How to Survive an Economic Recession

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There's no easy way to survive a recession, but with a few basic strategies in place, you can weather the worst of economic storms.

1. Keep your job. The best way to survive in tough economic times is to stay employed. Don't rock the boat, at least until you find a new boat to jump on to. And if you are lucky or skilled enough to be employed, put as much money aside as you can, because a layoff could be around the corner. It can take years to make up for income lost after a layoff, so having a reserve fund is smart.

2. If you lose your job, find another one.  Finding a job -- especially in a recession -- is difficult, but it's the best way to survive a recession. If you've been laid off, remember that a layoff is usually out of your control and has little or nothing to do with your work performance. It's important to keep your confidence up as you hunt for your next job. Since it could be as much as three years before job creation catches up to the end of the recession, plan for stamina.

3. Save money. If you can't control your income, you'll have to control your spending. If nothing else, the recession is teaching people to be more frugal, to clip coupons again and buy items in bulk. Cut as much as you can as soon as you can -- and yes, that means cable.

4. Keep a clear head. There are things you can control and things you can't, and the best way to survive is to know the difference. Be like a Boy Scout and prepare for the worst, but try not to worry about everything else.