Why do the media and Congress seem surprised about the current credit crisis? I’ve been warning my clients about it for years. The effects of greed, poor money management practices and betrayal of consumers’ trust have been building and are now being exposed in every dark corner of the credit market. The days when practically any business still open could get a bank loan are long gone. The good news is that there are alternatives.

Despite the sub-prime meltdown negatively affecting the credit markets and the dramatic change in the rules of lending, it is still possible to qualify for business equipment leases. Yes, it’s tougher to get the capital you need to grow, but there are things you can do to increase your chances of qualifying for a loan or lease. Here are some suggestions that will help:

Check your credit regularly and take steps to improve your score. Underwriters have always placed a lot of importance on credit scores because it reflects the debtor’s ability to take care of obligations in a timely manner. Lenders are obviously nervous today, so a credit score of 675 or higher is even more critical. It is a smart money management practice to check your score on a regular basis and carefully review the information. In a 2004 study, it was found that 4 out of 5 credit reports contain errors that can be detrimental to your credit standing. These errors include, but are not limited to:

1. Inaccurate personal information and out-of-date addresses.

2. “Closed” accounts listed as “open”, like a student loan paid off but showing delinquent.
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3. The same mortgage or loan listed twice.
   
4. Major loans or mortgages that have been paid off or timely serviced not listed at all.

If you find an error on your report, write a letter or e-mail to the credit bureau. The bureau is obligated to contact the creditor who supplied them with the disputed information and then respond to you within 30 days. If you are unhappy with how the claim is settled, you can ask to have a brief written explanation added to the bottom of your credit report.

To improve your score, you need to take steps to resolve any items that are showing up as delinquent and those in which a judgment or lien has been filed. Make it a priority to pay credit cards and loans on time each month.

Pledge additional collateral. Some lenders who might otherwise turn down your application for a business loan or equipment lease may change their minds if you increase the collateral base. This might add a comfort level in the event things to south. Additional collateral might include specific assets from another business that is free and clear, rental property, or equity in a personal residence.

These are the 32 Words in the Bailout Bill intended To End Our Economic Freedom and Destroy the US Constitution as noted by a friend on my email network.

“Decisions by the (Treasury) Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.” – Section 8 of the Paulson Proposal

Bluntly, this clause was put in the Bailout Bill to personally protect the authors of that bill. Why? Because they know it is a bad bill designed to harm the public while protecting the out-ethics companies and company executives whose money management mistakes got them into trouble.

Did you listen to President Bush’s 12 minute address to the nation on the evening of September 24th? In one breath he stated the economic crisis was caused by too much lending of credit. Then 3 times he stated that the solution to the problem is the Bailout Bill which would make it possible for more credit to be given to businesses and families.

So how can what created the problem also be the solution? It CANNOT.

Did you listen to Bush and watch the politicians and so called “experts” being interviewed about the Bailout Bill? Did you notice that rach one of them used the word “hopefully” more than once? – Hopefully this will help, hopefully the housing market will start to recover, hopefully the government can sell the distessed properties that they are buying that ‘We The People’ have to pay for now. The authors of this bill and our political representatives on Capitol Hill doubt this bill will be the real solution. That’s why the authors of the bill added the clause that protects them personally if it doesn’t work – they are merely “hopeful” and are nowhere near certain.

The Great Depression finally materialized when the amount of credit loaned reached a critical mass and far outweighed the public’s ability to pay. That exact same situation has happened and the public cannot pay the credit debt they have incurred. To extend more credit is to send us faster down the slippery slope toward a long and deep recession.

I am against the Bailout Bill. I am for letting the executives who make millions in salaries every year take the hit for their out-ethics money management that created their companys’ and Wall Street’s problems of greed and financial mismanagement. I refuse to bail them out when I have worked so hard to keep my business and household financially sound and out of debt. I don’t want to be punished as the producer while their non-production is rewarded.

President Bush, Mr. McCain, Mr. Obama and all members of Congress, GET OUT OF OUR WALLETS and pay for this out of YOUR multi-million dollar annual salaries instead, since you are so HOPEFUL that this Bailout Bill is the correct solution. Take the billions in salaries made by the executives of Fannie Mae, Freddie Mac, AIG,  and Wall Street brokerages. You were elected to serve ‘We The People’. We don’t work for you!

