Now more than ever, Bahamians are strongly being urged to watch their dollars and cents as the current financial crisis affecting the entire world forges on. Local financial experts and analysts are coming forth and warning the working population to be careful how they spend money and especially how they borrow it.

A few days ago, The Freeport News published an article in which several financial professionals advised that there is a formula for persons to survive these challenging times that is simple as ABC. The formula suggests that Bahamians develop a practice of A – planning; B – budgeting; and C – control.

Unfortunately, as the number of individuals being laid off around the country continues to escalate, so is the number of those who are delinquent in their loans, mortgages and other personal expenditures. Moreover, the majority of them do not have any means by which they can make such payments, resulting in depressed people trying to survive in a depressed economy.

A message, however, seems to be ringing loud and clear to those who still have jobs and are trying to stay afloat, and that is, now is the time to watch your money. It is strongly being suggested that one eliminate the use of credit cards, taking out unnecessary loans and to cut back on spending. It is further advised that focus must be placed on setting priorities in which money is only spent on things needed and not things wanted.

Larry Gibson, a well-known financial analyst even implies that for the next 12 to 18 months, Bahamians have to be very careful and conservative with how they deal with their finances. Gibson said because The Bahamas economy is dependent on tourism (with the majority of visitors coming from the U.S.) and the financial services sector, it will face tremendous challenges as attempts will be made to keep it afloat during these harsh times being experienced by most countries around the world.

In the last several months, he said billions of dollars have been lost in the U.S. stock market and as a result of that, many Americans have been worried about monies invested and their retirement funds. Therefore, the current financial crisis will force them to be more conservative with spending as their attention focuses on how the present U.S. economy will progress. In the end, many will be very reluctant to take trips to vacation destinations like The Bahamas.

Signs of what Gibson talks about can be clearly seen when you look at the scant amount of visitors now coming to our shores. Businesses catering to tourists are closing down every other day and now hotels are laying off staff after suffering huge losses from low occupancy rates.

While addressing the nation last Monday, Prime Minister Hubert Ingraham advised that during this time, it is vitally important for each and every Bahamian to live within his or her means; debts should be minimized and consolidated and new borrowings should be kept within prudent limits. This, he admonished, will be especially important during the upcoming Christmas season.

"What is clear is that we are in uncharted waters. There is no quick answer to this crisis, and not even the most knowledgeable and gifted financial analysts are willing to gamble on its eventual outcome.

"For our part, we look to a return of U.S. consumer confidence, interest rate cuts and cheaper oil and food prices that will make possible the beginning of global economic recovery. As a nation, we must stand together as we seek to mitigate the impact of this global crisis on our circumstances."

With things being this serious, then it is up to all citizens to do the smart thing and start saving more money until this crisis is over.