Money Mondays

Hard times spreading just like the flu
Watch out homeboy, don't let it catch you
P-p-prices go up, don't let your pocket go down
When you got short money you're stuck on the ground
Turn around, get ready, keep your eye on the clock
And be on point for the future shock

Run DMC

Hard times are nothing new, especially for folk who grew up with the plastic spoon in their mouth. However, this run on the economy we are facing is in some cases the first time many people have witnessed times of struggle. With the price of gas increasing weekly, things aren’t going to turn around anytime soon. So what can you do about it?

7 Steps to Beating Hard Times

1. Pay Down Debt – Your cash flow is your greatest asset in good and bad times and the more cash you have at your disposal in hard times the better. Get rid of unnecessary debt. Don’t take out any new frivolous debt. Travel light and reap the benefits.

2. Eliminate non-essentials – One of the things I've noticed lately is less people driving around in the streets. Traffic is really cutting back, at least around my way. Pretty soon, it won't be enough to just cut out short trips to the store. Soon, you may have to look at other things like eating out for lunch on the daily or getting that regular $4 cup of Starbucks. Either way, getting rid of non-essentials helps you put the kick back in your finances.

3. Consider cutting back – sometimes cutting back is better than cutting things completely out. Everybody wants to feel like they have a life, so cutting back can go a long way toward maintaining effective economics. Instead of cable and every movie channel conceivable, try living with basic cable and a library card. You'd be surprised what you'd gain by getting from out in front of the television so much.

4. Create or boost up your emergency fund – having an emergency fund keeps you from using those credit cards when you don’t need to. I mean, that is what you got the cards for in the first place right -- emergencies. This time try solving your problem with cash.

5. Re-examine your insurance deductibles – if/when you have an emergency fund in place you can carry higher deductibles thereby limiting your monthly/quarterly premiums. This allows you to put money back into your pocket.

6. Create a “blow” fund – when you are cutting back in other areas, make sure you reward yourself from time to time by building a blow fund into your budget. This goes back to feeling like you have a life. If everything is save-save and cut back, you may eventually feel like you can’t afford to live this new lifestyle. Do something nice for you and your family.

7. Stay hungry – some of our best ideas and opportunities are created when we stay hungry. Don’t get over confident in your job and don’t live too long on your last accomplishment. Staying hungry allows you to keep a fresh perspective and it keeps you on the hunt.



About the host:
Rich Fitzgerald is the author of the short story "One to Remember" featured in Love and Redemption (Bloggers' Delight Vol. 1), a collection of short stories by authors who blog. To read excerpts or to order a copy of the title, visit i-Lit. The book is also available on Amazon.