Despite the ongoing efforts to save the U.S. Economy from disaster, the financial road ahead is going to be difficult for the vast majority of us. Instead of going into desperation and despair, however, one financial expert says there is much that can be done to protect yourself and contribute to an economic turnaround.

A short time has passed, and the only thing certain about the U.S. Economy as of this writing is that there is still a lot of financial uncertainty. This is being reflected in yet another big drop in the Dow Jones for the first day of trading. Commentators, Financial experts, and some of the smartest economic thinkers in the world still do not have a guaranteed fix for what is going on. As confidence plays a very large part in economic growth and stability, the lack of it could easily lead to despair and desperation.

But this does not have to be the case. Every single one of us, to a greater or lesser degree, all play a part in the health and stability of our economy. Although it is easy to get lost in the mind-numbing figures floated by Congress and Administration officials, the truth of the matter is that behind all of those facts, figures, and statistics, is a human being who is going to play an important part in our economic future.

No matter what happens, whether we have a Recession or in a worse case scenario, another Great Depression, our behavior and the way that we manage our money is going to have to change, and change in a big way.

Following a successful money management philosophy is going to determine how fast and how successfully we are going to weather this fiscal storm and come out the other end as an enduring economic power.

Although this may seem like a daunting task, the good news is that you can begin to take action, right now, to protect yourself against a bad economy and play your part in turning the situation around.

Well known money management expert and financial advisor Sandra Simmons has seen the economic writing on the walls for a few years now. She has written and lectured on the bad economic indicators long before it became fashionable to do so. Fortunately for her many clients, they are already well insulated against this current economic crisis. Her formula for protecting you against the next potential Great Depression is something everyone can do with a little fiscal willpower and discipline.

“The first thing you need to understand is what the word ‘economics’ means in terms of thinking about your personal or company finances, and how you can use what it means to your financial advantage,” says Simmons. “Forget what the media says about ‘economics’ when they report on the gyrations of the stock market, the banking industry, the mortgage defaults and unemployment statistics. Those are ‘economic representatives’ that gauge an area that is bigger than you can personally control.”

“What you do have control over is your own business and household economics,” she continues. “The definition of economics I am using is the original one: ’the art or science of managing a household or business.’ And those are things that you, as an individual, can control.”

According to Simmons, managing a business or household is an art. She maintains that it requires specific skills and abilities, like putting in organization so things run better. There is a science of managing a household or business, especially in the area involving money.

The following money management strategies are things that Simmons says you can do to guarantee that the economics of your household or business are strong and unshakable, despite the fact the general economy may be on the slippery slide to disaster.

Money Management Strategy #1 – Use CASH Not Credit

“Each time you buy something using lines of credit or credit cards because you don’t have the money to pay for it, you are promising your future income to the credit card company,” says Simmons with emphasis. “Those future earnings will undoubtedly be needed to pay your regular household or business operating expenses. That’s when you end up in the pay-for-life program known as the credit trap.”

The only exception is buying property that increases in value, like buying a home instead of renting, or investing in a commercial building that puts more income in your pocket. Using your money to make more money is smart money management.

Important Money Management Tip: Be sure you negotiate a big discount when you pay with cash. When the rest of the world is on the downhill run to economic disaster and credit is difficult to obtain, the guy who has the cash is king. In addition, figure out how to purchase items wholesale instead of paying retail prices to keep even more of your hard-earned money.

Money Management Strategy #2 – Don’t Spend More Than You Earn

Learn from your grandparents who earned little, but managed to live well. Reduce expenses to a rate that is less than your income. The most direct route to financial disaster is spending more than you make. You can keep a good quality of life while reducing optional spending. This can be accomplished by acts such as buying used equipment rather than new, and eating less often in restaurants. Don’t buy something because you only want it but don’t really need it. It’s just a plain good money management practice.

Money Management Strategy #3 – Money Must Be MADE Before It Gets Spent

“If there is some future large purchase you need to make, begin by setting aside small amounts of cash in a savings account for that purchase and keep that up until you can pay for it with cash,” Simmons says in reference to the safest way to make larger purchases without using credit or going into debt.

On a household level, if your child will be entering college in 10 years, then figure out what the tuition costs will be and work out how much money you have to set aside every week to have the full amount just before they graduate from high school. Plus turn in applications for each student financial aid package, scholarship and student grant you can locate.

