Wise Financial Management during Tough Economic Times

Avoid debt. Learn self-restraint by spending less money than you make and saving money to purchase what you need. Avoid debt except for vital needs, education and the purchase of a modest home. If in debt, try to pay it off quickly.

Use a budget. Keep a record of your monthly income and expenses. With this information, set up a family budget. Establish how much you will save, how much you will spend for food, housing, insurance, utilities, etc. Reduce what you spend on things that are not necessary.

Teach family members early the importance of working and earning. Children should be responsible for the decisions that affect their own money and face the consequences of their bad spending. As your children mature, help them understand the family financial situation, budget goals and their individual responsibility within their families.

Work toward home ownership. Improve the home you acquire so you can use the accumulated equity for a better home if you decide to sell it.

Appropriately involve yourself in an insurance program to avoid the significant debts place upon families when they are uninsured.

Involve yourself in a food storage and emergency preparedness program. Planting and harvesting a garden annually can help the family budget and encourage food storage.

Build a reserve. Accumulate savings little by little and use it for emergencies only.

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