Many Aussies are feeling the rush of panic upon watching the news. Fortunately, Australia appears to be in a better position to ride out the worldwide financial crisis.

This article details the three things you can do now to handle any impending financial emergencies. Before you continue, read the Wisebread article on preparing for a recession. It details the financial impact of a recession and even more steps you can take to prepare yourself.

Prepare for the possibility of job loss.

No job is safe in a tumultuous financial climate. Sure, some sectors have more security but the company may not be able to afford to keep you on. Preparing for the eventuality will reduce any stress should it arise.

• Pay off debt. This helps you now, but also reduces the amount of expenses should your income be drastically reduced
• Have an emergency fund. Aim for enough money to live off for a couple of months.
• Look at alternate income streams. Even the interest off your emergency fund could be a nice little income earner.
• Get additional training. This could be in a field unrelated to your current employment. This could ensure you have a greater chance of remaining in the workforce.
• Have the relevant paperwork for centrelink. You may never need it, but make sure you have necessary financials and identification on hand should it be reqested.

Prepare for loss of disposable income.

A loss of disposable may not have a direct effect on many facets of your budget, but may affect your perceived quality of life. Qdequate preparation can make any several financial difficulties more bearable. Below are a number of sacrifices you may have to make and ways you can get around them.

• No more take out. Find a homemade alternate.
• Less money For socializing: Invest in cards or board games.
• Less money for hobbies: Look to see if you can find an online membership site for your hobby. You can find lessons for musical instruments, craft and income generating hobbies.
• Prepare for less money for travel. This includes transport to your place of work. Research alternate forms of transport.
• Less money for clothing and beauty. Look for cheaper alternatives for beauty products. Go to op shops or ebay for clothing.

If your after great savings tips, make sure to check out Simple Savings. They have loads of tips on saving money on every day items.

Prepare to cut down on your food bill.

A recession isn’t all bad news; according to Fox Business, companies may actually reduce food prices to get stock off the shelves. However this may be of little use if you have no money to pay for it. You can safeguard your family to a degree buy going back to basics.

Four Step Approach To Trimming The Food Bill.

See what food items you can grow.

Growing your own food can save a bundle. It is often thought of as being a costly and expensive exercise, but doesn’t have to cost a bundle. Even a small garden can save a family $50 a week. It is easy and simple to set up.

Look at your weekly budget and see what you could grow in your backyard. For many plants, you don’t need a formal garden. You could plant items in between your ornamental plants. If you have a love of weird and exotic fresh food, look to see if you can grow the plant. I grow rare herbs and fruit. I grow tamarillos. They cost around $1 per small fruit at the shop when I’m lucky enough to find one. I bought the seeds for $3 from The Lost Seed. A potential problem is moving the plants is if you had to move to find more job prospects or to find cheaper accommodation.

A few tips for a recession friendly food garden:

• Buy seeds where possible. Go heirloom - you can save the seeds and share them with a friend.
• Focus on plants you can easily propagate. This means that given enough warning, you can restart you garden should you move. Again, it also allows you to share your garden.
• Grow food that have short seasons in a dedicated bed. Things like beans, carrots and tomatoes can pay for themselves in a relatively short period of time.
• Research ways of preserving the glut. Alternately, see if you can trade your excess with a neighbour or friend.

See what you can buy in bulk.

Bulk buying may be costly initially, but over the long run can save a significant amount. I find stores that sell caterers quantities of my favourite foods.Useful items to buy in bulk are sprice, baking supplies and special treats. I buy from Campbells Cash and Carry. I like to stockpile food bought in bulk to ensure I have enough to last me through tough times.

Start by identifying what items you use the most. Then choose whether you want to stockpile the processed option or buy the basics. An example is stockpiling pasta. Ensure you have experience preparing the food from scratch before you actually need to.

For many staples it can be more economical to buy from coles. I like to stockpile items when they are on special. Homebrand items are rarely on special and can be the best value. Buying in bulk is also useful to cut down on packaging.

A few tips for a recession friendly bulk food stockpile:

• Stockpile some of your favorite foods. Luxuries are one of the first cutbacks on a strict budget. Having something special can prevent you from feeling deprived.
• Store foods that you will use regularly. This way you can rotate them and nothing is wasted.
• Compare the prices of bulk food. Even though you are saving by purchasing large quantities, you may have the potential to use later.

See what you can preserve to use later.

There are three main methods of preserving food for later use: drying, freezing and canning.

Freezing is often the easiest option. You don’t need any special equipment. I do this for a lot of fruit and herbs.

Drying is when you use the sun, air or a dehydrayor to preserve the nutrients in the dehydrated form of the plant. I do this for many of my herbs.

Canning is a processed where you preserve the food in an airtight contain. This can be tricky for the first timer and can require purchasing specific jars or kits.

I research preserving according to a specific food. I go to the shops and see what food I can buy in bulk. I also check out websites to see when foods will be in season. I can then purchase necessary equipment or take advantage of specials.

If money is really tight, this little tip could save on the initial expense of food AND prevent wastage.

See what you can make from scratch.

Making food from scratch is time consuming but may make the different between needing to get a second job if money is tight. With many storebought products you often pay for the packaging, marketing and processing that goes towards getting the products to you.

I choose items that are expensive to purchase and find the cheapest option of making it from home. For instance, if I make homemade tomato paste and pizza bases then I can significantly save on pizzas.

Its all a matter of how far you are prepared to go to save on your food budget.

Read also