This first method, like all ways to save BIG in 2010 encompasses all income groups. It is not necessary to be in the higher income brackets to save BIG. All purchases should be in cash, unless it is intended that the purchases will be paid down within 3 months. Even with President Obama’s credit card reforms, the credit card companies are hiking rates to unprecedented highs. This applies even to those with the best credit. Paying off your credit card debt quickly will not affect you much, even with high rates. Do not put meals on credit cards unless they are to be paid off the next day.
If you are piling on debt, the higher rates will throw your finances out of control and might even throw you out of a home by means of a foreclosure. Part of this first suggestion, since foreclosure was just mentioned, is never use your home equity line of credit. Here your savings are really BIG. Your home might be saved from foreclosure if you lose your income and you have both a first and second mortgage to pay. A home equity loan is a second mortgage.
Buy Gold and Silver
Inflation is coming. Have at least 20% of your assets in gold and silver. This will be a hedge against inflation. The silver, preferably in bulk form, will save you if the economy hits unprecedented lows and there is social disorder. You will save BIG because the gold and silver has lots of upside to come. While those in dollars lose money your gold and silver will be gaining in value.
Pay Off Loans
Unless you are fortunate enough to be paying a loan at 0%, do your best to rid yourself of this debt. 2010 will be the second dip in the economy and you do not need to be paying off loans. Any loan above 3% on a large amount such as a car loan can really knock your finances off. If it takes a second job, do it. Pay off those high interest loans. Those of you in the upper brackets should also pay off the mortgage.