Suppose you have two credit cards with balances exceeding the desirable amount (say, more than half of their limits), and some unforeseen circumstance forces you to finance something, but you don’t have the cash to back it up. You could resort to your credit cards and max them out, but the figures are reflected on your next statement and hurt your future loan applications. What could you do to anticipate such a dilemma? Apply for a credit card, for the sole purpose of using it only on emergencies.

Emergency credit cards are the best way of dealing with unexpected situations. Your car suddenly breaks down in the middle of the road with a busted transmission; if your car is your only means of getting to work, you need to have it repaired immediately while you try not to lose any workday in the process. If your possessions were taken during a hold-up or mugging, you need to replace the lost items immediately, especially if such include documents and credit cards which are essential to a business transaction. You need some slack to cover for the expenses, and emergency credit cards can bear the brunt of the burden.

If you go for other means of financing such losses, such as borrowing funds from a money market, you can be penalized for doing so. On the other hand, a balance-free emergency credit card can answer for the losses, as long as it carries at least two thousand dollars’ worth of consumable credit. If you haven’t considered the advantages of having a balance-free credit card, now’s the time to do so, even if you have no intent in using it. Emergency credit cards give your finances a boost when you need it the most.

Emergency credit cards can also be indispensable to college students so long as they know how to responsibly use it. Your first week on campus can drain your finances even if you’re on a scholarship; besides, your program may not cover for things like books and boarding, and you have to answer for those with your own means. In such situations, emergency credit cards are the easiest way out of financial rut – just remember that emergencies don’t include a movie ticket or a smoothie from a convenience store.

Since these cards are designed in the same way as the others, apply for cards which cover for as many situations as possible. You must be able to use it to pay for gas and groceries, as well as for repairs and everything else. If your stripped of cash before your payday, resist the urge to take out a cash advance from your other credit cards, as appealing as this may seem; cash advances can carry an interest rate of at least 24%, and you can end up paying for more than you borrowed for. Instead, use an emergency credit card to pay for the necessities while waiting for the next payday; it can tide you over without costing you too much on repayment. Emergency credit cards can mean the difference between a financial rut and a dire crisis, so consider on applying for yours now.

Airline rewards credit cards are basically the same as the rest of them; only the perks differ. As such, you have to consider if you want to commit to an annual fee or not. Cards without annual fees may carry higher interest rates, but if you keep your monthly balances manageable, this wouldn’t be a problem. However, if you frequently use your credit card and you want to stack up on miles in record time, going for one with annual fees is recommended. The fee is tax deductible otherwise if you’re using the card for business transactions. As with other credit cards, annual percentage rates matter as well. If you keep your monthly balances at a minimum, APRs are relatively negligible; otherwise go for those with lower rates, either for a set introductory period, or for the remainder of the plan.

If you’re considering on sticking to airline rewards packages for a long time, you’d better go for a card which is affiliated with as many airline carriers as possible. Even though the major airlines cover most of the top destinations, some offer chartered flights to unfrequented spots in the tropics or the Caribbean, and you want a card which can take you anywhere you want to go. Don’t forget to look out for additional perks – some cards can go out of their way by providing you with a seat or class upgrade for future trips, and some even cover for hotel accommodations in your destination. Mix and match frills like this to suit your preferences.

It’s best to read everything on the contract, even the fine print. Be certain on offers of doubled mileages, the expiration period of accumulated miles, or if blackout periods are applicable to your plan. Ask if the card carries a preset spending limit; those which carry a limit can get in the way of point accumulation, so opt for unlimited cards and use them for purchasing just about anything. But do remember that the balance you carry at the end of the period should be taken care of as soon as possible if you don’t want them to inflate in penalties. Airline rewards credit cards only offer the best perks for those who use them responsibly; don’t rack up on points just for the sake of it. You may end up paying more for inflated balances in your cards than if you went on ahead on a trip without using its features.

Investing in healthcare is probably still a good choice. Investing in healthcare and pharmaceuticals will probably only get better as the Baby Boomer Generation reaches retirement age and needs more care all around. It is interesting to see how the 2008 U.S. election turns out because one of the major platforms is healthcare. If some type of reform is made, it can mean even more investment opportunities in this area. Even if the government were to take over much of the industry, it typically contracts out these services and there would possibly be investment opportunities there as well.

