• Take stock of your current financial situation. Begin by calculating your net worth and determining if you have enough saved in an emergency fund. You might find that you are in better shape than you thought or that you need to act right away to shore up your financial situation.


• Prepare a budget. Sites like Mint.com make it easy and it won't take as much time as you think.


• Assess your protection against risk by inventorying your insurance coverage. In the event of a worst-case, you'll be happy you took the time.


• Avoid making investment decisions based on emotion. Understand your risk tolerance and investment time horizon to avoid selling low and buying high.


• Learn more about the big economic issues of the day so you can make smarter and more informed decisions.


• Try not to lose sleep over a loss in your home value if you don't intend to sell, refinance, or get a home equity loan. The market will eventually recover. This provides small comfort to those facing a reset on their mortgage interest rate or foreclosure, but for the majority of homeowners, a reset or foreclosure is not a concern.


• Reduce your daily spending through frugality. Go to sites like Valpak.com for money saving coupons.


• Focus on the areas where you have more control, including your job, your education, your health, and your family. If you are worried about losing your job, then prepare your resume, start calling your friends, and prepare for a change.

Like every economic cycle, this storm will pass and make way for a better day. Understanding this may be half the battle to begin enjoying 2009.