Worst Case Recession Scenario - What Can You Do to Be Prepared?.

The state of the economy just keeps getting worse and worse. Everywhere you turn, someone is saying that dreaded word: "recession". Even though you are tired of hearing about it, you know you need to be preparing for the worst. Sitting around grousing about your situation is not going to make things any better, that is for certain. But what can you do? Plenty! Below are five handy tips for recession-proofing your family's finances, or at the very least, absorbing some of the impact that the recession is having on everyone's budget.

• Pay cash. Cut up your credit cards. If you are already struggling, do not take on new debt, even though it can be tempting when times are tight. Find a way to pay cash, or do without until you can.

• Buy used. Get to know your local thrift stores. Check out garage sales. Look through your local classified section. Secondhand clothing, furniture, books, appliances and many other items can be just as useful as buying brand new, without the brand new price tag. You can often find real bargains and deep discounts at thrift stores. A new pair of jeans can easily cost eighty dollars; even lower end jeans will cost you thirty dollars a pair. On the other hand, at a thrift store, the cheaper jeans can often be found for just a buck or two, and higher end jeans can quite often be purchased for under twenty dollars. Buying used is a great way to stretch your purchasing dollars further than you might have thought was possible.

• Shop wisely. For many households, especially those with larger families, grocery shopping is a huge part of the monthly expenses of the house. You have to eat, of course, but what can you do to make the cost lower without sacrificing your family's standards of health and enjoyment? There are many little changes you can make that will cut your family's grocery bill down to size. Cut soda out of your diet, and replace it with ice water with a twist of lime. Poof! There is thirty dollars or better each month saved, just by not purchasing a couple of fridge packs each week. Buying generic instead of name brand, when possible, will reduce your food budget significantly as well. Many generic items are just as high quality as their name brand counterparts; trial and error will quickly show you where you can cut corners without feeling it, and where name brand is just worth it.

• Go to the library. Your entertainment budget is likely to be one of the very first things that gets downsized if you are feeling a crunch. Using your local library for all it is worth can be low cost or even free way to put some entertainment back within your reach. Sure, they have thousands of books, but what if reading just does not appeal to you? Many libraries also lend music CDs, audio books and even popular movies on DVD to their members. The selection may not be as good as Blockbuster, but the price cannot be beat!

• Keep saving. This can be easier said than done in tough times such as these, but if at all possible, you should keep socking away a bit from each paycheck against the possibility of even harder financial situations.

The recession makes things more difficult, but it does not have to be impossible to make ends meet. You can make your dollars go farther. If you use the thrifty tips above, you will be a step ahead of the game when it comes to being prepared for the worst case scenario.