Are any of you sitting at home like me and wondering when this economic crisis is going to knock you off your feet. How do you budget for something that you can’t even understand? Politicians are telling us that they have a plan to save us and send this economy soaring once again. But trusting a politician is the last thing I’m planning on doing.

If you are like me you are wondering how to protect yourself and your family from feeling the effects of an economic crisis. Will you lose your job, will you lose your house, and will you lose your savings? The questions are threatening us and the answers seem few and far between. The best advice I have received is to try and be prepared. But it is hard to know how to prepare for something we have never before faced.

The most important thing is not to panic and start taking your money out of savings and retirement. Move them to safer accounts if need be but do not use them to pay off debts or bills. Start saving as much as you can. If you can do without some of the things you normally would spend money on do so and place as much as you can into savings. Saving money and planning ahead is the right thing to do to prepare for the unexpected.

We don’t know exactly how this crisis will hit us and we can’t budget for everything. Expect the unexpected by putting away as much of your extra pennies and fun money as you can. Maybe do without some entertainment, cell phones, cable, eating out, movies, and hobbies that you would normally buy or put money into on a monthly basis. If things are too tight and you can’t eliminate anything start thinking of ways to make extra income.

A second job if possible or maybe something you can do on the side like writing for a paper or a blog. If you are not into writing but still have some extra time you could look into completing surveys online. If you stay at home with your kids look into watching other children. If you like to do outside chores offer to mow your neighbors’ lawns or advertise to do odd jobs. If you are creative and you really want to find little ways to supplement your income shouldn’t be hard.

Anyway you look at it these are hard times. Putting forth the extra effort to protect yourself and your family will be well worth the effort. Check over your budget and if you see very little wiggle room it is time to start taking action.