How to recession-proof your life

Even though the government is moving to bail out the U.S. economy, now suffering one of the worst financial crises since the Great Depression, big three-digit point swings in the stock market are still commonplace and unemployment numbers are going way up.

As of this week, the S&P 500 has dropped 285 points in October; its worst monthly point decline ever - that’s a drop of 42 percent in value since the beginning of the year. And, the jobless rate jumped to 6.1 percent in September, meaning more than three-quarters of a million jobs lost this year so far.

And as more companies are announcing layoffs - America’s largest home appliance maker Whirlpool just announced it’s cutting 5,000 jobs due to weak sales - the average American is getting even more nervous about his or her financial well-being. Anyone with a mutual fund or a 401(k) can’t help feeling jittery when all you hear on the nightly news is about the falling stock market.

Yet, with all the fears out there of a recession heading our way, millions of you are doing just fine. So, let’s take a look at what some of you are doing to weather the crisis:

1. If you’re a homeowner with a 30-year fixed-rate mortgage, you’re in good shape. You don’t have to worry about an adjustable rate that fluctuates with changing economic conditions.So make your standard payment, and take solace knowing that it will be the same for years to come.

2. If you have at least 6-months worth of cash savings in the bank, you’re in good shape. The more savings you have, the better. A nice little nest-egg can help you weather the economic storm, and makes good financial sense.

3. If you have a properly allocated retirement portfolio, you should be in good shape. Although drops in the stock market may be hitting your retirement account balance, if you’re wisely diversifying your investment portfolio between stocks, bonds and cash, and adjusting that ratio the closer you get to retirement, you should be okay.

4. If you have a job in this economy, hallelujah! Do everything you can to keep your job! Get close to your boss, be an expert at what you do, carry the company flag, and spend more face time at work. Above all, have a back up plan in case your job falls through.

We’re seeing tough economic times, but millions of Americans are getting by nevertheless. So, let’s take a cue from them and “recession-proof” your life: put away more money for savings, and excel at our jobs.

Good luck!