With real estate markets in a downward spiral and many Americans having upside down mortgages (owing more than their homes are worth), a recent study by Forbes seems appropriate.

Forbes studied the 150 largest housing markets in America, and using data from the US Census and the National Association of Realtors, they created a list of the 50 communities with the highest amount of homeowner debt.  For this study, they looked at the median house price, percent the house value changed since 2007,  number of outstanding mortgages, houses that had second mortgages or home equity loans, and houses that had both second mortgages and home equity loans.  Studying all of this data they compiled their list.

Sacramento, California, was found to be the community with the most homeowner debt.  Did your community make the list?

Click here to read the whole article.

Time and time again, financial experts recommend that we invest in index funds. But despite their carefully reasoned arguments, index funds and ETFs only account for 17% of equity assets. Despite being the cheaper, better performing solution, most investors don’t seem to buy into the pro-index arguments on a visceral level.

And while John Bogle, Peter Lynch, and Warren Buffett may have failed to make people index believers, I thought I’d take a crack at fixing the problem with what I jokingly call “Checkout Line Bingo.”

Everyone has played Checkout Line Bingo. You glance across the lines, trying to factor in the speed of the checker, the number of people in line, the items in their cart, and whether or not they look like they’ll slow things down by writing a check or disputing a price scan.

And if you’re like me, you usually lose. I hate playing Checkout Line Bingo. It’s one of those things where I know I just can’t win.

Investing is like picking a checkout line–it is a zero sum game. The checkers can only check out so many people per hour, and which line you pick doesn’t affect the overall number, just as choosing which fund or stock you buy doesn’t affect the overall market (for every buyer, there is a seller; for every killing, someone gets killed).

If it were an option, I’d much rather there be a single checkout line where the first person in line gets to go to the next open register (a la your local bank branch, or checking in at the airport). That’s the equivalent of index investing–you’re not going to magically cut to the front of the line, but you’re not going to get stuck behind someone asking for a price check on stuffed olives.

What’s more, making investment choices is far tougher than picking a checkout line. Rather than 5-10 choices, you have thousands of funds and stocks to choose from. And rather than competing with your fellow shoppers to see who checks out first, you’re going up against legions of professional money managers who spend every minute of every day trying to squeeze out the best possible return…and charging you hefty management fees.

Plus, if you pick the wrong checkout line, the worst that can happen is that your Haagen-Daaz melts. If you pick the wrong fund or stock for your retirement savings, you may end up with a one-way ticket to a cardboard box under the nearest overpass.

So when you’re feeling bored with index funds, and are tempted to go for “sexy” funds or stocks, think about whether you really want to play Checkout Line Bingo with your life savings.

With our economy in what happily could be called a tailspin, is it really the right time to start your own business? The answer is, of course! Studies have shown that economic downturns are the best times for entrepreneurship and thinking outside of the box. If you have been toying with the idea of starting your own business, it might be time to take the leap.

Of course, before you jump into the deep end, make sure you have a few things covered:

1. Don’t quit your day job until you have enough money saved to sustain you while you are waiting for your business to get off the ground. We’ve all heard “save enough money to live for six months without any income,” and while this might seem impossible, it is a good goal. After all, while you are building your business, your revenue will be very small. How will you pay your bills?

2. Keep all of your bridges intact. Even if you loathe your day job, keep your relationships with your coworkers open. Every solid relationship is a potential business client and referrer. If you burn your bridges, you could lose a large portion of your new client base.

3. The best businesses are those that take an existing system and find a way to do the same task for less money and in less time. Is there something that you are especially good at? Have you always thought that you knew a better way to get something done? Now is the time to test your theories.

Starting a new business is exciting and scary, and it could be the best thing you ever do for yourself. Remember, Starbucks started as a single, independent coffee shop. Kinko’s was the same. You never know when your new idea could end up being the next big deal!

Technically the recession is still up for debate, and there are very smart people who insist that we are not in or heading into a recession. Regardless of the recession’s status, it can’t hurt to start living frugally. After all, it’s always a good idea to save money, right? Here are a few tips to help you save some money:

Believe it or not, the best way to save money is to live as “green” as you can. Rinse and reuse your sandwich bags, water bottles, and anything else you can. Use grey water to water your lawn. Start a compost pile instead of purchasing expensive fertilizer. Take public transportation (it is far cheaper than gas) or walk more often.

Another good way to save money is to eat more dinners at home. Making your own food instead of eating out is a great way to save money. While it might cost a family a few hundred dollars each month to eat out regularly, if you know how to hunt for bargains, you can make your own meals for a third of the cost of eating out. Making your own meals is also a lot healthier than relying on fast food or restaurants.

Get back to nature! Instead of going shopping and to the movies, head out for a hike or a bike ride. Hiking is great exercise and a very affordable way to explore your surroundings. Take up jogging and yoga instead of paying for a gym membership.

Get a library card. Libraries are a fantastic resource. Long gone are the days of only being able to get old dusty books from the library. Now you can find the latest releases in books, movies, and music! The best part is that everything there is free, as long as you return it on time!