Top tips to tackle the recession

According to reports, Australia could be diving straight in to a recession but there are a number of ways to keep your head above water in the tough times.

One of the ways to survive the economic slowdown is to quickly build yourself an emergency fund, if you have not already done so, the Sunday Telegraph advised.

Reducing the mortgage is also sure-fire way to cut down on outgoings and will help save money.

Once that is done, set out a fixed budget that accounts for every dollar that enters and leaves your account to see exactly where most of the money is going to and whether outgoings can be reduced.

Another tip by the newspaper is to refrain from purchasing white goods until the recession actually hits, as retailers get far more desperate than consumers in times of economical stress and bargains can be found by bold shoppers.

"If you don't get what you want, shop around", advises the publication.

Another suggestion is to sell your property for a realistic price and downsize as the "pace and scale of the falls will be much more severe" as the recession takes hold, it recommended.

Commsec economist Savanth Sebastian told the Sunday Telegraph that the Reserve Bank of Australia's goal was "to slow the economy gently", but with figures looking so bleak, he admitted that "we could be heading for a hard landing".

In an interview on Radio 3AW, prime minister Kevin Rudd warned tough times were ahead but things should start to improve by 2009.

"I would much rather be upfront about that with the Australian people, rather than pretending that it is any different," he told Fairfax Radio Network.

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