We need to be realistic with our planning – do not over-expect from our jobs, our relationships or the money we earn. Prioritize; decide on the order of your life, education, spouse, investments, car, house, children, travel and retirement. Why not think of life as four seasons – Spring, Summer, Autumn and Winter? I do not think there is any right or wrong way to order our lives, as in the end it will all work out. What is important is how we live and if we are happy living the lives we decide on. Another thing is not to envy other people’s lives or copy the choices that they make.

Therefore, a good place to start is to write a budget, record all that you earn and all that you spend. If there is a spouse or a significant other sharing facilities at home, this person must be included in these planning and budgeting arrangements. Even the older children should be a part of the discussions, in order to be aware and become willing to assist in saving on some of the basic things they use. It will be amazing to see, when we record this information on paper, all of the opportunities to effect change.

Let us explore on e of the largest investment and expenditure items we will incur – the acquiring of a house, which may involve a mortgage. Whether times are good or bad, we should seek to reduce and accelerate our mortgage payments in an effort to:
1. Reduce the monthly payments.
2. Reduce the balance outstanding.
3. Accumulate approximately three months worth of re-payments in an interest-bearing investment, similar to an emergency fund.

These should take priority over lavish spending when times are good. If we value the ownership of a house, then this is a sure way of securing your home as your safe haven. This means that spending less and saving more will become a positive way of being resilient when the bad times come around. Let me play devil’s advocate here – Is owning a house a real priority? Can you really afford it? Is this a part of our culture? In order to achieve our set goals, we need to deny ourselves some things. Let us think about it – vacation, the choice schools, designer clothes, expensive cars and several credit cards. Why not have one credit card just for emergencies, being sure to look for one that gives bonuses, like travel miles, a low interest rate, etc. Vacations may have to take a back-burner for a year or two; expensive cars that are equally as expensive to maintain may have to be sold; and a more affordable vehicle purchased.

Just as how a factory re-tools by acquiring new and more effective equipment in order to produce more, we also need to re-tool ourselves. This may involve pursuing higher levels of education or diversifying our educational qualifications, seeking new employment, changing your primary job function n your existing vocation or starting your own small business on the side. Sometimes one should look outside the comfort zone. A hobby can be converted into an earner.

During a recession, life goes on. A country cannot close up, pull down the shutters and go out of business, as there will always be new areas and ideas revealing themselves to us. Volunteering is a great way to improve the human quality of life for ourselves, as well as for others. We can work through churches and schools in our communities in a particular area of interest; this is considered an altruistic activity, and a very powerful way to create change a feeling of well-being, satisfaction and accomplishment in oneself. Volunteering can also inspire you and direct you to areas that you might not necessarily have thought about and may ultimately create employment.

Finally, seek the help of a licensed financial advisor to design products to satisfy short, medium and long-term investments – do not be afraid to look to other countries for investment options (the Caribbean is a good place to start), and remember your responsibilities, by staying diligent and consistent. The recession cannot last forever – it will one day be over and we must be prepared for new opportunities as they arise.

Here are some tips that should help you get a better idea about the way forward and surviving the recession:

Open a Savings Account (if you don’t already have one)
This is the perfect opportunity for you to ensure that you have some extra cash if needs be. If you haven’t started saving yet, then the time is now to start. It never hurts to save and it might be very smart to put away a small portion of your salary every month towards the future. Think about how much you will have at the end of the month if you save $500 per day.

Exercise a Culture of Spending Less
Thrifty is in during 2009. Try to limit your spending to only the necessities. Therefore, the extra two pairs of shoes or the new Louis Vuitton handbag might not be a smart choice, especially if you have enough shoes and bags to last a lifetime. Whimsical spending is certainly unwise and will lead to financial problems in the future. Safeguard your future by ensuring that you make correct financial decisions now.

Create a Budget for the Month
This might sound impossible but you may be surprised to see the amount of money you save when you list in detail all the items you need and intend to buy for that month. If you have a budget, then it is less likely that you will do on the spot shopping. Resist the urge to buy items that aren’t already on your list. Budgeting ensures that you don’t overspend on one item and not have enough for another. It puts everything in perspective and ensures that your spending takes into account all your needs.

Do Not Touch Your Savings
Ok, so maybe you’ve been saving for five months and during that time you haven’t touched a dime. Regardless, this is not the time to dip into your savings. Unless the reason is absolutely important, then leave your savings for a time when you will need it the most. It wouldn’t be wise to spend your savings on unimportant things now, without making allowances for sufficient funds to be available in the event of an emergency.

Recycle
If you can, then it would be wise to reuse those items that you can. Bottles and small containers are ideal for storage purposes. If possible, wash and reuse as much as possible to save money.