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Do the signs that The Great Depression may be coming again have you worried? Are you wondering how to achieve financial freedom so you can protect yourself from the coming financial crash? Here is what you need to know.

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 discuss the roller coaster ride of the stock market, product shortages and demand increases, rising prices, banking industry mortgage defaults and unemployment statistics. Those are 'economic characteristics' that guage an area that is bigger than you can control.

What you are able to control is your own business and household 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 CAN control.

There is an art to managing a business or household. It takes having certain 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 guarantee that the economics of your household or company are stable and strong, even though the general economy is on a downhill slide to disaster. 1 - Pay With CASH

Whenever you buy something using lines of credit or credit cards that you cannot pay off as soon as the statement arrives, you are committing your future income to the credit company. Those future earnings will undoubtedly be needed to pay your regular business or household expenses. That's when you end up in economic slavery known as the credit trap. An exception is buying property that increases 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 the king. In addition, work out how to buy wholesale rather than paying retail prices to lower your cost even more.

2 - Don't Spend More Than You Earn

Take a lesson from your grandparents or parents who made very little, but lived well. Keep expenses down to less than you earn. The fastest route to financial disaster is spending more than you make. It's possible to maintain your quality of life while reducing optional spending. It can be done by acts such as buying used equipment rather than new, and eating less often in restaurants. 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 some future large purchase you need to make, begin by putting away small amounts of cash in a savings account for that purchase and keep that up until you can pay for it with cash. On a household level, if your child will be entering college in 10 years, then work out what the tuition costs will be and figure out how much cashyou have to put away every week to have the full amount the year they graduate from high school. Plus turn in applications for every student scholarship, grant or financial aid package you can locate. On a company level, if you need to upgrade or buy a equipment for your operation , then work out what the cost of that will be and figure out how much cashyou have to set aside every week to have the full amount just before you will need to make that purchase. Plus look for every avenue you can locate to get the lowest cost possible. 4 - Sest Aside Some Money for Operating Expenses and Emergencies

You will sleep much better at night than the financial freedom of knowing you have money set aside in savings for emergencies like having to repair an office machine or get your car fixed, needing 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 one thing you have to be afraid 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. 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. How did that happen? During that period, the economy crashed, the stock market crashed, inflation took prices of everything through the roof, unemployment figures skyrocketed as businesses closed, and people who lost their jobs also lost their homes.

The people who had cash set aside were able to acquire homes, property and whole companies for pennies on the dollar. They became overnight millionaires due to the fact that they had sufficient cash to survive the disaster called The Great Depression.

Out of every bit of income that comes in the door, immediately set aside 10% and stash it in an interest bearing account that you have earmarked for your cash cushion. Perhaps you'll have to cut expenses AND work an extra job to build your cushion of cash. No no moaning about how 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 greater confidence knowing you are controlling your financial destiny 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 company. 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 adequatecash 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.

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