While the rest of the world scrambles to recover from the ravages of the stock market’s crash last year and the recession that has since rocked the world’s economy, the web site Hedgable.com has initiated a contest in the style of the television show The Biggest Loser to find the investor who has lost the most money in the recession.

Who’s Eligible to Enter?

The contest web site invites Any Americans who held a portfolio of three or more stocks, ETFs, or mutual funds between October 2007 and March 2009 to enter the contest. Entry is free and winners get the following prizes:

• First Place: All expenses paid trip for two to Rome, which they tag as the last great empire to collapse under a mountain of debt, devalued currency and out-of-control spending.
• Second Place: A trip for two to Iceland, home of the world’s worst-performing stock market.
• Third Place: A trip for two to Las Vegas, the foreclosure capital of America.The deadline for the contest is October 7th, and winners will be announced within a week of this date.

When it’s not hosting contests to reward failed investments, Hedgable.com apparently provides online resources, tutorials and suggestions for people interested in managing and investing money.

A Bigger Lesson: Preventing a Similar Crash

While the contest is perhaps a creative marketing ploy, it highlights a much larger problem in the United States today. Millions of Americans lost money because of investments they didn’t fully understand – and millions more are essentially losing money every week because they don’t have savings or checking accounts.

And, while the occasional celebration of extreme failure may be entertaining or amusing, addressing the underlying issue may be the only way to prevent a repeat experience.

For more information about developing and improving your financial literacy, check out the finances section on Total Bankruptcy which include tips on:

• Getting a fair loan
• Living a financially responsible life
• Protecting and improving your credit
• Dealing with creditors
• Dealing with medical bills
• Preventing identity theft, and more

One of the unfortunate realities about our nation’s current economic situation is that most of us have been impacted in some way by layoffs – whether we’ve lost our jobs, seen a friend or family let go or had to tell someone they’d been downsized. But that doesn’t mean we know how to act in these potentially awkward and uncomfortable situations.

Here are some guidelines you can follow to make sure layoffs don’t affect you more than they need to.

If You’ve Been Let Go

• Keep the long view. Though you may be upset or angry, try not to take your emotions out on your former colleagues or boss. Act professionally and you’ll be more likely to be able to negotiate for a severance package, a recommendation letter or tips on where to look for work – all of which will likely help you more than an emotional meltdown.
• Take the high road. Especially these days, it’s often nobody’s “fault” you were laid off – so don’t talk trash (outside of your intimate circle). Professional behavior is much more likely to get you job recommendations and leads from people who know you than immature name-calling.
• Stay in touch. If you were friends with some of your colleagues, try to maintain those relationships – they may be able to help you in your search for employment.

If Your Friends or Colleagues Got Laid Off

• Give your support. You may not be able to do much, but sometimes just listening to a friend’s woes is enough. Make sure you maintain your relationship with a person even after job loss – just don’t ask about the job hunt every time you talk. Like filing bankruptcy, being laid off can be a sensitive subject.
• Do what you can. If you genuinely want to help a person, offer to forward job leads, write a recommendation and do anything else to help the job-hunting process. Networking is one of the best ways to find employment.

If You Have to Lay Someone Off

• Respect your employees. Don’t be passive about telling an employee she’s been let go. Tell her one-on-one – office gossip is not a good way to learn you’ve lost your job.
• Offer what you can. If you can write a recommendation, let your employees know. If not, offer to send along openings you hear about. Don’t make promises you can’t keep, but let your employees know you still care about them.
• Remember who’s hurting the most. Yes, this is stressful for you, too. But don’t expect your employee to sympathize with you. It won’t happen.

Additional Resources

Mass Layoff Data – August 2009 (PDF)

While both men and women struggle with money and debt, some studies suggest that the ways in which the sexes deal with financial matters vary considerably. And understanding how we interact with money may help us improve our relationship.

Classic Financial Mistakes Women Make

A recent Forbes article outlines some financial behaviors many women engage in – without realizing how harmful they may be to us.