Look for businesses selling non-discretionary goods and services. By discretionary, we mean where people have a choice among substitutes. For example, eating in a restaurant is a discretionary choice. This means that when people are having a tough time making ends meet in a recession, they will cut back on going out to eat. So, considering this, you would be wise to steer your investments away from major restaurant chains.

Invest in the companies of the vices. This might be a sensitive topic for some and we would like to think that people don’t deal with stress of a recession through vices. But the reality is they do. People buy cigarettes and alcohol even when they have just lost their jobs and don’t have enough to buy groceries. The bottom line is that you can invest in these companies and be relatively certain they will remain stable if not peak during the recession.

Analyze the cause and effect of the recession on businesses. For example, people will reduce their purchases of new vehicles during the recession and keep their cars longer. So that will mean manufacturers and retailers of replacement auto parts could possibly perform better during the recession period.

There are still the traditionally safe investment choices. For example, there are U.S. Treasury Bonds which pay lower interest but are stable and secure. You can even purchase these on the internet now making them an easy investment choice. Another safe investment that many make during tough economic times is in gold which only goes up in value. One more safe choice is in energy stocks because people cannot do without heat and electricity.

Self-employment is a sensible alternative to living on unemployment compensation during the recession. Many will tell you that self-employment is risky and they are absolutely right. There is no such thing as the quick millionaire when self-employed. But ask yourself what choices you have. If you draw unemployment compensation, you will be limited as to how much you can make on self-employment. Plus, you have to go to the labor office and fill out forms and play their game. You have a better chance at making good money by choosing the independent route while you are looking for another job.

Look for jobs with quick turnaround. The idea behind choosing self-employment in a recession is to minimize the impact of loss of income. You want to look to do jobs that are not too big at first. Of course it depends on the line of self-employed work you are in but you want to do a job quickly and get paid so as to maintain the critical cash flow you need to keep going during the recession and minimize the impact of lost income during recession.

You might have to drop your prices in order to keep work flow. Many will recommend against this but sometimes it is the difference between no work and a lot of work at a lower rate. Most want to the latter. If you are going to be self-employed then flexibility is the key. See what your competitors are charging and see how it impacts your market. You can tell who is selling at their set price levels and who is not.

Insurance may be a problem. You can opt to enroll in your ex-employer’s COBRA health insurance coverage but the rates are extremely high. If you never use the insurance then it is like throwing money away. However, it is wise to have some sort of major-medical coverage in case of an emergency. Many self-employed individuals who carry their own health insurance are opting for much larger deductables and paying small fees out of pocket to reduce the monthly premiums. You still want to minimize the personal economical impact during this recession if you or someone in your family gets sick. Open up your local phone directory and see if you can find what are known as doctor’s co-ops. These are where private doctors get together and set up their own combined practice and charge rates that you can afford without insurance.

Have multiple streams of income and avoid debt. To minimize the impact of low sales in one of your products or services during a recession, have multiple streams of income. For example, you might be a landscaper and sell items on EBay at the same time. Remember to focus on what people need during a recession.

Don’t race the auto. Don’t make quick accelerations, weave in and out of traffic, and brake too quickly. Drive the vehicle with an easy foot and it will take care of you in this recession. Driving easily like this will also save you on fuel expenses.

Take care where you park. You will probably be motivated to keep your auto during the recession if you take care of its exterior appearance. When you drive into a parking lot park farther away from the location where you are going. For example, most want to park as close to the grocery store as possible and this is where the congestion is. The result is that people open their doors and hit your doors when they get out of their auto chipping the paint.

Care for the interior of your auto. This requires applying a moisturizing cleaner on the vinyl and leather seats and dash. You should use sun shades when you park the car in the sun in order to protect the dash and its plastic face components. You can also have the interior carpets shampooed.

Keep the oil changed. This is probably the number one preventative care item you can do for your car in the recession. Engines last longer with regular oil changes and oil changes are really inexpensive when you consider the cost of a damaged engine. Don’t change the oil and in a couple of years you are likely to see smoke coming out the back due to damaged piston rings.

Get the air conditioning repaired. This has to do with making your auto enjoyable again which will motivate you to keep it during the recession. Most air conditioning problems are because of small pinhole leaks or it might just need to be recharged with refrigerant.

Cut down on driving the vehicle. You will not only care for your auto by saving on wear and tear but save on the high price of gasoline during this recession.

