Financial problems is a burden of a lifetime. It can make you feel down and at times ruin relationships.

First question that would come into your mind when talking about money during recession is that how will you spend it wisely. Second question would be, is it okay to incurr debts? Third question: you ask yourself where did your money go?

To answer the first question, always remember this rule “needs over wants”. If the economy is having a hard time then it is always best to be practical. You have to save luxury buying for the brighter days because there is no certain time when the rain would stop. Here are some tips on how to spend your money wisely:

• Before going to the grocery store, make sure that you already have your list of all the things you need. As much as possible, only buy those that are found in your list.
• To save yourself from spending too much, bring only the amount that you need in buying all the things in oyur list. Though it is advisable to bring an extra so ` in that case, place the extra money on a separate slot in your wallet. Never place it together with the money that you are going to spend for your purchases.
• Pay over-the-counter purchases with cash. According to studies, a person thinks twice on what to buy if he or she is going to pay in bills.
• For the second question, Yes it is okay to incur debts even if the economy is not at its best. However you must refrain from acquiring bad credits. A good credit is described as purchasing something that maintains its value or increases over time such as education and buying a house. If you acquire a new car or the latest smartphone model just for prestige using your credit card then you have incurred a bad credit. The value of these two object depreciates over time so it is not a good thing to invest on.

Lastly, it is very important to keep track on your expenses. Before you spend you must have planned out your possible expenses already and you can do this through budgeting. After you spend, keep all your receipts, bank statements and other financial record. These actions will help you know where your money went. It will help you identify which things you have to spend more and which to cut off.

Extravagance has no place when the economy is down. Always be practical especially if you already have a family. Money makes the world go round. To keep yourself in the game, you better start saving now.