In the last couple years you have seen or have directly experienced the effects from the countries economic disasters, the sub-prime mortgages, major bank failure, and record unemployment. It has been estimated that 40% of the world’s wealth has been destroyed in a short period of time. Governments are scrambling to save their economies.

Many people are not sure the bankers and politicians, who led us into these problems, can help out of this mess. Most people don’t look at this as a problem because we are so concerned how this economy impacts us as individuals, our family, jobs, and friends. And it is impacting almost all of us.

If you think about the family home is a valuable investment most people make it is very disconcerting when your home is worth considerably less than it was a year or two ago. Many people had their pension savings invested in the market and those who made a relatively conservative investment have experienced significant losses.

All around the unemployment rates are increasing with no sign of decreasing any time soon. Times are very rough if you are a job seeker, especially in areas of banking and finance. Most businesses are simply trying to survive through these bad economic times. Many companies are either laying off people or have a hiring freeze. When people have to rely on the government and collect unemployment, this further hurts our financial burden. What about the older employees who’d planned to retire but can’t afford to, they have to worry about lay offs and company cut backs.

For those of you still employed, you are at risk of reduced hours, being laid off, and losing benefits and working for less pay. Even if this is happening to someone you know it can still be stressful.

Most middle class people have cut back on entertainment and luxury goods. And most consumers have cut back on health care, including preventative treatments that will cost us thousands in long term treatment in years ahead. When people lose employment they lose health benefits. When they lose health benefits it cost the tax payers, which further hurts our financial burden.

Now is the time to start tightening your belt on your financial spending, and start a family budget. Count every dollar and be happy for what you have, someone always has it worse than you.

Author's Bio: 

David Paulson author and creator of the Self Improvement website
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