Perhaps you once thought that a job was forever, and the stock market had nowhere to go but up. In that fantasy, your future included a home, two cars, annual vacations, college educations for the kids, and a secure retirement for yourself.

It was a nice dream. But the market took a dive, job security became an oxymoron, pension funds were pilfered, and managed health care managed to depersonalize and even deny health care to those who could still afford to buy the insurance. And then there's Uncle Sam encouraging us to "fuel the economy," plus all those commercials, classifieds, pop-ups, and billboards continually telling us, "Buy Now! Pay Later!" To seem younger, sexier, richer, or at least to smell better, we have to keep spending.

The result? America is a land where no matter how much you earn, it's easy to spend more. As Bill Cosby once put it, "My parents weren't poor, they were broke!"

The "good advice" we've been sharing all these years boils down to this:

Pay Down Your Debts
Back in 1984, when we began writing about investing in the debt side of your portfolio, we were called "contrarians." Now, most financial thinkers agree that your best investment option is probably in your pocket. In fact, there are no risk-free, tax-free, absolutely guaranteed investments that beat investing in your credit cards. None.

If you routinely pay only the minimum due on a typical 13%, $8,000 credit card balance, you'll be paying that bill for 31 years. And even if you never charged another dime, you'd pay over $17,000.

Instead, if you send in $100 a month more than the required payment, you'll save over 26 years of payments and $6,700, probably more - because interest rates are going up, and virtually all card issuers will raise the rates. (On fixed rate cards, they only have to give you fifteen days written notice to up the rate.)

The more you pre-pay, the sooner you start, the higher the interest rate, the more you save. Actually, the news is even better. The money you save is completely tax-free. Uncle Sam hasn't figured out (yet!) how to tax us on money we save ourselves by paying down our debts.

To save the most, first pay off the card that charges you the highest interest. But if you need extra motivation, start with the card that has the smallest balance. For other ideas on how to psyche yourself into getting out of credit card debt, read about how your personality can help and how to give yourself a credit card makeover.

Sending in money you owe before it's officially due - pre-paying - saves big bucks on home, car, business, and student loans, as well.

Pre-Paying Makes It Easy to Turn the Tables on Your Banker
Here's how to take $26,672 out of your banker's pocket, and put it in your own, legally and easily: Say you have a $150,000 mortgage at 6%. Over your loan's 30 year life, you'll be expected to send $323,755 to the bank. That's more than twice what you borrowed! A house for you, and one for your banker.

But if you send in just $50 a month more than required, you'll save that $26,672 and almost 4 years of payments. Come up with $100 a month, and you'll save $45,586. Click here to see how much you can save.

Pinch Pennies ... Painlessly
If Ben Franklin were around today, his famous "a penny saved is a penny earned" would have to be modified to "a dollar earned leaves less than 72¢ after taxes, whereas a dollar saved is $1.40 you'll never have to earn, assuming you're in the 28% tax bracket." In other words:

So finding ways to cut your spending is very valuable indeed. And since 1984, we've offered piles of painless penny pinching tips. Here are a few favs:

• Keep more bucks by avoiding the Starbucks and McDonald's of the world. Sure, they're fast. But they're very expensive. You can make your own coffee and brown bag a much healthier (perhaps picnic?) lunch, at least some of the time!
• Kick the habit. Ok. I'm the ten thousandth person to tell you. But, it would save you a ton of money. More to the point, it may save your life.
• Comparison shop for everything - from your long distance phone service and home heating oil provider to the premiums for your auto insurance. For example, you could easily save upwards of $400 every year on your car and home insurance policies. Invested at 8% for 25 years, those $400 savings would boost your nest egg by more than $30,000.
• Make "pocket change investments" at the supermarket, drugstore, health food store - any place you regularly shop. It's a great way to realize double-digit returns on your money, risk-free and guaranteed. For example, say your favorite apple juice normally costs $2.29 a bottle. When it's on sale at $1.50, you're guaranteed to save 34%, tax-free. But the yield is actually over 50%, because $1.50 will buy what usually costs $2.29. Where else could you get a 50% return on a measly $1.50 investment? At $1.50 a bottle, buy all you can store!

1. If I didn't need this yesterday, why do I need it today? Buying something that you don't need, even if it's on sale, is no bargain ... especially if you charge it and then don't pay the bill off right away.

Before you make the call, click on the icon, or whip out your credit card in a store, wait! Slow down and think about it a little.

2. How much is it going to cost me in days or years worked before I've paid it off? Knowing how much of your lifetime that new doodad will cost may shock you. But remembering that your time is more valuable than money, may save you a bundle, as well as a lot of stress. For example, it could easily cost a year of your working life to pay for a $25,000 new car, once you factor in tags, title, taxes, insurance, and interest, all of which you get the pleasure of paying - with after-tax dollars.
3. Can I get it used? Don't buy new if you can possibly avoid it. Whether it's a car, furniture, clothes - whatever - to save a fortune, let someone else take the big depreciation hit. After all, once you drive it, sit on it, or wear it, it's a USED car, couch, or cardigan.

   These days, "freecycling" makes it's easier than ever to find gently worn goods, as well as to de-clutter our lives of things we no longer use. Rather than toss out perfectly good items, freecyclers use the Internet and email to find new homes for pretty much anything and everything, for example, air conditioners, computers, dining room sets, pianos, kids' toys, and exercise equipment - you name it - all free!

   Visit Freecycle.org to find the group near you, and join this worldwide movement aimed at true recycling and keeping as much as possible out of the landfills. (We're having a great time moderating the group in our area, HudsonValleyFreecycle.)

A little time spent now putting an Ace up your sleeve, may be the best investment you can make in your family's future. You can do it! Look into your options, choose something you like to do, keep costs down, offer low prices, and deliver a high quality product. Word of mouth endorsements by satisfied customers are the key to any business's success. (Our book, Invest in Yourself: Six Secrets to a Rich Life includes lots of ideas for risk-free ways to start a small side business as well as to increase job security at your "day job.")

Cultivate a Simple Attitude
If you consistently spend less than you earn, and make conscious choices about the lifestyle you really want, you're far less likely to panic or feel deprived when the market takes its next dive, or you're "downsized." The key here is to cut back voluntarily - in ways that won't leave you feeling deprived.

People who choose a simple life typically:

• Focus less on material possessions.


• Strive to be more self reliant.


• Put family before career.


• Can afford to work at something they enjoy, even if it pays less.


• Try to live debt-free.


• Care for the environment by recycling, reusing, and repairing ... rather than replacing.


• Lead a slower paced life.


• Eat healthier, and more leisurely.

May you and yours have a very rich life. Here's hopin' we're helpin'!