Living within our means
Financial experts continue their debate over whether the country is in a recession or just a slow down, but everyone agrees that prices, credit card debt, home foreclosures and job pink slips are on the rise, while personal savings and home values are falling.

In today's economic climate, a simple trip to the gas station or supermarket can throw the family checkbook into a tailspin.

Keeping enough gas in the car is a daunting task in itself. But there's an upside: Motorists are starting to hop on buses and trains for their workday commute, or call fellow employees for carpooling. Staying on top of oil checks and tire pressure suddenly makes sense- dollars and sense. Keeping an older car running and not buying a new one has hurt local car sales, but these are the effects of a recession.

The necessary belt-tightening, when it comes, creates a domino effect: Items and activities once taken for granted are quickly dropped from the budget. That annual trip to a favorite amusement park or a flamboyant birthday party is downsized to a less dramatic affair. Live ponies are replaced by poor Dad in a cowboy outfit, and that Disneyland excursion becomes a mere trip to the bowling alley.

At the dinner table, some families are trading in their filet mignon for ground turkey- or whatever else might be on sale. Fancy desserts are replaced by a package of bulk generic popsicles.

Now comes the question of what to do with the economic stimulus check that will soon be doled out to taxpayers. Do we use the funds to buy a new iPod or a fancy new stereo? Or do we just pay off our mounting credit debt?

Instead of spending the money to reinvigorate the retail economy, many consumers will need the funds just to fill in the cracks in their personal budget. Some homeowners will need the government handout to help pay their inflating adjustable-rate mortgages. The smart ones, however, will stash the money away for an emergency, such as a transmission repair or a medical issue.

Sadly, the stimulus money may only serve as a temporary fix.

What we need to do is change our spending habits and try to live within our means. This is always good advice no matter what condition the economy is in. Now's the perfect time to start.