President Bush announced Friday what he calls an economic plan to jump start the nation?s sagging economy. Now, New Jersey residents are hoping the president?s plan will help them out.

Some residents in Red Bank say they are already preparing for a potential recession. Lisa Vitello says she has made changes in her daily spending habits and has cut back on her social outings to save cash. Meanwhile, Middletown resident Kelly Day says she has cut back on dinners out. Day adds that she now buys wholesale to save her pennies.

A study out of Rutgers University says the economy in the Garden State will perform worse than the rest of the nation, at least for the next five years. However, Monmouth University finance professor Fred Kelly disagrees.

?We may move into recession for a period of time, but we have built in things that will move it back into growth in the not so distant future,? professor Kelly says.

Under Bush?s proposal, Americans would see $150 billion in tax relief. Some of that money would go toward business investments, while some would go toward individuals.

Watch the full announcement of Bush?s economic plan

Related Information:Bushcalls for economic package worth about $150B