Worried about the possibility of The Great Depression happening again? Are you wondering how to achieve financial freedom so you can protect yourself from the coming financial crash? Here are some steps to take starting now.

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.

Forget what the media spews out about 'economics' when they talk about the roller coaster ride of the stock market, product shortages and demand increases, rising prices, banking industry mortgage defaults and the unemployment rate. Those are 'economic characteristics' that guage an area much larger than you can personally control.

What you can control 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 business or household.' And those are areas that you do have control over.

Managing a business or household is an art. It requires specific abilities and skills, such as putting in organization so things run better. There is a science of managing a company or household, especially in the area involving money. Here is what you can do to guarantee that the economics of your business or household are strong and unshakable, despite the fact the world economy is headed on a downhill run towards disaster. 1 - Pay With Cash Not With Credit

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 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 exception is purchasing property that increases in value, like buying a home instead of renting, or investing in a commercial building that puts more income in your pocket. It's plain smart money management to use your money to earn even more money.

Tip: When paying with cash, negotiate a big cash discount. When the rest of the world is on the downhill run to economic disaster and credit is difficult to obtain, the one who has the cash is king. Additionally, figure out how to buy wholesale rather than paying retail prices to keep even more of your hard-earned money.

2 - Spend Less Than You Make

Take a lesson from your grandparents or parents who earned a small amount, but managed to live well. Keep expenses down to a rate that is less than your income. The fastest route to financial disaster is spending more than what you earn. It's possible to keep a good quality of life while cutting out optional spending. This can be accomplished by acts such as buying used equipment rather than new, and eating less often in restaurants. 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 the Money BEFORE Spending It

When there is some future large purchase you need to make, start setting aside small amounts of cash in a savings account towards that purchase and don't stop until you can pay cash. On a personal level, if you have 10 years before your child enters college, then figure 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 the year they graduate from high school. Plus turn in applications for every student financial aid package, scholarship and student grant you can find. On a company level, if you need to upgrade or buy a furnishings or equipment for your operation , then figure out how much the costs will be and figure out how much cashyou have to stash away every week to have the total amount just before you will need to make that purchase. Plus look for every avenue you can find to get the best deal possible. 4 - Put Away Some Cash for Operating Expenses and Emergencies

Nothing will make you sleep better at night than the financial freedom of knowing you have some cash tucked away in savings for emergencies like having to repair an office machine or get your car fixed, having to have 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 stop worrying about the money, and your focus 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 some money set aside 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 crashed, the stock market crashed, prices went through the roof, unemployment figures shot up like a rocket as companys shut down, and people who lost their jobs also lost their homes.

The people who had cash set aside were able to purchase homes, 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 every bit of income that comes in the door, 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 walk through life with a lot more confidence knowing you have achieved financial freedom and have protected yourself from The Great Depression looming on the horizon.

Why is controlling the flow of your money so important? It is the energy and life blood of a household or business. It is necessary to pump some of it through the money makingareas first to keep it running well, and also to set aside some of it for future survival. Everything runs much more smoothly when enoughcash is available. Our Money Management Software guides you towards making the best possible 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 achieve their financial golas. To learn more about the Money Management Software she created, visit her website and watch the FREE 5-minute demo video at www.MoneyMgmtSolutions.com