The economy is slowing down and that could mean less money for you and your family.

Over the next few months, many of us will have to cope with everything from layoffs to wage freezes, or even pay cuts.

It's impossible to know whether we'll fall into a full-blown recession. (Here's the best information we have on what to expect from the economy.)

But our smart moves for tough times can help you prepare for whatever 2008 might bring.

Smart move 1. Pay down your credit card debt.

You wouldn't go to grandma's Thanksgiving dinner wearing your tightest clothes. Likewise, you want some breathing room in your credit limits when the economy is heading south. If you're laid off, the available credit on your cards could be your life raft until you get back on your feet. Credit cards that charge 18% or more are a big drain on your budget.

The quickest way to reduce credit card debt is to move it to one of the best credit cards for balance transfers. Those cards charge little or no interest on transfers, allowing most or all of your payments to go toward reducing what you owe. Our balance transfer calculator will help you devise a money-saving plan.

Consolidating your credit card debt with a home equity line of credit, or HELOC, is another option. You not only get a lower interest rate but the interest on home loans is tax deductible. Use Interest.com's extensive database to find the best HELOC rates and then see how much you can save with our debt consolidation calculator.

If you can't do that, the next best thing is to pay off your most expensive cards first. The trick is to make the minimum payment on every account except the one charging the highest interest rate. Once it's zeroed-out, attack the balance with the next highest rate. Use our credit card calculator to find the fastest, cheapest way to wipe out your debt.

Smart move 2. Prepare an emergency budget.

You may already have a spending plan that helps you make the most of your money each month. But it's a good idea to have a bare-bones budget standing by, just in case you lose your job, suffer an unexpected illness or face a big reset on your adjustable-rate mortgage. Such a budget will make your savings last longer and limit the amount you have to borrow.

Our step-by-step advice can help you create a personal budget you can use as the foundation for your emergency budget. Start by cutting out some of your discretionary spending, like tropical vacations, lavish gifts, and single-malt Scotch.

Smart move 3. Create an emergency fund -- or an emergency plan.

In good times you need some way to cover unexpected medical bills, replace the car you totaled, or bail your no-good cousin out of jail without running up big credit card bills.

When times are tough you need someplace to turn to keep a roof over your head and food on the table when you lose your job or the overtime pay you've been counting on.

Ideally, you'll have three to six months worth of living expenses in a savings or money market account -- and it's never too late to start building that rainy-day fund.

But you can line up a source of cash even if you're living paycheck-to-paycheck and don't have a dime to save. Our 4 ways to prepare for a financial emergency will give you a place to turn if the economy turns on you.

Smart move 4. Postpone buying big-ticket items.

Until the economy starts to pick up again, hold off on buying new appliances, remodeling your home, or snagging a sailboat. If your car is paid off, don't trade it in for a new one unless it needs thousands of dollars worth of repairs.

Smart move 5 Stay the course with your retirement plans.

Keep investing even though the stock market is down -- and could go lower. Our 5 simple rules for a successful 401(k) account and 6 simple rules for a successful IRA provide sound advice even if the economy's in the tank.

Above all, don't try and time the market -- yanking money out of mutual funds that invest in stocks when they're going down and leaping back in when they're going up.

According to Ibbotson Associates, savers who bought $10,000 worth of stocks in January 1980 would have had $286,000 by December 2006 if their investment simply tracked the Standard & Poor's 500 Index and the money was in the market the entire time.

But if they missed the markets' five best days during that time, the account would total only $212,000 -- or $74,000 less.

Missing the best 10 days would have cut the balance to $131,000. Missing the best 30 days would have resulted in only $78,000.

Smart move 6. Make sure you're worth more than your salary.

You have a better chance of surviving layoffs and downsizing if you make significant contributions to your company's bottom line. On the other hand, collecting a big salary without doing much at work is a sure way to end up unemployed.

You don't have to invent a new product or divest under-performing business units to make a difference. Any way to sell more or spend less will do. Go the extra mile to make customers happy. (It costs less to keep customers than to get new ones.) Even small cost savings can be significant if they apply to your entire organization.

Don't be afraid to advertise your accomplishments. It isn't bragging; it's job security.

By Bonnie Biafore

Interest.com Contributing Editor

Have a question about your finances? Ask us at editors@interest.com