Thinking Money | Free Financial Advice and Tips

How Are People Saving Money in Current Recessionary Economy?

Posted on 10. Apr, 2009 in Saving money

The present economic recession is prompting people to take a closer look at ways to save money and reduce debt. Take a page from wise savers’ books and consider implementing the following saving strategies:

1. Pay those bills on time: Although this may sound like common-sense advice, paying your bills on time each month really can make a tremendous difference in your bottom line. You can save money on late payments and you can avoid having your credit score lowered by paying up promptly. Just one late payment can reduce your score, and if you need to finance a mortgage or buy a car, you can pay up to a percentage point higher – which will cost you dearly in the long run.
2. Re-think life insurance: Right now might not be the time to invest in a life insurance policy. Consider if you would be better served investing that money in the short-term and using the remainder on the necessities. This is especially good advice if you don’t have children or dependents. If you have a cash value on your policy, and you are at the right age, you might even consider cashing it in.
3. Take care of your body: Health is one thing you are not guaranteed, and you should not let yourself go during the current recession. Get adequate sleep, eat right, and exercise to help you stay healthy so that you can continue to make ends meet.
4. Cut down on the food costs: It is imperative that you cut corners where you can. Instead of ordering takeaway, cook at home and eat in. Buy in bulk when you shop, and remember that foods like potatoes, pasta and bread are nourishing and go a long way affordably. Stock up on your canned goods, dried beans and other fiber-rich foods. These are nutritious without being expensive.
5. Get a second income stream: If you need extra cash, then think about taking a part-time job that will help bring added revenues to the family coffers during the down period. It doesn’t have to be a complicated or high-paying gig; it simply needs to be practical and convenient for you. Think about a telemarketing job or take up some Internet work.
6. Budget carefully: Many people don’t bother with a budget, but during a recession, you need one. Sit down and really outline your monthly expenses and your current intake. Reduce all extraneous expenses and try to save wherever possible.
7. Put aside the extra credit cards: You should hold onto one or two credit cards that you use frequently, but for the others, put them in the freezer. That’s right. Take the cards and wrap them in cellophane and freeze them until this crisis is over. It is better not to cancel the cards because that will only lower your credit score. Just put them aside for now and wait until the storm blows over before using them again.

The worldwide era of gluttony has ended, and most people are now finding ways to trim down the fat in their expenses, while looking to stuff their savings accounts. By giving your lifestyle, budget, and extraneous expenses an overview, you too can find excellent ways to save more money each month.

Tags: budgeting, budgeting tips, budgets, money saving tips, Saving money