A huge warning has been sounded.

The world has changed.

Everyone saw the great recession, but did you see the debt clock tick, tock? The debt that everyone thought was fine in 2006 now functions like an anchor around everyone’s neck in 2010 and beyond.

Companies are hoarding cash. Everyone is looking to flush debt. Companies are begging out of debt, refinancing and doing strange deals with anyone and everyone to deleverage their debt.

The economy continues to limp along. The U.S. Government is “doing into the hole” with the Chinese as the Chinese are purchasing the world. This will all have a long-term impact on what you eventually pay for any debt and it is also likely to impact the quality of goods on the U.S. market. It could further erode the employment picture for Americans and almost certainly ability to have substantial income.

What does the great deleveraging era mean for your family?

Deleveraging is a business word, but you should be doing what companies are doing now. You should be protecting your family.

It means you should be busy before it is….too late.

It means people with large debt will be in more and more trouble as we get into 2011, 2012, 2013 and beyond. It also means that those without debt will be in the drivers’ seat.

It all begins with telling yourself you can and making sure your focus is on PERCENTAGE of your after tax income that you are ACTUALLY saving.

You must begin by saying two things to yourself and your family:

1. We will find a way.
2. We can build savings and wealth – together.

How bad are things for your family?

You can answer that with these important benchmarks:

1. Do you have 15 to 18 months of expenses in emergency savings (money market savings and certificates of deposit)?
2. Are you regularly paying more than the minimums on any credit card debt?

You don’t have to save 15 to 18 months of expenses all at once, but you must get moving.

Over the last 100+ years the U.S. has had the wind at its’ back. This was created by a strong manufacturing and innovation via technology advantage, but the wind is shifting in a hard way.

For perhaps the next 130+ years, Asian counties will have the wind at their back. We will have to be better than we were with the wind at our back and continue to be more innovative in the future, but families will have to reduce and eliminate debt, save regularly and work together to build wealth to sustain a good lifestyle. This could not be more serious – and the time to take consistent action is NOW. Begin.

And you can do this.

If you want to begin with our “1% Savings Plan,” you can do that by checking out the details in past blog entries or at www.MiddleClassMoney.com.

Bring your family together at the kitchen table and begin with brainstorming that will help your family reduce expenses and apply the savings to….you guessed it….savings.

Establish your OWN plan for regularly saving money (and I mean in money market – away from your checking account).

Come back and check out blogs like this one and find additional ways to save $ by using coupons, coupon codes, negotiation and more tactics to help your family. Be willing to look at options for reducing spending and piling on savings. This is the beginning of your comeback.

Less debt = more savings.

More savings = more wealth.

You can do this.

YOU CAN CHOOSE

You can choose to take specific and steady actions to change your life, change the lives of your children and change the future of your family tree. Yes, you have the power yourself.

All the corporations, the private equity companies, crooked politicians and rich people can’t stop you if you really have a systematic plan that starts with regular savings and steady investment along with your regular bills.

If you are willing to take the time with your family to make a plan for reducing and then eliminating debt over time, you can gain more control over your finances and you can teach your children how to become wealthy over time.

If you are willing to make people work for the money you spend with them, you can build savings and then wealth.

These things are within your reach. You just have to start and you have to be encouraged.

You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.

If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at www.middleclassmoney.com.

Thank you for reading our blog and good luck!