A recession is defined as “a significant decline in activity across the economy, lasting longer than a few months.” In layman’s terms, that means people are losing their jobs, businesses are closing their doors, and everyone is tightening their belts.
Not only that, but a recession can have a ripple effect on different aspects of your life. For instance, you may find yourself spending less money on entertainment and travel, and more money on essentials like food and gas.
If you’re looking for ways to save money during a recession, you’re not alone. Here are eleven saving money tips to help you make ends meet.
In these tough economic times, every little bit helps. And when it comes to saving money, couponing can be a big help. couponing is the practice of using coupons to get discounts on merchandise. It may seem like a lot of work, but with a little organization, couponing can be easy and even fun. And the savings can be significant.
For example, a coupon for $1 off a box of cereal may not seem like much. But if you use that coupon every week, it adds up to $52 in savings over the course of a year. And if you combine couponing with other money-saving strategies, such as buying in bulk or shopping at discount stores, the savings can really add up.
So don’t despair if your budget is tight. With a little effort, couponing can help you weather the storm, lowering your monthly budget.
Get Rid of Unnecessary Expenses
During a recession, businesses and individuals alike feel the pinch of tightened budgets and decreased spending power. One way to save money during a recession is to eliminate unnecessary monthly expenses. This can mean cutting back on luxuries and non-essential items, or simply finding ways to reduce your overall costs.
For example, you might switch to a less expensive cell phone plan, cook at home more often instead of eating out, or carpool to work to save on gas. While eliminating unnecessary expenses won’t solve all of your financial problems, it can help you to stretch your budget a little bit further during tough times and lower your financial stress.
Downsize Your Home
When it comes to saving money, downsizing your home can be a helpful strategy during a recession. Not only will you have fewer rooms to maintain, but you may also be able to reduce your overall living expenses. For example, if you move from a three-bedroom house to a two-bedroom apartment, you may be able to save on your mortgage or rent payments.
Additionally, as an average household, you may be able to reduce your bills by downsizing to a smaller home. And, of course, you’ll have less stuff to pack and move when you downsize. So if you’re looking for ways to save money during a recession, downsizing your home could be a smart option for your savings journey.
Take Advantage of Free Entertainment
One way to save money during a recession is to take advantage of free entertainment. While it may be tempting to splurge on nights out or vacations, there are many cheaper (and often more fun) alternatives available.
For example, many museums and art galleries offer free admission, and many cities host free concerts and movie screenings in parks during the summer months. There are also numerous online resources that offer free or discounted tickets to events, and many companies offer employee discounts on entertainment options.
By taking advantage of these opportunities, it is possible to enjoy a wide range of activities without breaking the bank.
Don’t Eat Out
Dining out is a luxury that many of us can no longer afford. With the economy in a recession, now is the time to cut back on unnecessary expenses like eating out. When you eat out, you not only have to pay for the cost of the food, but you also have to tip the waitstaff and pay for any other added charges, such as beverages or dessert.
This can quickly add up, leaving you with a hefty bill at the end of your meal. Furthermore, restaurant portions are often much larger than what we would normally eat at home, leading to wastefulness and overeating.
By cooking at home, you can control both the cost and the portion size of your meals. In addition, home-cooked meals tend to be healthier than restaurant meals, which are often loaded with salt, fat, and calories. So do your wallet-and your waistline-a favor by eating in during this recession.
Get Rid of Memberships and Subscriptions
As the economic downturn continues, many people are looking for ways to save money. One area where you can quickly trim your budget is by getting rid of memberships and subscriptions that you no longer use.
That gym membership that you never took advantage of? Cancel it.
The magazine subscription that you only read when it arrives in your mailbox? Let it go.
Although it may seem like a small amount of money, those monthly payments can quickly add up. In addition, you may be able to find cheaper alternatives for the services that you currently enjoy.
For example, many museums offer free or discounted days for residents, and there are a number of streaming services that provide access to movies and TV shows for a fraction of the cost of a traditional cable subscription. And don’t forget the local library. By taking a close look at your spending, you can free up some extra cash to help make ends meet during difficult times.
Secondhand shopping has become increasingly popular in recent years, and for good reason. Buying gently used items can save you a lot of money, and it’s a great way to reduce your impact on the environment. However, secondhand shopping can also be a great way to save money during a recession.
When money is tight, buying used goods can help you stretch your budget further. You can often find high-quality items for a fraction of the retail price. And since secondhand stores typically sell a range of items, from clothes to furniture to electronics, you’re likely to find everything you need in one place.
So if you’re looking to save money during a recession, don’t forget to check out your local secondhand store.
Barter With Friends and Family
One way to save money during a recession is to barter with friends and family. By exchanging goods and services with others, you can save money that would otherwise be spent on purchasing items.
