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 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 says about 'economics' when they talk about the ups and downs of the stock market, product shortages and demand increases, price increases, mortgage foreclosures by the banks 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 personal and business 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 is necessary to have specific abilities and skills, 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 is what you can do to guarantee that the economics of your household or business are stable and strong, even though the world economy may be on the slippery slide to disaster.

1 - Pay With CASH

Every time you purchase something using credit cards or lines of credit 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 regular business or household expenses. That is committing yourself into the hands of an economic slavemaster called the credit card trap.

An exception is purchasing property that increases in value, like 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 king. Another item worth a mention is, find out how to buy wholesale rather than paying retail prices to lower your cost even more.

2 - Spend Less Than You Make

Take a lesson from your parents or grandparents who earned little, but lived well. Cut expenses to a level below what you earn. The fastest route to disaster in the finance area is spending more than you make. You can keep a good quality of life while reducing discretionary spending. This 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

If there is some future large purchase you need to make, begin by stashing small bits of money in a savings account towards that purchase and don't stop until you can pay cash.

On a personal level, if your child will be entering college in 10 years, then find out how much the cost of tuition will be and find out how much moneyyou have to sock away every week to have the full amount the year they graduate from high school. Plus turn in applications for each student scholarship, grant or financial aid package you can find.

On a company level, if you will need to upgrade or buy some furnishings or equipment for your business , then find out how much the costs will be and find out how much moneyyou have to stash away every week to have the full amount just before you will need to make that purchase. Plus search for each place you can find to get the biggest discount possible.

4 - Sest Aside Some Money for Operating Expenses and Emergencies

Nothing will make you sleep better at night than the financial security of knowing you have some cash stashed away in savings for emergencies like needing to repair the car or an office machine, having to have some unexpected dental work or losing a job. When you have a stash of cash you can get your hands on immediately, then magically, you stop worrying about 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 cash reserves tucked away 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 was that possible? During those years, the economy crashed, the stock market dropped like a rock, prices went through the roof, the unemployment rate went sky high as companys shut down, and workers who lost their jobs also lost their homes.

The individuals who had cash stashed away were able to acquire houses, land and entire companies for pennies on the dollar. They ended up being millionaires due to the fact that they had enough cash to weather the storm called The Great Depression.

From every dime you earn, immediately carve off 10% and put it in a savings account that you have earmarked 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 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 walk through life with a lot more 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 so important to be in control of the flow of your money? 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 smoothly, and also to save some of it for future survival. Everything runs smoother when enoughcash is available. The Money Management Solutions software guides you towards making the correct decisions about how to use your income to generate more profits and build wealth.

Sandra Simmons, President of Money Management Solutions, has years of experience helping business owners and private individuals manage their money to achieve their financial golas. 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