Warren Buffett has announced that the economy has "fallen off a cliff." However, even as he announced this, he called for long-term optimism. After all, the US is quite likely to recover from this problem. In order to help your own personal finances, here are some things you can do:

* Pay down debt

* Build up savings.

* Consider "safer" investments such as rewards checking, bonds and other cash investments.

* Work on your skills to make you more marketable.

* Consider diversifying your income.

There are many things you can do to help insulate your finances from some of the worst effects of recession. Taking a proactive approach can help you keep your personal finance situation intact, even during these tough economic times.

What are some things you think would help personal finances in this economy?