Question: When will it be safe to buy a home in this economy?

Answer: Many people feel that the housing market is flooded with foreclosures which deflate the housing prices that have yet to "bottom out".

The amount of foreclosures on the market is evidence of common practice of "house flipping" and over–spending which has been exploiting the residential housing market in ways that are not always financially sound, and in many cases, involve fraudulent practice. As long as you can afford your home payment and have the necessary savings to protect you during a financial emergency (generally three months of living expenses and bills) there is no reason to put off buying a home in this market.

Shop around for the best interest rate and loan fees and see what type of programs you may qualify for as a first-time home buyer. By arming yourself with information, you will be in the best position to buy and make wise, long–term investment which is the original intent and purpose of the residential housing market.

Question: How can I save money in this economy when I can't even afford to make ends meet?

Answer: When it comes to financial struggles, take comfort in the fact that you are not alone. If you are faced with the loss of a job or investment, this is an excellent time to reassess your life goals and what is important to you. Start small by taking a look at every expense, line–by–line to determine exactly where your money is going and ways you can save.

By starting small, you can think about what big expenses you are able to cut. For many people, spending money on restaurants, fast food and visits to Starbucks are easy ways to cut spending. Often times, a low-minute cell phone plan and renting DVDs from the local library are a cost-saving alternative to a high dollar cable and phone bill. Be creative and find ways to save money which will enable you to make an automatic deposit into a savings account each month.

Question: What is the safest way to invest my money in this economy?

Answer: It depends on your age and amount of investment funds. The younger you are, the more time you have to invest your money and take the type of risks that can create significant earnings.

No matter how old you are, the government rewards investing for retirement through 401 (k) plans and IRAs. By taking advantage of all the tax deductions and credit you can put you can save money instead of giving it to the government each tax year.

High-yield savings accounts and CDs are insured by the FDIC, so they are both risk–free ways to save your money which do not involve the stock market. Because they are so conservative, if you are a younger investor, they will not result in many gains for the long-term.

Mutual funds and bonds, although not insured by the FDIC, provide the best rate of return for investment and will yield greater profits over time. There are many ways to protect yourself from the tumultuous dips in the stock market, so speak to a personal investor about how much risk you are willing to take with your investments and the best investment solutions to fit your individual needs.