Fighting through a bear market is as much about monitoring personal spending as making wise investment decisions.

It may seem rudimentary to talk about budgets, but a family that has had a steady income of six or seven figures in the past really has to understand where their dollars are going during these times of turmoil,” said Barry Glassman, senior vice-president of McLean, Virginia-based Cassaday & Co, which helps manage more than $1 billion for clients.

People can reduce their costs by as much as 30%, regardless of their income, by evaluating their spending habits, said financial planner Frank Boucher in Reston, Virginia.

US growth will slow in the second half of 2008 as unemployment rises and stock-market declines erode household wealth, according to an index of leading economic indicators.

“You have no control over oil prices or Fannie Mae, but you can still control your own spending,” said Beth Gamel, executive vice-president of Pillar Financial Advisors in Waltham, Massachusetts.

Ms Gamel suggested dining at home, getting a local utility company to conduct an energy audit, and limiting car usage by doing errands at once, while Mr Boucher recommended taking vacations during “shoulder seasons” when rates are cheaper.