Recession-proof your life

3. Increase your income

There are thousands of ways to boost your income that don't involve taking on another job. If you've got a house you can rent out a room or a driveway. Renting a room is tax-free income up to £4,250 so it's a great way to make a bit of money and perhaps a friend or two.

You can also host a foreign student if you've got a spare room; always useful for helping your children with their languages homework, and often this can be done cash in hand, again avoiding the tax man.

The internet is a great resource for making a little extra cash, although it will take a bit more effort than renting a room. You can do online surveys, become an expert who answers questions for cash or even make money from shopping online using cashback sites.

You can easily make money doing things you enjoy and are good at. Cake-making can be lucrative if you approach it in the right way, if you're academic you can make up to £35 an hour tutoring privately.

4. See how much you can get for free

Sign up for a mystery shopping agency and you'll get paid to try out products and establishments that you would usually pay for. The pay isn't great, about five pounds a go generally, but you will get free products to test out and free meals in restaurants and pubs.

Instead of paying for hotels when you go off on holiday, why not try out doing a house swap. It gives you the experience of properly living in another country and also is completely free, helping you save funds to spend on other things. Have a look at the home exchange site to get more information about how it works.

If you don't have a house to swap, try swapping smaller things on websites like swap it shop. This way you can get items you need by swapping them for things you don't need, and you won't have to spend a penny.

5. Take advantage of the good side of a recession

'There's a good side to a recession?' I hear you exclaim suspiciously. Well, yes actually there is, namely that there will be bargains to be had and you can take advantage of this.

As consumers become more hesitant to spend, many shops and businesses will find it harder to meet their targets. This will put you in a position to bargain, even in High Street stores. There are already tons of restaurants with special offers on Toptable.co.uk, often with 50 per cent off food.

Hotels, travel companies, gyms and other service industries will be feeling the pinch so keep your eyes out for great bargains.