Financial survival rips for rough times

During an economic downturn, more than ever, knowledge is power. Many people live from one paycheck to the next, without really knowing where their money is going, or what they can do to make the most of the resources they have.

Kathryn Crumpton, manager of Consumer Credit Counseling Service, says that knowing where you stand is the first step to improving your financial situation. "Putting it all down in black and white can be especially helpful for couples, since it gives them an objective starting point for discussing their spending and saving habits, reducing some of the emotions and blaming that often keep couples from even talking about money."

Here 's how to get started:

List your assets and what each is worth. These include not only the money you have in savings, checking, and retirement accounts, but other less obvious assets, such as collectible, antiques, and your home.

List your liabilities, including mortgages, credit card debt, car loans, student loans, medical debts, and furniture loans. List all your outstanding debts and the balance you owe on each.

Determine your net worth by subtracting the total you owe from your assets. Hopefully, the number you arrive at is positive. If not, it may be time to work on building your assets and paying down your debts. With record-low interest rates, this is a good time to refinance a home mortgage if you haven't already done so. Also look for a lower interest rate on your car loans and credit cards.

If you 're looking to save money on the family vacation this year, think about a shorter vacation or traveling closer to home. Several day trips (instead of one long trip) could save on motel accommodations and meals if you pack a cooler with a picnic lunch. If you do plan on overnight stays, save on meal expenses by looking for a room or cabin that allows you to do your own cooking.

For any vacation, planning ahead is always key. You may find significant savings with coupons for air fares, hotels, car rentals, attractions and restaurants. Also, decide in advance how much you will spend on souvenirs and other miscellaneous purchases on the road and once you arrive at your destination. This is an ideal time to consider setting money aside in a saving account for next year 's vacation. You'll enjoy it even more knowing you won't be paying off vacation bills while you 're holiday shopping!