The Dollar Stretcher Blog The Shut Down Procedure by Gary Foreman gary @stretcher.com Recently I was exposed to some information on how our bodies handle extreme stress. Situations where our life is on the line. We often think of them as 'fight or flight' situations. What I didn't know (although it really didn't surprise me) was that our bodies adapt to the situation automatically. Without any conscious thought. For instance, if we're being pursued by a predator or in hand-to-hand combat, our body uses all available resources to help us run or fight. Resources that are normally available for digestion or reproduction are shut down. Everything is focused on survival. Then after the threat has passed, non-essential activities are restarted and we go back to digesting lunch or ogling that attractive blond. That strikes me as being a very good thing. If my life is on the line that is the single most important thing. Nothing else is critical at that time. The blond doesn't do me any good if I'm dead. I can get back to her after the threat has passed. Seems like that would be a good strategy for us to follow with our finances. When we're struggling (being pursued by creditors), we should shut down anything that's not necessary for survival (think restaurants and other non-essential expenses). Put all of our available money towards surviving the immediate danger. Then after the threat is over, we can add back the items we put on hold. Yet, for many of us, we respond like a deer caught in the headlights. When we get into a crisis (lost our job, had a major unexpected expense, got buried in credit card debt) we freeze right where we are. We don't make any changes. We continue to spend just like there was no crisis. There's one other lesson to learn here. Our bodies react instinctively. The 'crisis procedure' is built into our DNA. The body knows what the plan is and puts it into effect. Unfortunately for our finances we don't have a 'financial crisis procedure' that's instinctive. So we would be wise to create one. That means taking a look at your monthly expenses and decide which ones could be avoided in an emergency. You're probably not facing a crisis today. That's why now is a good time to create your plan. You can calmly evaluate what's essential to your well-being. Then, if you need it later, you'll be ready to take immediate action to protect yourself. Just a matter of following the procedure that you've already created and considered. Finally, a side (snide?) comment. Wouldn't it be nice if those in government could grasp this concept and apply it? Doesn't it seem like the first thing they look to cut is the essentials? Instead of the things that are not necessary when we're facing a financial crisis? ______________________ Gary Foreman is the editor of The Dollar Stretcher.com <a href="http://www.stretcher.com/index.cfm">website</a>  and <a href="http://www.stretcher.com/subscribe/subscribeDS.cfm">newsletters</a>. Click here for more information about living on a <a href="http://www.stretcher.com/stories/00/000821a.cfm">bare bones budget</a>.