Introduction
Every day people ask me when I think the economy is going to come back. My response always stuns the questioner. I believe that it could take another five to ten years for us to heal. Neither you nor I can control the economic cycle of the United States or the world. But you can take charge of your own life.
We as a country got into trouble step-by-step, living beyond our means using borrowed money. It was a team effort. Government at all levels promised and spent money it didn’t have, banks behaved recklessly and brought great harm to the entire globe, and consumers were happy to borrow themselves into oblivion. If you go back to the 1970s, the typical American carried debt of 65 cents to each dollar they earned. On the eve of the Great Recession in 2007, the average person had debt of $1.36 for each dollar they earned. Today, the debt is down to $1.24 and still falling, but we are only about halfway back to more reasonable levels.
I can’t predict when the nation will get healthy. But I can help you empower yourself so that you have your personal financial house in order. That way you can survive and ultimately prosper regardless of the country’s progress. You do it one step at a time, fixing your finances and then building the path to independence and ultimately, dare I say, wealth.
Every day on my syndicated radio show and every weekend on my HLN TV show, I guide you toward saving more, spending less, and avoiding getting ripped off.
I have been serving my listeners and viewers since 1987. Over the years I have written eight books pushing people to become active, not passive, with their wallet. Since 1997 my website, ClarkHoward.com, has provided up-to-the minute guidance for more than 25 million consumers each year. In 1993, I founded TeamClark, our consumer action center, staffed with 155 volunteers who answer people’s questions forty-five hours per week and give callers a booster shot of confidence to stand up for themselves and take charge.
Living Large in Lean Times is your guide for this uncertain, difficult era. I know there are those, when times are tough, who believe things will never get better. I don’t buy it. When times turn, this book will help you to be better positioned for success.
There are so many ways to reduce debt, buy smarter, and build a future. Follow my lead. I will get you there.
A word about how I’ve structured this book: I have broken it down into thirteen chapters. In the first chapter, I give you twenty-five tips that highlight things you can do right away to make an immediate difference in your finances. I call this section “Help Me Now, Clark: Improve Your Personal Finances in One Week.”
The next ten chapters constitute the meat of the book and have more than 250 pieces of my best advice on a range of topics from cars to homes to travel. Within each of these ten chapters, you’ll find plenty of ways to start packing a real punch in your wallet.
Throughout these chapters, I’ve included anecdotes from people who’ve written to me and wanted to share how they’ve used specific pieces of my advice to save more, spend less, and avoid rip-offs. If you like the advice in this book and put it to good use, maybe you can be featured in my next book!
Another thing you’ll see throughout this book: a notation that a particular tip is flagged as either “Clark’s Greatest Hits” or “A Clark Favorite.”
The tips I’ve called Clark’s Greatest Hits are classics that I’ve told people about for years, the bedrock of my money-saving philosophy. These include ideas such as having a used car inspected by a mechanic before purchase, or refinancing your mortgage into a fifteen-year rate, or starting a Roth IRA to have the benefit of tax-free spending in retirement.
A Clark Favorite is a tip that I love, but that I acknowledge might be a little “out there” for some readers. So you have things like the idea of flying with a carry-on only to beat luggage fees, or firing your home phone provider and making all your phone calls over the Internet. Likewise, I describe a technique I have to make disposable razors last months and even years so I don’t have to spend much on shaving. Plus, I’ll tell you how to get ultra-cheap prescription eyeglasses starting at $7 that have lenses ground in China! Just give some of these wacky ideas a try and see how they work for you.
Living Large in Lean Times winds down with what I call “Clark’s Graveyard.” Ultimately, I believe that talking about money should be funny and entertaining. So this section compiles some of the money-saving ideas I loved that “died” in the marketplace ahead of their time. You’ll get a real laugh when you read about bygone vending machines that sold eggs and diapers; busted airlines that offered $9 seats; and even my favorite, a three-wheel car that had no reverse gear!
Finally, the book’s very last chapter is a recap of important websites mentioned throughout the manuscript, all compiled in one place for easy reference.
—Clark Howard