How to Survive A Depression

MSN Money’s Liz Pulliam Weston doesn’t think that we’re headed into the next Great Depression, but for those who do, she offers some great tips. In fact, many of Pulliam Weston’s tips just make good sense, and help us all prepare to pinch our pennies until they’re wrung dry.

• Live like you’re unemployed: If you had just lost your job, what changes would you make? How would you live? This “austerity budget” is a great way to manage your finances, even while you’re raking in the dough. Spend money on essentials, be frugal, and shop smart. For example, if you wouldn’t keep your cable subscription during a financial crisis, shut it off now.
• Pay off your debt: I know, you’re sick of hearing about paying off your debt. But it really is a priority - while you still have a steady, monthly inflow, you need to pay off debt and eliminate those rapidly-growing interest balances.
• Keep your credit card accounts open: It may seem counter-intuitive, but keep your accounts open. This will help your credit score and give you an emergency exit in case of extreme circumstances.
• Keep your job: It seems obvious, but this means that you should do every, single thing possible to stay employed. Work harder, produce more, do whatever it takes to show the boss that you are worth every penny of your salary.