This is a positive step forward toward improving the overall state of the economy, as it is still fragile in nature. If the upswing in consumer confidence continues, then it will be much more likely that the market will grow stronger.

There is one obstacle that potentially could damage the gains made by consumers, however. The housing market remains shaky, and predictions for the 2011 year are not as positive as people would like. Nonetheless, economic growth could potentially help the housing market gain stability, so here’s to hoping that the connected nature of the two entities will result in a good outcome.

1. Know The Market

Today’s economy is not like it used to be. As little as 4 years ago, home sales were on the rise across most of the United States. General contractors were having trouble keeping up with the demand for homes, and the price of homes continued to rise. Investors were buying them two or three at a time, with the hopes that the economy would continue to thrive and they could sell their property for a lot more than they bought it for.

Then, in early 2006, with almost no warning, the housing market climaxed, leveled off, and started to drop. Housing prices slowly began to drop. . .and drop. . .and drop. Now it is 2010 and there are no signs of improvement. Since 1990, the Case-shiller index shows that the market has not declined until the market crash of 2006. That’s 16 years of steady increase. But now that’s in the past. We’re in the now. So what can we do about it?

2. Don’t buy a home for more than you can afford

Another first time home buyer tip is keeping your budget. Buying homes that are too big and too expensive is what got us into the housing market mess we’re in now. There are plenty of websites that will give you a free estimate on what you will pay monthly for your mortgage. If you are buying a home with your spouse, a good idea is to plan on spending the income of one spouse each month on the mortgage, which leaves room in case one of you loses a job or there are other unforeseen financial strains. Don’t forget about including taxes and homeowners insurance into your budget. Figure out how much you want to spend on a home, and don’t go over budget. Again, there are plenty of options in today’s market, so be patient.

3. Do Your Research

Buying a home is a major life decision, and it’s consequences will be lived with for a long time. Research the neighborhood surrounding your home. Talking to your future neighbors is a great way to find out about the neighborhood, crime rates, education, local government, etc. and most people are willing to talk. Think about how far away the mall is, if there’s a park nearby. If you see gang signs and graffiti on every corner, you may want to consider someplace else. Be patient. The right home will find you.

4. Buy A Foreclosed Home

One of the biggest causes of the housing crash was banks and financial institutions lending mortgages at 5 to 10 times the annual income of people. That means that if someone made $100,000 in a year, the bank would lend them $500,000 or even up to $1,000,000. Most people were okay with that, because if the market continued to rise, then their home would be worth a lot more than they bought it, and they would make money when they sold it. But when the crash hit, many people owed the banks a lot more than their homes were worth. People were simply walking away from their homes, and foreclosures rose rapidly.

When a home is foreclosed, it means that the owner rights are taken away from the owner and given to the lender (usually a bank), so that the lender can try and sell it and make back some of the debt that the owner has incurred. Lots of times these home go up for auction, and that is where first time home buyers can find a great home for thousands of dollars less than it is worth.

5. Don’t own the nicest house on the block

When buying a home, even in a down market, it’s important to remember that you will most likely not live in one place your entire life. Try and find a home in a nice neighborhood that is a little bit smaller or older than the majority of the houses around you. This will increase the value of the home, and give you some leeway in making improvements. Don’t get carried away, either. Keeping up with the Jones’ is not a happy way to live.

By following these first time home buyer tips, buying your first home will be a solid investment, and not a financial burden.

For example, the 100 dollar bill is issued by the US government, but how many people in the united states actually pay for things with $100 cash? Answer: not that many. So the bill is currency, but it is hinging on the edge of not being a form of money.

Here are some interesting forms of money from all around the world:

Forms of money

1. miniaturized tools
2. miniaturized swords
3. cowry shells
4. slabs of salt
5. beaded belts (wampum)
6. giant stone wheels
7. tobacco
8. electronic transactions

As illustrated in the list above, things such as tobacco and cowry shells (which are not issued specifically as a form of government currency) are used as money in some places. They are simply used to purchase goods and services.

The tax breaks have helped create jobs and have made it so that the economy could get back on its feet, but will the introduction of a higher income tax and all breaks taken away help to do the opposite?

According to the Wall Street Journal some Republicans criticize that the rise in income tax will only to be permanent to some so as to extend the tax break another year. “With the decision we are facing today, we should be encouraging business investment, not discouraging it through higher taxes,” Rep. Dave Camp (R., Mich.), said during House floor debate Wednesday.

There are many who believe this issue should be studied more so that we can understand what this kind of increase in taxes will do to the economy. I, personally, agree that we need to look into this issue more. A rise in taxes isn’t the answer. I may not know a whole lot about how the economy works but it seems that a good idea would be to first ween the economy off the tax breaks and see how it stands on its own before giving it a load to carry after its recent down fall. Hopefully congress will figure out what its doing in the next year so that we don’t witness another recession before this one is fully over.

According to a recent survey by Human Capital Institute and TheLadders, more than half of employers said “quality of candidates” or “availability of candidates” are their greatest challenges.

In an effort to save time of sifting through hundreds of resumes and to be able to more quickly find trusted qualified workers, some institutions are beginning a hiring incentive program to encourage existing employees to refer people they know who are qualified to work in that field.  The intensive is the reward of $2,500-$5000 for bring in new hires.

As we face this difficult we must realize that inflation is a huge possibility. And not just inflation, but hyperinflation. This is one of the worst economic seasons our country has ever faced and we must be prepared to not get thrashed around as the market changes.

One way we can do this is by not keeping our cash in a liquid form, but by investing it. If our money is invested during a season of inflation, then it can increase with the weakening of the dollar.

Much of house sales increasing has to do with federal and statewide credits that are being granted this year for first time home buyers. So many people are becoming motivated to get their feet wet in this market now that they see a benefit.

There are different state wide credits so you should look to see what your state is doing to encourage home sales. Maybe you could benefit from one of these incentives.

I’ve been thinking about this and one way they could do this is through issuing more traffic violations. Police officers have a goal each month for giving tickets so it would make sense to think they would be motivated to go above and beyond the goal and rake in more money for the city.

As drivers we should be aware of this and be more cautious. It is funny to think as the economy slows so should our car, but in doing this we will be saving ourselves from speeding tickets and have better fuel efficiency.

A study was recently conducted analyzing the correlation between education and leisure time. What they found was very interesting.

They found that those with more education tend to have less leisure time than those with less education.

I found this so interesting because it goes against everything we have thought about the American Dream since we first learned about it in grade school. The American Dream has always been to work hard, make a lot of money, and then have tons of leisure time. Well what they are discovering is that those with more money tend to make less leisure time for themselves than those with less money,

An important thing to remember is that those with less education have a higher unemployment rate that those with more education so this is a factor beyond their control. Despite this, what concerned me most was that those with less education and more leisure time spend less quality time with their children and less time exercising.

These are two things that are important for progression and to emphasize family values so I just hope that this is a not a growing trend. I am super idealistic but I want all Americans to progress and have personal goals.