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 is what you need to know.

First, you need to understand the meaning of the word 'economics' as it relates to your own business or personal finances, and ways you can use that as a financial advantage.

Don't pay attention to the media reports about 'economics' when they talk about the roller coaster ride 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 single-handedly control.

What you do have control over is your own business and personal 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 that is something that you CAN control.

There is an art to managing a business or household. It requires certain skills and abilities, such as putting in organization so things run better. There is a science of managing a business or household, especially in the money area. Here is what you can do to ensure that the economics of your household or business are stable and strong, even though the country's economy is headed on a downhill run towards disaster. 1 - Pay With CASH

Whenever you make a purchase using lines of credit or credit cards that you cannot pay off as soon as the statement arrives, you are promising your future earnings 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. The only exception is purchasing property that increases in value, like purchasing a second home or some commercial real estate that you can rent out to make more money. Using your money to make more money is smart money management.

Tip: Be sure you negotiate a big discount when you pay with cash. When the rest of the world is on the downhill run to economic disaster and credit is difficult to obtain, the person who has the cash is the king. Another item worth a mention is, find out how to purchase items wholesale rather than retail to further lower your cost.

2 - Don't Spend More Than You Earn

Learn from your grandparents who earned a small amount, but lived well. Cut expenses to a rate that is less than your income. The quickest route to disaster in the finance area is spending more than what you earn. You can maintain your quality of life while reducing optional spending. This can be accomplished 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 - Money Must Be MADE Before It Gets Spent

When there is an expensive item you need to purchase in the future, begin by putting away small amounts of cash in a savings account towards that purchase and keep that up until you can pay for it with cash. On a household level, if you have 10 years before your child enters college, then find out what the tuition costs will be and find out how much cashyou have to put away every week to have the full amount just before they graduate from high school. Plus turn in applications for every student scholarship, grant or financial aid package you can locate. On a company level, if you will need to purchase or upgrade some furnishings or equipment for your business , then find out what the cost of that will be and find out how much cashyou have to put away every week to have the full amount the month you will need to make that purchase. Plus look for every avenue you can locate to get the lowest cost possible. 4 - Sest Aside Some Savings for Emergencies and Living Expenses

Nothing will make you sleep better at night than the financial security of knowing you have some cash set aside 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 cushion of cash you can get your hands on immediately, 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 one thing you have to be scared of in a great depression is not having a cash cushion sitting in a savings plan you can immediately get your hands on. 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 that period, the economy bottomed out, the stock market dropped like a rock, inflation took prices of everything through the roof, the unemployment rate went sky high as businesses closed, and individuals who no longer had a job also lost their homes.

Those who had cash set aside were able to acquire houses, land and whole businesses 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 each dollar you make, immediately carve off 10% and put it in a savings account that you have earmarked for your cushion of cash. 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 sleep better at night and are walking through life with greater confidence knowing you are controlling your financial destiny 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 business or household. 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 adequatecash is available. Our Money Management Software guides you towards making the correct decisions of how to use your income to make more money.