There was a sense of panic as the real estate market began to slide, unemployment climbed, and bewildered yuppies wondered whether they'd be able to eat their BMWs or pay their mortgages with Rolex watches.

It was in the midst of this economic chaos that I got a wild hare to create a newsletter to help people figure out how to survive during lean times, and thus, Cheapskate Monthly was born -- the original name for the newsletter that has since been renamed Debt-Proof Living.

U.S. News & World Report published a news story about what was going on here in California, specifically about Cheapskate Monthly. Imagine that. The title of that short piece? "Cheap is Chic!" Finally, there was a bright light in the fog of economic doom.

It strikes me just how similar the events of 1992 are to current events. The feelings of unrest, fear and worry were palpable in 1992. I am sensing some of the same now. If the economy were a roller coaster, I believe we would see both times as fairly steep dips -- the kind that take your breath away and make you feel that surely you never will get out of this alive.

Back to 1992. We did get out alive and enjoyed (some of us still are enjoying) the great prosperity of our beloved country. Our homes have appreciated tremendously since 1992. Even if they've lost market value in the past year or so (not all have), values are still way ahead of 1992.

You also might recall the economic struggles of the 1970s. I was thinking about that while watching the recent banking problems, particularly the demise and quick resurrection of the newly named IndyMac Federal Bank. I've heard predictions that another 100 banks could follow suit. At first, I wanted to screech, "Yikes, what's going on?!" But then I recalled the 1970s, when this nation had a huge rash of bank failures -- many more than are being predicted now.

Of course, I cannot foresee the future. However, I can recognize this fairly reliable fact: Our economy is cyclical. There are ups and downs. When things are up, we need to get ready, for surely they will go down. It is difficult to imagine, but I just have a feeling that one day I'll write about that economically stressful time back in 2008, when we thought things could not get worse. We'll smile, knowing that sticking it out and not selling our investments and not dumping our homes was the right thing to do.

We'll be glad that we hung in and refused to give up.

Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
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