Most of these changes will not put a serious strain on daily life. In fact, many low income families have had no choice but to implement these practices for years just to stay afloat. All of the additional focus on family time, planning ahead, and reduced weekly schedules might make you and the kids want to always worry about that “emergency fund.” For added security, put your savings in a separate bank with a higher yielding interest rate than your current bank. This will help add to your return, and make it more difficult to withdraw the money unless it is a true emergency.

Even if you are still paying down debt, a cash reserve is just as important. Start shooting for a low goal of covering one month's of basic expenses (mortgage, insurance, bills, food, and gas). Eventually you really want at least three months' of savings, even if you are up to your eyeballs in debt. Remember, cash is accepted everywhere no matter what your credit rating is. Plus, in the tragic scenario one or both of you lose your jobs, on top of unemployment, this cash reserve may be the only thing that saves the roof over your family's head and puts food on the table.

Financial experts and government leaders are trying their best to assure us all the economy will bounce back. Meanwhile, take a lesson from these companies and banks failing left and right. Don't give up your cash reserve because it will be what protects the family's finances from liabilities (debt and bills) overtaking monthly income. No matter what anyone tries to say about the economy, cash will always be king.