How to save and earn money in today’s economy

Two important questions that are often asked lately are: “How do I save money in today’s economy” and “How do I make money in today’s economy?” History is our best teacher. During the “Great Depression, some people lost everything they they had and others made their fortune. So obviously this time in our history is what we make of it.

Several years ago, a dear friend shared with me how her late (middle-income) husband had made his fortune during the “Great Depression.” In this article, I am going to share with you the strategy that she used to achieve prosperity during a difficult time.

• My friend said that her husband was always very frugal… rich or poor. He was much more frugal than she (my friend) wanted to be. Note: saving was a key element to her success because she gave her money to invest.
• During the time I knew her, she was quite wealthy and could afford to do many things that others couldn’t. She advised me that she only spend money on what is really important to me, and not on things to impress others. For example, she liked nice clothes and cruises, so she spent money on those things (even though her husband wouldn’t have). However, she drove a very modest car (Volkswagen) and lived in a modest house (no mortgage).
• He always made sure to have $1000.00 cash on hand. He did not keep this money in the bank. So when the depression hit, he had cash when most didn’t.
• Note: Due to the current devaluation of the US dollar (“quantitative easing” by the Federal Reserve), leading economists suggest that this stash should be in gold or silver rather than dollars. However, the prices of these two metals fluctuate drastically, so it is important to stay informed.
• After the hard times, he bought investments for pennies on the dollar. For example: my friend said that he started buying handfuls of worthless stocks for a few cents. When the market came back, some of those stocks were still worthless, and others made him rich.

Most people needed more money to buy food than gas, and their cars were idling. So he bought their cars and other items they wanted to sell for the money they needed. When the market for these items returned, he sold them at a profit.

It wasn’t something complicated that he did, but it was a very effective strategy that most people overlook due to its simplicity.