Buy Like Buffett: Three Good Things to Come Out of the Financial Crisis

If you turn to a business news channel, all you hear is bad news about the United States economy. Unemployment is high, jobs are scarce, and there are fears of a double dip recession. Commentators paint a worse case scenario and act as if the end of the world is coming. While much of the financial data is bad; there is some good news from the current economic crisis. It has caused more Americans to become fiscally responsible. Many Americans are taking steps to improve their financial lives.

Let's take a look at a few of the ways that people are making the economic crisis work for them.

1. Credit card debt is decreasing.
   
   It may be taking time but Americans are finally getting out of debt. The largest unsecured debt for most people is credit card debt. Credit card debt has kept many people in financial bondage for years. Well, it looks like things are really changing. Consumer credit card debt is at its lowest levels since 2002. According to CNN Money, "credit card debt fell 4.1% to an average $4,591 during the quarter." That's incredible considering that the average credit card debt was over $8,000 just a few years ago. Fear and uncertainty actually has many individuals reducing their debt levels. This is a good sign for the long term growth of the economy. A healthy consumer is good for America.


2. The personal savings rate is increasing.
   
   The savings rate for the average person was negative for most of the past decade. That's right! Most people spent more than they saved during the economic boom. People relied on homes for emergency needs. They would take the equity out of their homes and refinance whenever they needed money. Since home prices have plummeted, Americans are saving again. Now for the first time in a long time, the savings rate has grown. Americans are saving 6.4% of their income. This shows that more people are building up their rainy day funds.


3. Prices are lower across the board on many good and services.
   
   Remember when gas was near $5 a gallon and prices were skyrocketing on all commodities? This led to an increase in the price of any good that had to be transported via, plane, train or truck. Well, not anymore. The past recession has put the brakes on inflation. It is now a buyers market. You can get a great deal on just about any product that you are looking for. Sellers have way too much inventory in stock and have been forced to slash prices to get rid of the excess. You can save money on homes, automobiles, electronics, appliances, clothes, and many other consumer goods. Consumers should take advantage of these low prices by buying "must have" items at these lower levels. Inflation will return one day and these prices won't last forever.

What silver lining have you found during the recession? Let me know in the comments.

Mark Riddix is the founder and president of New Horizons Financial Management, an independent investment advisory firm that provides personalized investing and asset management consulting. Mark is a regular contributor to Seeking Alpha and has written financial columns for Baltimore and Washington, D.C. area newspapers. Mark publishes his own financial blog, BuylikeBuffett.com and has written the book Your Financial Playbook.