No matter how you look at things, the

Wall Street maestro Jim Melcher told the New York Sun that he is “worried about a recession. Not a normal one, but a very bad one. The worst since the 1930’s. I expect we’ll see clear signs of it in six months with a dramatic slowdown in the gross domestic product.”

Enough with the negativity! We all know what is coming for us and now, it’s time for everyone to sort out their game plan and try to weather the storm. Below, I give you five tips to help you survive the impending recession:

Don’t Panic! – Ah, it’s easier said than done, isn’t it? However, it is crucial that you think with a clear head when dealing with money. Don’t let your emotions get the best of you, lest you pass up some great money opportunities out of fear. Remember, the market will fluctuate and you may kick yourself later if you rashly pull out of some lucrative, long-term deals.

Diversify Your Investments – Hopefully, you have heeded the most basic personal finance advice and already have a diverse portfolio. If not, now is the time to start making safer bets until things stabilize. This will minimize your losses during the recession.

Update Your Resume – No, you won’t be jinxing yourself by preparing for the worst. Think of it as staying one step ahead of your competitors if it comes down to job loss. Professional traders are especially nervous in a bear market and for good reason. Keep your resume updated and handy, then tell yourself that there are plenty of opportunities for you, should your job security be threatened.

Start Saving – If you aren’t a frugal person; it’s time to tighten your belt and learn to be one. Start setting aside a bit of cash each month, even if it’s only a little. Cut out unnecessary spending, clip coupons, whatever it takes to make yourself more liquid.

Live in a Home You Can Afford – In other words, avoid foreclosure! If things are getting a bit tight with mortgage payments, consider other options before you become another statistic in this housing crisis. Selling a home isn’t easy right now, so if you have to downsize, you could even consider renting out your home.

It’s always best to think ahead when a storm is brewing. If you are an amateur investor, now is the time to have a meeting with a trusted advisor. Weigh your options, err on the side of caution, and remember not to panic. Good times will come around again and those of us who are prepared won’t suffer in the coming months.

By-line:

Heather Johnson is a freelance writer as well as a regular feature contributor for Reward Programs, a website which specializes in helping consumers select among the numerous AMEX rewards programs. Heather invites your writing job inquiries as well as comments and questions at her email address: heatherjohnson2323@gmail.com

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