Growing up in America at the end of the 20th Century, I had always heard stories about what it was like to live during the Great Depression. Most of our grandparents lived in the Great Depression era and had numerous stories to tell about what it meant to struggle to survive. They understood the importance of saving every penny and making a little bit go a long way. They were not overconsumers nor did they take on massive debts to buy frivolous things like their children (the baby boomers) did.

The Great Depression did not just speak of the state of the world's economy, it also spoke of the emotion of the people at that time.

A simple Google search on the term "Great Depression" brought me to an in-depth article from Wikipedia describing the atmosphere of what started the Great Depression. I'm sorry to say that if you compare that article to today's newspaper, you'll see the similarities of our economy.

Suze Orman recently said in her column that the reason why our economy is in the state it is in is due to overconsumption and suppliers rushing to fill our demands. With the shift in pricing in our economy, we are beginning to face an underconsumption in our economy. When the law of supply and demand is thrown out of balance (with societies beginning to consume less due to the rise in prices, and the market continuing to supply the world at their current rate), then we begin to take a slump, which turns into a snowball effect downwards.

We can see this in the real estate market's increase in foreclosures and banks making fewer loans by becoming much more conservative and scrutinous in their lending policies (right now, you have to have an almost stellar credit rating before they will lend you money to buy a house). People are losing their homes; the rental market is up. These are all factors reminiscent of the Great Depression.

For those who are not in belief that our economy is failing, let me paint a more realistic picture for you on what has happened in our economy in one year's time. The price of gasoline is up 24.1%. The price of milk is up 39.5%. With the recent rice shortage, the price has quadrupled in just recent weeks. In one year, the rise in inflation has become so gastronomic that you have to ask yourself if you were as rich as you were last year. If you were struggling last year, then this year, the struggle has worsened.

On the average, inflation is supposed to go up 3%. When I took six months off from work last year (beginning an early retirement) I had not truly thought about the rise in prices and the devaluation of the dollar. 3% is something I could handle. 20% and above in one year and I found myself back in the job market because my retirement portfolio was not prepared for an incredible downturn that our economy suffered so swiftly.

As frugal as I am, I find myself standing in the dollar store realizing the hardships of our time, and feeling bad for the shop's owner having to pass his escalating prices onto the customer. A fifty-nine cent package of spaghetti is now $1.00. A $1.00 can of tuna is now $1.25. A $1.00 bag of a pound of rice is now $1.39. Those extra pennies add up over time, and this is only the beginning.

Food and oil are not the only things that are being effected. Movies in Manhattan went from $11.00 to $12.00 overnight. A regular dinner out with friends has jumped from $18 per person to $35 per person at the same restaurant, ordering the same meals and drinks. In one restaurant, our $40 bill per person went up to $70 per person (that includes tip).

That lucrative income that made us feel like we had more than enough just two years ago is now making us feel like we are one step away from the poor house just living our normal lives and not stepping out of that lifestyle that we've grown accustomed to. Now, we have to re-evaluate how we are living our lives.

A Little Change Can Do Some Good

Every season, I've complained about the rise in ticket prices at Madison Square Garden. I've always been a big spender, splurging to sit in the first row. When I first started off going (post-lockout) my seat was $125. Every now and again, someone would give me free tickets to sit up close, but those were a rarity. Two seasons later, my seat in the first row increased to $285. That is a 128% increase in two years (and the New York Rangers hadn't even achieved a Stanley Cup in those two seasons). That's not even adding in the costs of transportation, food and drinks.

I'm not the only one complaining. Those who sit upstairs in the nosebleeds saw their ticket prices during the Playoffs reach the same amount I pay during the regular season to sit in the first row. Talk about exorbitant pricing (and MSG plans to continue raising their ticket prices).

Fortunately for me, my life changed in the hockey realm and I was handed a Devils column and I began covering them in depth just 20 minutes away from Madison Square Garden. Tickets to sit up close to the ice are around $115 at Prudential Center. If you're lucky, you can score $10 tickets in the nose bleeds. When I was granted credentials, my attendance at a hockey game went from $285 to FREE.

The lesson here is that if you are really involved with a past-time that defines you as an individual (whether you are a fan of a sport or a band, or a lover of X, Y or Z), consider working or donating your time to that avenue of your life. For me, because I am a writer, I took two of my loves and put them together and it worked out perfectly for me. When you become part of something beyond just being a fan, you start to feel more important and fulfilled in your life. You truly feel like you belong to something you love so dearly. By becoming involved, you cease to be just an outsider. You start to belong to what you love.

