We are all worried about the effect the downturn will have on our wallet. At the end of the day, each person will think: how will this affect me?

But the more important question should be: What can I do to protect myself from spiralling down financially?

Bankrate.com lists the five common mistakes in a bad economy:

1. Living la vida Visa

2. Invading your nest egg

3. Paying for college without applying for aid

4. Investing inertia

5. Obtaining cash from your home

It also shares some tips that anyone can do, like:

• Stop using credit cards.
• Track monthly spending.
• Cut down, but don't cut out, on lifestyle spending.

» 5 common mistakes in a bad economy [Bankrate.com]