It is important to get a solid understanding of how much money you have and how much you are spending. This will come in handy when you put together a budget. It will also help you avoid any nasty surprises like overdrafts or identity theft. You'll need to look at how much you earn each month and then subtract all of your expenses, such as rent/mortgage, utility bills, groceries, etc. Use this to calculate how much money you spend in a month and what your expenses are.
Try creating a spreadsheet in Microsoft Excel and enter your income and spending history. You can make categories of your different expenses so you can sort, analyze, and prioritize your spending. Categories may include: housing, utilities, household expenses, groceries, health care, pets, personal expenses, entertainment, and so on.
Look at your bank and credit card statements each month to make sure you have enough money. Make sure you look at the individual transactions on your credit card statement and categorize those transactions in the spreadsheet.
Further sort your expenses by noting which are fixed versus variable and which expenses are necessary and which are discretionary.;
, Try to limit your living expenses to less than 65% of your income. This includes housing, utilities, transportation costs and groceries. The remaining income should go towards your savings, paying down debts, and discretionary spending. Sticking to a budget can be tight when your income is tight. Prioritize your needs and find a solution that works best for you.
 Although it may be difficult when money is tight, paying off your debts will eventually free up some extra money. Interest and late fees can build up and take an increasingly larger portion of your income. If money is tight, pay small incremental amounts towards your debt. However, if you have a little more income, try paying off larger chunks.Maintain good credit by paying bills on time.
Try reducing your interest rate. Some credit card companies may work with you to get you a lower interest rate.Consider selling off unnecessary assets to pay off debt. You may also want to consider refinancing your home, consolidating credit cards for lower payments, asking for forbearance for a time until economics improve, etc.
 Because a recession can cause significant economic instability, it is important to save up some money. You may lose your job, face a pay cut, or find external sources of income limited because of the recession. Therefore, it is necessary to have some resources available to get you through these tough times. Ideally, you would have been saving money all along. However, it is better to start late than never.Make paying off your debts a priority and then begin saving.
Open a savings account and try to put 20% of your monthly income into it.
 A recession may not be the best time to begin a new expensive project. Home renovations or a big vacation may have to wait until the economy has recovered a bit and you have a more stable income. Remember that recessions do not last forever and a recovery is around the corner.
Track your income and expenses.
Create a budget and stick to it.
Pay down your debt.
Save some money.
Delay major expenditures.
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