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

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.

Don't pay attention to the media reports about 'economics' when they talk about the gyrations of the stock market, product shortages and demand increases, inflation, mortgage foreclosures by the banks and the unemployment figures. Those are 'economic features' that measure an area that is bigger than you can 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 business or household.' And those are things that you do have control over.

Managing a business or household is an art. It is necessary to have certain skills and abilities, such as putting in organization so things run better. 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 make sure that the economics of your business or household are strong and stable, even though the general 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. That future income 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 buying property that grows in value, like 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: Be sure you negotiate a big discount when you pay with cash. When the economy is spiraling down and credit is harder to get, the person with the cash is the king. In addition, figure out how to buy wholesale instead of retail to lower your cost even more.

2 - Spend Less Than You Make

Take a lesson from your grandparents or parents who made very little, but managed to live well. Reduce expenses to a level below what you earn. The fastest route to money disasters is spending more than you make. It's possible to keep a good quality of life while reducing optional spending. This can be done 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! It's just a plain good money management practice.

3 - Make It BEFORE You Spend It

When there is some future large purchase you need to make, start putting away small amounts of cash in a savings account towards that purchase and don't stop until you have the cash to pay for it. On a household level, if you have 10 years before your child enters college, then figure out what the tuition costs will be and figure out how much moneyyou have to set aside 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 a equipment for your operation , then figure out what the cost of that will be and figure out how much moneyyou have to put away every week to have the total amount the month you will need to make that purchase. Plus search for every place you can locate to get the lowest cost 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 tucked away in savings for emergencies like needing to repair the car or an office machine, having to have 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 earning money suddenly gets easier.

The only thing you have to be scared of 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 did that happen? During that period, the economy crashed, the stock market took an enormous dive, inflation drove prices sky-high, unemployment figures went sky high as companys shut down, and individuals who no longer had a job also lost their homes.

The people who had cash stashed away were able to acquire houses, property and entire businesses for pennies on the dollar. Those people ended up being millionaires because they had the cash to weather the storm 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 cushion of cash. 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 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 so important to be in control of the flow of your money? It is the energy and life blood of a business or household. It is necessary 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 smoother when adequatecash is available. Our Money Management Software guides you towards making the correct decisions of how to use your money to make more money.