2010 is gone forever, but some of the damage will live on in infamy! Job losses were at an all-time high during 2010, the housing market continued its downward spiral, gold went up, the dollar went down, and China bought up American debt in record quantities.
There are a lot of people talking about how you can hedge your bets against this economy. How recession-proof are you? What small steps have you taken to be a little more prepared if inflation hits, if the costs of goods and services go up and your dollar doesn't go quite as far as it used to go?
Although there isn't a lot the average family can do to protect themselves from the possibilities of inflation, there are some good, common sense steps you can take.
Obviously, the ability to weather any financial storm depends on how prepared you are when the storm hits. Look around your house. Where can you make some small changes? Is your family willing to make certain sacrifices?
Instead of going to dinner and a movie, could you pick up a take-n-bake pizza and rent a movie? Make it fun for your family. Get a "do-it-yourself" pizza and let the kids pick the toppings. Not taking a family of four to dinner and a movie each week frees up a lot of cash in a month. This is cash that can be put into savings, or used to pay down some of your current debt.
Are you using your credit cards like an extension of your paycheck? You need to think of credit cards as emergency money only! Get your balances paid down so that you have some reserves in the event of an emergency. Pay down the cards with the highest interest rates first, and pay down as much as you can every month. Make yourselves a deal: If you can't pay cash for something and it's a "want" and not a "need" then save up for it. You don't want to be in a situation where you can't get something you need because of all the things you wanted!
Do you have the ability to purchase certain foods in bulk and store and rotate them? This could save money on items as food costs rise. Food storage is becoming a huge trend for a reason.
Do you have a bartering network in your neighborhood? Can you trade services for labor or vice-versa? Do you have a website in your area for swapping gently used toys, books, clothes, furniture, etc. If you don't have one, is it feasible to start one?
Are you a successful gardener? Do you can your fruits and vegetables? Can you sell those in your neighborhood, at a farmer's market or farm stand? Not everyone is a successful gardener and people love canned fruits and vegetables. Is this a viable option for you to make some additional income?
Are you crafty? Would it make sense for you to sell some of your crafts? If you have people telling you how much they love the items you've made, you should look into selling them. Not everyone is crafty, but almost everyone likes crafted gifts! Can you sell your items at craft shows, farmer's markets, online?
Do you eat lunches out often? Are you buying lattes and coffees every day? You could be spending $15-$20 every week just on lunches and coffees. Examine your petty cash expenditures and then cut back. Use the extra money to put toward your credit card balances. An extra $80 to $100 monthly goes a long way to get a balance paid down.
Could one of you possibly work from home? Is it a financial possibility? Working from home saves money on child care, dry cleaning, gas for the car, purchased lunches, etc. Imagine, no commute and no child care expenses!
Even in these uncertain times, there is no reason the average family can't take some small steps to ensure their own financial security. Adopting better spending habits will not only help you through this economy, but it can be empowering. Good financial habits last a life-time!
For more information and practical tips on starting your own [
http://www.realmoneyteam.com]home-based business, please go to our website at [
http://www.realmoneyteam.com]http://www.realmoneyteam.com. Working from home can offer you the extra income and flexibility you want for a more financially secure future.
Our success is directly linked to your success. If you don't dominate your competition, we can't dominate ours!
Diane Ducca is a successful business owner who has transitioned into internet marketing, coaching and mentoring. She has written many articles on home-based businesses, women-owned businesses, stay-at-home moms, and product reviews. She is passionate about helping others achieve their goal of financial independence through on-line business ownership. She has been fortunate enough to be able to work from home and is loving every minute of it!
Article Source: [
http://EzineArticles.com/?Health,-Wealth-and-Happiness-in-2011:-Proven-Steps-to-Improve-Your-Finances-in-This-Economy&id=5673713] Health, Wealth and Happiness in 2011: Proven Steps to Improve Your Finances in This Economy
