by Brian Lamacraft

Created on: February 23, 2009

The economy is in a dire situation and people around the world are in tough positions. Homes and jobs are being lost and people are worried about the future. There are some steps you can take right now to survive this economic crunch.

Budgeting

If you have never used a budget now is the time to put one into place. Write down all your finances and figure out just where your money is going. Put your bills first and try to pay them in full each month. If you find yourself short on cash, pay the maximum you can afford. Your budget can really help you save money and should be used by everyone. Your budget should include all sources of income. Take a notepad or personal device with you when you go out and record every single expense you make on any given day.

Make a Plan For Job Loss

There may come a time in the future when you might lose your job. Start planning right now about how you are going to deal with this situation. Start writing out a new resume so you can be ready to go if you are forced to change jobs. You may need to take additional training or courses, take on two lower income jobs to pay the bills, or work in places you have never thought of before. You need to think of these situations and make up a plan. Job loss can be very stressful, so be prepared.

Emergency Money

Try to put aside some money for emergencies such as unexpected job loss. Leave this money alone and only use it when you need to. Put it in a bank account that is separate from any other account or keep it in a locked safe at home.

Expenses

Now is the time to look at what you spend your money on. Things such as cell phone service, dining out, magazine subscriptions, and entertainment can put a huge dent in your pocketbook. Cut back on some of these things and put this money towards your emergency cash. This may include tough decisions such as taking a phone away from a child. Explain to them that it is necessary in the economic climate. You can always shop for lower cost plans or limit the time on the phone.

Food and Shopping

Pay attention to sales flyers and shop for your food when it goes on sale. Things such as case lots, warehouse meats and other larger purchases can help you save money. This items can be broken up and the extra portions can be used later. Look to discount stores and other places to make purchases. Many products are sold higher just based on the brand name. You can often get the same thing with a lesser known product name.

Impulse Buying

Cut out the urge to spend just to have

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