The recent economic crisis has brought home to consumers the importance of financial responsibility and building up their savings. When the financial crisis was at its peak, many consumers found their finances shrink to unimaginable levels and many more found themselves in debt trouble. At the moment, a few have found their way back to financial balance. Still, the shaky economy should serve as enough warning for consumers to focus more on building up their savings for 2010.
In fact, a positive side effect of the recession is that it has made savings once again an important part of the lives of consumers. Whereas in the past the mantra was “spend, spend, spend,” now it is “save, save, save.”
Consumers who want to thrive financially in 2010 will have to focus more on building up their savings and less on spending money. A sizable savings could prove to be a life saver in case of financial emergencies. While consumers can keep savings in a cookie jar, it makes more sense to put is somewhere safer.
One excellent place to put savings in is in high yield savings accounts. By placing the money in a high yield savings account, consumers are sure that their money is safe and the savings also earns. It is also relatively easy to access in case of emergencies. High yield savings accounts are also an excellent tool that consumers can use to fight off inflation.
Consumers can also go online shopping for great CD or Certificate of Deposit rates. However, CDs are not as flexible as regular savings accounts in terms of when consumer can withdraw his or her money. If a consumer opts to place money in CDs, they need to figure out how long they can afford to tie up his money. Other details a consumer should take note of are the penalties and other fees it entails.
It is also a good idea for consumers to setup a retirement savings plan. It is best to setup regular contributions to it so that they are assured of their retirement savings when they need it. Consumers are now able to contribute to their retirement savings plan on auto-pilot. All that's left for them to do is watch as their savings grow.
A great way to use extra money these days is to get rid of as much credit card debt as possible. Credit card debt has a way of getting more expensive every month. With the current trend in the credit industry, it is bound to get worse. Of course, once all credit card debts are paid off, consumers must resist the temptation to use their cards whenever possible to avoid going into debt again.