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DEPARTMENTS
NOVEMBER 2001

Finance

Extra Money

Pyramiding
@Joyce E. Clayton

I began pyramiding in 1980, when the concept dealt primarily with bank accounts, and hadn't yet escalated to the height of the infamous "pyramiding schemes". In fact, I still encourage graduates just out of high school to utilize this method of establishing credit instead of credit cards.

It involves a simple checking account, whereby you open a checking account with $500. On day three, apply for a short-term loan of $500, payable in 12 months, collateralized by the checking account. Use that $500 loan to open another checking account at a different bank, and apply for a $500 loan after three days, set up like the first. Repeat this until you have five checking accounts with $500 balances and four $500 loans, for a total of $2,500 in checking accounts and $2,000 in loan debt. Try to have all accounts and loans in place within one month, as this is a 6-month plan. If you can borrow the principle PLUS interest, that's ideal, although it's hard to find banks that still allow this these days. It's also ideal if your accounts are interest-bearing Money Market accounts, although it's difficult to find any with a minimum opening balance of less than $1,000 these days. What you now have is $2,500 - Checking accounts and $2,000 - Loan Liability:

#1 $500 checking account opened with your own money/$500 loan;
#2 $500 checking account opened with #1 loan/$500 loan;
#3 $500 checking account opened with #2 loan/$500 loan;
#4 $500 checking account opened with #3 loan/$500 loan;
#5 $500 checking account opened with #4 loan

DO NOT SPEND THE PROCEEDS OF LOAN #4 - KEEP IT IN CHECKING ACCOUNT #5. This will be your "reserve funds" account, to be used to pay off all of your loans. This account now has a minimum of $500. Make the first two payments of $10 each ($80 total) on each loan "on time", which will leave a balance of $420 in account #5. With the third payment, pay off $480 balance of loan #1 (use $60 out-of-pocket money in order to maintain a balance $20 to keep this account open). You don't even have to use your income to make loan payments, as that's why you've reserved loan #4. Once this loan is paid in full, the "hold" is removed from checking account #2, which means the funds can be withdrawn.

Pay off loan #2, and funds in checking account #3 will be off hold.

Repeat these steps until all four loans are repaid; what you're doing will look like this by payment #3:

#5 $420 balance from proceeds of Loan #4/pay Loan #1; s/b $20 checking balance;

#1 $500 initial deposit unfrozen/pay Loan #2; s/b $20 balance;

#2 $500 initial deposit unfrozen/pay Loan #3; s/b $20 balance;

#3 $500 initial deposit unfrozen/pay Loan #4; s/b $20 balance;

#4 $500 initial deposit unfrozen/pay Loan #5; s/b $520 balance

Your initial checking account will have a balance of $500, plus each subsequent account will have a balance of $20, for a total of $600. What you've done is:

(1) Applied the principle of OPM, in the sense that you only used your own money when you opened the initial checking account. After that, all others were opened using the money you borrowed from the banks, except for $80 out-of-pocket cash you used to repay Loan #1

(2) Earned interest, because they're Money Market Accounts;

(3) Saved interest by taking advantage of early payoff

(4) Established a positive 6-month credit history

(5) Established an excellent credit rating

If you have the discipline, repeat this 6-month process about two more times. The objective is not only to establish excellent credit, but to position yourself to qualify for loans of far larger amounts, repayable over longer periods of time. This practice will prepare you to take on the financial world with the creative financing expertise of the big boys (and girls).

To "pyramid" your CDs, go through each step in the process of pyramiding, using your checking accounts. Your first step in the scenario of using CDs:

(1) Purchase a CD in the minimum amount allowed by the bank; let's use $500 for this example.

(2) On the third day, go back into the bank and apply for a $500 loan #1, using your CD as collateral. The bank will hold the "paper", which is your actual certificate of deposit.

(3) Purchase a second $500 CD with Loan #1 at a different bank.

(4) On the third day, go back into the bank and apply for a $500 loan #2, using your CD as collateral.

(5) Purchase a third $500 CD with Loan #2 at a different bank.

(6) On the third day, go back into the bank and apply for a $500 loan #3, using your CD as collateral.

(7) Purchase a fourth $500 CD with Loan #3 at a different bank.

(8) On the third day, go back into the bank and apply for a $500 loan #4, using your CD as collateral.

DO NOT SPEND THE $500 OBTAINED FROM LOAN #4. THIS MONEY WILL BE USED TO MAKE YOUR MONTHLY LOAN PAYMENTS.

