Last year at this time, we were wondering if it could get any worse. It did. Trouble in the subprime market exploded into an across-the-board rout. The credit crunch evolved into a global financial crisis. Markets tanked. Mighty institutions fell. Recession took hold. Layoffs began to mount just as the holiday season got under way. Few people have been left untouched. And still, we don’t know if we’re through the worst of it.

If you’re living in a house worth less than you owe on it, you aren’t alone. Ditto if your retirement savings are down by double digits. Or if you’re earning nearly zero interest on your savings, and yet unable to borrow at historically low rates. Or if you’re looking for a job or worried about keeping the one you have reports the Wall Street Journal.

All of which has given rise to the newest new normal. Exuberance and excess have made way for prudence and pragmatism. Frugality is, once again, a virtue. To help you settle into this strange new world, our reporters have dug deep into their beats. Modeled on Personal Journal’s regular Quick Fix feature, the advice here covers a lot of ground, but shares a common theme: helping you make your dollars work harder.

Problem: You have a load of beaten-down stocks in your portfolio.

Solution: Consider giving some of that stock to your kids. There’s a silver lining to stock prices’ descent: You can give away more shares tax free. In 2008, an individual can give as much as $12,000 to each gift recipient before getting hit with gift taxes. That amount will rise to $13,000 in 2009. The gift helps reduce the size of your estate — probably a good idea since the estate tax isn’t likely to go away soon, financial advisers say. It also may allow the recipients to enjoy a nice rebound from today’s depressed stock prices over the long haul.

Another approach: Consider a grantor retained annuity trust, or GRAT. You can put your beaten-down stock in the GRAT, name your children as beneficiaries, and receive an annuity from the trust based on a percentage of what you contributed. As long as you survive the trust term, often just a couple of years, any stock appreciation beyond a “hurdle rate” set by the government passes to the beneficiaries tax-free. That hurdle rate, currently 3.4%, is at historically low levels, and it’s set to move even lower.

“If you ever thought of making lemonade out of lemons, this is the time to actually do it,” says Bill Forsyth, senior fiduciary counsel at wealth-management firm Bessemer Trust.  -Eleanor Laise

Problem: Your older-model computer sucks up electricity.

Solution: Energy-management software lets you put your computer on a schedule to reduce the amount of electricity it uses.

Verdiem, a Seattle-based company that makes energy-management computer software for businesses, recently released a consumer-grade version of its software called Edison. The free software lets you set your computer on working and nonworking schedules. It also provides estimated savings reports that show how much carbon dioxide has been saved. It works on computers running Windows XP and Vista. (www.verdiem.com)

The Environmental Protection Agency (www.energystar.gov) also has a free energy-management program called EZ Wizard for computers running Windows 2000 or Windows XP. Google Desktop users can download a free plug-in called Energy Saver that works on Windows XP and Vista, but to use it you must first download Google Desktop at www.desktop.google.com/plugins. -Joseph De Avila

 Problem: You want to apply for new credit, but aren’t sure if your credit is good enough.

Solution: Get a free credit score. Several Web sites – www.Credit.com,  www.CreditKarma.com  and www.Quizzle.com — allow consumers to check their credit scores free. Although CreditKarma and Quizzle offer scores developed by the credit-reporting companies, including TransUnion and Experian, and not the widely used FICO score developed by Fair Isaac Corp., they can still provide users with a quick snapshot of where they stand. At www.CreditKarma.com, consumers can estimate how certain actions — such as applying for a new card, being late on a payment or paying on time — will change their score.

It’s also a good idea to check your detailed credit reports at least once a year, which you can do free of charge at www.annualcreditreport.com.  -Jane J. Kim

Problem: You’re drowning in credit-card debt.

Solution: Consider working with a nonprofit credit-counseling agency. Consumers seeking help with debt need to tread carefully. As Americans’ credit-card bills have spiraled out of control, the airwaves have filled with advertisements for “debt-settlement” services that say they’ll help consumers settle debts for a fraction of what they owe. But they often charge high up-front fees, and their strategies can drag down clients’ credit scores and even make their debt burden balloon.

Nonprofit credit-counseling agencies offer a different approach. After reviewing your financial situation, the agency may offer you a debt-management plan, which will help you steadily pay down the full amount owed over a period of roughly three to five years. Creditors will often reduce interest charges or waive fees for consumers participating in these plans.

A good place to start looking for a nonprofit credit counseling agency is www.debtadvice.org , a Web site maintained by the National Foundation for Credit Counseling. The NFCC sets guidelines on fees that member agencies can charge consumers and requires agencies to provide services free of charge if a consumer can’t afford to pay. To find NFCC member agencies, click on “find a counselor now.”

-Eleanor Laise 

Read more here: How to Fix Your Life in 2009