Two big questions asked of late are: “How can I save money in today’s economy?” And “How can I make money in today’s economy?” History is our best teacher. During the “Great Depression, some people lost everything they had and others made their fortune. So obviously this time in our story is what we do with it.

Several years ago a dear friend told me how her late (middle-income) husband had made his fortune during the “Great Depression. In this article, I am going to share with you the strategy she used to achieve prosperity during a difficult time.”

• My friend said that her husband was always very frugal … rich or poor. He was much more frugal than she (my friend) wanted to be. Note: saving was a key element to your success because it gave you money to invest.
• During the time that I knew her, she was quite rich and could afford to do many things that others could not. She advised me to only spend money on what was really important to me and not on things to impress others. For example, she liked nice clothes and cruises, so she spent money on those things (although her husband wouldn’t have). However, he was driving a very modest car (Volkswagen) and living in a modest house (no mortgages).
• He always made sure to have $ 1000.00 in cash on hand. He did not keep this money in the bank. So when the depression hit, I had cash when most didn’t.
• Note: Due to the current US dollar devaluation (“quantitative easing” from the Federal Reserve), leading economists suggest that this stash should be in gold or silver rather than dollars. However, prices are fluctuating dramatically on these two metals, so it is important to stay informed.
• After the hard times, he bought investments for pennies on the dollar. For example: my friend said that he started buying a handful of worthless stocks for a few pennies. When the market returned, some of those stocks were still worthless, and others made it rich.

Most people needed more money to buy food than gasoline, and their cars stopped working. So they bought their cars and other items they wanted to sell for the cash they needed. When the market for these items returned, he sold them at a profit.

It wasn’t a complicated thing that he did, but it was a very effective strategy that most people overlook due to its simplicity.