How to become "Recession Proof"

• Assess your cash flow. How much income is coming in? How much is going out? If you're not in the "black" (spending less money than you earn), you'll need to reprioritize some expenses and/or find a way to bring in extra income each month.

• Pull a copy of your credit history.

In a world that revolves around credit, you have to make sure yours is as good as it can get.

Pull a copy of your credit history from AnnualCreditReport.com.

Check for errors and, if any, dispute them.

Keep in mind that some of your past mistakes may still show up on your credit report.

The key is to make sure that those black marks on your credit are reported correctly.

If you failed to pay a debt but ended up paying it off later, your report should indicate that the debt was paid in full.

I use www.CreditKeeper.com the cost is 9.99/month and you will have access to your credit report 24/7 as well as a watchdog incase any funny business happens.

• Keep your debt as low as possible.

Pay all of your bills on time, and in full, and strive to pay down your credit-card debts as quickly as possible.

Try to pay off the card with the highest interest rate first, then the other lower-interest debts.

My goal is to have a balance of less than 25 percent of my maximum available credit limit.

• Make sure you have an emergency reserve.

Some families don't have any cash on hand, but are relying on a home equity line of credit (HELOC) if times get tough. The only problem with that strategy is that some banks and lenders are cutting back on credit lines or closing HELOCs altogether.

Today - cash is king.

At least three to six months of cash on hand in a savings account you can access easily.

Put off any unnecessary big purchases.

You may have been planning to shop big on Black Friday! However, If you can make do for another six months, you might be better off not making a large purchase or taking on another significant debt.

With projected lousy holiday sales expected, the after-New Year's sales should be really good this year.

However, if you have to buy now, you may find great deals on cars and some other large purchases, but you need to make sure you understand where your finances will stand once you have completed that purchase.

• Make yourself indispensible at work.

Several of my friends have already been laid off … So, if your company goes out of business, you'll likely be out of a job.

But if your company is downsizing or laying off some members of the team, you want a fighting chance to keep your job.

Becoming indispensible is one way of building in job security.