Credit Crisis

Saving money for the future has become a wide spread virus, especially when a person realize that they have nothing that could take care of them when they retired. There are so many option s available that you could choose to save your money. Some people use the traditional way of savings by putting their money in their bank accounts, and some others choose to invest in other markets such as stocks, bonds, real estate, Forex, and so on.

One of the saving options that we will talk in here is the savings bond. There are different kinds of savings bond that you could get. You could purchased it for yourself, or even give it to your families and friends as a gift. Of course you need to read the certain rules and terms before you could this because not all of the saving bonds could be given to other people. Just like you read before, different type will have different use.

According to the Bureau of Economic Analysis and the released report of Personal Income and Outlays, July 2009 [8/28/09] by BEA.GOV , In July, the Personal income increased $3.8 billion ( or less than 0.1 percent ) ; Disposable Personal Income (DPI) decreased $4.6 billion ( or less than 0.1 percent ) .

Comparing to June which saw a decrease of 1.6 percent , Real Disposable Income decreased just 0.1 percent in July. While  Real PCE increased 0.2 percent, compared with an increase of 0.1 percent.

*( Next release – October 1, 2009 at 8:30 A.M. EDT for Personal Income and Outlays for August. )

Why has this report is highly monitored by market ? Simply due to the very fact that consumer rule the economy. Without consumer spending, business activities would come to a halted very quickly, as nobody buy those products or services. And without sustainable income, consumers simply cut down their expenditures in reality. Although there are other factors influencing consumer expenditures, personal income is still being the most important factors .

The worst thing that you can do when the economy turns sour is to become scared. Warren Buffet has advised people to start buying equities now to prepare for the eventual turn of the market. He is only partially right. Yes you do need to be prepared for the eventual turn around of the market but unlike Buffet you can not afford to let your money sit in the market watching as the value slinks further and further down waiting for the day that it finally shifts. The main thing that you need to do now is plan and plan well for the eventual turn around.