For example, if you need a babysitter, you could trade your services as a gardener in exchange for child care. Or if you need a new television, you could trade your old one plus some cash in exchange for a newer model. Bartering can be a great way to get the things you need without spending any money.
Start a Garden
For many people, the idea of starting a garden may seem like a luxury. However, during times of economic hardship, a garden can be an invaluable tool for saving money. For one thing, gardens can help to reduce the amount of money spent on groceries.
By growing your own fruits and vegetables, you can cut down on your grocery bill significantly. In addition, gardens can also help to reduce your overall carbon footprint. By growing your own food, you can decrease your reliance on transportation and packaging, which can have a positive impact on the environment and give you some food storage.
Finally, gardens can provide a sense of calm and relaxation during times of stress. Whether you choose to grow flowers or vegetables, spending time in your garden can be a therapeutic activity that can help you to cope with difficult times. In sum, starting a garden may require some initial investment of time and money.
However, during a recession, a garden can be an invaluable asset that can help you to save money and stay healthy.
You can also make money keeping bees.
Do a Home Energy Audit
When it comes to saving money, few things are more important than reducing your energy costs. Not only will this lower your utility bills, but it can also help reduce your carbon footprint. One way to accomplish both of these goals is to conduct a home energy audit.
A home energy audit is an assessment of your home’s energy use, typically conducted by a professional energy auditor. The auditor will inspect your home and make recommendations for making your home energy efficient. Many of these recommendations, such as sealing air leaks and insulating your walls and attic, can be completed by the homeowner at little or no cost.
Others, such as upgrading to more efficient windows or appliances, may require a larger investment. But even these improvements can pay for themselves over time in the form of lower utility bills. So whether you’re trying to save money during a recession or simply wanting to reduce your impact on the environment, a home energy audit can be a valuable step in your savings journey.
Use Cashback Apps
While there are many ways to cut back on expenses, one often overlooked method is using cashback apps. By linking a credit or debit card to the app, shoppers can earn money back on everyday purchases.
While the amount of money earned back may seem small at first, it can add up over time, especially if the shopper is strategic about using the app. For example, many cashback apps offer bonus rewards for shopping at specific stores or during special promotions. By taking advantage of these offers, shoppers can boost their savings plan even further.
In addition, cashback apps often allow users to withdraw their earnings via PayPal or direct deposit, making it easy to access the money when needed. With so many ways to save, there’s no excuse not to use a cashback app during a recession.
Areas Where You Can Save Money
Let’s look at some of the specific areas where you can save money:
- grocery shopping (write down your shopping list)
- phone insurance
- subscription service
- holiday gifts (use coupon codes)
- electric bill
- buying lunch
- prescription drugs (use generic drugs instead)
- cleaning supplies
- home costs
- baby gear
- credit card debt (use auto pay or debit cards)
- gym memberships
- coffee shop visits
As you go through this list, think about your savings goal, how you spend money, and your desire to build wealth. As you better understand your spending habits, you’ll find even more money saving tips that can add up to big savings over time and put money in your bank accounts.
While a recession can be a difficult and stressful time, there are many ways to save money during this period. By taking advantage of bartering, starting a garden, conducting a home energy audit, lowering your down payment, thinking about your savings goals, and using cashback apps, you can stretch your budget further and reduce your overall expenses.
So don’t let a recession get you down and ruin your financial decisions. With a little planning and effort, you can weather the storm and come out ahead and even start saving money, reaching your savings goals, and having your emergency fund and savings plan ready.
FAQ – Start Saving Money Tips
Is a savings account a good way to save money?
Don’t save your money in a savings account. It’s a terrible investment. You’d be better off putting your money into a mutual fund or ETF and use that as your emergency fund, savings plan, and extra money, especially since interest rates for savings accounts area super low.
What is the 30 day rule?
The 30 day rule is a way of saving money by waiting 30 days before making any non-essential purchases. This gives you time to reassess your needs and decide if the item is truly necessary. This method can help you to save money on impulse purchases and keep your spending in check by making you postpone financial decisions, thus helping you build wealth and reach your financial goals.
How can I save money really fast?
There are a few ways to save money quickly. One way is to cut back on your expenses by evaluating your spending and identifying areas where you can reduce or eliminate unnecessary spending. Another way to save money quickly is to increase your income by finding ways to make extra money, such as through side hustles or earning more at your job. Finally, you can also save money quickly by avoiding little purchases you make throughout the day.
How can I save $1000 fast?
There are a couple of things you can do to save $1000 quickly. One is to find ways to make extra money and put that towards savings. Another is to reduce your expenses by evaluating your spending and identifying areas where you can cut back. Finally, you can also save $1000 quickly by automating your savings so that you’re automatically transferring a set amount of money into savings each month. These extra dollars add up and can help you build up your financial future.