You will have four $500 CDs, totaling $2,000, and four loans, totaling $2,000. Follow the remainder of the steps in pyramiding, using your checking account. As you pay off each loan, the respective CD used to collateralize your loans will be taken off "hold", and will be available for you to either cash or renew.

Remember that during this process, each CD has yielded the applicable interest at the current rate offered by the respective bank. Depending on the cash you have readily available for basic investment, you might want to pyramid, using both, checking accounts and CDs. So, if you happen to have $1,500 to $2,500, your pyramiding will render a couple hundred dollars within 6 months. Keep in mind that during both processes, you're establishing credit while you not only gain experience in investing, but you're building your wealth as well.

The key is "discipline". You have to treat it in the same way you did when you went through your checklist to purchase your home. Remember that? You know, credit report, check stubs, certification from previous landlord, etc. That was a process that you had to complete if you wanted to close on the purchase of your home. In that regard, if you view pyramiding as a process that you have to complete in order to establish/re-establish credit and obtain extra money, you won't have a problem completing the tasks.

Those of you have have children might want to rethink waiting until they're of age and in need of credit to help them with this process. The knowledge is invaluable to them to further set them up financially. Those just out of high school are approved for credit cards in a snap. This continues today, and I know when I graduated from high school in 1973, I was issued 7 credit cards, consisting of those for major department stores and major airlines. All three of my sons obtained their first major credit cards (Visa) upon their 18th birthdays. For you homeowners there's something in pyramiding that will create an additional avenue for you should you be in need of both extra cash and extra credit. Furthermore, there's nothing like "doing it" in order to master it. Once you do, you can even "make money" by showing other people how to do it. Remember, "knowledge" is also one of the keys. People are willing to pay big money for your knowledge. So, if you have the information they need, there's a little goldmine right in your face. Again, if you need help with it, I'll be more than happy to assist you.

The 10 Cheapest Places to Live
@Michele Taylor, Homestore.com

20 Ways to Get Cash in a Pinch

"You can live affordably, comfortably and in all but a couple of cases, safely ..."

With the economy topsy-turvy these days, a cheaper place to live may be just what the doctor ordered. But we're not just talking mortgages and rent. Cheap cost of living includes everything from the average price of a hamburger in a city to the price of a three-bedroom house there. These top 10 cheapest places have it all: affordable housing, food, transportation and healthcare. See how these places stack up to where you live.

Car Country
In Kokomo, Indiana—one of the top three cheapest cities in the Midwest—the average home cost only $94,000, $5,000 cheaper than a home in Indianapolis and about $50,000 less than the national average. And while Kokomo is the birthplace of the automobile, the air quality remains one of the best in the country. What else makes this city cheap? Try on its anemic average salary: The personal per capita income of Kokomo ranks 72nd in the country, providing an average of $25,053.

Urban Alternatives
Both Springfield and Rockford, Illinois, offer cheaper residencies than close neighbors St. Louis or Chicago. For about $80,000 you can purchase a home in Springfield and pay one percent less taxes than the national average. There you won't have to worry about paying for your home (or those cheap taxes either) with a local unemployment rate of three-and-a-half percent. Those wishing to escape the hustle and bustle of Chicago can travel 77 miles to Rockford, Illinois for cheaper living. Like Springfield, a home in Rockford will cost about $80,000 and future job growth is two percent higher than the national average of 10.8 percent. The income per capita in Rockford is $2,000 more than in Chicago.

Little New York
Despite popular notion, you can live cheaply in New York—you'll just need to travel 200 miles outside the Big Apple to find it in Syracuse. There are plenty of inexpensive homes there (at about $70,000) for the 158,000 local residents. And consider this: A person living comfortably on $40,000 annually in Syracuse would need to double that to get by in New York city. Unfortunately, the low cost of living in this case goes hand in hand with high crime. In fact, Syracuse has a violent crime rate close to that of New York City and twice the number of property crimes and burglaries.

New Jersey and Philly Weigh In
To get closer to the city of brotherly love and keep some extra change in your pocket, you can set up shop in the Vineland- Millville- Bridgeton section of New Jersey. The houses are a bit more expensive, but the average household income is about $10,000 higher here compared to incomes in Philly. And too, the air quality is much better here han other cities in New Jersey and even compared to the rest of the nation.

