Determining whether the nation is in an economic recession is no easy feat.

The National Bureau of Economic Research, which makes these calls, examines declines in gross domestic product, real income, employment, industrial production and sales to determine whether the economy is truly shrinking or just taking a breather.

Whether you're experiencing a personal recession can be tough to determine as well. You may feel increasingly squeezed even while your income or assets are growing. Or you might think you're doing fine when your economic foundations are being eroded underneath you.

Of course, the idea of a personal recession isn't something you'll hear economists talking about. Recessions are by definition a significant reduction in the economic activity of a region or a nation.

But plenty of people see their economic well-being shrivel even while the rest of the country is doing OK, and others boom along even when the nation is in the throes of economic upset.

I'm here to help you decide whether your personal finances have entered a recession and, if so, what you can do about it. We'll look at three important indicators: your real income (and how far it goes), your net worth and your economic prospects.

Is your real income rising or falling?

If your pay varies much from check to check, take an average of your most recent paydays and compare them to a similar period last year. Similarly, if your hours tend to vary or you're working substantially more or fewer hours than a year ago, figure out your hourly wage and compare that to a year ago. (If you don't have your pay stubs on hand, you probably can check your bank records online to find those figures.)

Article by msn