During the worst point of the Great Depression, historians report one in four Americans were unable to find a job.

Money was so tight that Jeannetta Danford of St. Joseph remembers hearing how her mother-in-law would buy 10 cents worth of bologna at the grocery store so her small son could have meat to eat.

“As children, we just accepted things the way they were,” she says, “but managing was very much a struggle for adults.”

The economy today may not have you making underwear out of flour sacks (as some people did then), but it should be getting your attention.

“I’m seeing a significant and measurable difference in the last three months of the requests for emergency assistance of some kind,” says Rika Bergonzoni, administrative assistant for Catholic Charities in St. Joseph.

And it’s not just the poor being pinched. Everyone has been squeezed a bit more than in the past, says Carol Young, Kansas State University research and extension financial management specialist. But there is a silver lining.

“This is a time for people to take stock of where they are financially,“ she says “That’s the good picture out of all this.”

The first step is to figure out how much money you really have. She says it’s surprising how many people don’t know this. You simply figure your net or take-home pay, which is the amount after taxes and deductions. Then make a list of the fixed expenses you have, such as car payments, rent and utility bills. Finally, compare the total amount of fixed payments and expenses with the money available (the net pay) to determine whether the cash flow is positive or negative.

“Until you know what your income is and what your real expenses are,” she says, ”you can’t make wise decisions on what to do next.”

Improving a negative cash flow may require downsizing your home or carpooling. It usually means cutting out the little things. Track cash spending for one or two weeks, she says, to identify impulse buying. Saving a dollar a day could yield close to $200 in six months, she says.

One of the most important things to do is to build an emergency fund for unexpected expenses. Too many people rely on credit cards in a crunch, which compounds your financial woes. You say you don’t make enough to put in savings?

“That’s a false idea,” she says. “Most people say that because at the end of the month they don’t have any money, but at the beginning of the month they do and can make a choice.”

The best choice is to consider savings as a fixed expense. Pay yourself first, even if it means starting at $10 a month.

“We all want everything, but most of us have to make some choices,” she says. “We can chose to pay ourselves or chose to fritter away our money and not have any in the time of need.”

For more financial tips and links to money saving strategies, go to www.oznet.ksu.edu/financialmanagement.

Lifestyles reporter Sylvia Anderson may be reached at sylviaanderson@npgco.com