My husband Dave affectionately refers to me as a pathological optimist. I tend to see the good side of people. (As in, 'I know that criminal burglarized three banks, dear, but don't you wonder if perhaps his mother shunned him for his more attractive younger brother, and he's carried those scars throughout his life?'). And when bad things happen to me or my family, I try hard to look for the silver lining or to look ahead to a future which will be less painful.

The only exception to this rule is money: my attitude about finances is rather odd. I insist, for instance, on using bars of soap until they dissolve in my hands and get annoyed if anyone uses an extra napkin or paper towel. Ironically I tend to be more relaxed about bigger ticket items. Believe it or not, I was the one in my family who lobbied for a bigger television a few years ago, despite the fact that it's Dave who is the avid Red Sox fan. He didn't see the need for a new one until he saw the light. He's repeated this motto ever since, “happy wife, happy life”. You better believe it. We got the TV, we both love it, but I still make sure to eat the pretzels out of the bag while watching, so I don’t waste a plate. But I digress.

The state of the economy is a tough thing to ignore. Several of our friends have been laid off, the ripple effect of the financial crisis is beginning to hit, and I have more patients asking to come in to see me than I can handle. When I went holiday shopping last week at our local mall, the lines were short and the sales were widespread. So from a psychological perspective, what is the best way to handle one's self?

I think a combination of intelligent frugalness and healthy denial works best. My husband and I started 529 college savings plans for both of our daughters when they were born. I have not opened a statement since August. Ditto for my 401k. Every January my husband and I pore over the minute details of our finances to make sure we are not spending more than we are making, and this January I plan on making up some excuse for why this can't be accomplished (the dog ate my W-2 form might work).

The basic idea here is to focus on what you can control (your discretionary spending) and try not to obsess too much on what you can't. Be smart: Take advantage of lower mortgage rates in a quest to possibly refinance or consider negotiating with your landlord if rents in your neighborhood have dropped. But if money issues cause you a lot of anxiety, you might want to turn the TV from CNN to Disney.

This is also a good time to do what our parents or grandparents did when the going got tough -- be creative about economizing! Play board games instead of going to the movies, try out a new recipe rather than going out to eat, and make do with last year's clothes (this is an easy one for me, as I hate clothing shopping). It also pays to be smart at work during these times: Show up on schedule, stay a bit late, and put in that extra effort.

And, most importantly, have faith. The optimist in me thinks that things are going to get better for sure.