1. Stay employed at all costs.
Maintaining your current levels of income is absolutely critical, and for most people of working age, that means keeping your job.
Companies will be making redundancies. BT (LSE: BT.A) announced last week 10,000 jobs were to go. Yell (LSE: YELL) and GlaxoSmithKline (LSE: GSK) are also cutting jobs. It will become a recurring theme.
Your goal should be to make your job as important and as indispensible as possible. Work hard. Take on extra work. Suggest improvements. Stay friendly with your boss. In short, give yourself every possible chance of avoiding the great job cull of 2009.
And if you do lose your job, don't take a few months off to enjoy yourself before starting hunting for a new job. You might find it takes longer than you think to get that new job… much longer. Get job hunting the day you walk out the door of your previous employer.
2. Get out of debt.
Excessive debt is what got us into this mess in the first place. If you consistently run a credit card balance, an overdraft or have any outstanding loans, you are in debt.
Pledge to yourself that you will pay back this debt. Make a plan. There are a few tricks that can help you, such as paying off the debts with the highest interest rates first, and switching to a 0% balance transfer credit card.
There are lots more tips, tactics and help in this When Debt Turns To Despair article. Take control of your finances, don't let them control you. It will take discipline and time, but ultimately extremely rewarding, both financially, and emotionally.
3. Spend less.
How totally boring. After years of binging on nights out at the pub, expensive dinners, Starbucks coffee, plasma TVs, iPods and the latest and greatest mobile phone, you're going to have to be a boring old fart and desist.
Why?
See point 1. You potentially have a 1 in 10 chance of being unemployed over the next 12 months. See also point 4 below.
Sorry.
4. Save more.
Here at The Motley Fool, we've long suggested you should always have at least 3 months' worth of savings in your bank account to cover you, should you need it for an emergency or should you lose your job.
In this environment, I'd suggest you should build up 6 months worth of savings. Stick it in a high interest savings account. You can still earn above 6% interest with some accounts – not bad when base interest rates are at just 3%.
If you spend less you'll automatically find yourself saving more. Give it a try.
5. Shop around.
Everyone likes a bargain. The good news about this recession is that to stimulate sales, retailers are offering some very good deals. I'm not talking about big ticket items such as new cars and new surround sound systems here, I'm talking about everyday necessities such as food and clothing. Check out our weekly Current Discounts And Deals article and e-mail for the latest.
You can also shop around for better financial deals, the big one being a better mortgage. Check out The Motley Fool Mortgage Service and see if you can save big money -- it costs nothing to try. You can also compare and switch Insurance and Gas & Electricity.
6. Enjoy life.
Life is for living, and for enjoying. Despite the tough times, you can still do both. I've found a new mobile phone doesn't help me enjoy life any more, nor does a new pair of shoes.
Sure, there will be some tough and stressful times ahead. All you can do is to try to be as prepared as you can be for those times. If something happens that is outside your control, it's just plain bad luck, and it's no use dwelling on what might have been. Look forward, not back, and remain optimistic. Things will get better.
More: I Beat The Recession
> With interest rates having fallen, and looking set to fall even further, now might be a good time to see if you can get yourself a better mortgage deal. Give The Motley Fool’s award winning no-fee mortgage advice
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