Articles, News and Resources

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.

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 the media reports about 'economics' when they discuss the roller coaster ride of the stock market, shortages of supply against demand, inflation, mortgage foreclosures by the banks and the unemployment figures. Those are 'economic characteristics' that evaluate an area much larger than you can personally control.

What you can control is your own personal and business economics. The definition of economics I am referring to is the original one; meaning 'the art or science of managing a household or business.' And that is something that you do have control over.

There is an art to managing a business or household. It requires certain abilities and skills, for example, organizing things so they run smoothly. There is a science of managing a company 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 company are stable and strong, even though the country's economy is on a downhill slide to disaster.

1 - Pay With CASH

Every time you purchase something using credit cards that you cannot pay off as soon as the statement arrives, you are committing your future income to the credit company. Those future earnings will 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.

The only exception is buying property that increases in value, for example buying a home instead of renting, or investing in a commercial building that puts more income in your pocket. 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 guy with the cash is king. Another item worth a mention is, figure out how to buy items wholesale instead of paying retail prices to further lower your cost.

2 - Keep Spending Levels UNDER Income Levels

Take a lesson from your parents or grandparents who earned a small amount, but lived well. Reduce expenses to a level below what you earn. The most direct route to disaster in the finance area is spending more than you make. It's possible to keep a good quality of life while reducing discretionary spending. It can be achieved by acts such as buying used equipment rather than new, and eating less often in restaurants. Bottom line, don't buy what you don't need! That is smart money management.

3 - Money Must Be MADE Before It Gets Spent

When there is some large purchase you need to make in the future, begin by setting aside small bits of money in a savings account for that purchase and don't stop until you can pay for it with cash.

On a household level, if you have 10 years before your child enters college, then figure out how much the tuition costs will be and figure out how much moneyyou have to sock away every week to have the total amount just before they graduate from high school. Plus apply for every student scholarship, grant or financial aid package you can locate.

On a business level, if you need to upgrade or buy some equipment or furnishings 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 just before you will need to purchase those items. Plus look for every place you can locate to get the biggest discount possible.

4 - Put Away Some Cash for Emergencies and Living Expenses

You will sleep much better at night than the financial security of knowing you have money stashed away in savings for emergencies like having to get the car repaired, needing some unexpected dental work or losing a job. When you have a cushion of cash you can get your hands on immediately, then magically, you don't even worry about money, and your focus goes back on living life and enjoying it, and earning money suddenly gets easier.

The one thing you have to fear in a great depression is not having a cash cushion sitting in a savings plan you can get your hands on at a moments notice.

Did you know that more millionaires were made during The Great Depression in the United States than during any other era in our history? How did that happen? During that period, the economy bottomed out, the stock market dropped like a rock, prices went through the roof, the unemployment rate shot up like a rocket as businesses closed, and workers who lost their jobs also lost their homes.

The individuals who had cash stashed away were able to acquire homes, property and whole businesses for pennies on the dollar. Those people ended up being millionaires due to the fact that they had sufficient cash to survive the disaster called The Great Depression.

From every dime you earn, immediately carve off 10% and put it in a savings 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 cash cushion. No moaning, groaning and saying you can't, JUST DO IT! As the weeks and months roll by you'll find you are sleeping better and are walking through life with greater confidence knowing you are on your way to financial freedom and have protected yourself from The Great Depression looming on the horizon.

Why is controlling the flow of your money so important? Money is the energy and life blood of a household or business. It is vital to pump some of it through the income producingareas first to keep it running well, and also to set aside some of it for future survival. Everything runs better when enoughcash is available. The Money Management Solutions software guides you towards making the best possible decisions about how to use your money to make more money.