Related Articles

Worried about the possibility of The Great Depression happening again? Are you wondering how to achieve financial freedom so you can protect yourself from the coming financial crash? Here are some things you can do.

The first thing you need to understand is what the word 'economics' means in terms of thinking about your personal or company finances, and how you can use what it means to your financial advantage.

Forget what the media spews out about 'economics' when they talk about the ups and downs of the stock market, product shortages and demand increases, rising prices, banking industry mortgage defaults and the unemployment rate. Those are 'economic characteristics' that evaluate an area much larger than you can personally control.

What you are able to control is your own business and personal economics. The meaning of the word economics I am talking about is the original one; meaning 'the art or science of managing a business or household.' And those are things that you CAN control.

Managing a business or household is an art. It takes having specific abilities and skills, such as organizing things so they run smoothly. There is a science of managing a business or household, especially in the area involving money. Here are some things that you can do to make sure that the economics of your household or business are strong and stable, even though the country's economy may be on the slippery slide to disaster. 1 - Pay With Cash Not With Credit

Whenever you purchase something using credit cards that you hope to be able to pay for later, you are committing your future earnings to the the credit card company. Those future earnings will undoubtedly be needed to pay your regular household or business operating expenses. That's when you end up in economic slavery known as the credit trap. An exception is buying property that grows in value, such as buying a home instead of renting, or investing in a commercial building that puts more income in your pocket. Using your money to make more money is smart money management.

Tip: When paying with cash, negotiate a big cash discount. When the economy is spiraling down and credit is harder to get, the one with the cash is king. Another item worth a mention is, figure out how to buy wholesale rather than retail to keep even more of your hard-earned money.

2 - Spend Less Than You Make

Take a lesson from your parents or grandparents who earned a small amount, but lived very well. Reduce expenses to less than you earn. The quickest route to money disasters is spending more than what you earn. You can maintain your quality of life while eliminating discretionary spending. It can be achieved by doing something as simple eating out less, and buying used equipment instead of buying new. 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

When there is some large purchase you need to make in the future, begin by putting away small bits of money in a savings account towards that purchase and don't stop until you have the cash to pay for it. On a personal level, if your child will be entering college in 10 years, then figure out what the cost of tuition will be and find out how much cashyou have to sock away every week to have the full amount just before they graduate from high school. Plus apply for every student scholarship, grant or financial aid package you can find. On a business level, if you need to upgrade or buy some equipment or furnishings for your operation , then figure out what the cost of that will be and find out how much cashyou have to stash away every week to have the full amount just before you will need to purchase those items. Plus search for every avenue you can find to get the biggest discount possible. 4 - Put Away Some Savings for Emergencies and Living Expenses

You will sleep much better at night than the financial freedom of knowing you have some cash set aside in savings for emergencies like having to get the car repaired, requiring some unexpected dental work or experiencing a big drop in income. When you have a cash cushion you can immediately use, then magically, you stop worrying about the money, and your attention goes back on living life and enjoying it, and making money suddenly gets easier.

The only thing you have to be afraid of in a great depression is not having some money set aside in a savings plan you can immediately get your hands on. Did you know that more millionaires were made during The Great Depression in the United States than during any other era in our history? Want to know how that happened? 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 individuals who lost their jobs also lost their homes.

The people who had cash set aside were able to buy homes, land and entire businesses for pennies on the dollar. Those individuals ended up being millionaires because they had the cash to survive the disaster called The Great Depression.

From every dime you earn, immediately set aside 10% and stash it in an interest bearing account that you have earmarked for your cash cushion. Perhaps you'll have to cut expenses AND work an extra job to build your cash cushion. No no moaning about how 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 it so important to be in control of the flow of your money? It is the energy and life blood of a household or company. It is necessary to channel some of it through the income producingareas first to keep it running well, and also to put away some of it for future survival. Everything runs much more smoothly when adequatecash is available. Our Money Management Software guides you towards making the most advantageous decisions of how to use your money to generate more profits and build wealth.

Sandra Simmons, President of Money Management Solutions, has years of experience helping professionals and individuals manage their income to reach their financial goals. To learn more about the Money Management Software she created, visit her website and watch the FREE 5-minute demo video at www.MoneyMgmtSolutions.com