On a company level, if you will need to purchase or upgrade equipment for your office, then figure out what the costs will be and work out how much money you have to set aside every week to have the full amount the month you will need to make that purchase. Plus look for each place you can locate to get the best deal possible.

Money Management Strategy #4 – Put Away Some Cash for Emergencies and Living Expenses

“You will sleep much better at night with the financial security of knowing you have money stashed away in a savings plan for emergencies like needing to repair the car or an office machine, having to have some unexpected dental work or experiencing a big drop in income,” Simmons says. “When you have a cash cushion you can get your hands on immediately, then magically, you don’t even worry about money, and your focus returns to living life and enjoying it, and earning money suddenly gets easier.”

In reality, the primary thing you have to be afraid of should there be another Great Depression is not having enough (or any) cash reserves tucked away in a savings plan you could immediately get your hands on.

Out of every bit of income that comes in the door, immediately set aside 10% and stash it in an interest bearing account that you have designated for your cash cushion.

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.

“Perhaps you’ll have to cut expenses AND work an extra job to build your cushion of cash,” concedes Simmons. “Now, no moaning about how you can’t, JUST DO IT!” she exclaims. “As the weeks and months roll by you’ll find you are sleeping better and are walking through life with a lot more confidence knowing you are on your way to financial freedom and have protected yourself from The Great Depression looming on the horizon.”

Why is controlling the flow of your money so important? It is the energy and life blood of a household or business. It is vital to channel some of it through the income producing areas first to keep it running smoothly, and also to save some of it for future survival. Everything runs better when adequate cash is available.

Vice President Joe Biden stated that it is patriotic to pay more in taxes. That statement caused quite a stir and is certainly a point of debate. What is less controversial, however, and what truly would help your country get back on the road to wealth and financial security is following the money management points outlined above. If each and every financially responsible person in the United States got themselves out of debt, relied less on credit, and built savings and wealth, the American economy would be stronger than it has ever been.

This is the road map out. The rest is up to you.

What are you doing to stay financially healthy? Leave a comment.

Sandra Simmons is the President of Money Management Solutions, Inc. She specializes in helping business owners and individuals manage their money to achieve financial freedom. Claim your FREE Debt Reduction Solutions Guide.

The greatest economic threat since the Great Depression has exposed a serious weakness in our collective fiscal management policies. Money management expert Sandra Simmons explains how to avoid the next big economic crisis.

Wow, what a roller coaster ride. Not since the Great Depression has the U.S., nor the world wide economy, come so close to falling off of the financial precipice. And while we are not out of the woods yet financially (not by a long shot), the current economic crisis does serve to illustrate a very harsh fact of life: The lack of an ethical, disciplined money management philosophy will eventually come back to haunt you.

 While our economic leaders are scrambling to put out the fires and rescue our economy, the big question on the minds of many is how did this happen and who is responsible?

 “The answer to the question of who is responsible for this economic crisis is both “everyone” and “no-one” from a philosophical perspective,” says well known money management expert Sandra Simmons. “What I mean by that is all of us are responsible for the global economy to a greater or lesser degree, but it is hard to really “blame” anyone because there is no consistent financial money management philosophy that everyone knows and can agree upon.”

 What Simmons is referring to is not necessarily capitalism versus communism, liberal versus conservative, or Republican versus Democrat, for there is a common element that virtually every econo-political philosophy has in common: money.

 “We can-and probably will-debate and argue the pros and cons of the various political philosophies forever,” says Simmons, “but at the end of the day, there is one thing that all governments, corporations, businesses and individuals must manage correctly and that is their money and cash flow. The correct money management philosophy, in fact, undercuts all of the various political points of view and deals in the most basic of financial principles.”

 In other words, the fundamentals of money management are actually the same regardless of your political views, and when those fundamentals are violated, there can be a heavy price to pay.

 “The essential centerpiece of any successful money management system is ethics and discipline,” states Simmons. “If you are not disciplined when it comes to the handling of money and cash flow, it doesn’t matter if you are an individual, small business, Wall Street, or the government. A lack of financial discipline is eventually going to come back to bite you and lead to financial crisis regardless of the scale.”