Southern Small Fries
There may not be a Starbucks on every corner in Wilmington, Delaware, or Fort Walton Beach and Tallahassee, Florida, but they're certainly the cheapest places to live in the South. (Maybe the dearth of $5 soy lattés is what keeps prices down in these areas?) Still, there are tradeoffs: Commute time, housing and utilities are cheaper in Wilmington than Philadelphia, but according to recent statistics, violent crimes occur more often in Wilmington than Philadelphia. Yet the negative statistics haven't made a dent in Wilmington's tourism. As for the Gulf Coast, Fort Walton Beach is just 200 miles away from the Big Easy, with cheaper housing and healthcare and less crime. Its 20 parks, numerous beaches, resorts and hotels may make it a popular, yet affordable retirement area. And to the southeast of Fort Walton, Tallahassee has just as much sun as Tampa, two power schools—Florida A&M University and Florida State University—and remains an affordable Florida city in which to retire, with average home costs of $99,790. In addition to good weather and good prices, Tallahassee has a variety of cultural events and tourist activities.

Affordable Anchorage
Anchorage, Alaska weighs in as one of the cheapest places to live in the western side of the United States. The income per capita is about $8,000 more than the national average and the household income is about $20,000 higher. That leaves a lot of disposable income for things like fishing and hunting, favorite Alaskan pastimes. The city has, however, struggled with a high crime rate for years.

No' Cal
If you're heading to L.A. to begin your acting career, you might consider living 92 miles north in Bakersfield, California where you can save those hard-earned bills. There, you'll find a house for about $130,000 cheaper and have an eight percent greater chance of finding a job. You'll also breathe easy as you settle into your new home with air that is 13 times better than the smog in Los Angeles.

The cheapskates strike back -- 20 ways to save every day
By Bankrate.com Bankrate readers know how to save. Our "Cheap is chic" story prompted many readers to share their tips for keeping more green in their pockets. Here are 20 savvy strategies for saving all the way to the bank.

1. You don't have to spend a bunch of money to have fun. Go to a local park, and throw a Frisbee around. Go walking, jogging or hiking. It's free and good for you. Getting yourself into better health today may lower your medical bills later in life.

2. Most first-run movies don't measure up. Wait until you hear a few rave reviews before going to a flick.

3. Get rid of that ''1,000 mega-channel lineup,'' and switch to basic cable. You can save as much as $20 a month. Or, delete television from your life. It cuts the 'I wants' drastically.

4. Instead of eating in a restaurant, order out! You will save 15 percent to 20 percent on a tip.

5. Stop shopping as a hobby. Stay away from the malls, and keep your checkbook and credit cards at home.

6. Join the frequent-flier program of each airline that you fly to earn free tickets. Take advantage of credit card air-mile programs. The miles accumulate quickly.

7. Car pool when possible or use mass transit. In cities where you are able to use a transfer on the bus or subway, save it and use it for your return trip. Time your trips, so you travel during the discounted hours.

8. If you live in an area with increasing home prices, buy a rental property. Live in it for two years, so you can avoid capital gains when you sell. Hang on to the property, and let the tenants pay the mortgage; you get the tax write-off.

9. Sell the big house, and get an affordable townhouse or smaller home. Do you really need a family room, a living room, an entertainment room, a den and a three-car garage?

10. Rent out a room in your home. If you have more space than you need, rent the basement or extra room to a student, particularly if you live in an area that has several universities.

11. A lot of people keep change in a big jar and let it accumulate. Why not count the change regularly and buy U.S. savings bonds. Bonds yield more interest than the money was earning in the jar.

12. Always ask for a 10-percent discount, no matter what the merchant sells. You'd be surprised how often it works. A 10 percent-discount achieved half of the time is comparable to a 5-percent increase in your salary!

13. Put cash back in your pocket by taking the clothing you no longer wear -- yet still in good condition -- to a consignment shop. The store will split the profits with you. At the end of the consignment period, donate unsold items to charity and enjoy the tax deduction. There are also consignment shops for furniture.

14. Never buy new furniture. It is sold at a higher markup than almost any consumer item.

15. Get rid of all of the credit cards but one. Take that one and make it hard to impulse shop with -- bury it in the backyard or freeze it in a bowl of water in your refrigerator. Read your monthly statements carefully -- look out for the hidden charges, such as credit insurance.

16. Keep receipts on all purchases. Unfortunately many products are made cheaply. With a receipt, you can bring back the product for a replacement or refund.

