There’s no doubt that times are getting leaner in our country. A lot of people are getting laid off, or not getting raises and bonuses they had counted on. Gas prices are fairly low right now, but could skyrocket at any time, and I don’t know about you, but after living through last summer, I always have one eye on that…because when gas prices go up, everything goes up.
The news isn’t all bad, though. Many businesses are flourishing even as others fail. And downturns and recessions are temporary; they won’t last forever. So how can your family adjust its budget to allow for leaner times? Here are a few ideas. Keep in mind, though, that different things will apply to different families.
• Make sure you actually do have a budget. And yes, that means written down, on paper, or in the computer. I know that many of us know in our heads what has to be paid and when, but there’s no substitute for having it in front of you in black and white. Use an envelope system, where you do most things in cash, and you will be much less likely to overspend. A budget also forces you to look at where those little amounts go…a few dollars here, a few dollars there…and how much they could add up to. Finally, it forces you to decide what’s important enough to stay, and what can go, at least for the time being.
• Do more free and cheap things together. My family loves to go to movies, but that can get really expensive. Why not have a family movie night instead? It can be a regular thing, and each person can take turns picking the movie. Or a family game night, which has benefits reaching way beyond simply saving money. When the weather’s nice, go to the park—you can even bring a home made picnic.
• Don’t stop saving. When we’re strapped for money, it’s often our savings that are the first to go. But even if you have to reduce what you put in saving every month, make sure something still gets there. One rule of thumb is to always assume things will get worse before they get better. You don’t want to dip into your savings now, because you might need it more later.
• Look for bargains. When we look at who is going out of business and who is growing, it’s the high end places that are suffering, and the discount places that thrive. Wal-Mart, Family Dollar, and Dollar General are doing just great, and almost anything you need can be gotten at one of those places, instead of any of the stores at the mall. Don’t be embarrassed to shop at garage sales, consignment shops, and flea markets, and to search around online for better deals than brick-and-mortar stores can offer.
A recession doesn’t have to be a scary time for your family. Some easy, thoughtful steps can help your family get through these hard times and still have good memories to show for it.