Over the past year, I've been fortunate to be given free tickets to various events. How? I've used every avenue including: work, friends, and keeping in touch with sports arenas to get news of free tickets. It's very rare that sports arenas give away free tickets, but sometimes they make incredible offers for less popular events (such as lacrosse) to just get people into the building. Even if the tickets are free, they can make up for the loss in concessions.

My general rule right now is that if it's not free...I'm not going. This doesn't mean that I'm going to live a boring life. I've started taking free classes in Manhattan. My employer pays for my schooling at NYU (a rare thing to find in the job market). My friends and I have started planning free outings like picnics in the park, attending free outdoor summer events in the city, packing up and heading to a day out on the beach, going to free museums, events and lectures. All it takes is a little bit of research and you can find something fun and interesting to do.

Once upon a time, when our grandparents were younger, they found joy in taking walks in parks, going to free events, listening to the radio, and spending quality time with their loved ones. They didn't have these little luxuries that we've become so accustomed to like cell phones, televisions and video games. Even movies were brand new back then (and silent). The television didn't come until much, much later. Their values in life and how they spent their days was filled with hard work and family values.

Just the other day, I told all of my friends that we were no longer going to eat in expensive restaurants. We were going to explore the little eateries in Hell's Kitchen that boast of ethnicity, cheap prices, and lots of food. For what we pay at Chevy's in Times Square for a plate of food ($18-$22) we can get for $5.95 just a few blocks away. To me, in these times, it is worth the switch. We are not sacrificing having dinner together, or the type of cuisine, we are just heading a few blocks north to explore a whole new area for just pocket change. I've told them all that this is our new adventure this summer. We're going to immerse ourselves in what it truly means to be a New Yorker by connecting with our local neighborhoods.

Stocking up on good food deals is also essential. Jack's 99 cent stores are becoming staple places for me to buy the basics in food. The major grocery stores in the tri-state area are having to go green and cut back as much as they can. If you see a great deal, grab it and stock up on it. What I have been advising friends is that they need to start stocking up on all of their necessities from toilet paper to canned goods. When they ask for how long, my reply has been, "For the next four years." I'm keeping my fingers crossed that this downturn doesn't go beyond four years.

Even if stocking up is not in your budget right now, just buy an extra box or can each time you head to the store. Do your best to stock up your pantry now, before the prices become too high. Also, remember to visit your local farmers and farmers' markets. They are the main reason why we have food on our tables. If their farms foreclose, where will we get our food?

The Emergency Fund

I read recently in a financial column that now was the time for us to dip into our emergency funds. Since I've read that bit of advice, I have had to think long and hard on that and I'm going to have to disagree with this advice. Why? Because we are not currently in a complete state of emergency. We are in the beginning stages of that emergency.

Seriously, what are you going to buy with that emergency money? Food? Toilet paper? Pay your mortgage?

It's very likely that if you are about to foreclose on your home, you have no emergency cash reserves. It's already been spent ten times over and you're closer to bankruptcy than anything else. Your only concern is where you are going to live, what food you are going to put on your tables, and how you are going to survive.

It is when you have absolutely nothing that you begin to start from scratch and realize what is most important in your home. You may have heard of this before: what is most important is shelter, food, water and clothing (and in that order). Make those your main priority right now. Get rid of all those little luxuries that are burning a hole in your pocketbooks. Start getting rid of those things in your home you can really do without. E-bay and Craigslist are great ways to get rid of so many of your items.

Also re-consider how you run your household expenses. Is the cable/internet at home really that much of a necessity? How about renting a movie or reading. Seriously...do you really watch all 300 channels? Or just 5 or 6 channels? Unless you can write off the cable/internet as a business expense, you really don't need it at home right now. If it's an absolute MUST...shop around. Just recently, I switched my cable/internet provider and by doing so I'm saving $70/month.

For all of those little luxuries you have in your home (including electricity), you can shop around and find a better deal. You don't have to stick to just one provider. Also, consider going green at home. Changing the way you use electricity will help you save money. A few weeks ago, I did some research on wind power and found that households using wind power had monthly bills running around $11/month. That's a significant difference then those who use gas companies.

There are various ways you can curtail your expenses so you can apply more money towards your basic necessities in life. It just takes a little bit of research and putting these changes into effect.