In this terrible economy, or in any terrible economy, a common problem is the lack of credit and the overall credit freezes that the financial institutions put in place. The credit freeze can impact us in many ways.

-Credit cards being shut down

-Car and home loans become harder to get

-Rates rise and fees on accounts increase

These are just some of the consequences of a frozen credit market and since it is harder for people to obtain financing, they are obligated to live within their means. Which means less customers for basic high dollar consumer goods and that means great products at great prices for those of us that have liquid cash.

Look around you, all the car prices are down 25% or more from what they should be and sit on the market three times longer than usual, jewelry no longer sell as fast as retail credit accounts are getting tighter and more limited and retailers are having longer and bigger sales to move inventory and it still doesn’t work. People’s buying power is down significantly because of their lack of cash/credit.

Having a great savings plan is the key to growing your cash reserve and it can come in handy during such difficult credit times, having a seperate reserve savings for emergencies and a short term savings plan allows you to capitalize on these opportunities while keeping enough in your reserve.

What kind of deals are out there?

Check out craigslist.org, autotrader.com or simply ebay.com to see the great drop in prices that has occurred on just about everything.

Just got off the phone with an old high school friend who asked me a very simple question that I should have written about long ago. What to invest in?

Forex? Stocks? Mutual Funds? Real Estate? Start a business?

In this market, it seems that we are constantly caught by surprise. Markets go up and then crash and then go back up and back down.

The reality is times are changing and as in every recession, markets will re-adjust and cause the guessing game to become much harder. My answer to the question above is quite simple. If you have a lot of extra capital ($10,000+ of absolutely not needed cash) Then invest in any of the above but long term, with a conservative approach.

If you don’t have disposable money, then please take time to SAVE. Savings is an important part of building the foundation of your investments and there is no better time than to do that now. Create a good savings plan, get out of debt, and reinvest in yourself so that you are ready to jump on the right opportunities when the market turns. In the heart of a recession like in the one we are in now, many opportunities arise, some in the forms of investments, and some others in the form of purchases. Cash is king and will always be, so your ability to get in on it, or to purchase is the most powerful position you can take.

Once you have your comfort zone, keep an eye out for that right opportunity.