What about student debt, though? It's the only kind I have. I wish somebody would bail ME out, dammit.

Otherwise I'm pretty much set. As long as my company doesn't go under!

@Jthmeffy:
and after reading the list.. The only people that DON'T at least attempt to do everything mentioned probably don't visit this site..

Yodlee never gets any love when it comes to online spending tracking tools. I dont know why - I much prefer it.

@Jthmeffy: haha are you new here or something? Consumerist is as sensationalist as it gets.

Know Where You Money is Going + Eliminate Waste...

I've used these concepts in the past to leverage lower monthly payments for cable TV, internet, satellite radio, and my landline phones. If these companies are smart, they realize they're the first on the chopping block when things get tough.

And the above is also a good reason to stay out of long-term contracts.

@nicemarmot617: Same here. At least im not in for 6 figures, but it still hurts.

I disagree with the buying used furniture advice. Bedbug infestations are on the rise, and sure you may save a couple hundred buying a used couch, but by the time you disinfect your whole house and throw out anything upholstered you've lost a ton.

@Jthmeffy: It's Official: US Has been in a recession all year

Did you miss that news story a few weeks ago?

@Jthmeffy: Because technical definitions of economic events matter WAY more than reality!

@Jthmeffy: Except that's not how the NBER (National Bureau of Economic Research) defines a recession, and they are the ones that officially declare if the US is in a recession or not. According to them we've been in a recession since December 2007.

[www.frbsf.org]

@SuperSally: I completely agree. Watching one episode of Verminators on Discovery convinced me to never buy used furniture.

@Jthmeffy: Haven't you heard? Accurate statistics, economic laws, and objective truths are no longer en vogue.

These days, the media runs politics and behaviors.

@concordia:

I've been lucky, I guess. I've bought a used table and chairs, bookcases, etc (but not a couch or bed) and I haven't gotten any bugs.

As far as the hints, Buy Used is my favorite one. I love the flea market and go there all the time. If I need household or Christmas stuff, that's the first place I go.

@SuperSally: not every used item is bedbug/woodworm infested - ive done my whole living room with used furniture: coffee table/end tables: $75 saving at least $200. huge entertainment center wall $600 (approx $800 savings). reclining sofa and loveseat $500 (approx $500 savings). so thats around $1500 of savings. Coffee table is a bit beat up, but the rest are all in almost-new condition -were from people living in nice places that had either just moved or were moving and didnt need it anymore - if you buy carefully the risk is no more than buying from a store... and the more than 50% savings was well worth it to me...

Also - if you're worried about bedbugs, there is still dining room sets/tables/chairs used that have no upholstery to stress about. If nobody bought that stuff used there'd be no antique market...

@nicemarmot617: Me too. What my options are involving that would be helpful.

@Jthmeffy:

In all fairness, we already know GDP is sharply negative for Q4, and market conditions across the board have badly deteriorated. It seems a little PollyAnnaish/obsessive to declare this economic environment anything but recessionary. Focusing on one "rule of thumb" definition seems like missing the forest for the trees.

I just wanted to share something that I learned from a financial advisor about emergency funds. Say you've saved $9000 (good for you!), what do you do then? He suggested putting $3000 in savings, $3000 in a 6 month CD and the last $3000 in a 12 month CD so that you always have access to some cash. I thought it was great advice. Now, if only I had all that money, lol. Actually, you don't have to wait until you saved that much, a lower amount would do just as well.

I know quite a few savvy investors that have gone to cash-only in their portfolios now. This market is beating the shit out of the long term guys and making the short term guys rich.

@masonreloaded: I'm sure there's plenty that's not infested, but I don't necessarily think the antique market is what the article meant. I'd rather err on the side of caution and spend more upfront than buy used on Craigslist the one item that destroys the house. That may just be me though--parasite paranoid. Plus, bedbugs have been in a the news quite a bit here.

"You should have an emergency fund, with 3-6 months of living expenses in a savings account."

Nice sentiment. Sounds wonderful. I'd like to have that, too.

I've been hearing this advice since the 1970's and I don't know anyone that has been able to do it. Besides, if you're already in the hole with credit cards and loans, you won't have enough money to even start doing this. Great advice if you're just getting started and have no significant debt.

@Jthmeffy: even if we weren't already in a recession (we are), the facts still hold true as far as "How to survive a Recession"
believe what you want, feel free to say "SCREW YOU" and go against what all these tips suggest. nobody is making you do them.

@tange1: I tried Yodlee. It failed, daily, to connect to most of my accounts, for no reason. In fact, it failed SO MANY TIMES that it actually caused me to have to reset passwords on more than half of my online-banking accounts! It was miserable. I dropped it and never looked back.

@iseemoo: I keep a CD ladder all the time, you don't have to do it in those amounts, you can ladder it in smaller amounts and more CDs for more flexibility

@Urgleglurk: um, i was able to do it, and I only make 25k a year, and i have student loans. I plan my savings just like I plan my debt.

And Mint just added an iPhone app: http://ax.itunes.apple.com/WebObjects/MZStore.woa/wa/browserRedirect?url=itms%253A%252F%252Fax.itunes.apple.com%252FWebObjects%252FMZStore.woa%252Fwa%252FviewSoftware%253Fid%253D300238550%2526mt%253D8, so now I can keep track of where money's going in brief moments of down time. Guess now you CAN take it with you?

Is it just me or does the guy in the picture look like he's on a cell phone?

