Anyone might conclude that they are alone in drastically reigning in spending this year, but the truth is talking about one’s personal finances is not always socially acceptable. Fortunately, economic data on consumer behavior tells all. The U.S. Commerce Department recently released data showing the although consumer spending rose .3% in May, incomes jumped 1.4%. More striking was the savings rate, which, at almost zero for parts of 2008, reached 6.9% — the highest since 1993.
For the sake of financial health, saving money is half of the battle. The next step should be setting up a financial plan, prioritizing debt amounts for aggressive paydown, and deciding on an appropriate amount for emergency funding.
What steps are you taking to cutting spending? How will you plan to use your funds saved?
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.
Tags: consumer spending reduction, financial planning through spending reduction, saving money, spending reduction
