Back before the turn of the century, a co-worker was researching what happens to the economy in past hundred year marks. His research indicated that the economy gets better right around the '00' mark. HOWEVER, about 10 years into the new century, the economy takes a nose-dive.

Heads up. This is the year 2007. DO NOT be lulled into thinking that credit will always be this easy to get and interest rates will stay this low. Salaries don't always have to increase year to year. Houses do fail to appreciate and some people have been 'upside down' on the mortgages in years past (owe more than the property is worth).

I know that this year we are focusing on making sure we are personally more stable financially. We absolutely have to pay down debt but we also have to increase our savings rate and make sure our current investments are a little bit more inflation proof.

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"I've been rich and I've been poor but independently wealthy is where it is at."

If you look at the stock market's performance over the last 10 years, I'd have to say the economy did not get better at the '00' mark. Quite the contrary, it's taken nearly 7 years to rebuild back to the records set in fall of '99.

I do agree with you that a lot of people get lulled into false security with available credit, rising home values, etc. If net worth is only on paper (via home values, stock/fund investments, etc.) you're always taking a bit of a risk, especially if credit is involved.

Pay down those credit cards, people!

wouldn't it be true to say also that the record keeping may not be that much of an insight? I mean we only have one century to go on for what happened before if I am reading this correctly-
although hey if it gets you to save more and pay debt... all the more power