Down Economy? Take Action!

Last week’s government rescue plan cost $700 billion. The number of job cuts in September were almost 160,000 and growing. The Dow is like a roller coaster.
These numbers indicate one thing: Now's the time to do everything you can to protect your finances. You need to take action now on a budget and to eliminate debt.
"Watch every dime coming into your house, because tomorrow it could be a nickel," warns Catherine Williams, vice president of financial literacy for Money Management International, which oversees nonprofit credit counseling agencies. There is no better way to do this than to stick to a budget.
The basic premise of a budget is simple: Make sure expenses do not exceed income. But you also need to find a way to save some cash. This is very important.
According to Money Management International's Consumer Credit Counseling Services: your budget should follow these guidelines:
Housing (20-35%)
Food (15-30%)
Transportation (6-20%)
Medical (2-8%)
Insurance (4-6%)
Utilities (4-7%)
Clothing (3-10%)
Personal Care (2-4%)
Misc. Items (1-4%)
Personal Debt (20% maximum)
Savings (10% minimum)
While investing money is a good ides, many are scared by what they see happening to the stock market. If that is the case, consider the nearly unbeatable return you can get

While I would not recommend that you ever use a credit card, not everyone agrees. If you do use plastic, attach your high-interest-rate credit cards with a vengeance by seeking out the cheapest rates you can find, look to a credit union. They tend to offer more favorable rates than big-name banks. You may also want to consider calling your card issuer and tell them you have received better rate offers. Lenders would rather lose a little money by lowering your rate than have you move your entire balance and future business to another company.