Tough times good times to take control

The rural economy is still shrinking, but not as much as it has been, according to a Creighton University professor's latest figures on the Rural Mainstreet Index.

Farmland values are above "growth neutral," offsetting declines in farm equipment sales and continued job losses.

So there are hopeful signs, but most of us still feel the need to watch our pennies closely.

That's not all bad. Like diet and exercise, learning a little self-discipline can pay off in the long run.

Tracking expenses and saving for emergencies can pay off when things get better -- or when unexpected expenses arise that might otherwise require borrowing money at interest.

University of Nebraska-Lincoln Extension family economist Kathy Prochaska-Cue notes that, in an ideal world, people should save 15 percent of their income.

No, that's not easy, or even possible for many of us, but that's no excuse for not trying.

"You need to track where your money is going and figure out where you can cut back," Prochaska-Cue said.

That's more than most of us do, but she suggests we start small.

Write down what money is being spent where for a couple of months, and then you'll have the tools to determine where you can cut back.

Eat at home, and entertain yourself by going to museums, parks or public festivals. Or, invite friends over for a potluck diner or game night.

People don't need as many clothes as they think they do, she said, nor do they always need the more expensive brand names.

Lowering the thermostat a couple of degrees in the winter, or raising it in the summer can have a big impact on the utility expenses.

Then use the savings to create an emergency fund to cover expenses that might arise in the next six to 12 months. For the longer term, Prochaska-Cue said, purchase a series of CDs with staggering maturity dates to allow for availability of funds.

The secret is to determine what expenses are actual needs, vs. which are merely wants, she said.

By getting control of our spending now, we'll be in better shape to face tomorrow, whatever it brings.