It isn’t exactly news that the American economy is in the pits. Everyone’s cutting back on gas, shopping expenses, eating out, etc. Soon enough we’ll be wearing paper bags and foot propelling Flintstone-esque cars to save money even further. Which is bad news for me, given I’ve got enough mass to propel a Mini for about two feet.

Now normally I view the glass as half empty, but in this time of “hard knock life”, I actually feel like there is a chance to exploit this miserable economy for personal gain. Here’s five ways you can take advantage of this economic situation:

1.  Cash is king. Make sure you have enough to get you buy for at least 3 months should the worst happen. If you have some extra money saved up and an outlook towards the future, buy real estate and invest in stock. With lowered prices and the plummeting market, you can purchase a foreclosed home on the cheap and in areas which previously were too expensive. If a stock was a good deal last year, it is a great deal now. You too can benefit out of another’s misery (how very capitalistic of you!) and invest in downtrodden stock.

2.  Cut it out. It’s hard to make omelets out of broken eggs…especially when we’ve been so used to having bacon. (Heavy metaphor, no?) But because cash is king, the more you cut back, the more money you can use to invest in the future. Cut the expenditures that you don’t really need. Walk instead of drive, you’ll save mad money on gas. Or carpool with your neighbors and coworkers. Who said budgeting isn’t a fun and social affair?Maybe you can cut those extra TV channels you never watch and get a free library card instead.

This may sound outdated but books rock. When it comes to groceries, take a trip to Costco or Sam’s Club one weekend and buy in bulk. Save some money by splitting the cost and produce with your friends and family. To cut electrical bills, use only the lights you need. Don’t use any lighting during a sunny day and shut off all the lights at night when everyone’s asleep.

3.  Knowledge is power. Francis Bacon was right (notice the bacon theme?), and he was even more right when times are hard. Read blogs, scour the newspaper, watch the news and scan through online articles. These news outlets are full of useful tidbits that help you know what is going on outside your own financial bubble. Now is a critical time in finance reform, and there are laws on the table that could change the way your credit card and other debts work.

4.  A super spender always saves. Captain Obvious says:” We need to spend less and save more dinero”… but sometimes its hard to be a saint.

Good news: we can now travel on that emergency cross country flight or succumb to the occasional dinner out without breaking the bank. When there isn’t much cash going around, stuff just sells for less.

Businesses know people have less money for discretionary expenses such as dining out, vacations, or a new car and they adjust their pricing for thinning wallets.  Airlines are now reducing their prices to reel people back onto planes.

At this exact moment you can score a flight from New York to Florida for a little over 100 bucks. So if Grandma wants a visit you needn’t feel guilty for splurging a bit for a JetBlue ticket, you’d be spending less money than usual on the same flight.

Menu prices at many restaurants and bars have changed, just walking along the street and prix-fixe dinners, happy hours, two for one specials and awesome lunch deals abound. You can tighten your money belt without breaking your spirit, be a spendthrift but realize you’re still human and if you buy smart you always come out on top.

5.  Time to talk.  A bad economy is a good time to invest in personal relationships. Young people, and really people in general, are often hesitant to talk about finances. I’m a big fan of honesty: use your concerns for the economic state and the personal stories of your own life and questions you have about the economy as a way to reach out to others. Our struggling economy affects us all and it can be a point for communication. This is an opportunity to listen to differing opinions and bolster your own.

These 5 ways to take advantage of the situation may not stop the crisis but it can aid in shaping an attitude that looks towards the future of bringing home the bacon (bacon! I rock at pork humor).