Your ability to earn and having the privilege of buying things that you want is often ignored by individuals who are enjoying them right now. This could be you – you are now enjoying a good job and your better half also has a successful career. You already have set up trust funds for your kids that will ensure their future and you also have a considerable amount in your 401 (k). All you need to do is to maintain your lifestyle is relatively easy since both of you are earning decently.

But your ability to earn money right now should never be abused. The privilege that you are enjoying right now may not be there anymore. Because of tough economic times, companies are closing down or at least cutting off significant number of personnel.

Before you know it, you may already be out of work. Since you want to preserve your lifestyle, you could be cashing out your retirement early and even the trust fund you have kept for your children. But getting back on track is very difficult today because job loss today will also mean that finding a good job is difficult.

Prevention is the Key

You’ve already seen the news about people having trouble in looking for the job today and how hard it would be to support their current lifestyle. You don’t need to experience the same thing; you need to learn something from their experience. Clearly, this is a bad time to spend money without even thinking about it.

You need to save as much as possible so that when the inevitable happens that you will be out of the job, you are prepared to face the challenges. You need to prevent yourself and your family from experiencing harsh economic times especially for your kids who would be easily devastated.

Noticing the Small Things

Your quest to control your finances to prepare for the tough economic times starts with noticing the small things in your budget. You literally have to take note of the money that goes out of your pocket. This will be a little bit inconvenient since everything has to be accounted for – especially the small things. You may have noticed in the past that things are not really adding up since you have neglected to take note of the small things. The small things are those little extra spending that you do and forget to note since they are just “small things.”

To ensure that you are taking note of small cash outs or expenses, bring a small notepad with you all the time. If you have a smart phone, it would be ideal to download applications in your phone that will help you take note of the funds that goes out of your pocket. You should also teach your kids to give you a report on how much have they spent at school. Better yet, don’t give them money but their favorite food so that you can control the finances.

Alternative Source of Funds

Even though you already have a job, it is vital to have a “Plan B” in case you lose your original job. This alternative source of funds could be a business or another job that could be used as a bridge while looking for a job with a better pay.

Your experience in the industry and education is more than enough to land you a job or even start a business related to the industry you worked for. You could start off with a list of what you can do and eventually grooming them into a viable business idea. If you want to concentrate in finding another job, update your resume and improve your network to find another job fast.