Despite the government stepping in and lowering interest rates, mailing $100 billion in stimulus checks, and passing a $700 billion homeowner rescue package, economical problems still persist.

With the housing bubble, credit bubble, a bear market in stocks, soaring energy costs, falling consumer spending, increased unemployment, high food costs and burdensome debt levels, what can you do to stay ahead?

Financial experts say there are ways you can protect yourself:

Don’t panic. Recessions have historically occurred every few years and they last, on average, about 10 months. No matter how bad it gets, the vast majority of people will still get up and go to work, pay their mortgage, and take a vacation now and then.

Repair your balance sheet. Many who took on heavy debt to purchase inflated assets like real estate are now in a position where they owe more than they own. Nearly one-third of all homeowners who bought since 2003 now owe more on their mortgage than their homes are worth. For some, selling or refinancing may be an option. Get rid of debt and build up your cash reserves.  And put away the plastic - cut up your cards except one for emergency use and then make a list of creditors to whom you owe money. Starting with the high-interest-rate credit cards first, pay off your purchases from years past before making any new ones.

Stop the bleeding. We all have leaks in our budget that can add up to serious money. Spending $10 a day at the vending machine or the mall is $3,650 per year. That same $3,650 would be a good start on a cash reserve or could be used to pay off high-interest credit cards. Miscellaneous expenses are the easiest to cut, but don’t be afraid to trim the fat in the rest of your budget as well.

Meet with your advisers. Now is the time to ensure that your investments make sense based on your goals, time frame and risk tolerance. If you’re currently working with an adviser, these meetings are likely included in the fees or commissions you’re already paying. If you’ve handled your finances on your own and are just interested in receiving a second opinion, most firms are willing to provide consultations on a fee-only basis, usually ranging from $100 to $300 per hour.

Keep investing. When money is tight, it’s tempting to stop making IRA and 401(k) contributions. Because of the power of compounding, however, taking even a one-year break could put a serious dent in your nest egg—even more so if cutting back on your contribution means giving up your employer match.