Tuesday, August 26, 2008

Go Cash not Credit

It is very sad. Credit used to be the lifeblood of America. The whole 20th century was built upon this. However, now, at 15% inflation per year, it is destroying America.

The only way for most people to day to day economically survive these times is to go completely cash, if possible. Start with food, gas, incidentals and go from there. 15% of most people's income or more already goes into interest on debt. If you stop using your credit cards (and keep them only for extreme emergencies so you keep good credit) and buy everything you can with cash, then you can save the 15% per year you are now paying on interest for everything and keep even with or beat inflation.

In a previous article I spoke of a study I saw online of a couple who went cash like this for a month and found they saved 24% from their previous months. If you can do this too, you can save 9% ahead of 15% inflation month to month. And if you can save month to month this amount and put it in the bank as a cushion you just might survive financially the coming months and years ahead.

And if you can save $3000 or more then you can think about studying how to invest and start building a diverse portfolio of land, securities, savings and even gold to get you through the really tough times.

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