Jul
15
Surviving a Down Economy
Posted by Al D'Amico under For Buyers, For Realty Professionals, For Sellers, General Information
I recently stumbled upon a website called http://www.frugaldad.com/. There was an article that was originally titled, “75 Tips to Survive a Recession,” but since there is still some dispute from economists on whether or not we are actually in recession, the author just stuck with the phrase, “down economy.” Regardless of how economists refer to it, people are hurting, financially. $4.00+ a gallon gasoline, rising food prices, declining home values, and a deflating dollar are combining to make it tough to stick to a budget.
These were some of his great ideas on how his family is coping:
- Switch to cloth napkins. I’m not sure why it took a down economy for this one to dawn on me, but cloth napkins are a great alternative to paper napkins, which increase waste and add to our non-food budget.
- Just say no to social events, or agree to meet after dinner. Peer pressure can wreak havoc on your financial plans. It’s never fun to turn down a chance to go out with friends, but there are ways to say yes without spending a fortune.
- Scale back the cable. We’ve been living the last six months with only basic cable, and don’t miss any of the expanded cable channel offerings. Cable bill went down from $40 to $12 with this move alone.
- Look for a value internet package. While I was scaling back on cable service I asked our cable provider for a cheaper rate on internet service. They told me about a little-advertised “value package” which costs half the normal monthly rate for reduced speed. Since I mostly surf the web and check email I barely notice, but I saved about $20 a month on our internet service.
- Hang up the land line telephone. If most of your calls are to other cell users in the same network, consider canceling the land line and using a cell phone exclusively.
- Have a no-spend weekend. Sometimes it takes a break in the routine to get spending under control. Try to go an entire weekend without eating out, shopping, or ordering something online. It won’t solve all your spending problems, but it’s a start.
- Carpool a few times a week. Take turns carpooling with a coworker, especially if they live close to you. Pick them up and take them home this week, and next week allow them to return the favor. You’ll both cut your driving time in half.
- Check your vehicle’s tire pressure each time you fill up. Things like under-inflated tires and dirty air filters can reduce your gas mileage. Pick up an inexpensive tire gauge and check the pressure while filling up.
- Change your driving habits to save on gas expenses. Cut out “jackrabbit” starts and heavy braking.
- Do not buy new cars - Buy a used car, and drive it until the wheels fall off. My grandfather has driven two vehicles in 34 years! Sam Walton drove a twenty year-old pickup truck right up until the time he died. Don’t tell me it can’t be done. Remember, a new car is “used” the minute you drive it off the showroom floor.
- Consolidate errands into one trip. If you have to get out try to consolidate all of your errands into one trip away from home, instead of driving back and forth several times from store to home.
- Ride a bike for short commutes. I’m fortunate to live about 5 miles from my employer, so I occasionally commute by bike. If you happen to live close to stores, consider riding a bike for small errands. Take along a backpack, or put some panniers on your bike to carry things back home.
- Unload the trunk, and remove unused cargo racks. Added weight in the trunk reduces gas mileage, as does the added wind drag from an unused cargo rack.
- Wash your own car. Our town has one of those automated car washes and for $9.00 you can get “the works.” Essentially, it is a wash, wax and application of tire shine. I’m pretty sure I can do it for less. Better yet, employ the kids and let them earn a little extra money this summer.
- Bank “found” money in a separate account. With any income above your normal earnings, bank the amount in a separate checking or savings account and use the money to pay down debt, build up savings, or offset increased expenses. Overtime, tax refunds (and stimulus checks), gifts and similar windfalls belong here.
- Eat like a kid again. Eat off the same plates your kids eat off, which will force you to eat smaller portions. Your wallet and your waistline will thank you.
- Drink tap water. I don’t have the inclination to run a cost comparison between an ounce of Coca Cola and an ounce of tap water, but I’m fairly confident tap water is infinitely cheaper.
- Eat less meat. I’m about as far from vegetarian as you can get, but I recognize that my carnivorous habits cost me big at the grocery store. We’ve recently started having breakfast for dinner (eggs instead of meat), and substituting things like pinto beans (a great source of non-meat protein) in meals instead of meats.
- Look for manager meat specials. When you do buy meat, check the manager’s specials area for meat that is about to pass the “sell by” date. The meat is still perfectly good, but freeze it immediately if you don’t plan on cooking within the next day or two.
- Look for a used freezer to stock up on meat specials. Many times people relocating can’t take the extra chest freezer with them and advertise it on Craigslist or the local newspaper. If you can find a good used one stock it full of manager meat specials to reduce your food budget.
- Don’t be afraid to buy generic. Forget brand loyalty when trying to save money. When we buy ketchup, we look for the lowest unit price, regardless of brand. Same with other foods and household supplies. There are a few exceptions, but for the most part generic items are just as good as name brands.
- When in the store, look high and low for deals, literally. Marketers know that eye-level is the place most people tend to shop, so they put the items with the highest margins right in front of you. Better deals are usually found on lower shelves.
- Cherry-pick coupon deals. Combine coupons with store sales to maximize savings. Our local Kroger store recently had mayonnaise 2/$4. We found a coupon for $0.50/1 that doubled to $1.00, so we picked up a mayo for $1.00. Don’t use a coupon to buy something you don’t need.
- Supplement pet food with meat scraps. Quality dog food is expensive. To make ours last a little longer we occasionally skip the dog food and give our dog meat scraps. Avoid meats with sauces or spices as it can upset their stomach, and be sure to remove any bones. Plain beef, chicken and turkey make for a great treat for our dog.
- Water down juices. When we open a new apple juice for our kids we pour up half in the old container and add about 1/4 - 1/2 container of water to each bottle. This makes each new bottle last a little longer, and dilutes the grams of sugar and calories per serving.
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