When recession happens, no one would be spared. In fact, millions of families would be affected. Unfortunately, your wages will never increase to help you survive the tough time. You will have to tighten your belt, reduce your expenditure and save more money from your monthly income. Below are some tips:
Tips 1: Start with Budgeting
If you yet to have a budget, it is time to have one. Download budget templates from the internet and fill in your own values. A budget can identify where your money goes. You can then review and decide whether it is wise to keep those expenses. Coming out with a budget is also a form of commitment to control your expenses.
Tips 2: Save on Utilities
Electricity: Unplug electrical appliances when you are not using them because many of them draw electricity regardless of whether they are turned on. Keep the lights off during the day. Water: Do not let the tap water running when you are not using it, e.g. brushing teeth. Take shorter showers.
Heating bill: Lower your thermostat at certain temperature. Use blanket or sweater if you feel chilly.
Tips 3: Save on Groceries & Food
Monitor stores for seasonal sales and check out discounted items. Use coupons from internet, newspapers and magazines for better deals. Always look for cheaper alternatives e.g. store brands instead of famous brands. Also, buy frequently-used items in bulk (paper towel, razors, etc). However, be careful do not get carried away buying things at discounted prices. Cook your meals at home from scratch whenever possible.
Tips 4: Save on Transport
If you use your car frequently, your priority would be to maximise your mileage. Car-pool several times a week. Make sure your vehicle’s tire pressure is high before you hit the road. For closer destinations, consider walking or cycling. In addition, use trains or buses as long as the destinations are accessible by the public transport.
Tips 5: Change Your Habits
If you smoke, quit smoking. Cut down your entertainment. Attend less social functions. Rent movies instead of going to the cinemas. Cancel magazine subscriptions and visit library for books and magazines. Learn how to do certain things on your own e.g. fixing pipes instead of paying other people to do it for you.
While individual savings might not be great, these simple steps can result in great savings if done collectively. Commit yourself to do it now to save yourself from the recession!