Finally, some good news about wages in the press: the Central Bureau of Statistics reported a 2% rise in the average monthly wage. Unfortunately, the highest salaries are in the power and water industries.

Maariv has the story:
http://www.maarivintl.com/index.cfm?fuseaction=article&articleID=2540

Do you use Bank Hapoalim? Sorry to report that after a recent hike, they now have the highest bank rates of all Israeli banks.

The Jerusalem Post has the story: http://www.jpost.com/servlet/Satellite?pagename=JPost/JPArticle/ShowFull&cid
=1075868618429

We were hoping to have some more competition in the international calling market, but Knesset Minister Olmert has delayed that until at least 2005. Another reason to use Internet telephony (see February's newsletter).

While we're waiting, read the story in Haaretz: http://www.geocities.com/jodyblumus/Article-Call-Market-05.html.

I've got to tell you about a great site dedicated to helping you take control of your family finances. It's BankRate.com's "Guide to Managing Your Debt." The lead article this month includes 25 ways to save. Some of them are not so applicable to Israeli residents, but it's still great reading.

BankRate'com's "Guide to Managing Your Debt" can be found at: http://www.bankrate.com/dls/news/debt/debt_manage_2004/25-to-save.asp

It's not easy being a new immigrant. From new social grace to learn, to understanding the Israeli job market, it's a never ending challenge. Now a new study by Yeud Human Resources reports that 93% of Anglo olim feel discriminated against in the workplace, whether by salary, hours or attitude. You can commiserate with your fellow compatriots here:
http://www.jpost.com/servlet/Satellite?pagename=JPost/JPArticle/ShowFull&cid=
1074931451363&p=1006688055060

With winter upon us, energy bills can skyrocket. The great Bottom Line Secrets website has six great energy saving tips.

Read about them here:
http://bottomlinesecrets.com/blpnet/article.html?article_id=33810&ea

Sorry to report that the credit card companies are mulling higher fees. Not much we can do about it...except use your credit card less. That's what we do. Cash is king. Still, you owe it to yourself to stay on top of the news.

Here's the story from Haaretz:
http://www.geocities.com/jodyblumus/Article-Credit-Card-Companies-Mulling-Higher-Fees.html

If that doesn't scare you into restricting your credit card use, this ought to do the job. The Jerusalem Post reports that credit card spending in Israel is up 13%. It's an interesting article which also breaks down the percentage we spend on different categories (23% of our credit card purchases went to food).

Read the story here:
http://www.jpost.com/servlet/Satellite?pagename=JPost/JPArticle/ShowFull&cid=
1070444894532&p=1006688054984

And while we're at it, the Shalem Center has published a shocking study which reports that bank fee revenues are higher in Israel than other countries by "a disproportionate margin."

Click here to read how we stack up compared to the rest of the world:
http://www.jpost.com/servlet/Satellite?pagename=JPost/JPArticle/ShowFull&cid=
1075730352535

If you're buying a new computer and shelling out upwards of NIS 1500 for Microsoft Office seems excessive, listen up. The Israeli Treasury is giving away software. The program is called StarOffice and it does most of what MS Office can do. Watch the newspapers for announcements of where to pick up your copy - it should be available soon at public computer centers and community centers. Or you can download it for free at www.openoffice.co.il. Read more details about the product (in English) at http://staroffice.com. The offer is supposed to be good until the end of 2004.

The big news this month was the start of major new tax reforms. But what's actually going to happen is as confusing as it is contradictory. Yes, taxes are going down. But because the 2004 state budget is larger than expected, they're actually going up. Unless you're a "low earner" (the Treasury hasn't learned the fine art of euphemisms yet, apparently), and then they're going down again. Huh?

Here are several stories that may help to elucidate the matter:http://www.haaretz.com/hasen/spages/381863.htmlhttp://www.haaretz.com/hasen/spages/380718.htmlhttp://www.haaretz.com/hasen/spages/378533.html

We know times are tough in Jerusalem. Now we have the statistics to prove it. Haaretz has the gloomy story:http://www.haaretz.com/hasen/spages/376915.html

On the other hand, it's a great time to buy an apartment. Prices have dropped 23% since 2000 in Israel as a whole. And prices in Jerusalem are 10% lower than the rest of the country. Read the "good" news at:
http://www.haaretz.com/hasen/spages/366853.html

by Ruth Mason
July 25, 2003

There are three things we're not taught that are really important," says Jody Blum, a Jerusalem social worker and professional organizer. "How to have a good marriage, how to parent, and how to manage our finances."

Fed up with being one of the 70 percent of Israeli families who are constantly in overdraft, Blum started reading every book and taking every course she could find on family finances. The result: in six months, she had cut her overdraft by 50%.

"Everyone accepts overdraft as if it's just a given, as if it's free money," Blum says. "But the average family spends one month's salary yearly on overdraft interest. It becomes an addiction, and we pay the price in financial security and mental well-being."

Fifteen of us overdraft junkies gather in the Blums' Baka living room for her "financial household management" class for immingrants. Our first tasks: to explore our core beliefs about money.

"It's for men to manage," "money is power," the best things in life are free."

Our homework: to do a detailed, three-month review of our spending habits. Armed with our figures, we delve into the core of the class: learning how to set up a monthly budget and stick to it. Blum gives us money-saving tips, useful information, thought-provoking questions, forms to take home, and her own personal stories.

She tells us how she cut her monthly food budget by NIS 2,000, how she saved NIS 700 on her home insurance, how her weekly dinner-and-movie dates with her husband transformed into walks, and how the family's Friday afternoons at the local pizzeria have been replaced by frozen pizza at home. It's hard, Blum tells us, but it's possible. And it's not forever. Adapt sound financial habits, she says, and you will see light at the end of the tunnel.

Money is an emotional issue, Blum tells us. As the class progresses, people open up and prove her right. One woman confesses that a lot of money goes toward her need to impress people. A man tells us that after a week of trying to cut costs, he feels like he's on a leash.

But progress is quick. A woman who took herself out to dinner before the first class ("I work hard, I deserve it") brings a sandwich the second week. When another woman's kids ask when they will join the pool this summer - as they do every year - she says: Let's wait and see how much money we have in the bank. Camaraderie gorws as we share our struggles and successes.

By the end of the five-session course, one family has matched Blum's record, reducing its monthly grocery bill by NIS 2000. Another participant decided to stop supporting her adult child. The woman so concerned about impressing others cleaned her walls rather than having them painted before guests arrived to stay, and invited a visiting American friend home rather than taking him out to dinner. A Beit Shemesh resident joined a free parent co-op summer camp rather than sending her kids to an established one. Another, who always went to a posh restaurant to celebrate her birthday, this year had a pot luck at the beach - and loved it.

"You can feel deprived," Blum tells us, "Or you can feel liberated and empowered."

Many of us felt we grew up some during the course. It's not easy to say no to ourselves. But the satisfaction of taking control of our money outweighs the downside.

Here are some tips to get you started:

- Plan for the next month based on how much income you will be bringing in. Limit spending to what you make. Budget 8% to 10% of your net income for unexpected expenses, and set aside an amount to repay your overdraft.

- Write down all expenditures.

- Save your credit card receipts and reconcile your statements. One in ten people finds mistakes on his or her VISA bills.

- Plan your meals for the week and make a shopping list based on that plan. Shop at a discount grocery store, and don't deviate from your list.

- Use cash whenever possible. It helps you keep control of your money.

- Bank on-line to take advantage of higher interest rates and lower fees.

To learn more about the minusPLUS Overcoming Overdraft courses and private coaching, call 054-788-8760 or send an email to: info@minusPLUS.org.