10 Ways to Save Money in a Recession
As the coronavirus pandemic increases, the world has been jolted into an economic recession, leaving many feeling anxious and unsure of what lies in store.
Fortunately, there are ways you can save money during a recession. From focusing on curbing impulse buys to setting up budget plans, there are several strategies you can deploy to try to reduce your spending and consume within your means.
If you’re curious about how you can save money in a recession, here are 10 tips every South African should consider following.
1. Create A Budget Plan
The best way to start saving more cash is to make a budget. This will give you a bird’s eye view of how much money you can spend and the kind of expenses you can expect in the month.
You can use budgeting tools like Gumtree’s budgetary calculatorto track your expenses and get an overview of your financial situation.
2. Rethink Your Shopping Habits
During a recession, you need to think carefully before purchasing anything outside of the essentials. Before buying items, especially those with luxury items, ask yourself if buying them right now is really necessary.
Also, consider if there are alternatives to what you are purchasing. Could you buy it second-hand? Could you buy it at a discounted rate? Are there cheaper options available?
3. Buy in Bulk and Store Supplies
If you’re able to buy in bulk, do so. Buy bulk provisions at wholesale rates. Non-perishable food, like canned or dried goods, and household supplies, like toiletries, can be purchased at discounted prices, allowing you to save more money.
These savings can go a long way, as you can both save money and purchase items for later use. Remember to pay close attention to the expiration dates when planning for the future.
4. Avoid Impulse Buying
Impulse buying can be your worst enemy when it comes to your budget. Shopping while feeling emotional can influence you to buy more than necessary. When dealing with the stress of a recession, try and avoid emotional purchases.
It can be difficult to do so, but if you do purchase something, make sure it’s worth it. Utilise budgeting tools and financial advisors if available to ensure you stick to your spending plan.
5. Evaluate Your Credit Card Expenses
Due to the strain of a recession, you may be tempted to dip into your credit cards for extra cash. You should think hard about taking on more debt, as it will likely cost you more in terms of interest rates and repayment period.
6. Craft A Recession Meal Plan
With the rising costs of groceries, you need to be smart about what and when you purchase food. Try eating simpler meat-substitution meals, like vegetable stir-fries and hoagies.
The beauty of a recession meal plan is that there are frequently only a few ingredients, so you’re guaranteed to save time and money on groceries.
A recession meal plan could save you a lot of money.
7. Reuse And Recycle Items
If you’re planning to buy items from consignment stores, look for items you can reuse or recycle into something new. For instance, you can buy clothes from thrift stores to donate or restore.
This practice will help you reduce your consumption of new items and save you money. Additionally, you can donate the items you don’t need to those in less fortunate positions.
8. Cut Back On Entertainment Expenses
During a recession, you need to be wise about your entertainment expenses. Forget movies and theatre shows—investigate ways to enjoy your entertainment without spending much.
South Africa has an abundance of attractions and activities to do, from long drives and visiting National parks to picnics on the beach and camping outdoors. You can also register for shows and events online and watch them on the go.
9. Find Creative Ways To Make Money
Using the skills and credentials you have, seek out other means of income. Consider side hustles, like freelance writing and web developing, or even selling items online.
If you are technically skilled, you can use your abilities to create an income. Many more creative options are there, limited only by your imagination.
10. Limit your Transport Costs
Another way to save money in a recession is to limit your transport costs. When going about your day-to-day activities, consider alternatives to private transport, such as cycling, carpooling and use of public transport.
These, along with finding economical ways of getting goods moved from one place to another, such as QikTruck – an on demand truck and driver hire service – make great options for saving money during these difficult times.
Overall, saving money in a recession is possible. Taking some time to plan and make smart investments will pay off in the long run. Whether it’s done by reducing expenditure or finding innovative means of earning more cash, revising your finances can significantly benefit your pocket and bank