Friday, February 11, 2011

Now Is The Time To Save

Last November I wrote "Simple Saving Mathematics", an article on how easy it is to save and there is very simple logic that people find it hard to follow.  In this post, I want to mention few trends, which I found it interesting as it signals that this is the right time to save money.

1.) Economy is on the rise.  That's the right time to save.  The time to invest is passing fast by.  The best time to invest was in 2009.  Moreover inflation is also rising (see here) which means we have to pay more for everything we buy.   Noticed rising gas prices?

2.) Recently Mr. President announced that lots of money they were giving to oil companies as subsidies will now go to clean energy companies.  Which implies that oil and gas companies will now have to cover up for those subsidies.  And from where they will cover up?  Yes by raising gas prices.  If you have noticed lately oil prices have started increasing like 2008 summer.

3.) Look at this chart, rising consumer credit card debt which is also on the rise.  People are more relying on credit card and are spending more.  That is good for the economy but as a caution, it would be better to rely less on credit card and have a check on balances.  Make sure if you aren't relying too much on it and having a payback and saving in place.