I know the economy is on everyone’s minds these days.  I’ve been writing about impending hard times since at least April (here at Two Frog Home and longer in other ways).  I have many thoughts on Wall Street, the bailout, the actions of our elected and appointed officials, and the things happening throughout the world’s financial markets, however; I’m by no means an authority.  Writing about politics just isn’t my “thing” and that’s not going to change today.  However, writing about approaching a tightening economy from a home centered life is “my thing” and that will continue today.

I know all the economic news is scary and hard to interpret.  I had to walk away from it for a while myself, because normally optimistic me was feeling more than a bit nervous.  A little break from the news, blogs, and general doom and gloom while simultaneously focusing on the things I can control, gave me back my normal state of optimism.  I think its important for all of us to remember that while we can’t control how the economic state of the country or world will play out (though we should voice our opinions to our elected officials), we can, however; control our personal home economies in such a way as to minimize impacts and effects of the world’s economy on our lives.

As in most things in life, I’ve discovered, we can accomplish a little personal security through small things and steps.  Its not about having a large savings account or an entire year’s supply stored in the food pantry, though those are good things, its more about having a small supply and the necessary skills and attitude to make it work.

Stay out of debt – If you are currently using credit cards to make ends meet or for splurges and only making the minimum payments, stop that now.  I strongly suggest getting out of debt, as well.  It seems owning things free and clear is the only way to ensure they will remain your property.  Avoiding debt means no money spent on interest, finance charges, late fees, etc., meaning more money stays in your home economy not the economy of some bank that has the right to change terms at will.  Try to think in terms of living below your means, not just within them.

Start Building a Savings - Save whatever you can pull together.  Look for ways to “find money” and build yourself a reserve that will help see you through unemployment and/or unexpected expenses.  Start small and find a local bank with a good reputation and a high interest rate and let your money grow.  I do recommend keeping some money on hand for those times when the bank is closed, as well.

Build your Supply Reserves- Start stocking your food pantry when you find good sales, are offered surplus from someone’s garden, and/or find some wild foods worth keeping.  Learn to can, freeze, and dehydrate and do so whenever possible to keep your panty and your stomach full.  A well-stocked pantry may be more valuable than money in the bank, so do keep yourself and your family well prepared for any emergencies with nutritious food in the pantry.  It goes beyond food items, however; think candles, blankets, wood for heating, first aid items, batteries, and other items you feel necessary (toilet paper?).

Get to Know Your Neighbors / Community - Let’s face in times of emergency, whether natural disaster or economic difficulties, its our neighbors who, we’ll need to rely on and who will rely on us.  This doesn’t mean you have to best friends, it just means you have to know them and know who has what skills if at all possible.  It sure makes it easier to borrow a cup of sugar or a wheelbarrow if you’ve actually talked to your neighbors previously.

Learn Useful Skills – I’m talking about skills that you can use to barter and/or sell if times get really tough.  If you already know how to repair a roof, mend torn pants, bake bread, can, etc. you have something other folks might want and they might know how to darn a sock, hunt for venison, make sausage or do something else valuable in return.  Its also much easier to do some of these things yourself than have to find someone in an emergency.  Get good first aid skills in place too, these are invaluable.

Adopt an Attitude of Gratitude – I know its corny, but its true.  If you have a positive attitude life is just plain easier.  Life is much more pleasant if we are grateful for what we have versus pining over what we don’t.  In most cases it is our state of mind that determines how bad things really are, take a moment to realize how many people have lived through horrible levels of poverty only to say “we were poor but never felt that way.”

Simplify – Its much easier to simplify your daily life now and adjust slowly versus adapting to a giant change.  Think of ways to simplify now, whether its turning off the TV and computer and spending more time reading or cutting out the lattes in favor of adding to your reserves.

There’s more, of course, but I think these are good places to start.  How about you?  How are you managing your home economy?  What would you add to the above list? 

PS: You can click on the “watching the pocketbook” category on my sidebar for a quick list of all my writings on frugality, making do, finding money, and much more.