Tips for saving money in a recession
All of us need to tighten our belts in a recession, but sometimes it’s difficult to make crucial spending decisions.
Here’s a list of some sensible tips for saving cash without making your life too austere:
1. Stop spending – keep your cash together and set yourself a ‘cooling off’ period before you spend on that bargain in the sales. Consider whether you really do need more shoes or that computer game.
2. Check out the comparison sites on the web for insurance, utilities and credit card rates. Make sure you are not paying over the odds and switch to a cheaper product if you can.
3. Check out your bank statement and look at all the outgoing expenses – cancel what you can. Most have us are paying a few pounds every month for a service we don’t really use, like gym membership when we could take up more running or walking.
4. Declutter – all those old clothes and unwanted gifts that are taking up space in loft, cupboards and under the bed can be cleaned up, photographed and auctioned off on websites like eBay. Or do a boot fair.
5. Look at your shopping bill. If you are mostly buying ready meals or living off takeaways, cut them out and start buying the ingredients and cooking your own meals. Maybe having your main meal at the canteen at work and a sandwich when you come home could work out cheaper.
6. If you do eat your main meal at home, then take a packed lunch to work instead of buying food.
7. Look at life’s luxuries – your mobile phone and Sky TV – do you really need a prepaid plan with all those texts and minutes? And how much TV do you actually watch to justify extra money on all those packages?
8. Cut your coat according to your cloth - put your credit cards safely in a drawer and live off your income rather than borrowing.
9. Change your brands – switch essentials like cleaning products, tissues and cooking basics to cheaper supermarket own brands rather than pay extra for a ‘brand’ name.
10. Buy a bread maker and a slow cooker in the sales. They are both relatively cheap kitchen appliances. A bread maker will soon pay for itself and keep you with a constant supply of crusty, homemade loaves while you can set a slow cooker before you go to work and come home to a piping hot meal.
11. If you have children and live within walking distance of the school, then keep the car on the drive and give you and family a breath of fresh air and some exercise.
12. If you have a spare bedroom and are struggling with the mortgage and bills, consider letting a room. Currently, you can charge a total of £4,250 a year to a lodger without paying any tax – that’s an extra £82 a week in your pocket.
If you are unlucky enough to have lost your job, taking in a lodger won’t affect any benefits you are claiming.
13. Put a little bit of money aside every week for a family treat, even if it’s something simple like renting a DVD and buying some sweets. Times might be tough but you need something to look forward to as well.
Summary
- Stop spending and review your financial circumstances by listing all your income and outgoings and considering what, if anything, you can cut.
- Declutter and be ruthless with your stuff and see what you can sell to on eBay
- Save money with cheaper brands, more home cooking and walking rather than driving where you can
- Don’t take things too far – save a few pounds a week for a treat and something to look forward to
