There are very few people these days that will say that they are not in financial difficulty of some sort. Some are down and out, without a job or other means of income, some are just making ends meet – barely – and others are just worried that, when things get worse, they will find themselves destitute. These are not happy times. We have become so decadent in our living standards, and so inept to handle any disruption in our daily routines, that anxiety has become a constant companion to most of us. People cling to their computers and cell phones as if these things were the hand of God, unaware that common sense would take them a good deal further than mechanical junk. As a population we have become inextricably connected to hedonistic pursuits without a plan to pay the phone bill. At this level of stupidity, how could things NOT get worse?

Having a contingency plan is a good idea, no, a great idea. What are you going to do, if and when, things get worse than they are now? The time to act is now, not when the axe falls. The easiest thing to handle is money. We can have lots of it or very little, but the handling of it is the same. Everyone should understand that more money is better than less money and, if you want to have some money tomorrow, you had better start saving as much as you can today. Most people argue that they can’t even pay the bills at the end of the month, so how are they supposed to save money that they don’t have? The answer, oddly, is very simple. Just reverse the order of your monthly payment schedule. Most people get their paycheck, deposit it in their bank account and then proceed to pay their mortgage, buy groceries, and so on. If there is anything left after the bills are paid, that is what can be saved. Sounds fine if you have lots of money flowing in each month, but what happens when there’s more month left after the money is used up? Not only no savings, but also an increase in worry and anxiety. Not a good method.

Here’s a better way. When your check gets deposited in your bank account, take ten percent of the funds and transfer it to another account – a savings account. Yes, I know that there are not any savings accounts that are worth anything anymore, but at least the money will be safe for the time being. From this account you spend nothing! This is your "just in case" cushion account. Make a list of possible disasters that could befall you or your family. Things like a serious medical problem, storm damage to your house that insurance doesn’t cover, car repair of the only vehicle that you have for getting to work, or other similar calamities, might be on this list. This account is for extreme emergencies only; no trivial nonsense, like school payments, toys, cell phones, latte’s, or clothes will appear on this list. The only time that you are allowed to access this savings account is when you or a family member is in a position of last resort. "But", you say, "what about all the bills that I have to pay with the remaining ninety percent of the money? I can’t pay them with a hundred percent of the paycheck."

Get rid of some of the extra crap upon which you are wasting your money. If you are concerned about buying food for your family, you must be smart enough to stop buying junk, like designer coffee, fancy clothes, toys for your office or car, and eating out at restaurants. When you sit down with pencil and paper (not a computer) you get very close with your method of living. How much of your paycheck are you wasting on toys and activities that really do not enhance your life. There are lots of things on this list, I can assure you! In point of fact, I will wager that most of the little things that you spend your money on are a waste of resources. Decide what is necessary for your family to eat, to be housed, to be clothed, and to be transported. Nothing else really matters. You will notice, if you do this exercise honestly, that you will have a lot more money than you ever thought possible. The ninety percent left from your paycheck will probably cover all bills and expenses with some left over. Hey, you could add the extra money to your savings account cushion:)