We've all felt the pinch that the sluggish economy has put on our finances and our daily lives. Slowdown, recession, whatever you wish to call it...it's getting harder just to get by, and most of us are struggling to make do with less, or to make what we have stretch even further. Many of us have lost jobs, cars, and homes, and many are looking for work, which is proving tough to find. It may be more difficult to live day-to-day, but it isn't impossible. With a willingness to adapt and a few minor changes to your lifestyle and spending habits, you'll be able to weather the economic downturn.
Start a home-based business. This is especially relevant for stay-at-home parents. Sell on eBay, sell Avon, or host parties where you invite your friends and encourage them to buy your wares. Selling a service, or information, is also a great way to start a home business. Find an area that you have knowledge or expertise in, and start selling. Home based businesses are best for those who are self-motivated, and able to work independently.
Raise your car, life, and home insurance deductibles. The difference between a $1000 deductible, and a $500 deductible can lower your premium, resulting in a lower bill each month.
Instead of "calling in the experts", learn how to do things on your own. This could mean learning to change your own oil, or unclogging a stubborn toilet or garbage disposal. With the abundant resources available on the Internet, or a good "how-to" book, you might be surprised how much you can do on your own, and save some money, too.
With any income above your normal earnings, put the amount in a separate checking or savings account and use it to pay down debt, offset those higher expenses, or bulk up your savings. Overtime, stimulus checks, and most of your tax refund should go here.
Avoid the store, unless you absolutely need something. Shopping out of boredom leads to impulse buying and can quickly blow a budget.
Use balance transfer offers. If you are in debt, make becoming debt-free a priority. Moving any balances to 0% interest plans ensures that more of your payments go toward the principal, and less towards interest. When considering your options, steer clear of those that have high up-front fees.
Bills such as water, sewer, electricity, phone, and cable can all be brought down with a little effort. Turn off the lights when you leave the room. Don't let the water run when you are brushing your teeth. Remove extras such as Caller ID and voice mail from your phone bill, and save $150-$200 per year.
Limit dinners out or drinks with friends, to one or two nights a month. Entertaining at home is far cheaper. Pack lunches, it's less expensive and healthier than eating fast food every day.
Plan shopping trips and errands so that you can do it all in one trip, once a week. This will save you in two ways: in fuel costs, and those unnecessary and impulse purchases that you'd be making.
Put away those credit cards! Save cash for large purchases by creating a savings account specifically for the next item on your list. Make regular contributions to the savings account every time you get paid, and when you have enough for the item, you can pay for it with cash.
Divide your credit card minimum payments in half and pay that amount twice a month. Interest is calculated based on the average daily balance of your account for the entire month. If you make a payment every couple weeks, you are reducing the average balance and therefore reducing the finance charges assessed, as opposed to waiting until the end of the month to make a single payment.
Of course, if you have to carry a balance, it's always better to pay at least three times the minimum amount due each month.
Do your best to build a solid emergency fund that can get your through an entire year in case your main source of income disappears.
Do you have any hobbies, like knitting, gardening, or minor car repairs? Selling your crafts at a local flea market on the weekend is a great way to bring in a little extra cash, and doing simple auto work for family and friends could pay off as well. Every little bit helps!
Save money at the grocery store by planning your meals and making a detailed list of ingredients that you'll need. (It may be a hassle, but the savings will be worth it). Make sure that you get all your weekly staples, to avoid that last-minute run to the store. Sometimes seeing the length of your list of necessities will deter you from throwing extra things in the cart.
It's painfully obvious that our economy is faring poorly, but saving money doesn't mean living on bologna sandwiches, selling your car and living in the dark. Is there anything you can do to take off some of the financial pressure? You bet! Use common sense and best practices to get yourself and your family through what is likely to be the worse recession since the Great Depression. Good luck, and careful spending and saving.