17. If your power company offers a special energy-saving program, sign up and start saving. Some programs shut down electric appliances for short bursts of time during peak hours. You hardly notice the difference -- except in your bill.

18. Don't order new checks through the bank. Order new checks through one of the discount catalogs or through an office-supply warehouse. The savings are substantial.

19. Clip coupons from the Sunday paper. Organize them in a coupon pouch with one section for grocery shopping and one for fast food and restaurant runs.

20. If the opportunity exists, work overtime or an extra shift at least once or twice a month.

"Cheap is Chic"

Signature Loans

Here is another passport to success in taking advantage of a good deal or profitable transaction when it passes your way. "Signature loans are your key to the vault", and because they are based on your signature alone, they are also known as "Character Loans". No co-signer or collateral is involved in a real signature loan.

With pen in hand, based on your prior credit history and also your own experience with the bank, your signature can draw from $1,000.00 to $250,000.00. It all depends on your ability to pay the money back.

Once you get your first signature loan with a bank, walk in on the day it is due and pay it off with two cashier’s checks or with two different stacks of money. The first check or money stack will be to cover the principal of the loan. Be sure to tell him how well you did for yourself as you hand over your payment. Tell him not to make any plans for the money as you may need to rent it again soon. As you pay back the interest portion of the loan, remind the loan officer that your good performance and his smart decision to give you a loan in the first place was a profitable experience for the bank as well. Remind him that it’s the rent paid on these loans that keeps the bank in business.

Now, let’s suppose that your original loan was for $3,000.00. As you get up to leave the bank, turn to him and say, "Oh, by the way, I may want to rent $5,000.00 in a couple of weeks. Will you hold on to $5,000.00 for me?" What you are doing is pre-qualifying for a $5,000.00 loan. You are saying, "Hey, Mr. Loan Officer, are you going to raise my next signature loan to $5,000.00 or is $3,000.00 the limit?" What can he say? You have just paid off the $3,000.00 loan, and the rent for the loan, and you have just reinforced the point that the rent, or interest, on the loan is what keeps the bank in business and pays his salary. If he answers with something like "We’ll see.", sit back down at his desk and say, "You mean you’re not sure? What seems to be the problem?"

It is very important at this point that you get some kind of answer from him in advance. It is very unlikely that a "Yes" will come forth, but a "sure" or "I suppose" will do. Do not leave the bank until he commits to the next loan. With each new loan, raise the dollar amount by $2,000.00 increments, until you have reached $10,000.00. At that point, you will be able to raise the amounts of future loans in $5,000.00 and $10,000.00 increments.

When shopping for aggressive banks, ask the loan officer you are dealing with if they are a "commissioned" loan officer. They are the most aggressive as they are paid a commission on all the loans they write. These people will be more eager to make you a loan.

Lines of Credit

In addition to pyramiding and CDs-as-collateral methods of creative financing, I'm also fond of lines-of-credit and "buying paper". As everyone probably knows, lines-of-credit are actually loans that give you the convenience, freedom and flexibility of "revolving loans".

Let's say you qualify for a loan of $100,000. If you get a one-shot deal, you get a $100,000 check and make monthly payment with interest until the balance is paid in full. That's nice, and if you have the discipline of a saint, you can actually utilize that money to "get your investing on", provided that you're not borrowing from Peter to pay Paul. If you have pressing debt up to that amount as the reason for borrowing, then forget about it. You get the loan, pay your debts and boom, the money's gone. It's a dead soldier. All that's left to do is repay the loan. However, if you've planned your work and are prepared to work your plan, this loan will come quite some time before your debts are burdensome, while you have breathing room to build your wealth.

In this case, you qualify for $100,000, but instead of being issued a "check" in that amount, you have a "revolving" line of credit, similar to that of a credit card. In fact, it doesn't actually become a "loan" until you've written the first check. And you only owe the amount of the check you've written. So, if you write a check or checks amounting to only $50,000, you owe $50,000, and still have $50,000 available credit.

As you repay, your credit line is replenished. All the terms, regarding interest, payment amounts, etc., are contained in your loan document.