• Shopping away the stress: Whether it takes the form of hitting the mall to blow off steam or “treating yourself” to a small purchase after a difficult day, emotional spending can have disastrous effects on your budget (see the study below). Take notice of the reasons you shop – and see if you can’t replace a buying session with a good talk.
• Nurturing & nesting: Our emotional relationship to money goes beyond impulse buying – research suggests that, because women are often in charge of decorating the home, we tend to link buying “stuff” with taking care of our families. Plus, we may be more likely to lend money to friends and family as a way of nurturing them.
• Losing track of spending: At some income levels, you don’t have to worry about a lunch date here and a new sweater there – but for most of us, small purchases add up quickly. Your credit card bill should not be the first time you realize exactly how many “little things” you bought in a month.
• Not being a “money person”: While most women handle day-to-day household budgets with no problem, many of us fail to pay enough attention to long-term money matters, like investing and saving for retirement.
• Ignoring the wage gap: New numbers from the Census Bureau show that women earn just 77 percent of what their male counterparts do, but it seems many women don’t acknowledge this pay gap. You can begin to correct this shortfall by researching the average salary for work you do and approaching your boss if your salary doesn’t measure up.
• Thinking like a “princess”: Even if Cinderella and Snow White were your favorites as a child, it’s important to recognize now that no man will come along and “rescue” you from your current life – financially or in any other way. Aspiring to a fairytale life will leave you disappointed, could hamper your sense of self-worth as an earner and achiever, and leave you with so much debt you end up filing bankruptcy.

The good news is that none of these flaws has to be a permanent fixture of femininity. By understanding how we behave toward money, we can help ourselves improve our financial smarts and take steps toward better relationships with money.

Additional Resources

Study – Compulsive Buying: A Phenomenological Exploration (PDF)

The wildfires raging through California this month have prompted the Federal Trade Commission to release a warning about fraudulent groups posing as charities in order to skim money off of unsuspecting victims.

The FTC offers these guidelines to follow to make sure your donations actually help people in need.

• Know where your money goes: Some charities operate by individuals or groups soliciting donations. When someone contacts you to request a donation, ask how your money will be distributed. If you don’t think enough will go straight to the charity, donate with another group.
• Call the charity group: Follow up after being solicited by phoning the charity itself and verifying the legitimacy of the person who called or visited you. If the group has no knowledge of the caller, it was probably a scammer.
• Get it in writing: When you’re contacted, ask for the charitable organization’s information (name, address, phone number).
• Do a little homework: To make sure your money goes to legitimate groups, check out your state’s registration guidelines and whether the group follows them (check online at www.nasconet.org/agencies). You can also look up a charity with the Better Business Bureau’s charity division (www.bbb.org/charity) or GuideStar (www.guidestar.org).
• Go with your instinct & check your records: One trick some scammers use is to thank you for a donation you never made, in hopes of guilting you into giving. Resist this ploy and look at your records. If you still think giving is a good idea, you can always do it after you’ve checked things out.
• Watch out for current event charities: While a charity related to a current disaster may sound tempting and relevant, understand that newer, hastily set up groups may be ill-equipped to effectively distribute the funds they gather. Consider finding an established charity that will contribute to the cause.
• Listen for fake names: Some fraudsters create fake charities with names that sound very much like real ones. Double-check a group’s name online or in your phone book before signing on.
• Watch out for illegal sweepstakes promises: Laws in the U.S. prohibit sweepstakes that require purchases or donations.
• Beware of overnight courier collections: Avoid groups that promise an overnight courier to collect your contributions.
• Distinguish tax exempt from tax deductible: Tax exempt groups don’t have to pay taxes. A tax deductible donation means you don’t have to pay taxes on that amount.
• Avoid cash donations: Cash can be lost or stolen easily; credit cards are best for documenting and tax purposes. When giving online, make sure the site is secure (look for an address that begins https: the s stands for secure.

If you suspect you’ve been contacted by a scammer, consider filing a complaint with the FTC. There is no need for your hard-earned dollars to go a company filing bankruptcy.

Summer is fading out, but that doesn’t mean you can’t squeeze in some last summer fun before the seasons change. Here’s the Debtress’ 10 best ways to make the most of your summer season without going into bankruptcy.

1. Pack a lunch or some snacks before spending the day at the beach to avoid convenient yet overpriced food stands.
2. Avoid the hassles of a costly night out and host a party at your place, or co-host at a friend’s. Invite a few friends to chip in on food and drinks and you will all find yourselves saving money for the evening.
3. Cut down on watering bills by watering either in the early morning or late evening when water doesn’t evaporate as quickly in the summer heat.
4. Stick it out and limit your AC use. If you’re just sitting in your home, turn on a fan instead, or open a few windows for a cool cross-breeze. Make sure the AC’s off when you leave the house, and that the air filters are clean and not forcing extra effort.
5. Find the cheapest gas station along your typical driving route. Better yet, try biking and walking as much as possible to alleviate gas costs in general.
6. Skip your favorite drink at the bar and order the special.
7. Make money and hang out with friends by combining efforts and junk in a garage sale.
8. Avoid the escalating prices of movie theaters and host a movie night at your place.
9. Try cooking for a change! Stock up on inexpensive groceries and get in the do-it-yourself frame of mind.
10. Pick up a local newspaper to find out in advance about free festivals, lectures, concerts, and general forums taking place in your area.

