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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 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 even think about the media reports about 'economics' when they report on the roller coaster ride of the stock market, product shortages and demand increases, inflation, banking industry mortgage defaults and unemployment statistics. Those are 'economic representatives' that guage an area much larger than you can personally control.

What you can control is your own personal and business 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 that is something that you do have control over.

Managing a business or household is an art. It takes having certain skills and abilities, for example, putting in organization so things run better. There is a science of managing a business or household, especially in the area of money. Here is what you can do to ensure that the economics of your business or household are strong and stable, despite the fact the general economy is headed on a downhill run towards disaster. 1 - Use CASH Not Credit

Every time you buy something 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 regular business or household expenses. That is committing yourself into the hands of an economic slavemaster called the credit card trap. The exception is buying property that grows in value, such as 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: 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 person with the cash is king. Another item worth a mention is, work out how to purchase items wholesale instead of retail to further lower your cost.

2 - Don't Spend More Than You Earn

Learn 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 most direct route to financial disaster is spending more than what you earn. It's possible to maintain your quality of life while cutting out optional spending. It can be accomplished 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! It's just a plain good money management practice.

3 - Money Must Be MADE Before It Gets Spent

When there is some large purchase you need to make in the future, start putting away small bits of money 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 you have 10 years before your child enters college, then work out how much the tuition costs will be and figure out how much cashyou have to sock away every week to have the total amount the year they graduate from high school. Plus apply for every student financial aid package, scholarship and student grant you can locate. On a company level, if you need to purchase or upgrade some equipment or furnishings for your operation , then work 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 purchase those items. Plus search for every 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 security of knowing you have some cash stashed away in savings for emergencies like having to repair an office machine or get your car fixed, requiring some unexpected dental work or experiencing a big drop in income. When you have a stash of cash you can get your hands on immediately, then magically, you stop worrying about the money, and your focus goes back on living life and enjoying it, and making 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 get your hands on at a moments notice. 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 did that happen? In that time, the economy crashed, the stock market crashed, inflation took prices of everything through the roof, unemployment figures shot up like a rocket as companys shut down, and individuals who no longer had a job also lost their homes.

Those who had cash put away were able to acquire houses, land and whole businesses for pennies on the dollar. Those individuals ended up being 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 set aside 10% and stash it in an interest bearing account that you have designated for your cushion of cash. Even if you have to work an extra job and cut expenses on top of that to build your cash cushion. No moaning, groaning and saying you can't, JUST DO IT! As the weeks and months 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 household or company. It is vital to channel 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 most advantageous decisions of how to use your money to make more money.

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