• nahb.org - National Association of Home Builders
• cardweb.com - credit cards with cash back rewards
• moving.org - hire a legitimate mover

When the price of something goes up, do you change what you buy? For example, if the price of a meal at a restaurant goes up, do you order something else? Prices of certain ingredients such as milk, beef, cheese and pork have gone up. At the same time, the economy has improved. So, restaurateurs have raised prices a bit. But people are not spending anymore. Why? They have changed what they order to fit within a certain price range. They may skip the dessert, or trade down to a cheaper entrée. When we move into a phase of inflation, people change their behavior. Some buy store brands for the first time. Others buy generic or off brand gasoline.

Air travel has become a huge bargain lately. In part it’s because discount airlines now fly coast to coast, which is something only full fare airlines used to do. Full fare airlines have had to cut fares by 80 to 90 percent to compete with discounters. But it doesn’t always work to the discounter’s advantage. When JetBlue jumped into the Long Beach/Oakland to Atlanta route, Delta fought back by creating tons of flights and reducing its prices significantly. After a year and a half, JetBlue had to leave the market. The same thing is happening in Dallas, where AirTran is trying to capture some of the Dallas to LA route. As a result, American Airlines is cutting fares for business travelers by as much as 95 percent and is adding 39 flights a day on that route. Leisure fares are dropping by about 50 percent, as well. All across the country, the business model that full fare airlines have traditionally used is dying. The full fare airlines are going to have to change their business model if they want to survive. It’s likely that of the six full fare airlines, only three or four at most will make it. Many people will lose their jobs, which is sad. But it’s great for consumers. Also, if you have miles on one of the six full fare airlines, use them! The six are Delta, American, United, Continental, Northwest and US Air.

Getting a car repaired can be a nerve wracking experience. You don’t know who to trust or what to expect. And, when they take your car away you have to trust they will do what they have promised. Most of the time they do, but sometimes they don’t. And this has severely hurt the reputation of auto repair shops. One shop suburban Detroit wants to gain back customers’ trust, so they’ve taken extra steps. The company allows customers watch the repair over the Internet as it is happening. The program is called “Auto Watch,” and it allows you to access video of your car using a particular code. By allowing customers to check in on the repair, the shop deals with fewer phone calls from customers and increases trust with them. A software developer created the program and now sells it to repair shops all over the country. About two dozen new shops a month are buying the program, which is now in 40 states. If it’s not in your state yet, just remember to find a mechanic you trust through word of mouth. Get a written estimate whenever you have work done, and always get a second estimate for major repairs- even if you have to have your car towed to another shop.

Clark is in the process of redoing his kitchen. He wasn’t totally on board with the idea, but now he’s glad he listened to his wife, Lane. It wasn’t that expensive, and the kitchen looks much nicer. But will Clark make back the money? Probably not. It’s unlikely they will make 100 percent on it, but they knew that going into the project. You should complete a home improvement project because you will enjoy how it looks and the purpose it serves. According to Remodeling Magazine, the typical repair will make back an average of 75 cents on every dollar you spend. Bathroom remodeling projects will get about 90 cents on the dollar, and kitchens will return about 80 cents on the dollar. So, don’t think about doing this if you’re going to be in your house for a short time.

Are bank mergers good or bad for you? You may have heard that Wachovia is taking over SouthTrust Bank. SouthTrust has been very successful throughout the years, so people in the business expected it to be bought off sooner or later. So, what’s in it for you if you’re with either if these banks? First of all, if you’re with the bigger bank, you don't have much to worry about. There are more ATM machines to visit, making it even more convenient for you. Customers of the other bank, however, almost always lose. All the procedures, policies and people are usually tossed out the window. In addition, as computer systems merge, problems almost always arise. Transactions get fouled up and money gets lost. But the biggest losers are the employees of the bank being bought. In this case, SouthTrust. The stockholders, on the other hand, win big. But the group most often forgotten when banks merge are taxpayers. Anytime banks merge, taxpayers take on extra risk. Why? Because taxpayers provide the insurance to keep banks running. So, as these banks get bigger and bigger, taxpayers end up on the hook if one of the big ones goes belly up. When the rash of bank failures occurred in the late '80s and early ‘90s, taxpayers were out $500 billion. If it were up to Clark, accounts would no longer be insured by taxpayers after banks reached a certain size. Monitor your SouthTrust accounts if you are a customer.

If you’re moving anytime soon, please be careful. There is a lot of criminals in this industry that will steal your stuff. An estimator may show up at your home to give you a written estimate. They may be well spoken, kind, dressed well and they may have come highly recommended. But as soon as the truck drives off, it can never be seen again. The FBI recently broke up a criminal ring through a sting operation known as “Operation Stow Biz.” A total of 16 companies were stealing goods or holding items hostage until the owners paid them off. So, remember to hire only legitimate movers. Go to moving.org to find a company in your state.