Scrimping and Saving Money Can Help You Beat the Odds of Recession

No matter how dire the economy gets, how broke people become and how many kinds of debt obligations you have to pay in a month, you can’t stay on the right track without saving money. With the present detrimental state of the US economy and the ballooning consumer credit card debt, it seems like everyone is counting pennies to make ends meet. Regardless of how the financial analysts refer to this economy, a recession or no recession, the laymen are being hurt financially. A stubborn unemployment rate at a close-to-double-digit rate, rising food costs and flat wages are some of the reasons for the sluggish economic growth and the intense dissatisfaction among the consumers. During such a pessimistic economic state, if you don’t want debts to mar your future, here are some steps that you may take to save your dollars.

Look for diversification of income: Are you satisfied with the 10-5 job that your employer is providing you with? Is the income satiating all your monthly needs? If answered no, you should look for diversification. It is not always needed to ditch your corporate cubicles to boost your monthly earnings. Do you have a hobby that can help you make a small business?

Stop paying a dime more for the privileges of banking: You may come across various free checking options that will charge a penny in fees for the right to write a check or use a debit card. There are many bank accounts that can even ask you for a fee to qualify for fee-free accounts but ensure you don’t succumb to the temptations when you’re already going through a distressed financial state.

Shop before getting your insurance coverage: Comparing and contrasting before taking out an insurance policy is a necessity when it comes to saving money. Make sure that you get multiple quotes from multiple companies so that you can compare the premium rates and the coverage offered by them. Conduct this search online in order to save your time and money.

Scale back your cable and unsubscribe from useless offers: Living with one basic cable is possible and if you want to save your dollars, you should avoid getting multiple connections. Don’t miss any of the basic cable channel offerings that offer rebates on the connections. If you’ve subscribed with magazine offers but you don’t get enough time to read them, you should immediately unsubscribe from such offers so as to avoid paying unnecessary bucks.

Raise the insurance deductibles: With the extreme competition in the insurance industry and the after-effects of the recession, most companies are raising the premium rates on the policies to reduce their risks. In such a situation, if you want to scrimp while making the insurance payments, you should try and raise the deductible amount. The deductible amount is what you have to pay out-of-pocket when you file a claim. If you can raise this amount, you can easily lower the insurance premiums and save your bucks.

Transfer your existing balance: Credit card debt is most common form of revolving debt and if you miss payments on your credit cards, you can stay sure about the fact that you’re going to lose money. As interest rates add up, it may soon spiral out of control and make you pay huge payments. Before you face this, transfer your entire balance into a low rate card before the completion of the introductory period. Don’t forget to read the fine print of the card if you want to avoid being subject to high rates and unnecessary fees.

Stop eating out: If you’ve been bragging about the habit of giving treats to your friends and colleagues, you should shrug this off lest it takes a toll on your wallet and leaves you bankrupt. Cook food at home and save money to stay armed for the future.

Figure out how to do things on your own: Before you run to a financial expert for getting jobs done, figure out whether or not you can do it on your own. Adopting a DIY method can always be cost-effective as you’ll be able to complete things on your own without paying the service charges to a professional. In case you have doubts, you can Google things in order to increase your knowledge.

Go generic: When you’re already figuring out the ways in which you can save your dollars, forget brand loyalty. Do you look for brands when you go to the shop to buy a packet of ketchup? Certainly not. You should be looking for the lowest unit price on it. This should be your attitude even for other grocery items.

Saving money comes with great consequences but not if it comes with enough expense of your long-term financial future. Consider the long term effects of your decisions as much as possible so that you don’t find yourself paying a hefty cost for your ‘savings’.

Author Bio: Paulette Noonan is a regular writer with Debt Consolidation Care (http://www.debtconsolidationcare.com/affiliate/) and is also a contributory writer with other financial sites. Expertise is woven around various aspects of the debt industry and with her e-books she tries to impart to people the different situations and simple solutions to get out of difficult situations.

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14 thoughts on “Scrimping and Saving Money Can Help You Beat the Odds of Recession

  1. Great advice, all around Pawel. It’s refreshing to have straightforward plans rather than ideas to experiment with. In Napoleon Hill’s Laws of Success, he too emphasized the need to save. Too many are not attempting that, and any successful joint venture will depend on good saving habits. No wealthy person wants to invest in a person who has no savings, no matter what good idea they have to offer. In a nutshell the other ideas, such as giving up cable, which I gladly did, still have 24 stations from an antenna on the roof, and now have more quality time to invest in important activities, these ideas will free up money for monthly saving. One last point, many employers demand far too many hours than normal, thus causing an imbalance in life. Too many people neglect exercise and their spiritual routines, and turn to prescriptions to bail them out. So I like your point on income diversification. Also you’re right about bank fees. I found a Credit Union offering an Interest rate and no fees from digging. So all you say is true. Once again great article Pawel. Keep up the good work buddy.

