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Do the signs that The Great Depression may be coming again have you worried? Are you trying to figure out how to protect yourself if the financial system crashes?Are you thinking about ways to bullet-proof yourself before the financial crash? Here are some things you can do.

To start, you must understand the definition of 'economics' as it pertains to your own personal or business finances, and how you can use that knowledge to your advantage.

Don't even think about what the media says about 'economics' when they discuss the gyrations of the stock market, product shortages and demand increases, price increases, mortgage foreclosures by the banks and the unemployment figures. Those are 'economic characteristics' that measure an area that is bigger than you can control.

What you can control is your own business and personal economics. The definition of the word economics I am using is the original one; meaning 'the art or science of managing a household or business.' And that is something that you, as an individual, can control.

Managing a business or household is an art. It takes having certain skills and abilities, like putting in organization so things run better. There is a science of managing a business or household, especially in the money area. Here is what you can do to guarantee that the economics of your household or company are strong and unshakable, despite the fact the country's economy may be on the slippery slide to disaster.

1 - Pay With CASH

Whenever you purchase something using lines of credit or credit cards because you don't have the money to pay for it, you are committing your future income to the the credit card company. That future income will be needed to pay your your regular company or home expenses. That is committing yourself into the hands of an economic slavemaster called the credit card trap.

An exception is purchasing property that grows in value, for example investing in some commercial property or buying a second home that you use to increase your income from rents collected. It's plain smart money management to use your money to earn even more money.

Tip: When paying with cash, negotiate a big cash discount. When the economy is spiraling down and credit is harder to get, the person with the cash is the king. In addition, figure out how to purchase items wholesale instead of paying retail prices to lower your cost even more.

2 - Keep Spending Levels UNDER Income Levels

Learn from your grandparents or parents who made very little, but managed to live well. Reduce expenses to a rate that is less than your income. The fastest road to financial disaster is spending more than you make. It's possible to keep a good quality of life while reducing optional spending. This can be accomplished by acts such as buying used equipment rather than new, and eating less often in restaurants. Buy only based on absolute need instead of want! It's just a plain good money management practice.

3 - Make the Money BEFORE Spending It

If there is some large purchase you need to make in the future, begin by putting away small bits of money in a savings account for that purchase and keep that up until you can pay cash.

On a household level, if your child will be entering college in 10 years, then figure out how much the tuition costs will be and figure out how much moneyyou have to set aside every week to have the total amount the year they graduate from high school. Plus turn in applications for every student scholarship, grant or financial aid package you can locate.

On a company level, if you need to purchase or upgrade a furnishings or equipment for your operation , then figure out how much the costs will be and figure out how much moneyyou have to put away every week to have the total amount the month you will need to purchase those items. Plus look for every place you can locate to get the best deal possible.

4 - Sest Aside Some Cash for Operating Expenses and Emergencies

Nothing will make you sleep better at night than the financial security of having some cash set aside in savings for emergencies like needing to repair the car or an office machine, having to have some unexpected dental work or experiencing a big drop in income. When you have a cushion of cash you can get your hands on immediately, then magically, you don't even worry about the money, and your focus goes back on living life and enjoying it, and making money suddenly gets easier.

The one thing you have to be scared of in a great depression is not having some money set aside in a savings plan you can get your hands on at a moments notice.

It might interest you to know that the Great Depression in our recent past created more millionaires in the U.S. than at any other time in history. How did that happen? In that time, the economy bottomed out, the stock market took an enormous dive, prices went through the roof, the unemployment rate skyrocketed as businesses closed, and people who lost their jobs also lost their homes.

The individuals who had cash set aside were able to buy homes, land and entire companies for pennies on the dollar. They ended up being millionaires because they had enough cash to weather the storm called The Great Depression.

Out of each dollar you make, immediately set aside 10% and stash it in an interest bearing account that you have designated for your cash cushion. Even if you have to work an extra job and cut expenses on top of that to build your cushion of cash. No moaning, groaning and saying you can't, JUST DO IT! As the days and weeks roll by you'll find you sleep better at night and are walking through life with a lot more confidence knowing you are controlling your financial destiny and have protected yourself from The Great Depression looming on the horizon.

Why is controlling the flow of your money so important? It is the energy and life blood of a business or household. It is vital to channel some of it through the income producingareas first to keep it running well, and also to save some of it for future survival. Everything runs much more smoothly when plenty ofcash is available. Our Money Management Software guides you towards making the most advantageous decisions about how to use your income to make more money.

Sandra Simmons, President of Money Management Solutions, has years of experience helping company owners and families manage their income to reach their financial goals. To find out about the Money Management Software she created, watch the FREE 5-minute demo video on her website at http://www.moneymgmtsolutions.com