Building Models for Budgeting and Financial Planning in a Recession

Chances are you or someone you know has been hit hard during our current economic recession. Knowing when and how much to spend or save can seem daunting when faced with the present economic crisis. There are ways of building your own financial models for budgeting and financial planning so that you can deal with the ever present financial obstacles of life while weathering the storm of a recession. Budgeting, strategic financial planning and simple common sense are several ways to start.

• Working Budget - Begin by creating revising a realistic and working budget which outlines your income, dividends and expenses. A budget allows you to examine how much money you make and where it goes and gives you an opportunity to make changes where needed.

• Strategic Financial Planning - Decide where to make adjustments in your budget. Budget variable expenses by cutting back on eating out, buying non-label or generic items and, making local plans rather than vacationing out of town.

• Common Sense - Preparing for the worst may be the best attitude to adopt in our current economic situation. Increasing the amount of money that's put into your savings and building a three to six month emergency savings fund model into your financial budget can help you prepare for unforseen circumstances.

Be ready to make good financial choices for you and your family during this recession with sound judgment, strategic financial planning and realistic obtainable budget. Tough economic times call for tough financial planning and budgeting decisions to be made; let common sense be your compass when building financial models for you and your loved ones.