Recent Articles of Interest

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 is what you need to know.

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 spews out about 'economics' when they report on the ups and downs of the stock market, product shortages and demand increases, rising prices, banking industry mortgage defaults and unemployment statistics. Those are 'economic representatives' that measure an area much larger than you can personally control.

What you can control is your own business and household economics. The meaning of the word economics I am using is the original one; meaning 'the art or science of managing a household or business.' And those are areas that you do have control over.

Managing a business or household is an art. It takes having specific abilities and skills, for example, organizing things so they run smoothly. There is a science of managing a household or business, especially in the area involving money. Here are some things that you can do to guarantee that the economics of your household or business are stable and strong, despite the fact the country's economy may be on the slippery slide to disaster.

1 - Use CASH Not Credit

Each time you make a purchase using lines of credit or credit cards that you hope to be able to pay for later, you are committing your future income to the credit company. Those future earnings is guaranteed to be needed to pay your your regular company or home expenses. That's when you end up in economic slavery known as the credit trap.

An exception is purchasing property that increases in value, for example investing in some commercial property or buying a second home that you use to increase your income from rents collected. Using your money to make more money is smart money management.

Tip: When paying with cash, negotiate a big cash discount. When the rest of the world is on the downhill run to economic disaster and credit is difficult to obtain, the one who has the cash is king. Another item worth a mention is, find out how to buy items wholesale rather than retail to keep even more of your hard-earned money.

2 - Keep Spending Levels UNDER Income Levels

Take a lesson from your parents or grandparents who earned little, but lived very well. Keep expenses down to less than you earn. The quickest route to financial disaster is spending more than what you earn. It's possible to keep a good quality of life while reducing 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! That is smart money management.

3 - Make the Money BEFORE Spending It

When there is an expensive item you need to purchase in the future, start stashing small bits of money in a savings account towards that purchase and keep that up until you have the cash to pay for it.

On a personal level, if you have 10 years before your child enters college, then find out what the tuition costs will be and figure 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 each student scholarship, grant or financial aid package you can locate.

On a business level, if you will need to purchase or upgrade some equipment or furnishings for your operation , then find out what the costs will be and figure out how much cashyou have to stash away every week to have the full amount the month you will need to purchase those items. Plus look for each place you can locate to get the biggest discount possible.

4 - Put Away Some Savings for Emergencies and Operating Expenses

Nothing will make you sleep better at night than the financial freedom of having 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 stash of cash you can immediately use, then magically, you stop worrying about the money, and your attention returns to 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 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 was that possible? During that period, the economy bottomed out, the stock market took an enormous dive, inflation took prices of everything through the roof, unemployment figures went sky high as companys shut down, and individuals who lost their jobs also lost their homes.

The individuals who had cash set aside were able to purchase homes, property and whole companies for pennies on the dollar. They became overnight millionaires due to the fact that they had enough cash to weather the storm called The Great Depression.

Out of every bit of income that comes in the door, immediately carve off 10% and put it in a savings account that you have designated for your cushion of cash. Perhaps you'll have to cut expenses AND work an extra job 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 are sleeping better and walk through life with a lot more confidence knowing you have achieved financial freedom 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 business. It is vital to pump some of it through the money makingareas first to keep it running well, and also to put away some of it for future survival. Everything runs much more smoothly when enoughcash is available. Our Money Management Software guides you towards making the correct 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 families manage their income to achieve financial freedom. To learn more about the Money Management Software she created, visit her website and watch the FREE 5-minute demo video at http://www.moneymgmtsolutions.com