Do the signs that The Great Depression may be coming again have you worried? Are you trying to figure out how to protect yourself if the financial system crashes? Here are some things you can do.

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 pay attention to the media reports about 'economics' when they report on the ups and downs of the stock market, shortages of supply against demand, rising prices, mortgage foreclosures by the banks and the unemployment rate. Those are 'economic representatives' that evaluate an area that is bigger than you can personally control.

What you do have control over is your own personal and business economics. The definition of the word economics I am talking about 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 requires specific skills and abilities, for example, organizing things so they run smoothly. There is a science of managing a household or business, especially in the money area. Here are some things that you can do to make sure that the economics of your household or company are stable and strong, despite the fact the country's economy may be on the slippery slide to disaster. 1 - Use CASH Not Credit

Every time 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 income to the the credit card company. That future income 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 purchasing property that grows 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: When paying with cash, negotiate a big cash discount. When the economy is spiraling down and credit is harder to get, the person who has the cash is king. In addition, figure out how to buy items wholesale rather than retail to keep even more of your hard-earned money.

2 - Don't Spend More Than You Earn

Take a lesson from your grandparents who earned a small amount, but lived very well. Keep expenses down to less than you earn. The most direct route to money disasters is spending more than what you earn. It's possible to keep a good quality of life while reducing discretionary spending. It can be accomplished by doing something as simple eating out less, and buying used equipment instead of buying new. Don't buy something because you only want it, but don't really need it. It's just a plain good money management practice.

3 - Make It BEFORE You Spend It

If there is an expensive item you need to purchase in the future, start stashing 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 your child will be entering college in 10 years, then figure out how much the tuition costs will be and figure out how much moneyyou have to set aside every week to have the full amount the year they graduate from high school. Plus apply for each student financial aid package, scholarship and student grant you can find. On a company level, if you need to purchase or upgrade some equipment or furnishings for your operation , then figure out how much the cost of that will be and figure out how much moneyyou have to set aside every week to have the full amount just before you will need to purchase those items. Plus search for each place you can find to get the best deal possible. 4 - Put Away Some Savings for Operating Expenses and Emergencies

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 having to repair an office machine or get your car fixed, having to have some unexpected dental work or losing a job. 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 returns to living life and enjoying it, and making money suddenly gets easier.

The one 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 those years, the economy took a nose dive, the stock market took an enormous dive, prices went through the roof, the unemployment rate shot up like a rocket as companys shut down, and people who lost their jobs also lost their homes.

The individuals who had cash set aside were able to buy houses, land and entire companies for pennies on the dollar. Those individuals became overnight millionaires because they had sufficient cash to survive the disaster called The Great Depression.

From every dime you earn, immediately carve off 10% and put it in a savings 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 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 are sleeping better and are walking 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 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 vital to pump some of it through the income producingareas first to keep it running smoothly, and also to set aside 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 money to generate more profits and build wealth.

Sandra Simmons, President of Money Management Solutions, has years of experience helping professionals and families manage their income to reach their financial goals. To learn more about the Money Management Software she created, watch the FREE 5-minute demo video on her website at www.MoneyMgmtSolutions.com