Everyone was affected by the recession. Times were difficult and regardless of economic status, Americans suffered greatly due to the financial difficulties of 2008-2009. Now that the recession is officially over, many consumers are still trying to return to their normal lives. One of the biggest complaints is that it is difficult to save. Holly Blakefield, economist for BankRate.com said, “When the recession was at its height, people realized that credit wasn’t the savior it was believed to be. What saved most people were liquid assets.”

It’s no secret that “Cash is King.” People are trying harder than ever to build up their coffers for emergencies, stability, and investments. The biggest way consumers can start saving is by looking at their homes. If you are trying to save, look at these ways to monitor your household and make necessary changes. It could mean a more efficient household and more cash in your pocket.

Heating and Cooling Expenses

Some of the biggest energy draws are running a home’s heating and cooling systems. Estimates are showing that 40% of residential energy bills are for either heating or cooling of a house. The best way to tap into that for efficiency is to have a good system for monitoring your temperature. Remember that even if your home is new, that does not mean it’s efficient. Frank O’Brien-Bernini, CEO for Owens Coming, said, “There is a huge gap between what is in the building code and what is needed for optimal energy efficiency.” Consumers have to take matters into their own hands when it comes to making a home efficient.

The primary thing a homeowner can do to help their heating and cooling system is to close up any leaks. Caulk, expandable sealant, weather stripping and foam board can all work together to stop air from escaping. Attics can be the most troublesome. Remember that heat rises and if your attic is windy with a lot of openings, you are losing hot air. That brings the temperature of your house down and, in turn, causes your heat to turn on.

Another tip is to always get your heating and cooling unit checked annually. It may cost $65 for a basic check, but preventative maintenance can pay off in the end. Coming added, “Paying a small fee to have your system checked can be much more inexpensive than waiting and having to replace a unit for thousands.”

Be aware of how much water costs

The next thing to watch out for is your water use. New studies are showing that over 80% of states anticipate having water shortages by the year 2013. This means that most likely there are going to be heftier costs and fines for excessive use. It’s good to get your home in order now, so you don’t find yourself in trouble in the future.

When it comes to water consumption, the best thing to do to conserve is to upgrade to water-efficient fixtures. Use low-flow showerheads. Charlie Szoradi, of Green and Save, said, “A $30 showerhead can save more money than $3,000 worth of solar panels.” It’s an easy fix and the payback is notable. In addition to fixtures, also check out the water heater and make sure the temperature is at 120° F. You can also insulate your water heater pipes to stop heat from escaping.

Electricity plays into Big Costs

The last large contributor to high house costs is electricity. While 40% of household expenses involve heating and cooling, another 40% involve electricity. Experts agree that this is relatively easy to manage though. One of the simplest things to do is replace lightbulbs with CFLs. You can also upgrade appliances to energy-efficient models. Not only are they more efficient, they also save you money. Take advantage of tax breaks, too. Many energy-star rated appliances can reduce your tax liability. Be sure to check with the rules in your case, but in most states you can take the cost, up to $1,500, off on your tax filing.

How to Find Savings

It may sound like a small amount if you end up saving just $40 a month in heat, but over the course of one year, that’s $480. Never underestimate the small changes that bring small savings. In the end, they all add up to notable savings. Take a look at your house and see where energy drains are. It’s the best and fastest way to keep money in your pocket.

Homeowners looking for mortgage loan modification programs are encouraged by Citigroup to apply with them. Many homeowners are finding that their mortgage payments are unmanageable due to the recession. Many are falling behind, or at risk of doing so in coming months. Citigroup is one lender that is offering relief to their approximate 500,000 at-risk borrowers. Over the next 6 months, Citigroup is encouraging customers who may find themselves unable to pay their mortgage to contact customer service for answers.

Currently, the requirements are that borrowers must be current on their mortgage but believe that future months’ payments are in peril. Their goal is to reduce monthly payments to 40% of the borrower’s gross income, thus making their payments affordable and keeping them in their homes.