@iseemoo:

Or you can keep it all in an INSURED (FDIC) online savings account. Usually with the same if not higher interest rate than short term CDs.

CDs≠insured

OK, I usually don't nitpick about the postings, but what the hell does this mean?

"For many of us, this is the first recession where we are responsible for our own financial well-being."

I always thought we're all responsible for our own financial well-being. Maybe the editor was trying to imply that people are just now waking up to their own responsibilities?

Anyway, I think the first advice is the best... Don't panic! There's a lot of shit going on, but you'll be more prone to making foolish decisions if you react emotionally.

I think that "Eliminate Waste", "Buy Smart", and "Buy Used" can be combined and augmented with Ramit's "Only buy new things when replacing something old". I feel dumb for not having considered that sort of thing before. It definitely makes me second-guess myself when I'm tempted to buy something. When I see some clothes or computer upgrades, I contemplate whether I will be willing to sacrifice anything I currently have to acquire it. Essentially, for every shirt you buy, you have to give one away. It makes you think twice about the perceived necessity of purchases. It's put a huge dent in my spending.

@Urgleglurk: You can do it if you don't try to do it all in one chunk. Sock away a little at a time. Even $1000 in the bank makes a big difference, by keeping you from having to put yourself further into debt when the unexpected happens.

@Urgleglurk: I dunno, we have about four months' worth, and we have a car payment, a mortgage, and student loans.

I'm able to do it. But I raid the emergency fund in January to make our ROTH IRA contributions. So I only have a "6 months emergency fund" 9 months out of the year.

@hellinmyeyes: I think the editor means that the last time there was a recession, we were kids and our parents took care of the financial stuff for us.

I just paid off a HUGE credit card balance, and I have 2 more that aren't too high - those should be paid off my March if all goes according to plan. Then the only debt I'll have will my my Toyota (which wraps up in May) and my house/Heloc which i can hopefully refi all together at a 5.something rate if the economy stays on the current track.

Credit Cards are the devil.

@AliyaBabasaur: Yep, setting up a plan is the key.

I struggled to save up an emergency fund for years. Finally about two years ago I set up an automatic transfer from checking into a savings account at the start of each month. I could make it 8 months on that without too many problems. And I could probably stretch it out longer than that if I got serious about cutting expenses.

Cleaning up debt in a recession is a very very very bad idea.

Recessions = inflation, so the $ you give them is worth less and less.

If you have a fixed rate loan keep it, and put extra money in cd's and such don't spend it. CC's and other variable rate debt needs to be liquidated.

It is always about living within your means, not if you have debt. Debt is a commodity just like eggs, it isn't good or bad. It is just the improper use of debt that is bad.

I've been trying to buy a used car, but it's hard finding a good one. Checked craigslist, but it's full of scams and folks who think their 1992 civic is worth 4k.

I guess I'll look for signs around the area, that's how I sold my other car.

Personally, I prefer Thrive (www.justthrive.com) to Mint or Quicken. They do a lot to provide advice. I have accounts with both them and Wesabe and use Thrive for all the automatic stuff and Wesabe to peek at their community advice.

@TrueBlue63: The problem with having debt going into a recession, as I see it, is it limits your financial flexibility. You have to meet that minimum payment every month, no matter what your job situation is. In a recession it's nice to have as few fixed financial obligations as possible.

I agree with you that fixed rate debt is not as much of a problem as variable rate, though. I'm not in a big hurry to pay off my student loan.

BTW, while recessions normally do equal inflation, this one so far seems to be showing signs of being *deflationary*. I don't think that will last, but it's pretty interesting.

@TrueBlue63: Recessions don't have to involve inflation. It's also possible to have a deflationary recession and holding lots of debt during a deflation is seriously bad news.

Of course, with the government pumping money into this, that, and the other chances are good that there is some inflation in our future.

@tinmanx: Depending on how recent a car you're after, "program cars" from dealers can be a pretty good deal. These are usually ex-rental cars. The rental companies run them for 40,000 miles or so and then sell them off at a substantial discount. They're generally dealer-maintained and often come with a warranty.

@AcceleratedDragon: there absolutely are FDIC insured CDs. All my CDs are FDIC insured.

@Urgleglurk: We've got it, too. Mortgage, no car payments, no kids.

I'm waiting on an estimate from my mortgage lender right now. They're quoting rates as low as 4.75% and we're at 6.5% right now. Of course, everybody in the country is trying to refinance now, so you'll have to get in line...

@TWinter: A deflationary economic slowdown is called a depression.

@Orv: Yep, that's the case for me. I was in high school/college for the last one.

@Orv: Hey, we could always get stagflation. Wouldn't that be fun?

To some extent, debt can also help you retain some financial flexibility. When our car bit the dust a couple months ago, we took out a loan to buy a replacement; we had the cash to pay for it, but doing so would have wiped out a significant portion of our savings. Ditto with the no-interest no-payments loan we took out to fix our circuit breaker box (which we repaid before the term was up).

It's important, I think, to make sure you have some liquid funds available, and if that means taking out a loan, well, hold your nose and try to make extra payments when you can.

@tinmanx: I find the newspaper ads work better than craigslist for this sort of thing -- scammers and morons generally don't feel like paying classified ad rates.

@AcceleratedDragon: Virtually all bank CD's are FDIC insured. The only real difference between a CD and a bank account is that the CD typically has penalties for early withdrawal but "locks in" your interest rate (a good thing if interest rates are falling). Did you just make that up?

@nicemarmot617: "As long as my company doesn't go under!"

Always a possibility these days.