upbeat week. Basically, investors ignored January's disappointing gain of 113,000 jobs and looked to the more encouraging parts of the report. Chief among these was the dip in the unemployment rate to 6.6%, the lowest since October 2008, and this drop happened with more people joining the labor force. Some observers also noted that throughout the recovery, we've had strong months and weak months, yet over the last 47 months, we've averaged more than 150,000 jobs a month. This is not the level we need, but at least it's moving in the correct direction. The remaining data was mixed. The ISM Index showed manufacturing grew less than expected in January, while the December Trade Balance grew a little more. On the good side, ISM Services showed that sector growing stronger than expected and the preliminary Q4 Productivity reading also handily beat forecasts. The week ended with the Dow up 0.6%, to 15794; the S&P 500 up 0.8%, to 1797; and the Nasdaq up 0.5%, to 4126. Bond market performance was mixed, even after the employment report came in way weaker than expected. Some Treasuries enjoyed an uptick, but the FNMA 3.5% bond we watch finished the week down .01, to $101.17. National average fixed mortgage rates dropped for the fifth straight week, according to Freddie Mac's Primary Mortgage Market Survey for the week ending February 6. Their chief economist put it to the lackluster economic data. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information. DID YOU KNOW?... Industry researchers report that total U.S. visits to real estate websites were up 25% from December to January, to 364.4 million. This Weeks Forecast RETAIL FLAT POST-HOLIDAYS, FACTORY PRODUCTION UP, CONSUMERS HANG IN...This week's key economic report is January Retail Sales on Thursday. After the holidays, sales are forecast to come in flat overall, although up a tad if volatile automotive sales are excluded. Industrial Production is also predicted up a bit in January. We hope to see weekly Initial Unemployment Claims continuing to drop whileUniversity of Michigan Consumer Sentiment pretty much hangs in there.