Watch the news and it becomes quickly apparent that the U.S. economy is making it difficult for many people to get by. But there are ways to pull yourself through this time. First, recognize that this is only temporary, and the economy will eventually pull out of its downturn, and start improving (some experts argue that the worst has already passed).

Don't simply move on now, really stop and convince yourself that things will improve.

Now that you feel better, its time to get to work. Start by figuring out your monthly income. The easiest way to start improving your financial situation is to recognize that your expenses should not be more than your income. If you aren't careful, purchasing things on credit is a sure-fire way to get yourself into monetary trouble. Big purchases like homes, cars and furniture are the only things that should be put on credit cards - and only if you have done the proper planning to map out a repayment plan. If you absolutely must use a credit card, use it on tangible goods that remain with you, such as clothes or groceries. Don't use a credit card on fast food - it is gone within ten minutes, and you are left with nothing to show for your purchase. Above all, don't let your credit balance become out of control. Make sure you can make a significant payment each month, not just the minimum payment. If you can't, STOP USING THE CARD!

Now that you have your monthly income figured, determine the fixed expenses for each month, such as cable, phone, car, rent, and in some cases, electric. These bills usually won't change, so you can plan on spending X amount of dollars each month. Next, think about the things you buy regularly, but spend different amounts on. Examples would be gasoline or groceries. Estimate your monthly expense for these types of items the best you can. Also think about credit cards, and other debts you have to pay off. These are the most crucial things you need to worry about putting your money towards.

Next, allocate a good portion of what is left to savings. Whether this is just a bank savings account, or a more involved method of investing, it is imperative to have some money set aside for emergency car bills, medical bills, or other expenses. These savings are also a good place to work towards some kind of reward, such as a vacation, or night out.

If you find you have very little money left after doing what is outlined above, you may just have to give up some luxuries for a little while. Realize

• 1
• 2
• next page >>

---

Add your voice

Know something about Surviving the economic crunch: What can you do??
We want to hear your view. Write now!