Let’s go back to the basics of wealth building. There are essentially two ways to increase our cash. One way is to earn more money through investments, entrepreneurship or taking on another sideline job - seemingly futile exercises in this economic climate. Alternatively, we can cut costs by being frugal. In fact, saving money has now become a top financial priority among my friends, and me included.

Global stock markets have been whitewashed over the past month, Dow Jones fell to its lowest level in 6 years this week, and gold has charged to a record high $1,007 as investors seek to preserve capital.

The US government revealed on Friday that payrolls tumbled by 598,000 in January (the biggest one-month drop in 34 years) and the unemployment rate is now at a 16-year high of 7.6%. In a month of brutal layoffs, I guess the only bright spark was Obama’s inauguration but even that seems to have fizzled out.