Articles, News and Resources

Do the current signs of The Great Depression have you worried? Are you thinking about ways to bullet-proof yourself before the financial crash? Here are some steps to take starting now.

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 discuss the roller coaster ride of the stock market, product shortages and demand increases, inflation, mortgage foreclosures by the banks and unemployment statistics. Those are 'economic representatives' that measure an area that is bigger than you can single-handedly control.

What you do have control over is your own business and household economics. The definition of 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 CAN control.

There is an art to managing a business or household. It requires specific skills and abilities, for example, putting in organization so things run better. There is a science of managing a household or business, especially in the money area. Here are some things that you can do to make sure that the economics of your business or household are stable and strong, even though the country's economy is headed on a downhill run towards disaster. 1 - Pay With Cash Not With Credit

Each time you purchase something using lines of credit or credit cards because you don't have the money to pay for it, you are promising your future income to the the credit card company. Those future earnings will undoubtedly be needed to pay your regular business or household expenses. That is committing yourself into the hands of an economic slavemaster called the credit card trap. The exception is buying property that increases in value, such as 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 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. In addition, work out how to purchase items wholesale instead of paying retail prices to lower your cost even more.

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 a rate that is less than your income. The fastest route to money disasters is spending more than you make. It's possible to maintain your quality of life while eliminating optional spending. It can be done 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 It BEFORE You Spend It

When there is an expensive item you need to purchase in the future, begin by setting aside small bits of money in a savings account towards that purchase and don't stop until you can pay for it with cash. On a personal level, if you have 10 years before your child enters college, then work out what the cost of tuition will be and work out how much cashyou have to set aside 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 find. On a business level, if you will need to purchase or upgrade some furnishings or equipment for your operation , then work out what the cost of that will be and work 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 search for each avenue you can find to get the best deal possible. 4 - Put Away Some Cash for Emergencies and Operating Expenses

Nothing will make you sleep 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, having to have some unexpected dental work or losing a job. When you have a cushion of cash you can immediately use, then magically, you stop worrying 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 some money set aside in a savings plan you can immediately get your hands on. 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 those years, the economy bottomed out, the stock market took an enormous dive, inflation drove prices sky-high, the unemployment rate skyrocketed as companys shut down, and people who no longer had a job also lost their homes.

The people who had cash stashed away were able to acquire houses, property and whole businesses for pennies on the dollar. Those individuals ended up being millionaires because they had enough 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 designated for your cushion of cash. Perhaps you'll have to cut expenses AND work an extra job 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 it vital for you to have enough control over the flow of your money? Money is the energy and life blood of a household or business. It is necessary to channel 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 best possible decisions about how to use your income to generate more profits and build wealth.