Some say we're headed to bad times like it was during the Great Depression. With gas prices soaring and unemployment rates high, coupled with people losing their homes due to the mortgage company scams, it's no wonder most of us are struggling financially without seeing a light at the end of a very long and dark tunnel. But there is hope and I'm here to tell you not to give up your faith. These hard times are manageable for you and your family.

Historically, it is proven that most divorces are centered around and based on families with financial problems. We don't want to see that happen! It is at this time that you must pull together as husband and wife for your family, or especially if you're single and have children, and to sit down with them to explain your situation realistically. If you don't they will not understand and will continue to apply pressure on you to continue to make purchases that are based on their wants, not the family units needs.

One of the most common traps I see people falling for is the get rich-quick schemes advertised on TV and the Internet, along with advertisements for debt consolidation. Please avoid these tactics along with ads for making purchases with 0% down without having to pay for a year, or with paying any kind of interest at all. The only time these types of ventures are plausible is if you have the money NOW to pay for it and are disciplined enough to spread out the payments within the time limit. But with the current economy the way it is, nothing is guaranteed and you'd be taking a great gamble with your financial security if hard times should arise.

If you don't understand how paying interest scams work, I'll explain it as simply as I can. Advertising and marketing companies are paid to design campaigns to play on our emotional needs, convincing us that we need something we don't actually need, so it becomes a want. But what about a legitimate need, like a new refrigerator? So, you go to the store and the clerk suggests you apply for one of their credit cards. If you're accepted you can make your purchase right then and there without having to make any payments for a year, or you can make payments with interest. Understand this. Nothing is for free nor is it guaranteed in these difficult economic times. Shop around to see if you can find that same brand for a lesser price at a store not offering a promotion, or even a used one that is in good condition.

Realize that if you are paying for something with interest so you can have it NOW, you are paying more than the original price for the item. Add up the monthly payments plus the interest and multiply it by the number of months you will paying for it and compare the numbers to the price. More times than not, you are ending up paying double or triple for the item over the original price. Trust me, you will be much better off if you save for the item and pay for it in cash. Just tuck away a little each paycheck for emergencies.

How, you say, can you save money when you can't even pay your bills? First and foremost you must have a family budget. If your kids are able and of legal age, put them to work to help out. This not only teaches your children responsibility, but it also helps them with their self-esteem. Sit down and make a list of your income compared to the money going out for bills. When you see it on paper you will have a realistic picture of what action you need to take. This may be saving more, acquiring money through selling your unwanted items, getting a second job, etc. Then you must STOP spending money on things you don't need like eating out, stopping for coffee, going to movies, keeping up with the latest fashions, etc.

Now I'm going to teach you a simple, painless method for saving money that my grandmother (who survived the Great Depression) taught my mother, who then taught it to me. It's called the Envelope Method. I didn't believe it could work until I tried it and I've always gone back to it. It's a sure way of finding that light at the end of the tunnel!

First, purchase a cheap box of envelopes, get a pen, a pad of paper and a calculator if you need one. Add up the money coming in and going out. Then make a list of bills that MUST be paid every month and are set amounts, meaning they don't change, like housing, car payment, insurance, etc. Then make a list of the items that do change from month to month. Use a rough estimate while considering if you can possibly cut back on any of these, like gas or transportation, household supplies, clothing, entertainment, etc.

Now, take out enough envelopes for each category and write the name on each envelope, along with the amount of money needed to pay it and its due date. Also label an envelope for SAVINGS and one for EMERGENCIES. Next, look at your incoming money and how often it comes in, like once a week, every other week or once a month. Divide that number into the total needed. Each payday you are going to put the amount needed to pay that bill in its corresponding envelope.

For the categories that are flexible, do a rough estimate of how much you will need each month and divide as above with each paycheck. Try to be liberal and place that amount of money into each envelope. It is very important that you use food money just for food, gas money just for gas, household items just for household items, etc., and put the change back into that corresponding envelope. Why? Because the money left over in each at your next payday or at the end of the month is the money you will be adding to your SAVINGS and EMERGENCIES envelope. Divide that amount in half and put into each envelope. Even though it might be as little as $5 or $10, it adds up quickly over time. Also, start a change jar and throw in whatever is left each day from your daily cash allowance. Then, either once a month or every few months take it to the bank and put it into your savings. If you don't have a savings account, make it a point to take the money left over from your SAVINGS envelope and open one along with another account for EMERGENCIES. Don't dip into these accounts unless absolutely necessary.

One more thing I want to point out is if you have multiple credit cards, cut them up except for just one. Contact the companies and discontinue them while telling them you have every intention of paying them off. They will work with you. Then, look for a credit card company willing to consolidate your other cards and make at least the minimum payment, if not more, each month. Again, trust me on this. As you pay them off you must get it in writing that your debt is cleared with them as these companies are constantly selling their debt to other companies, and you must be able to prove down the road that you paid your debt off in case they lose it or legally you will be responsible to REPAY it. Also, periodically check on your credit status. As painful as it is, you'll find that as you clear up your bad credit it is a great feeling. Also, try to watch shows on TV that focus on teaching you how to save money. Suze Orman is an excellent advisor, especially for women.

I hope this little money game helps you regain your sense of control over your debts during these difficult times. If you have any questions or need further help, please contact pastor@church4knowledge.org. Good luck and God bless!