The "powers that be" seem intent on statistical manipulations to prove we are not in a recession. Smart consumers will ignore these financial semantics and tackle the "R"-word head on.

Rumblings of economic downturns extend beyond our borders and project into next year. Instead of hoping everything will be all right, why not be proactive and move into recession-mode without official word from the government? Shift your thinking from shop-til-you-drop boom times to spend-less-than-you earn recessionary financial habits and you'll come out ahead whatever the future holds.

According to Statistics Canada's National Balance Sheet for the second quarter of 2008, households carried C$1.25 of consumer credit and mortgage debt for every Loonie of personal disposable income. How do your finances measure up against this national average?

Take advantage of whatever lead time you may earn by putting your recession strategies in action now. For instance, The Canadian Real Estate Association (CREA) forecast that "national home sales are forecast to ease 11.5 per cent to 460,900 units in 2008, and to ease a further four per cent the following year." That was in May.

For July 2008, CREA announced that a new record had been set: the number of new MLS® residential listings in one month exceeded 80,000 units, an increase of 1.4 percent over the previous month. Listings reached new heights in Ontario and Quebec while Manitoba reported new listings at "their second-highest level since the beginning of the new millennium." With more choice, buyers become more selective and demand greater return on their investment dollar. In some markets, this translates as price reductions.

If you had planned to sell your home or cottage soon anyway, or if you might be forced to in an economic downturn, separate fact from fiction. Local real estate professionals know what buyers are looking for even if property owners do not always want to hear what they have to say. Find out exactly what the financial outcome would be if you sold in this market. Investigate what advantage you'd have making an all cash offer in a neighbourhood of your choice if reinvested in real estate. What seems like a loss on the sale end, while boom prices still echo in your ears, may still enable a real estate upgrade as other sellers must compromise, too.

If you decide to wait, be sure you know what you are waiting for and how realistic those fears or expectations are. When properties on your street or in your condominium complex were selling well over ask price, those sellers found out what their properties were worth at that point in time. If you place your home on the market now, it will only be worth what current buyers will pay for now, however much you have your heart set on turning back the real estate clock to hotter markets.

If you want to stay in your current home or keep your recreational property, you may benefit from reducing carrying costs and tapping into potential income from your real estate holdings.

• Every fall, property owners are encouraged to cut heating costs by sealing leaks, adding insulation, and adopting other energy-smart approaches. The green movement has cranked up the call to action, but have you acted yet? If you did all this a few years ago, make the rounds again since the leaks just keep on coming. Check with your municipality or utility to inquire about grants or loans for furnace replacement or conversion to geothermal. Higher fuel costs and new technologies can create reasonable pay-back time frames.

• The credit cards? Do leave home without them. Do spend less than you earn. If you do not have the cash, save til you do. Start now to steel yourself against excessive spending this December. Maybe it's time to make gifts instead of buying more land-fill.

• Band together with neighbours for bulk buying benefits. There's also good money to be earned raking leaves and shovelling snow, and the neighbours who can't manage this themselves will love you. Do this manually and you've gone green and had a workout in the process.

• Rent out your cottage, take in a boarder, or create a secondary suite and you'll earn income and tax deductions. Colleges, universities, and foreign-student services are always looking for rental accommodation. Try it for one term to see what works.

• Counterbalance job loss or a layoff with a home-based business that provides income, cuts costs, and adds tax deductions. Instead of waiting until bad news arrives, why not start a small scale or seasonal venture which can build your holiday fund in the meantime? [bullet] Then, there's the mortgage and the line of credit. Start attacking these debts with the savings you've made elsewhere. Ever dollar of principal you repay will save you many times over in interest costs.

You don't need to think up brand-new ideas since this site and the internet are full of successful strategies for gaining and maintaining financial control.

Not sure where to start? What's your greatest discretionary expense? Do you really need all those cable services? Is shopping for convenience as convenient as it should be since it usually costs much more to get less? Discover less obvious financial leaks by keeping a written record of what your family spends (that's everyone that spends, keeps their own record) for a week to reveal money drains on many levels. Reward money savers, too.

Usually, it is not thinking that costs money. Ask "do I really need this" before you spend to reach solid financial ground.

Published: September 9, 2008

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Futurist and Strategist PJ Wade is "The Catalyst" -- intent on "Challenging The Best Become Even Better." PJ earned this title by translating the dynamic impact of Boomers and their multi-generation families into relevant insights that start people thinking and taking action—in business and in life. Author of 7 books and more than 1600 published articles, PJ encourages individuals to become their own futurist. PJ writes and speaks about the insight, knowledge and solid decision-making skills that professionals and their clients need to live and work in this vortex of change. For instance, since PJ knows that home is headquarters for the new decades-long "unretirement," she wrote the popular book "Reverse Mortgages: Best Friend, Worst Enemy... Your Choice! (CatapultPublishing.com), which is filled with suggestions and insight on protecting and using home equity. Her new business book, "What's Your Point?," which identifies 7 common mistakes professionals unknowingly repeat to their detriment, will be published in 2009. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently-quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more on blogs, books and topics, visit TheCatalyst.com.