One good idea is to increase the savings for the next few months for the rainy day. 5 years ago, I learned my lesson hardway. When I was earning six figures / year, did not even think about saving a penny. Spent for the day buying new cars and eating out. Once I had health problems, I have realized the value of savings. I made it a point to save 40% of my income into savings. What ever I have to cut in expenses I am cutting to reach my savings limits. I am sure there are good times and bad times. If one manages their finances efficiently and followup sound advice, I am sure we will be fine and weather the upcoming recession. My heart goes out to all those people in trouble with subprime problems. People work so hard to earn and make things for them self. It is a sad situation.