We often hear that it is always a good idea to be ready for the worst case scenario and to have an emergency plan in place for just about everything. It strikes me as a little odd that very few people speak of the need to have an emergency plan in place for things like your personal finances and your employment situation.

Having a backup plan for employment is a little more complicated, and I understand that, but in this kind of economy it is something that is necessary. What kind of things can you do to have an emergency plan in case you lose your full time job? Look into some work at home possibilities or some ways to make some cash on the side from home in any spare time you may have. These kind of programs may not earn you a lot, but it’s always nice to have a little bit of passive income just in case. The telecommute option is growing as businesses look to cut overhead. Also, network with others in industries that you would be interested in working in. This doesn’t mean you need to have a second job lined up, because that is usually next to impossible, but having those contacts is very helpful.

From a personal finance side of things make 2009 the year when you have that emergency savings that you will not touch unless you absolutely have to. It is vitally important that you have this, and it is just as important that you leave this money alone unless it is a dire emergency, since you never know when things could get even worse.

Emergency planning isn’t very much fun, but it is a necessity, especially in the economy we have to start off 2009. Plan for the worst and hope for the best!

First of all, Happy New Year to all of the Moola Mania readers out there. I sincerely hope that 2009 is a prosperous one for you and your family.

Now that the new year is just about here the main question on many minds is, will things get any better or will it be the same old ugly mess that is the American economy and stock market of 2008? Quite frankly 2008 has been absolutely miserable for the stock market with the broad S&P 500 finishing the year with losses of about 38%. One also has to remember that in late 2007 things were very ugly as well, so the market itself is down about 50% from its high set in October of 2007.

Not to be outdone by the stock market, the economic data points have just gotten uglier and uglier by the month in 2008. The job market is the worst in at least 30 years, and consumer confidence is sliding lower than it has ever been measured before. The credit markets have yet to become unfrozen and the housing market is showing no signs of improvement. The best thing that can be said about 2008 is that it is now over with and it is time to turn the page.

While it would be easy to simply see things from a 2008 standpoint, you would be much better off trying to give your savings and investment plans a whole new starting point in 2009. I understand that 2008 has probably set you back substantially, but sitting back and pouting about 2008 won’t get you anywhere now. The economy is still in a terrible slide and the stock market is still very uncertain, but you need to prepare yourself and your personal finances for 2009. Don’t look back on the mistakes that have been made with disgust, but rather use them to your advantage in the future. Bring in the new year with a wise financial plan for your personal savings and investments.