Do the right thing in a recession

Your job is far from secure, and you are doing your best to scrimp and save. But good friends are making that difficult. The folks with whom you and your family vacation every summer, for example, are balking at the much less expensive cabin you have proposed this year. And your college roommate, who was the best man at your wedding, now wants you to be the best man at his -- which takes place in Rome.

What to do

There is absolutely no disgrace in looking a friend in the eye and saying, "I'd love to do that, but right now I can't afford to." If your pals aren't understanding, shame on them.

When reciprocation is involved, however, things get stickier. It's okay to regretfully say no to your buddy's wedding in Rome -- or to the loan that a friend who once lent you money asks for -- but only if you are truly constrained by your budget. After all, you can't hang on to your opera tickets while expecting friends to give you a pass on accommodating their not unreasonable requests. That's economizing at the expense of others.

NEXT: Who should get your bailout bucks?