Money is tight right now, as we all know. Seeing a movie, going out to dinner, even buying an impromptu cup of coffee -- things many of us used to do without a second thought -- now need to be factored into the monthly budget. And while the government's numbers showed that consumer spending was up .4 percent in June, that increase is more likely due to an increase in food and energy costs.
But is our country's economic state dire enough to be considered a depression? Some experts think so, including Martin Weiss, author of "The Ultimate Depression Survival Guide: Protect Your Savings, Boost Your Income, and Grow Wealthy Even in the Worst of Times."
"The primary metric for a depression is unemployment, and right now, the government's own data, which measures the broader unemployment level, including part-time workers who are looking for full-time work and people who have given up looking for work entirely, shows that 16.5 percent of the workforce is unemployed. To me, that defines a depression."
Adding fuel to the fire, the country's budget deficit is forecasted to hit $1.85 trillion this year, while tax receipts are expected to drop 18 percent -- the biggest decline in tax revenue since the Great Depression.
But in the coming months, Weiss also expects to see a few intermediate recoveries. They may not last long -- historically, they typically don't -- but they'll provide a few opportunities if you know where to look. Here are some hints:
-- Your investments. The markets have been on the up and up lately, and Weiss expects that trend to continue for a few more months. Chances are, the fluctuations we've already seen have given you a very clear idea of how much risk-tolerance you have. (Hint: If you couldn't sleep when the market was at rock bottom, you were likely taking too much risk.) If you don't have the time or the tolerance for another downswing, now's the time to make some changes because it's best to sell while your investments are up. "Use this not as an opportunity to suddenly jump back in the fray, but to shift out of riskier investments and into safer ones, like fixed instruments, bonds and money markets," explains Weiss.
You should also have some cash on hand, and for that portion of your savings, he suggests looking at short-term treasury securities, which you can buy straight from the treasury department at treasurydirect.gov. Just don't expect a lot of interest -- this kind of investment isn't for yield, but for safety.