Interested borrowers

Borrowers who want to pursue Citigroup’s mortgage loan modification program will have to provide documentation to be considered for the program. Here are some documents to have on hand:

• Paystubs for at least the past two months
• W-2s from both 2007 and 2008
• Any additional income earned from part-time jobs or freelance work
• Total household expenses
• Insurance payments for house, car and life
• Property taxes
• If applicable, dues to associations for condo/townhome owners

The company then will review the information. All expenses will be added together and divided by the total income, to get the debt ratio. This ratio will dictate new payments as Citigroup will:

1. Reduce the interest rate for customers
2. Propose new loan terms
3. Reduce the loan balance

The lender is hoping that the changes will bring in a new group of customers who are able to make steady payments, thus making Citigroup’s revenues consistent.

Geographical concerns

Homeowners who are in high unemployment areas or where home values have taken sharp declines are a priority with Citigroup. Their mortgage loan modification is specifically targeting these customers, wanting to help them with manageable and affordable housing. In particular, the bank is looking to Arizona, Florida, Michigan, Indiana, Ohio and California as the target areas where recessionary effects have taken hold.

Another priority group is borrowers whose credit scores have seen a sharp fall over the past few years. Citigroup is taking this as a sign that these customers may be heading into bill payment problems in coming months. The company wants to step in and avoid any further issues before they occur.

Both groups are going to be asked to fill out a mortgage loan modification application and provide income and expense documents. The company is aggressively prioritizing these sectors to mitigate company risk.

The economy

The recessive economy has played a heavy role in the banking industry. Lenders who were once lending without caution, are now seeing how detrimental haphazard lending was. In an effort to turn things around, banks are taking proactive steps to reach out to customers in trouble, or reaching a troubled state. They want to help them stay in their homes by making payments affordable, as dictated by their debt ratios. Any customers who feel they need the help should contact Citigroup and fill out a mortgage loan modification application. Now is the perfect time to reach out for help that is available.

Installment loans are aiding first-time home buyers make the purchase of their dreams. When moving to Phoenix, Arizona, Kostas Kalaitzidis longed for a home. Due to his low-income and the high-cost market, he was unable to buy. Just one year later, he was able to buy a formerly-priced $220,000 house for just $82,000. “I’m very glad I waited,” he says, “people like me are the ones buying now.”

Declining home values

It is estimated that 53% of all home sales are being made by people like Kalaitzidis, according to the National Association of Realtors. The group also says, “While America’s declining home values have wrought havoc on home sellers, owners and lenders, first-time buyers can celebrate the housing market bust, and may even help fix it.” They expect first-time buyers to comprise the bulk of buyers throughout the rest of 2009.

Although salary is a factor, most first-time buyers are making the move as a result of the huge decrease in home prices. For example, Kalaitzidis’ home boasts 2,200 square feet, four bedrooms and 2 ½ baths. At $82,000, it’s a relative steal in the real estate market. In addition, tax credits are plentiful for first-time buyers.

According to James Saccaccio, CEO of RealtyTrac, “The metro areas with the highest level of foreclosure activity paint a picture of concentrated problems in a relatively small number of hard-hit areas. Sales activity appears to be increasing in some of these markets as home prices have fallen to levels that are attractive to first-time homebuyers.”

New buyers are plentiful

Kalaitzidis is not alone. Many first time buyers are seeing homeownership as a potential accomplishment they could not have attained without the struggling market. Albert Ko of Orange County, California first moved to the area in 2007 when the average price of a moderate home was $800,000. He just was approved for $400,000 and most homes in the area have dropped to just about that level. “Two years ago, this would have been out of the question,” Ko confirms.

Though current homeowners are suffering the lost equity, new potential buyers are seeing affordable housing as a huge benefit. With the dream of owning a home as a viable option, they are looking to installment loans, family borrowing and extreme budgeting as methods of reaching their goals. For the first time, many potential borrowers are taking advantage of the recession and downfall of the housing market.

Burns Consulting Group study

According to Burns’ Consulting Group the average home costs 25% of the owner’s pretax income to sustain, down from 44% just three years ago. That means that a household with a $60,000 income is now spending about $15,000 a year for the fixed-rate mortgage, down from $26,400. That’s a substantial savings for a family.

Finally a homeowner

There is a light at the end of the recession. Many people who were formerly unable to even consider purchasing their own home are now enjoying the affordability brought about by the recession. Home values are down and down payments needed to purchase are much smaller. Some potential homeowners are working with lenders for installment loans to help fund their purchases as they move into the most-coveted title of “homeowner.”