Buy US Savings Bonds

Extra Money
Pyramiding @Joyce E. Clayton
I began pyramiding in 1980, when the concept dealt primarily with bank accounts, and hadn't yet escalated to the height of the infamous "pyramiding schemes". In fact, I still encourage graduates just out of high school to utilize this method of establishing credit instead of credit cards. It involves a simple checking account, whereby you open a checking account with $500. On day three, apply for a short-term loan of $500, payable in 12 months, collateralized by the checking account. Use that $500 loan to open another checking account at a different bank, and apply for a $500 loan after three days, set up like the first. Repeat this until you have five checking accounts with $500 balances and four $500 loans, for a total of $2,500 in checking accounts and $2,000 in loan debt. Try to have all accounts and loans in place within one month, as this is a 6-month plan. If you can borrow the principle PLUS interest, that's ideal, although it's hard to find banks that still allow this these days. It's also ideal if your accounts are interest-bearing Money Market accounts, although it's difficult to find any with a minimum opening balance of less than $1,000 these days. What you now have is $2,500 - Checking accounts and $2,000 - Loan Liability: #1 $500 checking account opened with your own money/$500 loan; #2 $500 checking account opened with #1 loan/$500 loan; #3 $500 checking account opened with #2 loan/$500 loan; #4 $500 checking account opened with #3 loan/$500 loan; #5 $500 checking account opened with #4 loan DO NOT SPEND THE PROCEEDS OF LOAN #4 - KEEP IT IN CHECKING ACCOUNT #5. This will be your "reserve funds" account, to be used to pay off all of your loans. This account now has a minimum of $500. Make the first two payments of $10 each ($80 total) on each loan "on time", which will leave a balance of $420 in account #5. With the third payment, pay off $480 balance of loan #1 (use $60 out-of-pocket money in order to maintain a balance $20 to keep this account open). You don't even have to use your income to make loan payments, as that's why you've reserved loan #4. Once this loan is paid in full, the "hold" is removed from checking account #2, which means the funds can be withdrawn. Pay off loan #2, and funds in checking account #3 will be off hold. Repeat these steps until all four loans are repaid; what you're doing will look like this by payment #3: #5 $420 balance from proceeds of Loan #4/pay Loan #1; s/b $20 checking balance; #1 $500 initial deposit unfrozen/pay Loan #2; s/b $20 balance; #2 $500 initial deposit unfrozen/pay Loan #3; s/b $20 balance; #3 $500 initial deposit unfrozen/pay Loan #4; s/b $20 balance; #4 $500 initial deposit unfrozen/pay Loan #5; s/b $520 balance Your initial checking account will have a balance of $500, plus each subsequent account will have a balance of $20, for a total of $600. What you've done is: (1) Applied the principle of OPM, in the sense that you only used your own money when you opened the initial checking account. After that, all others were opened using the money you borrowed from the banks, except for $80 out-of-pocket cash you used to repay Loan #1 (2) Earned interest, because they're Money Market Accounts; (3) Saved interest by taking advantage of early payoff (4) Established a positive 6-month credit history (5) Established an excellent credit rating If you have the discipline, repeat this 6-month process about two more times. The objective is not only to establish excellent credit, but to position yourself to qualify for loans of far larger amounts, repayable over longer periods of time. This practice will prepare you to take on the financial world with the creative financing expertise of the big boys (and girls).	To "pyramid" your CDs, go through each step in the process of pyramiding, using your checking accounts. Your first step in the scenario of using CDs: (1) Purchase a CD in the minimum amount allowed by the bank; let's use $500 for this example. (2) On the third day, go back into the bank and apply for a $500 loan #1, using your CD as collateral. The bank will hold the "paper", which is your actual certificate of deposit. (3) Purchase a second $500 CD with Loan #1 at a different bank. (4) On the third day, go back into the bank and apply for a $500 loan #2, using your CD as collateral. (5) Purchase a third $500 CD with Loan #2 at a different bank. (6) On the third day, go back into the bank and apply for a $500 loan #3, using your CD as collateral. (7) Purchase a fourth $500 CD with Loan #3 at a different bank. (8) On the third day, go back into the bank and apply for a $500 loan #4, using your CD as collateral. DO NOT SPEND THE $500 OBTAINED FROM LOAN #4. THIS MONEY WILL BE USED TO MAKE YOUR MONTHLY LOAN PAYMENTS. You will have four $500 CDs, totaling $2,000, and four loans, totaling $2,000. Follow the remainder of the steps in pyramiding, using your checking account. As you pay off each loan, the respective CD used to collateralize your loans will be taken off "hold", and will be available for you to either cash or renew. Remember that during this process, each CD has yielded the applicable interest at the current rate offered by the respective bank. Depending on the cash you have readily available for basic investment, you might want to pyramid, using both, checking accounts and CDs. So, if you happen to have $1,500 to $2,500, your pyramiding will render a couple hundred dollars within 6 months. Keep in mind that during both processes, you're establishing credit while you not only gain experience in investing, but you're building your wealth as well. The key is "discipline". You have to treat it in the same way you did when you went through your checklist to purchase your home. Remember that? You know, credit report, check stubs, certification from previous landlord, etc. That was a process that you had to complete if you wanted to close on the purchase of your home. In that regard, if you view pyramiding as a process that you have to complete in order to establish/re-establish credit and obtain extra money, you won't have a problem completing the tasks. Those of you have have children might want to rethink waiting until they're of age and in need of credit to help them with this process. The knowledge is invaluable to them to further set them up financially. Those just out of high school are approved for credit cards in a snap. This continues today, and I know when I graduated from high school in 1973, I was issued 7 credit cards, consisting of those for major department stores and major airlines. All three of my sons obtained their first major credit cards (Visa) upon their 18th birthdays. For you homeowners there's something in pyramiding that will create an additional avenue for you should you be in need of both extra cash and extra credit. Furthermore, there's nothing like "doing it" in order to master it. Once you do, you can even "make money" by showing other people how to do it. Remember, "knowledge" is also one of the keys. People are willing to pay big money for your knowledge. So, if you have the information they need, there's a little goldmine right in your face. Again, if you need help with it, I'll be more than happy to assist you.

