A recent survey conducted in New South Wales, Australia shows that almost 30 percent of residents have no savings putting them at high risk during this recession. 

Another survey conducted in Western Australia showed that 27 per cent of their residents are in exactly the same situation.

60 per cent of those from NSW who took part in the six-month online study of 1144 people had not adjusted their finances in response to the recession, 29 per cent admitted they had no savings and 40 per cent saved none of their pay.

One in four said they saved less than 5 per cent of their pay, another quarter saved between 5 and 15 per cent, and just over one in 10 banked more than 15 per cent.

No doubt these sort of figures are not unique to Australia.

I find it astonishing that people are continuing to bury their heads in the sand. If you are employed right now you need to review your finances, start a budget and find ways to save money. The good times are over and we are all certainly paying the price for our indulgences. 

If your wage is covering your expenditures by just a little or not at all then you are going to have to make some hard decisions. The reality is right now you need to do whatever is necessary to consolidate your finances. These are uncertain times and you need to be prepared. Having no money to fall back on should you lose your job is not a good position to be in.

Take advantage of having a job and start saving your salary rather than spending it. And when things get better, keep it up rather than falling back into bad habits.