This year I have started a monthly habit of going over my finances every month on an appointed day. I have chosen the 15th of every month, and have vowed myself to drop everything on that evening to take out and update my debt and asset column.

Therefore, last Thursday evening I looked over my list and was happy to see that my debt column had gone down, and my asset section had gone up. However, that wasn’t enough for me. We are at an economic decline. I needed to find more ways to make myself rich and keep myself that way.

During periods of economic decline, we all find ourselves squeezed from both ends; facing both rising prices and loss of income. The media is not making it any better either by reporting that we are heading into a recession. So, while we may not have control over the economy, we do have control over how we prepare for financial difficulty.

Here are my top ten things to do (forgive me if I have said it before, it just means it’s that important to mention it twice):

1. Bring your own breakfast and lunch to work everyday instead of purchasing them. Food is always cheaper at a supermarket than a restaurant. Just think how much you will save if you just eat cereal or oatmeal from home versus a $5 breakfast sandwich with your $6 double soy latte from $tarF*ck$? Bringing your own lunch will save you even more money. Typical lunches run from $10 to $25. Packing your own only costs you $2-$5 if you know how to buy.

2. Separate “wants” from “needs.” Every time you are tempted to buy something, ask yourself this, “Do I really need this?” When money is tight, it should not be spent unless absolutely necessary.

3. Pay for unreimbursed medical expenses and dependent care with pretax dollars using a flexible savings account. This means using money from your paycheck before you get taxed. This is the same money that goes into your retirement accounts. Check with your employer for availability.

4. Keep track of all your spending. As simple as this sounds, the act of writing it down will help you give it more notice. If you know where your money is going, it will be easier to make changes if you need to.

5. Avoid using credit to pay your bills. While it may make things easier now, using credit only increases your monthly payments in the future.

6. Set up a direct deposit for your paycheck, and have some of it directly deposited into your savings account. Having this automated system set up is the key to gaining longterm wealth. I will come back to this tip in the future.

7. Avoid spending a significant amount of money on periodic purchases, like gifts and vacations. Other things to avoid are magazines, newspapers, and typical novelty drinks. While you may feel good while you are spending the money, you probably will be wishing you had the money back later.

8. Cut or downgrade your services. Can you live with cheaper cable services or no cable at all? If you have a cellphone, consider cutting your land-line.

9. Instead of buying a book, buying a magazine, or renting a video, use the library. It’s free!

10. Try to lower your energy bill. Turn off appliances and lights when they are not needed. Purchase energy efficient light bulbs. When you can, try using a fan instead of air conditioning and putting on a sweater instead of turning on the heat.

Okay, till next time guys, be smart, invest smart, and save smart.

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