Posts Tagged ‘Personal saving’

Dating with Debt

Wednesday, January 21st, 2009

To continue with this week’s series How to Have a Rich Life While Paying off Debt, the logical next step to a discussion of dining is dating. There are different strategies for going on rewarding dates without disabling a wallet and your prospects for escaping debt.

Top Ten Dating Tips for Those with Debt:

10. Do volunteer work together. This can range from home construction for Habitat for Humanity to serving in a soup kitchen to hospital assistance. Get creative and impress your date with your sense of commitment to public service.

9. Go to a museum or local art exhibition. For added savings attend the museum on days when admission is free or reduced.

8. Walk around a local street fair. This is a great weekend outing, weather permitting.

7. Canoe or kayak. Depending on location, the cost of renting a canoe or kayak can be quite inexpensive.

6. Wine taste. Although most wineries charge a lot for tasting rounds, research online those wineries off the beaten path that charge very little or nothing for a flight. Carpool with other couples to save on gas.

5. Plan a cooking night where you and your date both work to complete a meal from a cookbook. Irrespective of success, this can be entertaining and memorable.

4. Go star-gazing, bicycle riding, hiking, or beach combing. In other words, doing something outdoors that doesn’t entail traveling far from home.

3. Play sports like tennis where the focus of play is squarely on you and your date. Don’t go out and buy new equipment; borrow it from friends.

2. Do a sunset stroll, coupled with a bottle of wine from the market.

1. Skip the restaurant scene altogether. Not only is eating out costly, but this routine is so typical that it borders on mundane. Take your date any place other than dinner and/or a movie and it won’t be forgotten.

Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs.  DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.

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October Savings Increase Reflects a Return to Thrift

Friday, November 28th, 2008

It was interesting to read the news on spending and consumption in the wake of the recent Bureau of Economic Analysis report on personal consumption and saving trends. The report indicated that personal saving as a percentage of disposable personal income increased 1.4% in October from 1.0% in September. Personal consumption dropped 1%.

What was interesting in these reports was that the decrease in spending and increase in savings was generally viewed as largely negative. In an economy that is dependent on consumer spending for 70% of economic growth, the decrease in spending may be frightening and an indicator of future economic weakness and this point was largely played up by the press. However, what was generally ignored was the fact that the increase in savings is a logical response to economic uncertainty and increases long-term growth prospects.

In the 1980s, the US savings rate was 9-10%, steadily declining to roughly 0% in the mid-2000s. At the time, a lot of economists (including the US Federal Reserve) who explained the decline in consumer saving as a logical response to increasing home and stock values (the wealth effect). With the recent declines in both equity and real estate markets, we’re seeing an unwinding or negative wealth effect, with a predictable retrenching and increase in savings.

Rather than lament the increase in savings, we should be celebrating. We’re making rational decisions based on the value of our assets. This retrenching will increase savings and create funds to fuel long-term growth. As we increase our savings rate, we will be able to better fund future growth and economic obligations such as retirement.

How has the downturn affected your savings rate and how do you feel about the decrease in US consumption?

Scott Crawford is CEO of DebtGoal.com, a do-it-yourself system for lowering your interest costs and getting out of debt. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.

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