MONEY CRUNCH - THE SKY IS FALLING

What's a money crunch? This term is current mentioned over and over in the media - yet it isn't clearly defined anywhere.

Quite simply, a money crunch (or crisis if you want to call it that) occurs when you "feel" that you are short of money. In simpler terms, money is simply a mode for doing trade. Thus, if you want to buy something, you give money in return. Simple laws of supply and demand. So a crunch occurs when the money you have isn't enough to get the item you need/want. Well how do you solve a crunch? A few ways actually:

1. Don't do the trade (i.e. don't buy what you wanted to buy in the first place). Happens all the time - just be more open to not getting everything you think you need/want.
2. Increase your money - which simply means increase your skills so you can produce more.
3. Make sure you get more for your money. E.g. if you are renting, negotiate a better deal with your landlord. If you have a mortgage, try and refinance (assuming you have have good credit rating).