Five Things to Resist Doing in a Turbulent Economy
1. Don't  borrow money to continue your current lifestyle. Rewrite your budget and if income doesn't match expenditures, it is time to make some cuts and adjust.
2. Avoid pulling out funds or taking a loan from your 401(k). You should continue making contributions into it. If you have to cut back, at least continue to save the amount (or percentage) matched by your employer, because that is "free" money.
3. Even if  you are tempted by low interest rates, avoid borrowing against your home equity to fund current expenses.
4. When going gets tough, the tough turn to retail therapy. Before shopping, make a list of only items you need and stick to it. Also, delay purchase decisions on anything other than routine items in your budget for at least 48 hours to be certain you need them.
5. Avoid turning to credit for unexpected expenses while you have savings. Credit card rates are in the double digits, while interest on savings is in the low single digits. If  you have done so, now is the ideal time to start to build an emergency savings. You never know when you'll need it!

Excerpts from an article by the National Endowment for Financial Education (NEFE). For more money management tips visit www.smartaboutmoney.org.

         DON'T GET CAUGHT IN MONEY TRAPS!

Financial experts warn about “money traps” that provide short-term cash at a very high cost. For example:
Paycheck Loans: these allow workers to borrow against an upcoming paycheck. If unable to cover the loan on payday, the consumer in on the hook for each loan extension. For example: borrowing $200 flr a two-week period could trigger an APR as high as 396%!
Car Title Loans:  they can go as high as one-third of the wholesale value of the vehicle but can cost the ownership of the car if the loan is not repaid by the agreed-upon date.
High Interest Credit Cards: Paying only the monthly minimum will actually double the total cost of the financed merchandise.
Tax Refund Loans: these are short-term loans with high interest rates. The best solution is to file electronically with a turnaround time of as few of 10 days with Direct Deposit.
Finally: Stay away from money orders and check-cashing stores, advanced-fee loans taken out over the phone, by mail, or online as these tend to be nothing more than scams.