The 10 Cheapest Places to Live @Michele Taylor, Homestore.com	20 Ways to Get Cash in a Pinch
"You can live affordably, comfortably and in all but a couple of cases, safely ..." With the economy topsy-turvy these days, a cheaper place to live may be just what the doctor ordered. But we're not just talking mortgages and rent. Cheap cost of living includes everything from the average price of a hamburger in a city to the price of a three-bedroom house there. These top 10 cheapest places have it all: affordable housing, food, transportation and healthcare. See how these places stack up to where you live. Car Country In Kokomo, Indiana—one of the top three cheapest cities in the Midwest—the average home cost only $94,000, $5,000 cheaper than a home in Indianapolis and about $50,000 less than the national average. And while Kokomo is the birthplace of the automobile, the air quality remains one of the best in the country. What else makes this city cheap? Try on its anemic average salary: The personal per capita income of Kokomo ranks 72nd in the country, providing an average of $25,053. Urban Alternatives Both Springfield and Rockford, Illinois, offer cheaper residencies than close neighbors St. Louis or Chicago. For about $80,000 you can purchase a home in Springfield and pay one percent less taxes than the national average. There you won't have to worry about paying for your home (or those cheap taxes either) with a local unemployment rate of three-and-a-half percent. Those wishing to escape the hustle and bustle of Chicago can travel 77 miles to Rockford, Illinois for cheaper living. Like Springfield, a home in Rockford will cost about $80,000 and future job growth is two percent higher than the national average of 10.8 percent. The income per capita in Rockford is $2,000 more than in Chicago. Little New York Despite popular notion, you can live cheaply in New York—you'll just need to travel 200 miles outside the Big Apple to find it in Syracuse. There are plenty of inexpensive homes there (at about $70,000) for the 158,000 local residents. And consider this: A person living comfortably on $40,000 annually in Syracuse would need to double that to get by in New York city. Unfortunately, the low cost of living in this case goes hand in hand with high crime. In fact, Syracuse has a violent crime rate close to that of New York City and twice the number of property crimes and burglaries. New Jersey and Philly Weigh In To get closer to the city of brotherly love and keep some extra change in your pocket, you can set up shop in the Vineland- Millville- Bridgeton section of New Jersey. The houses are a bit more expensive, but the average household income is about $10,000 higher here compared to incomes in Philly. And too, the air quality is much better here han other cities in New Jersey and even compared to the rest of the nation. Southern Small Fries There may not be a Starbucks on every corner in Wilmington, Delaware, or Fort Walton Beach and Tallahassee, Florida, but they're certainly the cheapest places to live in the South. (Maybe the dearth of $5 soy lattés is what keeps prices down in these areas?) Still, there are tradeoffs: Commute time, housing and utilities are cheaper in Wilmington than Philadelphia, but according to recent statistics, violent crimes occur more often in Wilmington than Philadelphia. Yet the negative statistics haven't made a dent in Wilmington's tourism. As for the Gulf Coast, Fort Walton Beach is just 200 miles away from the Big Easy, with cheaper housing and healthcare and less crime. Its 20 parks, numerous beaches, resorts and hotels may make it a popular, yet affordable retirement area. And to the southeast of Fort Walton, Tallahassee has just as much sun as Tampa, two power schools—Florida A&M University and Florida State University—and remains an affordable Florida city in which to retire, with average home costs of $99,790. In addition to good weather and good prices, Tallahassee has a variety of cultural events and tourist activities. Affordable Anchorage Anchorage, Alaska weighs in as one of the cheapest places to live in the western side of the United States. The income per capita is about $8,000 more than the national average and the household income is about $20,000 higher. That leaves a lot of disposable income for things like fishing and hunting, favorite Alaskan pastimes. The city has, however, struggled with a high crime rate for years. No' Cal If you're heading to L.A. to begin your acting career, you might consider living 92 miles north in Bakersfield, California where you can save those hard-earned bills. There, you'll find a house for about $130,000 cheaper and have an eight percent greater chance of finding a job. You'll also breathe easy as you settle into your new home with air that is 13 times better than the smog in Los Angeles.	