We’re all screwed, the dollar is worth nothing and our savings are wiped out. Right?

Not necessarily. In fact, I’d imagine a lot of us won’t even notice the effects of the recession on a day-to-day basis. But it is definitely going to affect us in one way or another.

Still, you can take simple steps to ensure your survival:

Avoid buying on credit (read: no more debt!)

Try to pay off all your debts right away and put off big purchases.

Be (or appear) valuable at work

When layoffs come, make sure that you are valued at your company. You’ll need a stable income during the times when new jobs are scarce.

Trim the fat (from your expenses)

This should also be filed under Save more, waste less. American personal savings rates are disgustingly low. We all waste money, but recession isn’t the time when you can do so comfortably.

Do you really need that wireless internet card? New magazine subscriptions? Premium gas for your car? Think, don’t just abuse your credit card.

Don’t be jumpy

Don’t sell your investments! Stock markets are affected by downward turns in the economy. If your favorite company is tanking, do some research. If the decline is aligned with the rest of the market or sector, then calm yourself and wait it out. If not, dump the sucker.

Remember, you’re in the market for the long term (in most cases). Keep an eye out on your positions, but don’t get obsessed.

That’s all I can think of right now.

Numbers to chew on:

Savings rate

In summary: Horrible!

via U.S. Department of Commerce

Employment situation

In summary: In March, we lost approximately another 80,000 jobs, a downward trend that started in January 2008. To this day, Bureau of Labor Statistics is reporting that “Over the past 3 months, payroll employment has declined by 232,000.” (linky) A lot of this is due to decline in construction, which is directly related to the housing slump.

via U.S. Department of Labor

Prime rates

The Fed has been trying to prevent a recession for a while by lowering the rates. They’re expected to slash another half percentage point very soon. As of March 2008, prime borrowing rate is at 5.25%.

Important takeaway: Low rates are attractive, but don’t get suckered into buying expensive things like a house, if a slight change in your life can make it hard to afford the payments.

Uneducated borrowing is what got us in this whole mess in the first place.