2009--Time to take Advantage

In many ways, 2008 was the year of reckoning for Americans living on credit and home equity. We would see ads for years about "keeping up with the Joneses", by taking out a new credit card, or a Home Equity Loan, or some other financing scheme to just run up debt.

For many Americans, 2009 will be the year that Americans try to bring some fiscal stability to their family balance sheets. But for those who have already been fiscally responsible, 2009 could be THE year where the world was on sale, and we got to take advantage. How?

1. Debt/Cash Flow Reduction--Refinance the Mortgage--According to Yahoo, 30 year mortgages are at 5.36%. For anyone sitting on good credit, an ARM, or even a Fixed Mortgage with a rate over 6.5%, this is found money each month. For the average person with a $200,000 mortgage at 6.5%, a refinance to 5.33% will save them $150/month.

2. Debt/Cash Flow Reduction--Refinance the Car Payment/Buying a new car--you heard that right. I have spent a number of articles here, telling people to think about better fuel efficiency. In fact, a new (hopefully fuel efficient) car, bought in cash, or even with good credit, could well be worth it. Even Toyota lost money last year, due to slumping demand. And Car companies are more willing than ever to move their inventory. It's time to ask for lower prices, or lower financing. There could be thousands of dollars saved on the purchase this year--IF you have been good with your money, and saved for a cash purchase or down payment.

3. Long Term Liability Reduction--Make home improvements at a discount--Have you thought about remodeling the bathroom, or kitchen? Putting up a fence, or replacing the roof? Go back to those contractors you talked to about a year ago. I think you'd be surprised at the difference in their prices. Again, if you have saved up, ask them about a discount for putting more up front.

4. Investments--Pick up commodities and equities cheap--Anyone out there think Oil is staying at $34/barrel? Want to bet on it? Now could be a great time to get in on a commodities fund. They have been beaten to hell in the past 6 months, and unlike companies that may not be able to outlast a downturn, things like Oil, Gold, Sugar and Hogs are not going away. They aren't making more gold these days. In uncertain times, investors usually flock to precious metals, yet we haven't seen a rise in these prices--yet. I am by no means an investment analyst, but if your time horizon isn't the next 6 months, having a backstop of a commodities fund, or something of that nature, could prove to be very fortunate in 2009. Look into it.

5. Post Holiday Bargains--Did you get any gifts from friends and family that you just have to get rid of? Wait a couple of weeks, and see if any stores are getting a little desperate to exchange them for something on sale. You may be pleasantly surprised.

6. Out of Business Sales--If you keep a close eye out, look for companies in your area going out of business. There is nothing better than getting what you want at 70% off.

7. Ebay--Need to clean house? Think about Ebay. It does feel good to get rid of "Guitar Hero" after your Aunt Ethel got you "Rock Band 2" . And to make $7.50 doing it? Fantastic.

In the end, 2009 could be the year that a driven consumer can find that the world is his oyster--if he's in a cash position to take advantage of it.