If the sluggish economy is giving you heartache, you are not alone. All across the country, people are taking proactive steps to thrive despite the state of the economy. People of all backgrounds are discovering that this economy has forced us to change the way we think about money. By making a few lifestyle changes, you will be able to beat the economy.

1. Create a Budget

To some people, "budget" is the ultimate four-letter word. It doesn't have to be. People who create and stick to budgets often find them empowering. Knowing exactly where your money is going can help you adequately plan for life's little pleasures. Instead of cutting out your favorite activity, you can manage your cash flow to include it every month. Walter Wisniewski Paragon Capital's founder and CEO knows this all too well. He advises his clients on ways to create budgets and enjoy financial freedom.

2. Involve Your Friends

Friends and family can be excellent sources for people looking to save money and beat the economy. Have a clothing swap party where you bring your gently used and never-worn clothes to trade. Enjoy a free wardrobe and a party at the same time.

Use your friends as resources instead of hiring an outsider. Turn to family members who are experts in their field and save on the cost of legal advice, home repairs, childcare and more.

3. Stop Paying for Things

No, we're not encouraging you to shoplift. There are, however, ways to get many items free or relatively cheap. Cut out cable and watch your favorite shows online for free. Enjoy free groceries by clipping and using coupons. Sign up online for free samples by mail and save on products you use every day. Getting things for free or very cheap is a smart way to beat the economy.

4. Earn More Income

Increasing your income is a great way to beat the recession blues. You don't have to take a second job to enjoy increased income and greater personal profits. There are millions of ways to earn extra cash, both online and offline. Some stay at home moms earn hundreds of dollars a month clipping coupons and selling them on eBay. 

Others earn money by writing articles and selling them to online content sites. Still others earn extra dollars by selling used items on online classified sites. These small sources of income add up to thousands of dollars a year in extra income.

Don't let a poor economy get you down. By being creative about your finances and earning extra money, you can beat the recession and live comfortably.