Savings

This comes as no surprise:

Americans' personal savings rate dipped into negative territory in 2005, something that hasn't happened since the Great Depression. Consumers depleted their savings to finance the purchases of cars and other big-ticket items.

The Commerce Department reported Monday that the savings rate fell into negative territory at minus 0.5 percent, meaning that Americans not only spent all of their after-tax income last year but had to dip into previous savings or increase borrowing.

As a patriotic American I feel it's my duty to help promote increased savings in this country. To that end I suggest the following steps for shoring up one's personal finances:

* Pay off your damn credit card bill. Right now interest rates on credit cards generally vary from around 10% for platinum cards to nearly 13% on standard cards. What a waste of money. Even if you only pay $20/month in interest charges that's still $240/year in wasted money. If you have a savings account, cash it in to pay off your credit card.

* If you simply can't afford to pay off your card, at least get a better rate. If you call your credit card company and threaten to switch if they don't lower your interest rate 9 times out of 10 they will.

* Get a card that pays you back. I'd recommend this one from Citibank. It gives you 1% back on all purchases and 5% from those made at supermarkets, drug stores and gas stations. Think about it, if you spend even just $100/month on groceries that's $60/year you get cash back. Since I've had my card I've gotten over $300 back.

* If your credit card is paid off, open a savings account with an internet bank or a regular bank with special internet accounts. I'd recommend this one from HSBC that pays 4.25% interest. Unlike other internet banks, this savings account includes ATM privileges and the minimum to open an account is only $1. (try this promotional code to get a free $25 for signing up).

If you really want to go all out, set up the savings account with HSBC and get a checking account with Netbank. The account pays .75% and has no monthly fees. Then you can just electronically transfer money back and forth between that account and the one with HSBC.