In this current economic time, many families are in for an unpleasant surprise when a person loses a job. Suddenly they are forced to live on one income, when they have been living on two. If this has happened to you, don’t panic. Surviving economic hardship is not about how much money a person makes; it is about learning to manage her resources and finances.

The most imperative thing to do is make a budget and stick to it. This can help you see where your income and expenses are. It also helps to make cutouts. Having a budget will help you stay within your financial means. Don’t worry about what your neighbors do or what they have. They do not have to pay their house fee or feed their children. Look what you have. Is your car paid for? Do you have a place to live with food to eat? Try to stay positive. Positive thinking is very powerful.

While you are looking for another job, apply for unemployment benefits. Dont wait. Waiting too long could put you further behind financially and this will only cause more stress. Add all your fixed monthly bills, like credit cards, loans, mortgages, utilities, insurance, and child care. Calculate to see if you will have enough to pay these bills. If you can, try to reduce some of these expenses right away.

You can start by trying to refinance your mortgage to a lower rate or longer term to lower your payment. This may sound bad, but you can always make additional payments later when your cash is flowing again. Talk to your utility provider about the possibility of opting for the fixed rate plan. You can call your insurance agent to save money on your auto insurance or home insurance without losing your protection. Upgrade things like cable and phone plans if you need to. He can advise you on things like raising your deductibles to save money. There are many options to save money that you can discuss with your insurance agent.

Be sure to take a close look at your flexible expenses, such as groceries, clothing, entertainment, and dining out. Eat out less often. This will save a lot of money. When you decide to splurge, try using coupons. Always look for deals and rebates. Enjoy free time in the park or at the neighborhood pool. Play cards or board games with your family. This is fun, it’s free, and best of all, it’s a great way to get to know each other. Plan menus around coupons you can clip from the newspaper or online. Shop for clothing bargains on eBay. You can get great deals on new and barely used items.

Finally, try to generate some extra income. Look for clothes, toys, electronics, or other items that you can sell at a garage sale or on eBay. If you’re good at making crafts, you might be able to sell them too.

Surviving may seem difficult, but it can be done if you make the decision. It all comes down to what you are willing to sacrifice to make it happen. The recession will not last forever and the economy will eventually recover.