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Do the current signs of The Great Depression have you worried? Are you trying to figure out how to protect yourself if the financial system crashes?Are you thinking about ways to bullet-proof yourself before the financial crash? Here is what you need to know.

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.

ForgetDon't pay attention to what the media spews out about 'economics' when they talk about the roller coaster ride of the stock market, shortages of supply against demand, inflation, banking industry mortgage defaults and unemployment statistics. Those are 'economic representatives' that measure an area much larger than you can control.

What you do have control over is your own business and household economics. The definition 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, as an individual, can control.

There is an art to managing a business or household. It takes having specific abilities and skills, such as organizing things so they run smoothly. There is a science of managing a company or household, especially in the money area. Here is what you can do to ensure that the economics of your household or company are strong and unshakable, even though the world economy is on a downhill slide to disaster.

1 - Use CASH Not Credit

Whenever you purchase something using credit cards or lines of credit because you don't have the money to pay for it, you are promising your future earnings to the credit company. Those future earnings is guaranteed to be needed to pay your regular household or business operating expenses. That's when you end up in economic slavery known as the credit trap.

An exception is buying property that increases in value, for example 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 economy is spiraling down and credit is harder to get, the guy with the cash is king. Additionally, work out how to buy wholesale rather than retail to lower your cost even more.

2 - Keep Spending Levels UNDER Income Levels

Learn from your grandparents who earned little, but managed to live well. Reduce expenses to a rate that is less than your income. The quickest road to financial disaster is spending more than what you earn. You can keep a good quality of life while eliminating optional spending. This 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 - Money Must Be MADE Before It Gets Spent

If there is some future large purchase you need to make, start setting aside small amounts of cash in a savings account for that purchase and keep that up until you can pay cash.

On a personal level, if your child will be entering college in 10 years, then work out how much the cost of tuition will be and figure out how much cashyou have to set aside every week to have the total amount just before they graduate from high school. Plus apply for every student financial aid package, scholarship and student grant you can find.

On a company level, if you need to upgrade or buy some furnishings or equipment for your business , then work out how much the cost of that will be and figure out how much cashyou have to put away every week to have the total amount the month you will need to purchase those items. Plus look for every avenue you can find to get the biggest discount possible.

4 - Sest Aside Some Cash for Emergencies and Living Expenses

You will sleep much better at night than the financial freedom of having 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 experiencing a big drop in income. When you have a cash cushion you can immediately use, then magically, you don't even worry 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 fear in a great depression is not having some cash reserves tucked away 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. Want to know how that happened? During that period, the economy crashed, the stock market crashed, inflation drove prices sky-high, unemployment figures skyrocketed as businesses closed, and individuals who no longer had a job also lost their homes.

The people who had cash set aside were able to acquire homes, land and entire companies for pennies on the dollar. Those people ended up being millionaires due to the fact that they had sufficient cash to weather the storm called The Great Depression.

Out of every bit of income that comes in the door, immediately carve off 10% and put it in a savings account that you have designated 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 weeks and months 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 so important to be in control of the flow of your money? Money is the energy and life blood of a business or household. It is necessary to channel 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 much more smoothly when enoughcash is available. Our Money Management Software guides you towards making the most advantageous decisions about how to use your income to generate more profits and build wealth.