The cheapskates strike back -- 20 ways to save every day By Bankrate.com Bankrate readers know how to save. Our "Cheap is chic" story prompted many readers to share their tips for keeping more green in their pockets. Here are 20 savvy strategies for saving all the way to the bank. 1. You don't have to spend a bunch of money to have fun. Go to a local park, and throw a Frisbee around. Go walking, jogging or hiking. It's free and good for you. Getting yourself into better health today may lower your medical bills later in life. 2. Most first-run movies don't measure up. Wait until you hear a few rave reviews before going to a flick. 3. Get rid of that ''1,000 mega-channel lineup,'' and switch to basic cable. You can save as much as $20 a month. Or, delete television from your life. It cuts the 'I wants' drastically. 4. Instead of eating in a restaurant, order out! You will save 15 percent to 20 percent on a tip. 5. Stop shopping as a hobby. Stay away from the malls, and keep your checkbook and credit cards at home. 6. Join the frequent-flier program of each airline that you fly to earn free tickets. Take advantage of credit card air-mile programs. The miles accumulate quickly. 7. Car pool when possible or use mass transit. In cities where you are able to use a transfer on the bus or subway, save it and use it for your return trip. Time your trips, so you travel during the discounted hours. 8. If you live in an area with increasing home prices, buy a rental property. Live in it for two years, so you can avoid capital gains when you sell. Hang on to the property, and let the tenants pay the mortgage; you get the tax write-off. 9. Sell the big house, and get an affordable townhouse or smaller home. Do you really need a family room, a living room, an entertainment room, a den and a three-car garage? 10. Rent out a room in your home. If you have more space than you need, rent the basement or extra room to a student, particularly if you live in an area that has several universities. 11. A lot of people keep change in a big jar and let it accumulate. Why not count the change regularly and buy U.S. savings bonds. Bonds yield more interest than the money was earning in the jar. 12. Always ask for a 10-percent discount, no matter what the merchant sells. You'd be surprised how often it works. A 10 percent-discount achieved half of the time is comparable to a 5-percent increase in your salary! 13. Put cash back in your pocket by taking the clothing you no longer wear -- yet still in good condition -- to a consignment shop. The store will split the profits with you. At the end of the consignment period, donate unsold items to charity and enjoy the tax deduction. There are also consignment shops for furniture. 14. Never buy new furniture. It is sold at a higher markup than almost any consumer item. 15. Get rid of all of the credit cards but one. Take that one and make it hard to impulse shop with -- bury it in the backyard or freeze it in a bowl of water in your refrigerator. Read your monthly statements carefully -- look out for the hidden charges, such as credit insurance. 16. Keep receipts on all purchases. Unfortunately many products are made cheaply. With a receipt, you can bring back the product for a replacement or refund. 17. If your power company offers a special energy-saving program, sign up and start saving. Some programs shut down electric appliances for short bursts of time during peak hours. You hardly notice the difference -- except in your bill. 18. Don't order new checks through the bank. Order new checks through one of the discount catalogs or through an office-supply warehouse. The savings are substantial. 19. Clip coupons from the Sunday paper. Organize them in a coupon pouch with one section for grocery shopping and one for fast food and restaurant runs. 20. If the opportunity exists, work overtime or an extra shift at least once or twice a month. "*Cheap is Chic*"