May 23, 2018 12:54 pm

Tips to save money when the economy is going through a tailspin

You cannot control the rising price of the commodities or set the prime rate of the loans but there are many ways that you can certainly do to buffer their adverse effects on your monthly income. So, when the economists tussle whether or not the country is going through a recession, there are some prudent financial ideas that can help you to save during such a tough time.

How to save money when the economy retards

These money savings tips will help to save money and ward off debt problems very much efficiently:

  • Start raising an emergency fund – According to the financial experts, an average household such as yours will have to bear an unexpected bill of about $2,000 in value. However, if your finances are already under immense strain to cope up with the challenges of these tough economic times, then it is very much necessary for you to try out things to boost the amount of your cash reserve. For instance, put any extra money that you get like bonus, salary hike or tax refund in your savings account.It is recommended that you plan your household costs for the next year by adding a wide range of liquid vehicles like short-term CDs, money market account or a bank account. To get the money to contribute in those accounts, you may shave off 10% or more out of your monthly paycheck. The idea is to make automated contribution towards those accounts while keeping the process liquid.
  • Get rid of the non-essentials – Lack of money and too much of debt problems are the result of irresponsible spending habits. So, one of the most effective way to do away with that is to jot down all the items that you’ve bought and the price that you’ve paid for them. After the list is complete, cut down all those that you do not require or have bought out of impulse.You’ll have to ensure that your money isn’t spent on things that you actually, positively do not need. Never follow those households that spend money frivolously on wants they consider as need. During this time, it is a very good opportunity to teach your kids about the differences between wants and needs.
  • Consider downsizing your expenses – On the basis of your current financial health and concerns, it might be a judicious choice to make some serious considerations and scale back your monthly budget. It is better to downsize than to do away with an item altogether since the real challenge lies in changing one’s behavior.So, start off with examining services that you are paying but aren’t using properly. This can be your cell phone plan with an unlimited availability of sending text messages or the high-end cable package. This, you should do with the participation of all your family members to make the money saving process a team effort.
  • Protect your current job – While trying to save money, it is crucial not lose your job and that too during a recession. So, to protect your job, you’ll have to increase your professional engagement and remain enthusiastic about everything that revolves around it.Moreover, you’ll have to improve your overall performance and network with other peer groups working in your niche. In this case, you’ll have to project yourself as someone who is always willing to collaborate with others. To make yourself indispensable for the employer, you’ll have to analyze the amount that you are saving or producing for the company.

At this point, you shouldn’t feel shy of informing your seniors about the role played by you to achieve the company’s bottom-line. Moreover, you’ll have to update your educational, technological as well as soft skills to stay ahead of your peers. In addition to that, you’ll have to build relationship with other industry players to improve your performance in the current job and to secure a new one, should you lose that any time during the recession.
Author Bio: Benjamin Beckwith, a prolific financial writer has put forward this article. He is a regular contributor to various financial blogs, communities and websites. He loves sharing his ideas
with people and making them aware of the various financial issues that are affecting the lives of people.

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