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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 are some steps to take starting now.

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.

ForgetDon't pay attention to what the media says about 'economics' when they report on the ups and downs of the stock market, product shortages and demand increases, rising prices, 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 can control is your own business and personal economics. The definition of the word economics I am talking about is the original one; meaning 'the art or science of managing a business or household.' And that is something that you do have control over.

There is an art to managing a business or household. It is necessary to have certain skills and abilities, for example, organizing things so they run smoothly. There is a science of managing a company or household, especially in the area involving money. Here is what you can do to make sure that the economics of your household or company are stable and strong, despite the fact the world economy may be on the slippery slide to disaster.

1 - Use CASH Not Credit

Every time you make a purchase using credit cards that you hope to be able to pay for later, you are promising your future earnings to the credit company. That future income will undoubtedly 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.

The only exception is purchasing property that grows in value, for example buying a home instead of renting, or investing in a commercial building that puts more income in your pocket. 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 one with the cash is the king. Another item worth a mention is, work out how to buy wholesale instead of retail to further lower your cost.

2 - Don't Spend More Than You Earn

Learn from your parents or grandparents who earned a small amount, but lived very well. Keep expenses down to less than you earn. The fastest road to financial disaster is spending more than you make. It's possible to maintain your quality of life while cutting out discretionary spending. It can be achieved 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! That is smart money management.

3 - Make It BEFORE You Spend It

When there is an expensive item you need to purchase in the future, start putting away small amounts of cash in a savings account for that purchase and don't stop until you have the cash to pay for it.

On a household level, if your child will be entering college in 10 years, then work out what the cost of tuition will be and figure out how much cashyou have to set aside 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 locate.

On a company level, if you need to upgrade or buy some furnishings or equipment for your business , then work out what the costs will be and figure out how much cashyou have to stash away every week to have the full amount just before you will need to purchase those items. Plus look for each avenue you can locate to get the biggest discount possible.

4 - Stash Some Cash for Emergencies and Living Expenses

Nothing will make you sleep better at night than the financial freedom of knowing you have money stashed away in savings for emergencies like needing to repair the car or an office machine, needing some unexpected dental work or losing a job. When you have a cash cushion you can immediately use, then magically, you stop worrying about the money, and your attention returns to 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 a cash cushion sitting 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 bottomed out, the stock market took an enormous dive, prices went through the roof, the unemployment rate shot up like a rocket as businesses closed, and people who no longer had a job also lost their homes.

The people who had cash set aside were able to acquire houses, land and entire businesses for pennies on the dollar. They ended up being millionaires because they had sufficient cash to survive the disaster 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 cash cushion. Even if you have to work an extra job and cut expenses on top of that to build your cushion of cash. No moaning, groaning and saying 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 controlling your financial destiny 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 necessary to channel some of it through the income producingareas first to keep it running smoothly, and also to put away some of it for future survival. Everything runs smoother when enoughcash is available. Our Money Management Software guides you towards making the most advantageous decisions about how to use your income to make more money.