The current state of the economy is a major worry for many people. Looking for additional sources of income is great but if one doesn’t know how to save money during a recession, the money could pour in and out of their budget and they’ll still be struggling to make ends meet.
There are many ways in which one can save money during a recession. Eating out less, cutting expensive products and exotic vacations are some of the obvious ways to save money.
Save on Food
Food is a major expense for everybody. Even when people don’t eat out and buy food mainly from the supermarket, food is still a major expense. Sure, staying hungry or eating low-quality food is not the way to save money on food but there are many small (and not so small steps) one can take in order to spend less on food. For instance, ethnic food is generally cheaper but still delicious and nutritious. Canning food and growing vegetables and fruits (if the climate permits) are also two activities, which take time but can considerably lower one’s expenses on food.
Save on Gas
Gas is a major expense for everybody’s personal budget and therefore there are many optimizations one can make in order to save money during a recession. Traveling less is the obvious way to do it but when one has to commute daily, it is not possible just to decide to stay at home and save on gas. Well, it might be possible to work more from home than to go to the office every day but this certainly depends on the type of job and not everybody can do it. Instead, there are many other alternatives to consider in order to save on gas – for instance, get a hydrogen fuel cell, or buy a smaller car, which doesn’t consume so much gas.
Find a Cheaper Apartment/Find a Roommate
Rent is another large chunk of a personal budget. A rent could eat up to 50% of one’s monthly income and this is way too much. If the rent is about 1/4 or 1/3 of the personal budget, this is affordable. Cheaper apartments might not be luxurious but desperate times require desperate measures. Alternatively, one can consider finding a roommate to share the rent but roommating also has its disadvantages.
Look for More Entertainment Opportunities at Home
During times of economic downturn, entertainment is one of the first things to cut. Of course, this does not mean no more going out at all. Rather, consider more entertainment opportunities at home. Staying at home is not a punishment and there are many enjoyable, yet cheap ways to spend quality time at home. Watching movies, reading books, browsing the Net, working on a project, etc. are interesting occupations, which don’t cost much (or even better – can even help to make money).
Use Personal Budgeting Software
Finally, even when one is being frugal, there are still many expenses that go unnoticed. Tracking expenses manually is a tedious task but fortunately, there is software – i.e. personal budgeting software, which helps to see where money leaks through. There are many free personal budgeting programs, so get one and see how it works for you.
There are many more ways to save money during a recession and still live well but when one applies the above-mentioned ways to cut all expenses, the net savings could easily be over $500 a month, which is certainly not a small amount, even for people who earn a lot.