Economy report suggests cautious optimism

The newest consumer sentiment survey is out, and it came in at a whopping 98 (out of 100). One year before that, the number was 81. When it comes to consumer expectations, the number shot up to 91 after reaching only 71 a year ago.

Here is one sample from the 50 questions on the survey: "Do you think that a year from now, you and your family will be better off financially, or worse off, or just about the same as now?"

The overall survey results tell us that we consumers think things are better than they've been in a decade. That we'll continue to spend, that more jobs will be created and that unemployment won't go up again. And that we believe these good times will go on for another five years.

All is not perfect in our eyes, however. Most of us have only our own paycheck to gauge how the country is faring, and we still need these lower gas prices and various discounts to have extra to spend. We expect that our own purchasing power will increase only 3.3 percent this year. But we're still optimistic.

While optimism is good, so is caution.

The official recession was December 2007 to June 2009. It seems so long ago, and for so short a period of time — just 18 months. Yet the damage was so serious and the recovery so long (the unemployment rate continued to rise even after the "official" period ended) that it should be a message to all of us.

Depressions, recessions and periods of prosperity run in cycles, and there's nothing the individual can do to stop it. Taking care of yourself and your family should be your paramount goal in the face of not knowing what is coming when. Here are some ideas:

• Spend modestly. Before you buy a bigger house or an expensive vehicle just because you can, determine whether you actually need it.

• Keep your credit-card debt as low as possible, and look for credit cards with zero interest for a long period of time.

• Save extra money, whether it comes from a pay raise, paying off a monthly debt or eating dinner at home instead of a restaurant.

• Learn a new income-producing skill.

Mostly, remember the financial lessons learned, especially if you were unemployed for a period of time and struggled.

David Uffington regrets that he cannot personally answer reader questions, but will incorporate them into his column whenever possible. Send email to [email protected]. (c) 2015 King Features Synd. Inc.