Ways to Save Money During the Recession

One good thing that has come out of the economic recession is that more people are seeing the need to become savers instead of borrowers. It’s because the recession has shaken our faith on the economy. People are losing jobs, losing their homes and losing their livelihoods. The old lifestyle of freely borrowing and spending is now seen as highly irresponsible, and a new lifestyle of frugality is encouraged.
If you haven’t started to save yet, now is the perfect time to start the habit. Here are some ways to save money today.
Stick to Your Budget
If you don’t have a budget yet, it’s about time you make one. List all your expenses and allocate a maximum amount you can spend on it. Make sure you allot a percentage for emergencies. Having a budget and sticking with it will help cut down your unnecessary expenses and save you from financial hardships.
Cut Down on Food Expenses
This does not mean you should go hungry, it just means you should find ways to reduce your total food costs. There are a lot of creative ways to do this, such as making your own meals at home, buying food supplies in bulk at the grocery store, reducing the frequency of your restaurant visits, and even planting a small vegetable garden at your house.
Pay Off All Consumer Debts
Consumer debt is a borrowing used to buy something (like a car, or groceries) as opposed to a borrowing used to invest or start a business. It is not a secret that most consumer debts, like bank loans and credit cards, have very high interest rates. The best thing to do during a financial recession is to get out of debt. Start using cash only and pay off all your existing consumer debts. If you have more than one consumer debt, cancel the card or loan with the highest interest first.
Build a Savings Account
Even if you’re in debt, find ways to save even just a small percentage of your salary every month. Slowly build a savings account equivalent to at least three months of your living expenditures. This will become your emergency backup fund in case you lose your job or get sick. The problem with most Americans today is they’re not saving for the future – they’re too focused on the present. Go against the flow and protect your tomorrow first for yourself and your family.
Find a Secondary Source of Income
Generate another income stream for yourself. It doesn’t matter how small it is, the extra money will surely help to either pay off your existing debts or to add to your savings account. The main problem for employees during a recession is that there is very little job security during these times. The good thing about having a secondary source of income is at the event that you lose your main job, you have a backup source to tide you over. You can take a second job on a part-time or freelance basis. You can also establish a small, start-up business at home. You can sell some of the things that you don’t need anymore at a garage sale. GP