It is a little known fact that more millionaires were made during The Great Depression than in any other era in U.S. history. Want to know how that happened so you can cash in on the economic crisis looming on the horizon?

I did a lot of research work to find the real facts, not just the historical data we are spoon-fed by the media about how hard the depression was on the masses and how hard the President worked to turn the U.S. economy around. It takes digging through piles of research documents including the copyright and patent office files and the Library of Congress to find a lot of the data. However, you can also find a lot of information on the internet if you dig deep enough.

There is one golden nugget in this history lesson that can enable you to make tons of money when our country is in a recession (like right now) because a recession is exactly the same thing as a depression except it doesn’t last as long and the damage is not so bad. So bear with me while I give you a short history lesson that contains this golden nugget.

It is important to know that the Great Depression actually started a few years before the 1929 stock market crash and lasted until World War II brought the country out of the Depression.

In the years before 1929, as more and more credit was extended to businesses and individuals the economy was tipping over the edge from available cash to way too much credit debt. When the amount of extended credit reached a critical mass and companies could no longer pay the credit bills, the companies crashed (the 1929 debacle.) When workers lost their jobs they could not pay their credit debts and the housing market and banking industries crashed.

All the business enterprises that were bought and sold during the depression by people with liquid cash are too numerous to mention, but because of the war effort, those with liquid cash who bought land, homes, companies, or invested in the stocks of the companies that made products that were in demand by our government for the war effort made millions. These industries included such products as:

1 – Metals: steel, iron and aluminum
2 – Communications: radios and parts
3 – Transportation: Aircraft, Tanks, boats and vehicles (and their parts)
4 – Armaments: Guns and munitions
5 – Boots, clothing, belts, backpacks, hats, blankets, tents and cots (and the textiles to make them)
6 – Containers
7 – Shipping – Truck Transportation – Railways
8 – Oil and petroleum and stocks in those oil wells (the Texas oil boom was a biggie!)

A few of the well known companies that changed hands during that period were John Deere, Douglas Aircraft, Reynolds Metals, Ericsson, and even the Goudy Gum Company – they were the first gum company to issue baseball cards with gum.

Some of the oppressive laws that our government passed during the 1930s were an effort to take money from the large number of people who had liquid cash and were using it to buy companies (or stocks in companies) as well as property. The government wanted to take it away from the people who had been smart enough to stash away liquid cash and not get into credit debt, and use it to fund the war effort as well as re-distribute it to the destitute families.

A word of caution here – Be careful to protect your cash. There are many banks that are in trouble, and while some have failed, many are on the government’s “likely to fail” list. How safe is your bank? You owe it to yourself to find out.

While your bank probably won’t reveal their rating if you ask, you can find out for yourself how safe you bank is by signing up to get my FREE Bank Ratings Report right here.

These laws were later ruled unconstitutional, but the point is that the people with liquid cash were spending it in way that made them millions, especially in industries necessary to the war effort. Yes, the stock market crashed, but the stocks could still be bought at undervalued prices and those with cash invested at the bottom of the market.

The tactic to be learned from this is a simple one that the people who use my Money Management Software implement right away. They stash cash. In case you missed it, here is THE GOLDEN NUGGET: When it comes to money, the only thing you have to fear is having no liquid cash to get you through an economic crisis.

It is a great time to buy property, but there are many people who have too much of their money tied up in non-liquid investments. They are worth lots of money on paper, but can hardly pay their bills. And there are those who have lost a lot of their money invested in semi-liquid investments like the stock market and have little liquid cash that they could get their hands on within 30 minutes if an emergency presented itself. The frightening shape our current economy is in today has the same indicators that heralded the depression of the 1930′s. Not enough cash savings, too much corporate and personal credit debt, banks failing and having to be bailed out  and the mortgage crisis / real estate crash.

What should you be doing? My clients are getting rid of their credit debt and stashing liquid cash like crazy. They are sleeping well at night and will make it through whatever comes. As martin Weiss recommends, they are “protecting their cash like a junk yard dog.” Does that mean you should sit on your cash and do nothing to recover the losses you may have sustained? Absolutely not!

I highly recommend you buy and read Martin Weiss’ book:

The Ultimate Depression Survival Guide: Protect Your Savings, Boost Your Income, and Grow Wealthy Even in the Worst of Times
 

The Ultimate Depression Survival Guide

Find out how safe your bank is.

Learn where and how to buy gold and silver, and why you should.

Discover which small companies Martin thinks are the best to invest in and what price you should pay.

Get his book today and look to the future with confidence that you can weather the storm.

