What Won't Happen in 2010

December 31, 2009
The Dollar Stretcher Blog
by Gary Foreman

Surfacing this time of year are all kinds of forecasters, prognosticators and swamis. The temptation to join them is too much. But, in the interest of trying something a little different we'll forecast things that will NOT happen in 2010.

The credit card company will not lower the interest rate they're charging on your balance this year. Even though other interest rates are near record lows. New laws make it harder for them to raise rates on troubled accounts. So they'll protect their profits. It will be harder to get a rate decrease even if you deserve it. So, if you get an unsolicited letter from your credit card company offering to lower your rate, check your calendar. It could be April fool's day.

You will not win the lottery. Ok, it's possible that one or two of you might win a sizeable prize. But, this prediction will be right for almost every reader. If you doubt it, check the odds on winning the lotto game you play (how many decimal places can you count?).
So, if you quit playing you'll be ahead of the game in 2010. In fact, you could be the real winner.

Contrary to a popular request, your savings account will not grow magically. Unless you put money into savings and leave it there to accumulate interest, the amount that you have in savings will not increase this year. Feel free to make me a liar by regularly depositing money into your account. I'd be happy to have you challenge my forecasting ability when you tell me how much larger your account is.

Your spending habits will not change unless you take action to change them this year. You can spend months reading financial self-help books. Even make a hobby out of studying the various ways to save money. But, it's all just head knowledge unless you specifically take action to change your spending habits.

Your take-home pay will not increase. This isn't an absolute. A few fortunate workers will see increases. But the vast majority of us will be doing well to take home as much money in 2010 as we did last year.

The cost of energy will not go down. Right now your heating bills might be a little less (about 10%) than last year. But, expect them to be going up. Much of our energy is imported. Huge borrowing by the federal government is pushing the value of the dollar down. So it will take more dollars to buy foreign energy. Thus, higher prices for you and I. Ditto gasoline.

You will not sell your house for a big profit this year. There will continue to be many houses for sale. A continuing stream of foreclosures will put more homes on the market. If you do sell your house you'll need to price it aggressively. (BTW, if you're looking to buy, it might not get any better than this.)

Sounds like a pretty negative year. And, in many ways it will be tough financially for most people. But there is one final 'not' to consider.

You are not required to let finances ruin the year. There are things you can do to reduce your expenses or increase your income. Use the many web resources available with money-saving ideas (including TheDollarStretcher.com). Consider starting a home or micro business. Even small changes can make your financial picture better.

You also have the ability to focus on the things that you do have, rather than the things that you don't. That alone will give you a different, happier mindset. In fact, it could also be the key to a happy new year!

Gary Foreman is the editor of The Dollar Stretcher.com website and various enewsletters including Surviving Tough Times.