Interest Rates and You

Have you ever thought: What is the highest interest rate I can get on a savings account right now? I have, and here is one answer.....Assuming you have over $100,000 in the bank you can get a good rate at about 5%. Who has that kind of cash? Not us, and assuming the statistics are correct, you probably don't either. Not having that cash will put your interest rate somewhere between 2.75-3.25%......at least today. Tomorrow could be even worse.

So, what is a person to do in this time of economic turmoil? Hold on tight to the money you do have and keep your eye on the interest rate. Gone are the days of high interest money market accounts. Even compounding your interest (keeping the interest you earn in your account to carry over to next month) is not much help. Is there a solution to just having a savings account? The simple answer, right now, is no. Sure, every little bit helps but when you are talking maybe $10-20 a month in interest that is just plain sad.

With the financial crunch affecting everything from groceries to real estate to interest rates there is just no way of making a quick buck. Even the stock market is no longer a money maker. Real estate has gone down hill so quickly that most people are struggling to make ends meet to afford a mortgage that is more than their house is currently worth. It seems everyone has been affected in some way and no one is immune.

So what is a person to do?

All of the gurus on this subject say "hang in there". No, I am not kidding. People who actually watch and talk about the economy for a living say "Don't give up. Your 401K will bounce back. Don't stop investing." What kind of advice is that to someone who is investing in a retirement account that is actually losing money???? To me, that is insane advice. I believe you need to re-coup whatever you can, put your money somewhere safe until the market turns around.

The ultimate decision is yours. It is, after all, your hard earned money. How you choose to invest and keep it safe is completely up to you. You can always ask a financial adviser or do research on your own to find out about interest rates and your options. No matter what road you take to financial independence right now, it is going to be rocky.

Coupons, coupons and more coupons!

Money is tight! To many, that is an understatement.

Coupons are on the rise! Can you believe in this day of technology people are still hunting and clipping coupons?? I do it. With a family of four to feed it is a necessity for us.

Unfortunately, it is a time consuming and often relentless process searching for coupons. Do a search for "coupons" and you get a bunch of useless sites that you have to sign up for, not to mention the coupon printer you have to download in order to get those coupons. In a nutshell, it is a pain in the butt to coupon hunt.

My advice? Go directly to the manufacturers website. Yup, it is that simple. I have found that if I need a specific coupon, for Pillsbury for instance, I go directly to that website and see if they will either email or snail me a coupon. Target even has weekly coupons that they update on their site. A lot of manufacturers are getting in on this because they know if they offer even one dollar off their product then someone is more likely to try and stick with buying that product.

So, happy hunting and if anyone out there has an excellent site for coupons please share! We could all use a little bit of the extra savings!