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 says about 'economics' when they report on the gyrations of the stock market, product shortages and demand increases, price increases, mortgage foreclosures by the banks and unemployment statistics. Those are 'economic features' that evaluate an area that is bigger than you can control.

What you can control is your own business and personal economics. The definition of economics I am referring to is the original one; meaning 'the art or science of managing a business or household.' And those are areas that you CAN control.

There is an art to managing a business or household. It is necessary to have certain abilities and skills, such as organizing things so they run smoothly. There is a science of managing a household or business, especially in the money area. Here is what you can do to make sure that the economics of your business or household are strong and stable, even though the general economy is on a downhill slide to disaster. 1 - Pay With Cash Not With Credit

Each time you make a purchase using credit cards or lines of credit because you don't have the money to pay for it, you are committing your future income to the credit company. Those future earnings will be needed to pay your your regular company or home expenses. That is committing yourself into the hands of an economic slavemaster called the credit card trap. The only exception is buying 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. 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, find out how to buy wholesale rather than paying retail prices to lower your cost even more.

2 - Keep Spending Levels UNDER Income Levels

Take a lesson from your grandparents who earned little, but lived well. Reduce expenses to a level below what you earn. The fastest road to disaster in the finance area is spending more than you make. You can maintain your quality of life while eliminating discretionary spending. This can be done by doing something as simple eating out less, and buying used equipment instead of buying new. 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 an expensive item you need to purchase in the future, start putting away small bits of money in a savings account towards that purchase and don't stop until you can pay cash. On a household level, if you have 10 years before your child enters college, then find out how much the tuition costs will be and work out how much moneyyou have to sock away every week to have the full amount the year 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 need to purchase or upgrade a furnishings or equipment for your operation , then find out how much the cost of that will be and work out how much moneyyou have to put away every week to have the full amount the month you will need to purchase those items. Plus search for each place you can find to get the lowest cost possible. 4 - Stash Some Money for Emergencies and Living Expenses

Nothing will make you sleep better at night than the financial security of knowing you have some cash tucked away in savings for emergencies like having to get the car repaired, needing some unexpected dental work or experiencing a big drop in income. When you have a cash cushion you can get your hands on immediately, then magically, you don't even worry about money, and your attention returns to living life and enjoying it, and making money suddenly gets easier.

The one thing you have to be scared 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 that period, the economy took a nose dive, the stock market took an enormous dive, inflation drove prices sky-high, the unemployment rate went sky high as businesses closed, and people who lost their jobs also lost their homes.

Those who had cash set aside were able to purchase homes, property and entire businesses for pennies on the dollar. Those people became overnight millionaires because they had sufficient cash to survive the disaster called The Great Depression.

Out of each dollar you make, 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 sleep better at night 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 vital 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 plenty ofcash is available. Our Money Management Software guides you towards making the most advantageous decisions about how to use your money to increase your income and bottom line.

Sandra Simmons, President of Money Management Solutions, has years of experience helping company owners and individuals manage their income to achieve financial freedom. To find out about the Money Management Software she created, watch the FREE 5-minute demo video on her website at www.MoneyMgmtSolutions.com