Now that Americans are proud once again of pinching pennies and dimpling dollars (no? doesn’t work for you?), dollar stores are seeing their business boom.

But, as you probably already know, not every item on the shelves at the local dollar-only outlet is a true bargain.

Here’s a primer on what to look for and what to avoid when shopping for a buck.

How to Shop at Dollar Stores

• Pay attention to expiration dates. When buying medicine, sun block, batteries or perishable food, be sure to check for freshness. Some items are worthless after their expiration date, and it’s pointless to pay even a dollar for them.
• Be aware of other bargains. Don’t assume you’ll get your best deals at these outlets. Think of dollar stores as one weapon in your money-saving arsenal, and remember to keep on top of coupons, sales and other deals near you.
• Know the rules. Some dollar stores have items that cost more than a buck – they may still be good deals, but make sure you know how much you’re spending. Also, some stores forbid you to return your goods. So check the store’s policy.
• Make a list. Check it twice. Make sure you’re not overwhelmed by impulse buys when you get to the aisles and aisles of tempting goodies.

Dollar Store Best Bets

Some household goods should eat up as little of your budget as possible – and some dollar stores have absurdly low prices on specific items. Here’s what to look for.

• Soaps: Hand soap, shampoo and some cleaning products are often great dollar-store buys. Many are unfamiliar brands, but contain the same ingredients as the big names. Bonus: you can often get bulk-buy prices without actually picking up loads of any item.
• Plastic bags: Freezer bags and trash bags (again, in reasonably sized packages) are often competitive with or cheaper than other discount stores.
• Bathroom accessories: Dental floss, cotton balls, lip balm – as long as you’re not too picky about brand names, you can get great buys on these items.
• Basic cotton goods: While you may not want to base your entire wardrobe on clothes bought in multi-packs at the Dollar General, you can certainly grab cheap tees and hand towels for household projects. Consider using the shirts as smocks for kids or as canvases for them to decorate (and wear!).

Make those dollars work for you. A few dollars saved here and there adds up, and that savings could be the difference between bankruptcy and early retirement.

As you may know, one of the secrets of saving money is looking for places in your budget to cut costs without sacrificing quality. And, if you’re anything like me, you hate to see hard-earned cash get spent on cleaning products—I mean, what part of that purchase is enjoyable?

So here are some cheap, effective DIY versions of everyday cleansers. An added bonus is that most of these are more eco-friendly than store-bought versions!

1. For clogged drains: First of all, make sure you’ve got drain traps (especially in the bathtub). They’ll prevent stuff from clogging the drain in the first place and can be bought at hardware stores for a couple dollars. If your drain’s already backed up, pour 1 cup white vinegar and 1 cup baking soda down the drain. Let it stand for a few minutes, then rinse with boiling water
2. For soap scum: Sprinkle baking soda on the dirty area and scrub with a wet cloth. You can also use vinegar (let it sit a few minutes). For stubborn scum, scrub with an old toothbrush.
3. For carpet stains: Smaller stains can be fixed with club soda—pour it on and scrub it out. Larger stains can be tackled by sprinkling corn starch on the area and letting it sit for half an hour. Then, use 1 part vinegar to 3 parts water to scrub.
4. To polish furniture: Mix ¼ cup vinegar and ¾ cup olive oil or ¼ lemon juice and ¾ olive oil. Apply and rub in with a clean, dry cloth.
5. To wash windows or glass: Mix ½ cup vinegar and 1 gallon water. I recommend using an old spray bottle or one you buy—that way you can spray easily and wipe as usual. If you hate the smell of vinegar, try using straight lemon juice or club soda and a cloth.
6. To polish silver: Rub it down with toothpaste and rinse with water.
7. Generic cleanser: Sprinkle baking soda and scrub with hot water.
8. To clean the microwave: Put a bowl of vinegar in the microwave and heat it for about two minutes. Then take it out and wipe down the inside—stains should have loosened.

If you like your house to smell nice in addition to being tidy, consider lighting scented candles or heating a bowl of spices on the stove – these are generally less expensive and longer-lasting than plug-in air fresheners!

Help your budget with homemade cleaners and avoid bankruptcy.