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As you might have heard, the Federal Economic Stimulus Package is coming out early for those people receiving one. Everyone that has filed taxes that is eligible should be starting to receive their checks (starting this week for electronic deposit, and next week for paper checks). That means the average individual will get a $600 check, $1200 for families, and an additional $300 per child. That can add up to a nice chunk of change during these hard times.

Is It Enough or Too Little Too Late

Even as this $150 Billion is going out, The Democrats are making noises like this isn't enough to get the economy back on track, much less help people through the rough economic times we're having. So, how does one get through times of no money?

Gas prices are at an all time high, as the various oil suppliers are rejoicing at all time prices for crude oil (at $120/barrel yesterday, and probably still going up from there). Food shortages for staple goods (corn, rice) are being felt in many parts of the world, and companies are cutting back on their workforces to weather the storm. That means more possible layoffs.

Even though I was originally against the Stimulus package, it's looking like it couldn't have come out at a better time.

What to Do to Weather the Storm

Much of it depends on your particular situation, but there are some recommendations I'll pass along for the short-term survival against economic problems.

Even if we have a HUGE downturn, it's still nothing like the Great Depression, or some of the other really major economic storms we've weathered in the past. Depending on your world view, here's what I would do to prepare.

Optimistic view - People are very focused on the economy, so there is a good chance that IMMEDIATE measures are going to be taken to prevent or forestall major problems. The stimulus package is one sign of that. To me, that means that even if things get bad, it won't get that bad

Actions

• Pay Down Debt - Getting rid of unnecessary debt lowers your day-to-day bills. Less bills per month equates to money lasting longer.
• Save the Emergency Fund - Having cash on hand is always good in bad economic times. Have enough for a few months, and use it sparingly if need be to get through the rough spots
• Concentrate on the "Four Walls" - Remember to take care of what's important first. Housing, utilities, food and transportation are the most important things to maintain to get through bad times. Credit cards and other bills can wait if need be, to make sure the basics are covered.
• Work Hard - With people being downsized, make sure you're noticed as a hard worker. Do your job well AND MAKE SURE SOMEONE KNOWS YOU'RE DOING IT WELL. Doing a great job that no one knows about won't save you when management has to decide who to cut. Keep going, keep working, and weather through the layoffs.
• Reassure the Family - Sure things could get bad, but you'll be surprised what you can get through. Keeping a good attitude is important for getting through stuff.

So even with the down economy, there's a lot of things that you still have control over that can improve your position.

Pessimistic view - But if you're like me and tend to plan for the worst, here's some more 'radical' suggestions you might consider getting ready to implement if necessary.

Actions

• Sell the Car - There's a double whammy with a car today; gas prices and car payments. Both of these could be eliminated if you got rid of a vehicle and took public transportation, car-pooled, or just bought a smaller, more gas-efficient vehicle WITH CASH.
• Stockpile food - I don't believe there's going to be a food shortage, more along the economic line. Buy in bulk and store up canned goods and such so that if you HAVE to cut back on spending, you'll have a decent pantry to choose from and food money won't be as much of a problem.
• Look for Work - Not necessarily a new job, but maybe a second job as a second source of income. Offsetting price increases with another revenue stream can sometimes make the difference between sink or swim.
• Cut Back - Take an objective look at ALL outgoing expenses. If it doesn't pertain to the Four Walls, it's a candidate for elimination; Cable TV, Piano lessons, Bowling nights, anything you can live without (temporarily) is fair game.
• 401k and IRA - As a last, last, LAST resort, consider putting off your retirement contributions for a few months if things get really tight. Just remember to make it up before the end of the year if possible.

The Economic Stimulus Package

The point of the stimulus package is to get people spending money to 'stimulate' the economy. While this is good for businesses, it needs to be tempered with the requirements of the people receiving the checks.

Do what's right for YOUR situation. The money will get back into the economy in one way or another anyway. If previous packages are any indicator, roughly 2/3rds of the money will be spent, no matter what people say they are going to do with it. Use yours wisely, and don't plan on there being any more. There might not be another government giveaway for a long time.

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