The warning signs have been on the horizon for a long time.Today in Bermuda, decreased demand for our “premier financial centre product” is forcing down home prices, home sales, rental occupancies, wages (and job elimination) while inflation is exacting its human toll with increases in cost of living products needed to survive.Are we to the point of no return? Can we turn the ship around, or only slow its course? Can we return to the prosperity? No one, it seems knows these answers, but everyone is worried.Sir John Swan, the former Premier of Bermuda took a stand and presented the people with a proactive collaborative initiative.He has been roundly applauded and scornfully criticized. But, you can't change the fact that he's called the biggest elephant in the room what it really is, a very, very serious economic crisis.One blogger said that “he (Sir John) should have done this before. Why did he wait so long?”Blogger, where have you been? A number of lonely economic specialists have been sounding the alarm for years.No one wanted to listen.Even lesser voices like mine - I have been through a severe recession before - were writing warnings as early as 2003 about increased redundancies and contractions in our economy. Those were ignored. “You do not know what you are talking about, all you Bermudians who come back with your doom and gloom stories. Bermuda could not possibly endure a declining economy, because it has never happened”, so many said. We were the jewel in the Atlantic, now looking more like a Black Swan, I guess.The fact is that most people only see what they want to see. As long as they get what they want as they say and think “it's got nothing to do with me” that is where every problem stays.Out of mind until reality hits you personally in the face and the pocket book.We are only human. We don't like to plan or anticipate the road ahead. It's too hard, too scary for some or intimidating for others. So not only do we only see what we want to see, we generally only do the things we like.Unfortunately, it is becoming sheer survival for many now. There are five types of economic situations that you and your family may be coping with.1. No jobs. Both family members have been made redundant, and you are having trouble finding another position.2. Your job hours have been increased and your hourly wage has been cutback. It is called doing more with less. This situation produces less money overall coming in to the family pot while exhaustion filters in, too.3. Your Job may be on the line, but so far the position is holding up. You are concerned though because you know others who are struggling to stay afloat.4. Your job situation has not changed, and it appears unlikely that it will. You cannot be too sure of that fact, but for now, you are one of the lucky ones.5. You are retired and living on a fixed income. Your tenant just moved out.What should you do now?You can plan to help your family weather a downturn, but it requires work and family participation. How do you think your parents, grandparents, and those before managed with no safety net at all? Do you have the grit to be innovative, resourceful, and the ability to stick to the plan?It is worth remembering that there are still many viable jobs with many, many people who are still employed, people who are happy financially in retirement, people who are operating successful companies, and who are generating cash flows.Not everyone is keeping their purse chained up closed. Individuals and families still have to purchase necessities, and discretionary items, if affordable. There are always opportunities, even in a down economy, to generate cash, but it requires imagination and perseverance to find and take advantage of them.Readers, I am looking for your stories. Have you lost your job, or think it may be on the line. What are you doing to cope? All conversations will be confidential.Martha Myron, JP CPA CFP(US) TEP, is an international Certified Financial Planner™ practitioner in private wealth management.She specializes in independent fee-only cross border investment, tax, estate, and strategic retirement planning services for Bermuda residents with United States and multi-national connections, and US citizens living and working abroad. She is a Masters in Law candidate in International Tax and Financial Planning and member of the American Citizens Professional Tax Advisory Council for Bermuda. For more information, contact mmyron[AT]patterson-partners.com martha.myron[AT]gmail.com.