It a new Great Depression on our doorstep? The likelihood of twenty to thirty percent unemployment is not yet apparent and because of institutions like the FDIC people will not lose their bank deposits. However, many Americans are in just as dire circumstances as their homes are being foreclosed and as job losses increase.
If you are not already in dire circumstances now is the time to protect yourself by building up emergency savings. Look for online savings accounts such as Capital One Direct, which pays around three percent and begin depositing whatever you can afford in a rainy day fund.
It is also important that you pay off as much credit card debt as you can, before you lose your job. You don't want to have to file bankruptcy since this can affect your credit for seven years or more. You may pay as much in the future, in terms of higher interest rates on cars and homes, as you would save in a bankruptcy.
In addition, bankruptcy laws have changed. You can no longer write off all of your debts and start with a clean slate as in the past. You may be required to pay many of your creditors what you an afford to pay over time.
Avoid debt counselors that charge a fee. These can get you into more trouble than you can imagine. Many advocate you stop taking calls and opening mail from creditors so that the creditors get so desperate they will work out a deal with the debt mediator. What they don't tell you is that the creditors can sue you, and cause you thousands in legal fees to defend yourself.
Consider buying small amounts of gold and silver bullion each month. Try sites like apmex.com for bars and silver rounds.
Of course you should be saving for retirement in a 401-K or IRA but given the current situation and the bleak outlook for 2009 you may want to scale back on your contributions and instead put that money into savings. It is more important to build up your emergency fund instead of having to raid your retirement nest egg later if you lose your job.
Start to cut bills now. Get rid of anything you don't need to survive. This includes cable, premium cell phone plans and kid's phones, summer homes, boats, RV's and other toys.
Sit down with your spouse or partner and make a budget and see where it can be cut. See the following article on how to cut your budget painlessly: http://ehelpfultips.com/how_to_cut_your_household_bills.htm
Now is the time to make the tough choices when it comes to budget cutting, not before it is too late.