Bangalore: India weathered the 2008 crisis well, but there are fears that this time round the country is not even ready for a crisis of much lesser magnitude, be it the U.S recession or a full-blown debt default in Europe. And when the ripples of this crisis are felt people of all income levels tighten their belts. General anxiety leads millions of consumers to crumple down and stop spending, which slows the economy even more. You need to be financially insulated to escape the affects of recession. You should watch your spending and avoid taking any undue risks that might put your future financial goals in threat. Come up with some financial planning so that the damage will be reduced to minimal. Let's look at some of the most common mistakes people make and how you could avoid them: Adding Debt If you dreaming of buying a new car or your dream home, and planning to avail a loan to fulfill these desires? Hang on! If you making enough money to cover your monthly payments and have those extra funds to live on and save for retirement then you can consider implementing your dream. But what if your livelihood is adversely affected in the midst of the economic turmoil? What happens if your laid off? So if you're considering adding monthly payments/debts to your financial equation understand that this could complicate your financial situation if you are laid off or have your income cut for some reason.