Everyday Cheapskate

This week, I turned off the TV. Well, I did watch "American Idol" (I've decided the winner), but for the most part, I just turned the darn thing off. I tell you, the media has a way of spinning basic information into something so sensational it's difficult to know what's real.

I'm referring to the state of the economy and all the predictions of a recession. Look, I'm not saying the economy is not slowing or that a recession never will happen. But the truth is a little bit different from what we may be hearing every day on the evening news.

First, a recent survey of reputable economists shows that there is a 40 percent chance we will have a full-blown recession in 2008. That means there is a 60 percent chance we won't.

Unemployment dropped from 5 percent in December to 4.8 percent in January. Not exactly runaway unemployment as the media seems to be shouting, even though 62,000 jobs were lost in February.

I could go on, but my point is this: It's easy to get all wound up in knots of fear and dread based on reports about the national economy. And that does us absolutely no good. We need to be focusing on our personal economies. Unemployment figures only matter when it's your job that goes bye-bye, and then the rate for you is 100 percent, regardless of what the Bureau of Labor Statistics is reporting.

Rather than sitting and stewing about the national economy, turn your attention and your energy to assessing your personal economy.

Do you have an emergency fund? You need a savings account with money in it from which to pay your bills if you go through a season of unemployment.

If you don't have that now, start crash saving. And if you don't lose your job, hooray! You will have your emergency fund standing guard over your personal economy.

Are you keeping up with inflation? Your gross household income should be increasing by at least 2 percent each year just to keep up with inflation. Check it out. If you're behind, find ways to add to your income by working extra hours or a side job.

Is your employment secure? Are you keeping yourself cutting-edge on your job? You may need to take some classes or clean up your work ethic by always being on time, staying late as needed and doing more than is expected of you. After all, if they need to cut back, you want to be the employee they couldn't bear to lose.

Whether you are going through rough waters right now or not, remember this: Your time will come. You can plan on it. And when it does, be strong, knowing that tough times don't last, but tough people do.

Mary Hunt is the founder of www.DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
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