What are you doing to protect yourself in the economic recession / depression that is already underway? Leave a comment.

Does the current economic crisis have you worried from a business money management standpoint? Are you wondering how to achieve financial security so you can protect yourself and your family from the coming financial crash? Here is what you need to know.

The first thing you need to understand is what the word economics means in terms of thinking about your business, and how you can use what it means to your financial advantage.

Forget what the media says about economics when they talk about the roller coaster ride of the stock market, supply and demand, inflation, banking industry mortgage defaults and the unemployment rate. Those are ‘economic characteristics’ that measure an area much larger than you can control.

What you can control is your own busines and household economics. The definition of economics I am using is the original one; meaning “the art or science of managing a household or business.” And that is something that you, as an individual, can control to protect yourself.

There is an art to managing a business or household. It takes having certain skills and abilities, like organizing things so they run smoothly. There is a science of managing one too, especially in the area involving money. Here is what you can do to make sure that the economics of your business and household are strong and stable, even though the economy of the country may be on the slippery slide to financial disaster.

Business Money Management Tip 1 – Spend Less Than You Make

Take a lesson from your parents or grandparents who made very little, but lived very well. Keep expenses down to a level below your income. The fastest road to financial disaster is spending more than you make. It’s possible to maintain your quality of life while cutting optional spending, which is often just wasting money anyway. This can be done by doing something as simple as buying a new used car instead of a brand new car.

Business Money Management Tip 2 – Pay CASH

Every time you purchase something using credit cards that you cannot pay off as soon as the statement arrives, you are committing your future earnings to the credit company. Those future earnings will be needed to pay your regular household expenses, so you end up in economic slavery known as the credit trap. The exception is purchasing property that increases in value, such as buying a home or investing in a commercial building that puts more income in your pocket.
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Need a debt consolidation program? You are not alone. Here are 5 tips on reducing debt that you can do right now.

Debt Consolidation Step 1 – Knock Off Using Credit

If you haven’t done this one, then this is the place to start. Put the credit cards and line-of-credit checks under lock and key, and operate as if you don’t have them at all. Figure out how to make more income and pay cash instead. This is the single most effective action you can take to start your debt consolidation program.

Debt Consolidation Step 2 – Never Commit to Spending More Than Your Income

When you pay for an item with credit because you don’t have the cash, you are committing your future income to pay the credit company. Then you experience economic slavery. Ask yourself if you just want the item or if you really need it to increase your production of income. If you need it, figure out how to make the cash to pay for it over a short period of time, instead of buying on credit. Find ways to increase your income and use it to pay both current expenses and pay off credit debt. That will really but the rocket booster on your debt consolidation program.

Debt Consolidation Step 3 – Always Pay More than the Minimum Payment Required

Your debt consolidation program will be most effective if you carve out a minimum of 10% to 15% of your income. Use this money to reduce debt. Set a target of paying 3 to 5 times the minimum monthly payment on every credit card. Set aside some of the payment money every week until the statements arrive. It’s always easier to save small amounts over 4 weeks than to pay a big bill all at once.

Your debt consolidation strategy should include paying more on the highest interest rate card. Combine that with paying off low balance cards as fast as possible. As you pay off a card, use the money you were paying on that card against the highest interest rate cards. Don’t cancel a card, as this lowers your credit score. Just keep the card locked away and don’t use it.

Debt Consolidation Step 4 – Never Pay Late or Spend Over Your Limit

Do not destroy your debt consolidation strategy by getting hit with late payment or over-limit fees of $25 to $39 on which you’ll pay interest. Plus, if you pay over 30 days late, that black mark stays on your credit record for 7 years – a harsh penalty to pay.

Recently a Vice President of a U.S. bank stated that last year over 24 Billion dollars was paid out in interest, late fees and over-limit fees on credit cards. Do you think the credit card company really minds if you pay late or go over your limit? If they didn’t want you to spend over the limit they could have declined the charge, right?

Debt Consolidation Step 5 – Cut Back on Expenses

Reducing debt requires as much cash as possible, as fast as possible. Look closely at where your income is being spent and cut back on any expenses that do not contribute to the production of more income. Before you spend, figure out how much money that purchase is going to bring back in to you, your family or your business.

TIP: If you are a business owner, always promote your business to everyone – don’t cut back on that activity.

Correct business money management, to ensure your financial survival, takes more than a debt consolidation program, but this is a great place to start. There are other steps that you can take to increase income, pay bills on time, have cash reserves for emergencies, increase profits and pay yourself more money. Who doesn’t want that, right?

P.S. Claim your FREE Debt Reduction Solutions Guide

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