Save More, Buy Less, Pay Down Debt

Americans are saving more and consuming less. The Washington Post reports The savings rate in October reached 4.4 percent, up from 0.8 percent in April 2008. Since 1959, the personal savings rate has hovered around 7 or 8 percent, reaching its zenith in May of 1975 when we hit 14. 6 percent.

So the good news is, personal savings is increasing in spite of record low interest rates. The bad news is, personal debt has gone up precipitously making the recent bump in savings less meaningful. It’s not enough to save, we also have to decrease debt.

My personal goal for 2010 is to start paying down my mortgage debt, and saving 10 percent of my income. Anyone out there have a personal savings goal for 2010 they would like to share?