  2. “Adopting a DIY method can always be cost-effective” Sure the professionals love the DIY’s ! & “Go Generic” how about Go Green! Grow some vegies or sprouts! eat quality food. Ingredients are on even a ketchup bottle or DIY and buy the tomatoes at the local farmers market and “learn to can” tomato sauce. Great ideas over all but… Overall what is your time and health worth? Downsize the McMansion, walk to your local town market, support local restaurants, talk to friends, teach a child to read, #Start your life & enjoy!

  3. I also would like to add that you can save some cash if you use coupons while shopping. Most people are too lazy to search for deals. Always keep your eyes opened.

  4. I got rid off a lot of monthly payments recently. I was spending something like $300/month on stuff that I didn’t even use! With gas and food prices going up it’s getting really hard to keep up.

  5. I think before you purchase something it’s important to stop and ask yourself if you actually need it or not? I am trying to be smart about money but it feels good to spend it from time to time.

  6. weel, I think it’s easy to say how to save money in this recession, but the point is while you start to save your money you need to search for another income sources. And as an online “trustworthy” businessman, this is our responsibility to build an honest campaign how to make money online by refering products or srevices that really have a value, really workand tested by ourself without so much technical skill. Tell them what should they do to achieve the goal as internet marketer, tell them what should to avoid.

  7. The bankers are who we should blame for all this. Our economy is going to get worse not better, so find ways to supplement your income. A job doesn’t provide security anymore.

  8. Paulette, I couldn’t agree with you more! Great article indeed… Just a quick comment though. As an Economist and central banker myself I have come to understand that the dynamics behind a recession are rather foggy and very difficult deal with. Ultimately, surviving a recession is not about how much money you’ve made in the past or how educated or how good you are at running your business. It all boils down to basic human instinct of survival, good and rational judgement, timely decisions and a lot of good fortune on your side…keep a cool head and I can guaranteed you that everything be fine.. Here are a few important rules to keep in mind…trust me, they might look simple but they’ve worked wonders for me: 1.Do not worry or panic: There is a saying that worry is a prayer for something you do not need or what you do not wish for. Agree that the times ahead is the recession hit economy. We have to pass through those situations however reluctant we are. Take this as an opportunity given by God (If you believe in God that is) or any other supreme power you believe in, as a chance to prove your mantle. Think how you can operate successfully in these times. 2 Trim the Fat: Whether at home, or in your business, there ARE ways you can cut back. Do you really need two family cars, or do you need a car that is quite so heavy on fuel? You need to become shopping smart, buy cheaper house brands on anything from groceries to stationary. There are always ways to reduce your costs. So look at your budget and see where you can save! 2. If you are in employment then consider employment insurance now: If possible ensure that you take out an insurance policy against unemployment, as long as your company has not announced redundancies or possible job losses. It’s important to get the right policy, however, since some contain a number of exclusions and will not allow you to claim until you have been out of work for a long time. This money might just mean the difference between absolute bankruptcy and survival for your family. 3 If you are struggling, talk to your mortgage lenders: It is in no one’s best interest for your house to be repossessed. Most lenders have procedures to help you if you are struggling, and may change your mortgage to interest-only for a period or consider reduced payments. If you take positive action to contact your lender, pay what you can, and you are more likely to reach an agreement with your lender that allows you to stay in your home. Get a Second Income: Why wait until your job has vanished into thin air, before you start looking for alternative income streams? There are thousands of ways to make extra money – whether you turn a hobby, like fixing cars, or baking birthday cakes, into a business, or look for opportunities online, or even deliver pizzas on weekends for extra cash. Start multi tasking now, and not only will you have spare cash, but you’ll also be ready if disaster does strike, and you get laid off! 4 Find time for meditation and creative thinking then get back to work: All inventions in this world are invented twice. The first time in some one’s mind and the second time in practice. So try to see things very creatively. You might just see an opportunity were everyone else doesn’t.

  9. Very thoughtful article Pawel, these tactics may not only be useful in America but in country like India too, where the middle class is hit by the recession and hey-wire policies of the government and liberation of price control on the basic commodities like, electricity, fuel, food, groceries. A good financial plan with controlled spending habits is required by an average individual

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