There are a lot of people today who insist that you can’t really save any money when there’s a recession going on, but that’s simply not the case. It can be done, but it’s certainly true that it can be more difficult when times are harder. Being creative with your saving during financially tight times also means that you have to be creative with your spending, and that’s something that you can do with a few good ideas. One thing you shouldn’t do is buy into all of the hype going around that says you can’t save any money in a recession and that you’ll go broke because you won’t even be able to make as much as you’re spending.
People who generally have a tendency to save money will already have some money put away in savings or investments, and they’ll probably have a little bit easier time during a recession simply because of the security of having some of that money. People who have money put away don’t fret as much during a recession because they can live off of that money if they have to, but that doesn’t mean that they shouldn’t still try to save, since a very long recession can even cause savers with nest eggs a problem if they aren’t careful. People who generally don’t save money and who spend all that they make won’t have that nest egg and they can go into panic mode, but if they practice being more careful during a recession they can actually save some money and survive the uncertain financial times.
In truth, however, it doesn’t matter that much whether you saved or spent in the past, because you can learn to hang on to the money that you have now and get yourself through the recession without getting ridiculous about saving and without being afraid all of the time that you won’t have any money left. When you start saving during a recession it’s normally out of necessity, but recessions are actually good times to do this because, when you learn to save with less money, it becomes easier for you to continue to save with more money later. More money later will make it easier for you to acquire a good nest egg, and one that you will have proved to yourself that you could start during hard times.
The basic formula for saving during a recession (or any other time that you want to put some money back) is that you have to spend less than you make. Take, for example, people who buy their lunch out every day and stop on the way to work to get a morning coffee. These people are spending a whole lot of money and they probably don’t even realize how much it’s costing them, but they could save a great deal of money – sometimes hundreds of dollars each month – if they would simply make their coffee at home and pack a lunch to take to work with them instead of spending money out all of the time.
The food that you buy and cook at home for dinners and breakfasts can be an area where serious savings can occur, too, since most families eat pretty heavily today and they often buy whatever looks good instead of paying attention to any of the sales that the grocery stores are offering. When you look for sales you can often buy something and get another one for free, save several dollars each on certain items, and use coupons to get more savings – but be careful of coupons because the store brand is often cheaper than the name brand, even if you use a coupon. At first glance it could seem as though you’re giving up a lot, but you can turn it into something more fun by trying to see who among your family and friends can find the best deal and comparing your shopping with other people who are playing the same ‘game’ of saving money.
Don’t buy things that you don’t need just because they’re good deals, either, because it’s not a good deal if you don’t need it, no matter how inexpensive it is. You’ll end up spending money that you really could have (and should have) been saving, and you’ll regret it later on. Make sure to read the sale fliers carefully and make a list of what you’ll need, then go to the store with that list and don’t buy anything extra – you’ll save a lot of money this way because you’ll be paying attention to where your money is actually going when you spend it, making you less likely to spend it frivolously.
You can also keep a journal or other list of how much you’re spending and on what, like a budget. When you budget for things and when you literally track every penny that you’re spending, it’s much easier to see where the money that you’re making is going. By doing that you can better identify areas where you could spend less without a hardship and that will help you save money, even when there’s a recession going on.
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