 Discipline enters into the money management equation because money management, correctly done, is going to lead to a very high level of financial stability. When an entity is financially stable, it can withstand the economic threats that will inevitably arise, and create a rock-solid economic foundation from which to operate.

“When we talk about money management discipline, we are talking about paying your bills and getting out of debt properly, eliminating the over-reliance on credit, building reserves, and always planning and predicting where money and income are going to come from, among other factors,” explains Simmons. “The easiest thing in the world is to fall into the credit trap. It is very seductive. But you can see what happens, and I think our current economic crisis is an excellent lesson of what can happen when governments and the biggest financial institutions in the world fall victim to the allure of living beyond their means.”

 “When we talk about economic or financial “ethics”, we are not necessarily talking about violations of the law,” continues Simmons, referring to the fact that the collapse of Wall Street will not necessarily involve the indictment and prosecution of any corporate executives. “Ethics has a lot more to do with judgment and decision making. A successful money management system is going to automatically encourage this because the objective is security and stability. Obviously ethics was sorely lacking considering our current economic crisis.”

Although we are currently in the middle of crafting an economic bailout that is going to involve astronomical financial numbers, according to Simmons, there is a basic money management principle that is always at play: It’s not how much you make; it’s what you do with it that determines your financial condition.

 Whether you’re a government, corporation, small business, an individual, or Wall Street, the following are the money management principles that Simmons recommends:

 Money Management Principle #1: SPEND LESS THAN YOU MAKE

Cut your expenses back to operate within your income. This may seem difficult, but building a budget that includes everything you need to run your business is essential. If you know exactly how much you are spending to run the business, and where the money is going, you can identify areas of waste or even areas where more needs to be spent to get the income up and increase profitability. Most UNDER-ESTIMATE what they need financially by 10 – 13%–a critical mistake when you are aiming for an income target that is too low.

 Money Management Principle #2: PUT 10% OF YOUR INCOME AWAY IN SAVINGS OR RESERVES

Set aside regular amounts of cash from your income for the future – put the money in savings toward gaining financial freedom and don’t ever spend it. Put a minimum of 10% of income into savings out of every dime earned. Note, even government is recognizing the importance of building reserves as California Governor Arnold Schwarzenegger wants to see this become a part of that state’s budgetary process.

Money Management Principle #3: DO NOT BUY ON CREDIT

Pay cash instead. Debt is a disease that you should avoid contracting. If you already have some credit debt, a successful money management philosophy will show you how to get it paid off fast.

 This, of course, lies at the very heart of our current economic crisis. Too many people in the U.S., getting into too much debt, played an enormous factor in creating an economic collapse. It can be said with a high degree of confidence that had everyone from end users to financial institutions followed this money management principle, we would not be in financial straits as a nation.

 If you need to buy something that is expensive, put money away towards the purchase every week until you have the cash. If you absolutely must use credit for a home, office, or equipment, only use credit when you are 100% positive that it can easily be paid for without undermining your financial security.

Money Management Principle #4: FIND WAYS TO MAKE MORE MONEY

The cost of doing business goes up about 8.5% every year, so you need to make more money just to keep up. Look over your line of products and services and figure out how to sell more of the profitable items. Be willing to discontinue items that are not bringing in enough profit for the time, effort and cost to sell them. Find out what new products and services you can offer your clients to increase your gross income. Look at every financial decision you make with an eye on the return on investment you will get for the money you spend. Don’t spend your hard-earned income on “fruitless” expenditures.

 Money Management Principle #5: USE YOUR MONEY TO INCREASE YOUR INCOME

After paying the 10% into savings and paying your bills, use any money left over in ways that increase your ability to produce more income.

 Why is controlling the flow of money so important? It is the energy and life blood of a business. It is necessary to pump it through the income producing areas first to keep it running well. Everything runs smoother when cash is available.

 “I hate to say “I told you so” but I saw the current financial debacle coming several years ago,” says Simmons. “When the fundamental principles of sound money management are violated, it becomes a ticking time bomb. Without the right kind of fiscal discipline, economic pressure is going to expose money management weaknesses.”

 If we survive the current economic crash, perhaps the biggest tragedy will be the next time this happens if all of us don’t get our financial houses in order.

Sandra Simmons, President of Money Management Solutions has years of experience helping business owners and individuals manage their money to achieve financial freedom. Claim your FREE Debt Reduction Solutions Guide.