How to save even during a recession
By Sandy Morris on Feb 9, 2010 in Wealth-N-Retirement
Recession is a word that fills people with nightmares, dread and bad visions. It’s a time people have long considered bad for your finances and a time period capable of magically shrinking a dollar’s value overnight. It also seems to instantly increase the cost of basic living. At this point in time money becomes a huge worry, people always ask, ‘Can I still save for real during a recession?’ The answer is: of course you can. You just need to be wise and creative about the whole thing. Here are ways how:
Plan your purchase
By planning your purchase, you’re effectively planning your expenses. This will help eliminate the danger of impulse buying and unnecessary spending. Try to look at the bigger picture when it comes to your basic needs. Is this purchase something truly needed or merely something you would like to have?
Plan for a week’s worth of groceries so you’ll have an idea of which items you truly need, which other ones you just want and which items you can do without. To make sure that you maximize your planning efforts, consider incorporating items on sale into your planning. If there are foods on sale that week, for example, why not plan your week’s menu using what’s currently on slashed down prices? Browse the food store fliers for bargains on things you use.
Implement the ‘B’ word
Budget, that’s the word. If you want to be able to save money during a recession, learn to discipline yourself and better yet, your family. Using your plan as a reference, come up with a weekly or monthly budget and then stick to it. If you must overshoot it, you should have a very good reason to do so. Otherwise, don’t spend on anything not on your budget.
Keep an eye out for bargains and discounts
Learn to monitor stores for seasonal sales. You’ll save a lot of money by buying items on sale than in their regular prices. 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. Consider buying at discount stores and outlets as well. Each dollar you don’t pay is a dollar you save.
Buy in bulk
If there are items in your house that are often in use (paper towels, canned beans, yogurt, etc.), 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.
Put off bigger purchases
A good rule of thumb is, if you can’t afford it, don’t buy it. If, for example, you have enough money for a downpayment on a new LCD TV but will have to borrow money off your credit card just to tide you over for the next few weeks, it would not be wise to make the purchase. Wait until you can truly, comfortably afford it. The worst thing you can do during a recession is not just failing to save but also going into additional debt.
Practice prevention, not cure
If you look closely, there are many things you do in your home that have been siphoning precious dollars from your wallet. Simple steps such as repairing and maintaining your home appliances, using more efficient equipment and cutting down on unnecessary consumption can do wonders for your wallet and that savings piggy bank. And what better way to treat a recession than to be prudent?
Earn extra money
During a recession this is often harder to do than any of the above tips. But 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 or because an unexpected expense happens. 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.