Know how to handle everyone’s advice. Do you want to maintain your sanity while trying to stick to a wedding budget during this recession? Then make a commitment now to make your own decisions as a couple and politely disregard everyone else’s advice unless they truly have something of value to bring to the table. You will get a lot of well-meaning advice, comments, and opinions by family and friends but remember that they are not the ones spending the money. They will gladly advise something more expensive that will not make your wedding or the recession any easier to handle. It’s in your control. Another tip to remember is that you cannot please everyone.

Have you considered buying a pre-owned wedding dress? Here’s a tip that can save you a bundle when having a wedding in this recession. If you look in the classified section of your newspaper you can find where people are selling their old wedding dress at a greatly reduced price from when they bought it new. It is easy to buy the dress and you can customize it with sequins or apply some other idea you might have.

Economize on the reception. Take a tip and economize across the board here and give yourself a break this recession. It is a matter of shopping around for the best prices on catering, entertainment, and venue.

Look for public areas to have the ceremony. For example, one couple had their wedding ceremony at a gazebo in a public park in the downtown section of the city. It was inexpensive and actually interesting because it gathered more onlookers than they had expected (those already in the park). And the price was recession-friendly as the city only charged a fee of $50 to rent it and the judge performing the ceremony was happy with whatever the couple could contribute.

Make as much on your own. You can search the internet for tips on how to make your own wedding decorations and gifts to give to your guests. For example, you can make imitation flowers from regular bathroom tissue and paint them different colors.

Cut back on honeymoon destinations. Some like to take a trip overseas for their ideal honeymoon but make sure you check the exchange rate for the dollar to local currency first. During this recession, the dollar’s value is dropping compared to many foreign currencies. Shop around. Have you considered a honeymoon in Panama instead of Europe for instance?

Have your kids go to college close to home. You won’t have to pay out-of-state tuition for that faraway college. Plus, your student can still live at home if he or she wants to. One way you can encourage them to stay close to home during the recession is by having them go to a community college for the first two years. Bring to light the fact that the credits from the first two years are easily transferable to a four-year college in the same state. The tuition at a community college is usually less expensive.

Look into using CLEP programs. CLEP stands for the College-Level Examination Program. It is a way to earn college credit for non-traditional education and/or experience you have. You cannot earn a degree by CLEP but you can sometimes complete a significant portion of your first year of college–all by taking an exam priced much lower than tuition. Check with the institution you are attending and see what their policy is towards acceptance of CLEP credit.

Apply for all the grants you can. Go to the school’s financial aid office and get all the information and forms required to apply for various government and special interest grants. Make sure you get a copy of your recent tax records because in most cases you will have to show there is a financial need.

Avoid debt any way you can. One of the things you don’t want to do in a recession is accumulate more debt. You also want to discourage your student from accumulating debt through student loan programs. If you don’t have enough money for tuition in an upcoming semester, your student can always go part-time for a semester. It might mean taking a little longer to graduate but it can mean the difference between a person starting their career debt-free or deep in debt.

Have your kids get a part-time job. This can be especially helpful during a recession–especially if your kids are only going to school part-time. Just be careful that the student does not take on too much load as this can affect grades.

Do you need a traditional landline phone? With landline telephones, the expense comes every month no matter how little you use it. And these days, people are opting to use their cell phones more. One tip for cutting your landline phone expense in this recession is to drop the long distance service that is tacked on extra to your local telephone service. Most cellular phone plans have long distance included with no extra charge.

Do you need a cell phone plan instead of pre-paid? Just like landline accounts, many cell phone plans have fixed monthly fees no matter how little you might use them. This is where a recession tip like buying a pre-paid cellular plan can come in handy. Check the details of the plan however. Make sure you understand the expiration terms regarding unused minutes each month. It’s best to have a plan where the unused minutes do not expire.

Your teenager does not need $100 tennis shoes. And this price estimate might even be conservative. Unless your teenager is a track athlete, there is no reason to spend so much on tennis shoes. However your teenager will try to make you believe that he or she needs them because all the other kids have them and they have to preserve their image. Take a tip and learn to say “no” to your teenagers during this recession. Your budget will thank you.

Your children do not need to be in every activity on the planet. This includes soccer, piano, Little League, ballet, Pee Wee Football, and the list goes on. Take a tip and discover new ways to spend time with your kids during this recession. You can fill their Saturdays with family activities instead of activities to give you a break from them or to fulfill your egos as you groom the next sports star.

