The recession is here and will stay with us for a while.  No one really knows how long this financial crisis will last but one thing is certain, it will be the worst financial crisis of our lifetime.  People have lost jobs, homes and life savings. Banking system is under lot’s of pressure so are consumers and companies. All news is bad news these days.

Still for some it is time for learning the most valuable life skill. The skill to manage finances in bad times is what every one needs.  So we thought we should do our part in helping you get started with some tips.

Here are 9 tips  that will help you urvive a long and deep recession.

1. Stay Calm
   Don’t panic or sell all your investments. Keep a cool head and don’t let your emotions take over. Think about long-term profits and stay calm.
2. Pay off all your debt
   Pay off all your debt as soon as you can, as this can be your biggest enemy during recession. This includes your car loan and all your credit card bills. Use the highest-interest first or the snowball method, but become debt free.
3. Keep a track of your spending
   Keep a record of where all your money goes. There are many ways to track your spending and make a budget. Online solutions, such as Mint.com and Wesabe.com, and others like Quicken and Microsoft Money are also available. Just make a budget and stick to it.
4. Eliminate Extra Spending
   Once you’ve made a record of your spending, Remove all the extra expenditure from your budget. Things that you don’t use very much, or you can survive without, should be eliminated from your budget.
5. Buy Smart
   Think before you buy. Make a list of your grocery and you’ll be surprised by how much you save just by thinking ahead a little.

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Is the world heading toward a zero rate policy? This question is being asked by hundreds of economists and businessmen.  As evidence of deep recession is unfolding, bankers and economists are predicting that UK interest rates can hit zero any time now. The Bank of Japan’s decision to lower its key policy rate to 0.10 percent from 0.30 percent followed by US Federal Reserve Bank’s dramatic move is more proof to that fact that world is heading toward a global flat zero interest rate.

The Bank of Japan’s policy board voted 7-1 to cut the uncollateralized overnight call rate target from 0.3 percent. It was the second cut in less than two months. Japan’s interest rates have gone lower — they were effectively at zero from 2001 to 2006. TOMOKO A. HOSAKA of AFP reports

“The BOJ is in a similar situation to the Fed — the policy rate is down to a critical point, and policy conduct will inevitably shift to full-blooded quantitative easing,” said Tetsufumi Yamakawa, chief Japan economist for Goldman Sachs.

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