Essential Money Skills for a bad economy

For years we have been saying that the key to sustainability is living with less, and now in these difficult times everyone is finding that it may well be the key to survival.

One of the big problems with the economy right now is that even the people who have jobs are worried about losing them, and everyone is worried about getting on top of their debts, paying down their credit cards and gaining control of their financial lives. Over at Zen Habits, personal finance writer J.D. Roth has some good tips and suggests that if you develop "smart financial habits, you can remain calm in the midst of a financial crisis. (Well, mostly calm, anyhow.)

Set up a (simple) budget. Roth, not a fan of detailed budgets, suggests simple ones, where you get rid of your credit cards, invest a fixed portion for savings every month and live on the rest, no matter what happens. Some of of the other ideas are a bit more complex, but not much.

Track your spending. Get a computer program like Quicken or some of the free online versions that are out now.

Stop your junk mail. I wondered about this, but Roth says that "it can pose a danger to your financial health. Credit card applications are ripe for identity theft, and other junk mail simply tempts you to spend where you ought not spend."

Lots more on books, banking and deal-making at Zen Habits.