You have to take care of your family’s needs first before you can take care of others. You can empty your pockets taking care of every charity that comes across while letting your family starve. Understand that most charities have high administrative fees so very little of your money actually ends up helping the cause. Take a tip and use your money on your family during the recession. You can’t help a charity if you can’t help yourself first.

Evaluate if you need a second car. A second car is expensive—especially if one spouse has lost a job due to the recession. You can get by with only one car. Take a tip and learn how to use alternate means of transportation such as a bus, train, or bicycle.

If you have chosen the route of self-employment, you need money to run a business. Many that lose there jobs in a recession will opt for self-employment. Remember that you are going to need money to venture out on your own. Take a tip and see where you can get this startup money from. You might be able to take out a loan on your whole life insurance policy or cash in some stock.

Take care of life sustaining matters first. You need a roof over your head, heat, electricity, food, and medical care. The best advice is to make life sustaining matters a priority in your recession plan when times get tough. A job loss might mean you can only draw unemployment insurance temporarily but these proceeds should not go to pay creditors but to pay for the sustenance of you and your family.

If times get real tough, consider family offers as a last resort. In families, some will get hit harder by the recession than others. You might have distant siblings and relatives who will offer to help you financially or you might have to go ask them. However the best advice here is that you only get financial help from family as a last resort. Otherwise good relationships among adult family members can be put at risk. For example, you may come out of tough times and have to prioritize who you pay back and it can cause offense among family members not getting paid back first.

Continue saving when you can. This is the best recession advice that applies to everyone. Save what you can every time you can. Save even if it is only a little. Try to avoid borrowing money every way you can.

Know the location of all of your assets. Good advice is to look for account numbers and contact information for your whole life insurance policies (they have loan value), stocks, bonds, 401K, savings accounts—any account that can be turned into a liquid asset if you need the money.

You may have to move. Some geographical areas are hit harder than others in a recession. The best advice is to get employed again and it may mean moving.

In your recession plan, resolve to remain ethical no matter how bad it gets. Oftentimes in tough economical conditions like a recession, people get desperate when they do not have a job and no resources to pay the bills. This is particularly troublesome for those 50 and older who have been successful wage earners most of their lives. And in desperation, some tend to get involved in ways to make money that are not ethical. For example, some get involved in scam business schemes and target their relatives and close friends first. You have to plan to stay ethical no matter what. An economy will only survive on strong business ethics plus you are setting a model for your children when times get tough for them in their adulthood.

The other aspect of ethics is in the area of applying for jobs. In your job search plan, resolve to remain ethical and always be honest about your qualifications. When times get desperate, many resort to telling lies on resumes in hopes of standing out from those competing for the same job. If your employer ever finds this out, you could seriously jeopardize your chances of future employment.

You can cut expensive items out of your diet. For example, by reducing starches like rice and pasta, you can lose weight. However you never want to completely eliminate starches from your diet as they are required for balance and nutrition. You can most certainly reduce your portions. Of course with children, you never want to put them on diets as they can rob them of much-needed food nutrients.

Try growing a garden of vegetables. The initial costs for growing your garden might be high at first but maintenance of it can be fairly stable and it can help cut your food expenses. Plus, you will be growing organic vegetables without the pesticides and alterations of genetics at an affordable price. Try going into one of those specialty organic grocery stores and see how much you can buy and you’ll quickly see how beneficial a garden is in cutting food expenses.

Plan your meals. By planning your meals, you know what you need at the grocery store prior to going. It helps to prevent buying what you don’t need which is helpful in cutting food expenses.

Don’t shop when you are hungry. Have a healthy snack or eat a meal before you go to the grocery store. Otherwise you won’t be able to cut your food expense because you will start buying items because they look appetizing. When that happens, you’ll justify the price even if it is rather expensive.

Take a grocery list and buy only what is on that list. A grocery list is also helpful for keeping a record of your grocery spending. With that spending record you can budget better and it will be helpful in cutting your food expenses.

Use your freezer to cut waste. If you make too much for a meal, you can freeze the leftovers. You can even make some meals ahead of time and freeze them so your family can take them to work and put in the microwave for lunch.

Reduce your purchases of pre-packaged foods. These are usually higher-priced and not as healthy for you because manufacturers of these use a lot of fillers. Of course, they are convenient and their high price reflects this.