Saving Money During a Recession: Mission Impossible?
Posted: Monday, May 11, 2009
by Andrew Peel
APeel Solutions
Recession is a word that fills people with fear and dread. It's a time people consider bad for finances, a time capable of shrinking a dollar's value overnight. Where money is a huge concern, people always ask, 'Can I still save for real during a recession?' The answer is: yes. You simply to be sensible and creative about the whole business.
Plan your purchases.
Effectively planning your expenses. This helps eliminate the danger of impulse buying. Look at the bigger picture when it comes to your basic needs.
Plan for a week's worth of groceries, so you'll have an idea of which items you truly need and which items you can do away with. To maximize your planning efforts, incorporate items on sale into your planning. If there are foods on sale that week why not plan your week's menu using items currently on slashed down prices?
Get used to the 'B' word.
Budget, that is. If you want to be able to save money during a recession, you have discipline yourself and your family. Come up with a weekly or monthly budget and then stick to it. If you must overshoot it, you must have a very good reason to do so. Otherwise, don't spend. Also if you must use credit use the cheapest form possible and put in place a plan to pay it back. Overdrafts are cheaper than credit Cards as are short term personal loans.
Keep an eye out for bargains and discounts.
Monitor stores for seasonal sales. This way You'll save a lot of money by buying items on sale. During a recession, that's considered wise spending. Check out store or newspaper ads and don't be shy about asking for cheaper alternatives, getting store rebates or using discount coupons. really consider buying at discount stores as well, often non branded goods are just as good as branded, take vegetables and fruit for example. You can examine them in the discount store and in most cases you could not tell the difference from a branded store. Each dollar you don't pay is a dollar you save.
Buy in bulk.
Items in your home that are often in use (paper towels, canned beans, yoghurt, etc.), seriously consider buying in bulk. Many stores offer items in packs, which means you'll save money in the long run if you buy them instead of paying for individual items. You can always split and freeze or store extra non perishables in the garage.
Put off bigger purchases.
The basic rule is, if you can't afford it, don't buy it. For example, you have enough money for a downpayment on a new TV but will have to borrow money off your credit card just to tide you over for the next few weeks, it would be a really insane purchase. Wait until you can truly, comfortably afford something. The worst you can do during a recession is not only failing to get money saved but also going deeper into debt.
Practice prevention, not cure.
If you look closely, there are many things in your home that are siphoning dollars from your bank balance. Steps such as repairing and maintaining your home and appliances )provided it is not dangerous), using more efficient equipment and cutting down on unnecessary consumption can do wonders for your wallet and piggy bank. Talking of piggy banks get one! Put any spare change up to an agreed coinage in it when you come home at night. We have made $60 in three months. Now set an amount for a gift you usually buy at birthdays and stick to it. Say $15 for someone other than your immediate family. Use the money from the piggy bank to pay for the gifts. It's painless and you will be amazed how qickly the coins count up. When the jar is full put it in a savings account that you have to withdraw with a Savings Book not your chequeing account. That way less temptation to touch it.
Earn extra money.
If, after all your efforts, the money you have saved is still not enough, don't let recession get the better of you. There are times when your efforts are just not sufficient – mostly because you don't earn enough. Instead of asking for a raise that might never occur or waiting for a promotion to drop on your lap, consider finding other means with which to earn (and save) money.
Consider getting a part-time job, work extra hours, do selling on the side or offer your skills as a freelancer. The extra income you earn, along with your recession-powered money-saving plan, will help you make enough until after the tough times are over. Most obviously don't forget garage/car boot (for those of us in the UK) and ebay. Have a clear the clutter party. Look at items and ask yourself:
* Have you finished with it - books for example that you will not read again
* When was the last time I used it (apart from seasonal stuff) if more than three months consider it a candidate for sale
* Was this bought on impulse and I never used it? - Sell it.
Remember you may think something is rubbish but one man's rubbish is another man's gold. We made $120 in an morning the last time we car boot saled (garage sales).
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Top-level comments on this article: (2 total)I've heard the saying, "I heard there was a recession, but I decided not to participate." That's what your wonderful article told me.I have been blessed with a company pension cheque and a full-time retirement job. I'm taking advantage of the situation by paying off all my outstanding bills. Right now there is little money left at the end of the month, but I think the sacrifice will pay off in the long run.Thanks for an informative article.Thanks for the kind words.
Hi Andrew. Thank you for a very informative piece and it is well-written. I have bookmarked and printed this article for me to see everyday to discipline myself. Thanks again for sharing and thank you for joining my fan club. I truly appreciate it. Best regards and Happy Holidays! ~Nenita~I am pleased you found this so useful Nanita.
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