Finding Economic Solutions

There's a method to our madness in 2008. It's truly very democratic according to some experts, that is the financial squeeze has affected most people in the U.S. whether down and out and unemployed or a company executive. Agreeably many realize the money squeeze also includes low, middle and high income earners.

According to a recent report by Standard and Poor, the gas prices have soared 139% and grocery prices have jumped 16% in 2008, problematic to us all. We have no other choice than to economize from the home front.

But don't be discouraged, there's good news in the business world and costs with regard to computers, furniture and even many automobiles has either stabilized or even dropped. The once $800 to $1,000 laptops can be found in the budget retailers for as low as $400 brand new due to efficiency and improvements in technology. And for the computers remaining at the same price, the technological advances have become so efficient and economical, including wireless access, that expenditures have become even more worthwhile. The good news is more "bang for the buck."

The U.S. savings banks once offering 15% annual rates in the 1970s, 8% rates in the 1980s, 5% rates in the 1990s and 1-1.5% rates in the 2000s has reneged some of the lending, spending and defaults. Small savings accounts most practical for many are being encouraged, debit accounts can be maintained without fees and minimum balances of $25, a low balance of $1,000 was required less than five years ago to get started. Financial entrepreneurs are able to save money on gas by using split accounts near the club, office and/or close to home.

And of course there's the convenient on-line banking option. More good news is the option of refinancing credit cards, automobile, mortgages and home-equity loans with fixed rates if you've built enough equity in all these items, or in other words, have a low enough balance. The trick is to really try. As for the scholar considering an advanced education, don't be embarrassed to accept the merit scholarship because you can relieve your doubts by reinvesting or re-founding scholarships for others later, that is when you're working and earning a higher pay. The truth is for college graduates it's often easier to find work because of expanded qualifying factors with your degree. Accept financial aid diplomatically, but remember to renew. Although a good education is a priceless asset and not necessarily a key to wealth, a majority of financially secure individuals have earned or appreciate an advanced degree.

Some of us haven't come to realize what the hybrid car is and where the energy comes from. Most hybrid transportation uses ethanol fuel which we see in part at most gas pumps. A hybrid vehicle does not use a little ethanol, but instead close to 85 percent. We still need to conserve with these cars using fuel at $2.50 per gallon and it's because ethanol is derived from farmed vegetation, i.e., corn waste, making a dent in the stressed farming market. Although a strong resource drivers of hybrid cars must conserve also.

During the post-depression era savings climbed to an average of $12,000 yearly, the annual savings per household has dropped to approximately $392 annually in 2008. This is for many people, a more realistic goal and there are many cases of individuals who have built wealth and became financial tycoons on investments of as little as $200 yearly. The brainchilds of these savings are prepay Internet, cell phone, land telephone cards, CD bank accounts and revitalized small savings account options. Although these are conservative compensators, such financing produces less lending and spending, more realistic purchases by the consumer and guaranteed financing for the vendors and banks.

Other money savers to add to the no-debt goal includes wireless Internet using less energy and complicated services as well as a reduction of energy overload hazards. The production of sci-fi and fantastical reading for adults and children is a harmless but productive popular interest.

It's often the entrepreneur who is a hard-worker, lives a low-income lifestyle, many earning a good wage with a trusted financial adviser or accountant are capable of acquiring and maintaining wealth. It's also very important to live below your means in order to survive a recessed economy, our national debt in the trillions of dollars. Wealth is a term used for a household that can survive independence or lack of employment for a time span of nearly ten years. Most of us don't fit the bill and we're lucky if we can pay our bills for two or three months due to lack of work. Self-employment is often the brainchild of downsizing.

Too many tend to blame business losses on company presidents and executives yet the truth of the matter is that many of the skilled tradesmen require earnings comparative to an executive, the executive foreseeing downsize and the tradesman anticipating layoff, both at expansive ends of the economic employment structure, each getting the same pangs of doubt. What people are left with is the demand for medical and unskilled mechanical employment while the recruitment in these areas never seems to quit.

The summation of budgeting solutions seems minimal but in the long-run are the ways to start, i.e., purchase of non-perishable boxed and canned foods, wireless and pre-pay spending, the $395 realistic yearly goal of savings, accepting financial aid for college, driving less and walking smart for health, the 100 lb. weight in the car's trunk and air in the tires to save 2% usage of fuel, pared-down luxuries, self-motivated home improvement, extravagance of flea-market goods, and the purchase of commodities in bulk to receive discounts. With some budget priced advertised activities for the family and yourself on fliers and bulletin boards, many fund-raisers for emergencies, all ways to bring household members and our country as a nation closer together.