OK, I am no financial wizard but then those guys don't seem to be very effective anyway so I thought I would share an idea I have that might help anyone as well as stimulate our failing economy. While many people may be wondering whether to put their money into gold as a hedge against the crashing stock market, and others are scrambling to get their assets liquid, I suspect that for the vast majority of us the amount of money that we had saved up may not be all that much or even if it is, the interest we might earn by pulling money out of the stock market and putting it into a saving account will barely offset inflation.
What the economy needs is for us to be spending, but with the current uncertainty most folks are pulling back which in turn hurts the economy even more. It becomes a vicious cycle. (Yes, I know that we should have been saving all along but now may not be the best time for the economy to have everyone suddenly become conservative in their spending). So, what if we could have our cake and eat it too so to speak. What if there was some mechanism to help us save as well as spend? I believe that there is a simple, effective method that will help. I freely admit that this is not a "solution" but I do believe that it will benefit everyone if implemented.
So what is my grandiose plan? Simple really; to save money while spending money, determine what supplies that you will always be using, Soap, Paper Towels, Bath supplies, cleaning supplies, etc. Now determine how much of those products that you will use over the next year. Next how much money can you afford to spend (save). Next look for sales where the price of any given product is reduced by 20% (not hard to do if you shop around) that is far more than you are likely to earn in either stocks, bonds, or saving. Buy a year’s supply when those items are on sale. You "earn" 20% on your money, you have your assets in usable convertible currency in that this is stuff you are going to buy over time anyway and the retailers get a shot in the arm.
If only 10% of our population spent $1000 on these have-to-use items it would rapidly add 30 billion to the economy. OK, it is not much when compared to where we are but is it a small step and doesn't really cost anyone but rather saves them money. It is a win- win. You earn a high rate of return in the form of savings and the retailers get to move inventory.
Where are you going to earn 20% on your money in the next year? If you like this idea, try it and pass it on. Maybe if enough people endorse this we could start a movement and get the retailers to active participate. I would love to hear your thoughts on this matter.
James Frazier, MA Pesonal Development Coach www.JamesFrazier.com