How very true . . . The world economy is going thru major slowdown. Countries and currencies will be affected in many parts of the world, in Tanzania we have seen the Tanzanian Shilling moving from Tshs. 1,500 to the US Dollar to over Tshs. 1800 in a matter of months. In Kenya, economic development has slowed down, so protect against risk, come together and support each other to grow together. Cut down unnecessary expenses in social fashion. It is not a time to live in an unreasonable spend thrift manner, invest in prudence, and plan for the future. We are still in recession, so be careful, don't use resources in an inappropriate way; you will need those resources to build your future. Don't spend more than you earn, buy only what is essential, save and conserve resources and don't live in a dissolute Let us recap the 2008 Economic Crisis. We are still in a recession and it will spread in many developing countries. This time around it's different. We will be faced with even more investments by people from inside and outside East Africa. So look ahead, think what the knowledge society will require and prepare yourself, for example in education what society needs today will be very different tomorrow. Education requires time and therefore it is stressful with time constraints, so manage your time well. In education, manage knowledge; because knowledge pushes knowledge, everyone will therefore require 2 or 3 career changes in their lives. It is a world very different from what we have known up to now. Therefore, we have ahead of us an economic unknown. As a family, take intelligent, imaginative initiatives so that you don't let situation simply impose itself. Plan ahead and anticipate. Let us look at Tanzanian economy. The inflation is hovering above 15% and the currency devaluation is happening so fast. We have already hit 1700/= per dollar mark. Kenya and Uganda is also going through the same crisis. Food prices are going up everywhere. 2012 will bring more pressure on the developing world because USA and Europe are stagnate economies; this will put the economies of China and India in crisis. Our major trading partners are UK, Europe, China and India, and therefore Tanzanian economy will be affected severely in some sectors. East African Community (EAC) has great potential. EAC will create opportunities as well as many challenges. Our educated young will have many opportunities in their professions as businesses and professions become regional. The service industry will continue to grow offering people with skills many new opportunities. Construction, mining, agriculture,manufacturing, and tourism will continue to grow. Although there may be a slowdown in 2012 economies will pick up after the world crisis easies a bit. Certain geographic areas will grow faster than traditional growth areas like the commercial capitals of Dar es Salaam, Nairobi and Kampala. All port cities will grow faster, namely Mtwara, Tanga, Mombasa and Lamu. All border towns will flourish, as the community becomes one common market. Tanzania is bordering nine countries and those border towns will experience substantial growth. Transportation hubs like Morogoro, Singida, Mwanza, Mbeya and other cities and towns will experience growth. University towns Arusha, Dodoma, Iringa and others will grow faster with service industries. Mining centers Iringa, Mtwara, Tanga, Singida, Shinyanga, etc. will provide opportunities in forward and backward integration with transportation, agro-business, construction, hotels, rental properties, service industry, etc. General currency realignment may happen where US dollar may not be the only reserve currency, meaning other currencies may also share the reserve currency basket. Investing in prudence means saving your money and ensuring your cash reserves are well diversified. How will the world solve this global economic fall? History has no precedence; we haven't been here before, and the world has no experience. It is totally unpredictable! Long-term view of East Africa is promising. It will be temporarily affected but for long term, hold on to your assets! KNOWLEDGE creating new technology is increasing. Right now there are gaps in knowledge in East Africa. This is creating opportunities in different industries. There are solid futures in emerging economies like Tanzania, new jobs using new technologies and knowledge will present us many opportunities. Investing in SELF is best investment but be selective in that so when you are done you are not outdated. In Tanzania we are faced with members who still do not understand the importance of insurances, be it for homes, businesses, or themselves. By that we mean life insurance and health insurance, we have members who insure their cars yet refuse to insure themselves. In both cases a loss or illness can mean great hardship to the whole family. Many families do not have wills written down. It causes so many issues after you are gone, for your families and businesses. The Job Market: To the women, computer literacy brings work and education into your homes, especially if you have young children. Invest your free time in upgrading your skills; there is prudence in managing time. If your children are going to school, look at using the acquired skills for a second income, be it a job or a business. This is for Form 4 or Form 6 or University graduates and mothers coming back into the job market. Form 4 leavers can continue their education in technical areas where there are many opportunities. Our young should not be working for a half a million shillings, when with qualifications they can earn more. We should look at vocational training seriously. There will be more demand for skilled people, we should therefore look at electricians, plumbers, air conditioning technicians, and specialist mechanics all are fields which will require training and certificates. Family Budgeting: Look at the monthly income and expenses; invest time in getting the correct expenses recorded right to the last meal you eat out. It is very important that the family does this together so that children understand the serious economic situation and the impact on their spending habits. Increase your monthly savings: Each family needs a minimum of six months expenses set aside for a safety net. stop wasting financial resources on Social Fashion. This means cut down on latest gadgets like smart phones, clothes, cars and expensive restaurants. As one of the richest men in the world Mr. Warren Buffet said, Dont save what is left after spending, spend what is left after saving Be serious about a Family Saving Plan: Every family should have a savings plan. There are only two ways to increase our savings, either increase your income or reduce your expenses. So prepare a budget, stick to it and review it regularly. Saving on household budgets. Buy in bulk, shop at the market, compare prices between supermarkets and the corner shop, switch of the lights when not in use, do you really need the second car, is it worth the yearly expense?. Buying in bulk: Families and friends come together and buy in bulk. There are great savings in buying in bulk. Take your lunches from home. A family can save more than a million shillings in one year. Economic downturn increases crime: During economic downturn there is usually an increase in crime. Do not show your wealth and invite crime. Fraudulent business practices also increase, if an investment sounds too good to be true, and then be cautious. Family Unity: Unity is fundamental to our financial survival. As families, spouses and children must work together to achieve the family objectives. Also, unity in the community is important because we need to be there for each other, especially for those who may be more severely affected. Financial issues are one of the biggest causes of problems in marriages, and it is important that as families we work in unity through this crisis. I submit!