Spending Wisely During A Down Economy
“The economy is in flux” seems to be a never-ending story; whether it’s the 1970s, the late 2000s, or now. If you have not been able to break bad spending habits, the current economic climate may force you to do so. I say, “why wait for the proverbial push off the cliff”. You do not have to live in a state of depravity; however, if inflation, skimpflation, and any other kind of flation does not slow down, then you will want to learn how to preserve your cash. Start learning now what it takes to prepare for a down economy and how to spend wisely.
One way to spend wisely is to curb your indiscriminate spending and not abuse your paycheck. Most paychecks only stretch but so far and then we break the band by purchasing items not on sale, items that are not actually necessary, and items that somehow seem to call our name when the item does not even have a voice box. You know it’s your emotional desires, right? There are often free or inexpensive ways to live a good life without going into financial ruin. If coupons are not the thing for you, maybe they need to become your new best friend. Whether you use paper or digital coupons, saving an extra $10-$15 on groceries is not something to ignore. Whatever you buy goes on sale at some point, so why not have a coupon to pay a little less when purchasing. Also, change the way you shop. Instead of preparing menus for the week and then go shopping, why not check the supermarket sales first and then prepare your menus based on sale items. Another area to save your cash is to check the rules on your reward points from credit cards to find out if you can use those points to purchase food or any other items. If you are not travelling because of COVID, then don’t let your hotel or air rewards expire either. Find out if these points can be used at participating retailers off or online as well. There is always a way to pay less.
When the economy is down, this is the most important time to start or continue to save. Everyone pulls back during this period, including companies. When companies pull back, layoffs are soon to follow. So, it is a good practice to save where you can, every time that you can. Wherever you are today on the financial spectrum, each week take a dollar or two or five and put away, put up, or hide so you get in the habit of doing just that-saving. Once you create that habit, it will become a practice that you just do like everything else and will also allow you to build funds. Six or seven months down the road, you will have a few dollars saved. Then, you will want to continue that dopamine affect by increasing your saving amount. You may not be breaking any banks, but this is a good start and will surely help in a pinch. All you need to do is start and then you will be able to make the increases over time to reach your financial goals. So; even in a down economy, it is still possible to save. You just have to be truly focused on your long-term goal and not let anything interrupt the process. The economy will be in flux again and the next time you will be prepared.