I have read many personal finance blogs, most discussing about being frugal and saving money, but is this the option?

Should we all take every cent and stash it under our bed until it becomes noticeable?

I don't think so.

There is a difference between spending money and spending money wisely.

We've been brought up in a consumer world, buying our flat screen televisions, luxurious cars and beautiful homes and receiving a letter in the mail informing us have we forgotten about the bank.

Many haven't realised how much debt we as a world have accumulated and in some sense, this whole credit crunch and lack of funds have made people understand and appreciate money even more.

I've been taught to only buy what you can afford and save the rest.

There is no need for luxurious items when your young and free or old and wise for that matter.

However, life pressures get to us and it gets harder and harder as we go along and that piece of plastic saves the day to buy that nicety to live comfortably, or so you think...

So ask yourself, what do the rich do?

They use credit cards but why aren't they are debt?

Well, they may be in debt to a certain degree, but this is referred to as 'good debt' and is managed properly.

Credit cards are simple tools used by the rich whereas the poor use them as instant money and this is where we, as a nation go wrong.

We have developed this mindset of using someone else's money to stroke our own greed and not using our own.

More or less, to have now and pay later.

Sure, credit cards are great - in fact, they are one of the best tools you can use, however many aren't taught this and get swooped into spending what's not theirs.

Technically, money is worthless but what it represents, makes our world go round and until you inhabit the fact that money means nothing, you will always be emotionally attached, therefore money controlling you and your life.

So what do I suggest:

* Spend what you can afford - never overbuy

* Don't skimp on important necessities like fresh fruit & vegetables.

* Think abundance, believe everything is within your grasp but don't be greedy

* Put money aside when you can but don't be a scrooge.

* Relax and enjoy money. It can bring happiness, but that's up to you.

The worst thing you can do now is pull all your money out of the bank.

Our Australian banking industry & economy is strong by all regulations that have been put in play over many decades. If everyone pulled out their money, how would the economy survive, on bread and water?

At the end of the day, you will do what you want though I would recommend just thinking about your current situation. Sit down outside, enjoy the sun and fresh air and think of what to do next.

Thinking on emotion is the worst possible way, it will always lead to mistakes...