Recession has really struck us hard. I guess no household has been spared, their disposable incomes have been heavily disrupted, and with people being laid off without prior warnings has taken everybody unawares. People of all generations have been affected by this meltdown. Now’s the time for us to gear up, to realize that a penny saved is a penny earned. We need to reduce spending and start saving, to prepare ourselves for any uncertainties that might arise out of such a situation.. We must minimize our expenses and curtail heavily on overhead expenses. This can only be possible when we sensibly and effectively prioritize our daily household expenses, stop spending compulsively, start saving on fuel , start buying stuff from comparatively cheaper and more reasonable outlets. This might sound a little difficult but this can be handled.
HOUSEHOLD PURCHASES-
Let us be selective in choosing stuff for the household. We can cut down on expensive commodities and go for comparatively cheaper ones, with no compromise on quality. We can cut down on items of luxury. Some less important commodities should be struck off from our shopping list. Our grocery bill can be reduced considerably by using coupons. In short commodities which can be bought later should be avoided.
LOOK FOR CHEAPER OUTLETS-
Always try to look for cheaper outlets. Check out for places which have a sale running or offer discounts. Bargain for commodities and try visiting places which are comparatively reasonable. The most important thing to remember is do not be a compulsive buyer. Purchase only if it is required. Purchases can also be done by pooling in with a friend like purchasing stuff like buy one get one free. The cost can thus be split.
COST CUTTING ON FUEL-
Petrol and fuel command a huge chunk of our salaries. We should try cutting on it as much as possible. Try using cars as sparsely as possible. If the place is relatively close try walking down instead. Believe me it will do you good. It is the best road to fitness. Be a good Samaritan, offer your neighbour a lift if you both are heading towards the same destination. Later see that he reciprocates the gesture.(an intelligent way of cost cutting).Daily visits to shopping malls or market places should be cut down to weekly . Besides take the shortest routes to your destination. And ofcourse try saving gas by avoiding excessive acceleretion and driving within the specified limit. It helps.
SAY NO TO LOANS
One should avoid taking financial loans, it further increases your expenses. Take it only if it is urgent ,in that case you may request your financers to make adjustments on the terms of payment. You can expect a reduction in your interest payment by extending the period of paying back your loan. This might reduce your burden a little by cutting down on your immediate expenses.
INSURANCE PREMIUMS-
Today insurances are inevitable. All of us are insured , whether it is our car, our household, our life or health. A huge chunk of our income is spent in premiums. We should use our discretion in choosing which of the insurance is of greater importance and do away with not so urgent policies ,to be renewed in better times. If the laws of the company permit, we can also request them to reduce the premiums so that we can save.
AVOID THE USE OF CREDIT CARDS, USE CASH-
With a credit card in our hands ,we just have to swipe to pay, and in doing so we exceed our limits of spending because we do not feel the brunt. But when you force yourself to pay by cash you tend to hold back and use your discretion thus restricting yourself considerably.
SAVE WHEREVER POSSIBLE-
Recession does not last long, but it teaches us to be more responsible with our money. In fact we should make saving our second nature. Save on power. Stop using washing machines, do your own laundry or at least cut down on it’s use . Wash your dishes yourself. Do not use defective electrical appliances, they consume more power.
We know it is easier said then done- but a little effort , a little discretion, a little sacrifice on our part can take us a long way. I believe -
IF THERE IS A BETTER WAY FIND IT……..JUST LEARN TO SAVE!
