How to save money during a recession ? That’s a big question in our mind.
The important things is budget. Whether you are with or without debt, in a low-income bracket or high, you need to establish a budget.
The basic rule for sensible budggetting is ‘Never Plan to Spend More than you can Afford’. The basic essentials are housing, food and clothing.
Food and groceries will generally take up 10 to 15 percent of our income. Those with large incomes can apportion a smaller percentage here and a larger percentage to some other category.
Larger families, on the other hand, may have to increase their food budget to be sure their budget allows for an adequate, wholesome diet.
|WHAT IS BUDGET |
Shoppers are often too hurried to notice prices. Many are unaware of the high cost of certain kinds of items. Don’t let the price drive you to eat unhealthy foods. Instead, cut down your other expenses to allow enough money for a healthful diet.
To get the most healthful food for your money, be bargain conscious and watch for specials.
One easy way to save on the food bill is by not buying the most expensive cuts of meat. You can also extend or substitute higher-priced meat with plant proteins such as whole grains and legumes.
Practice proper food storage, plan for leftovers and eliminate waste. Try home cooking ‘from scratch’ as opposed to using more expensive convenience foods.
Go to the local farmer when possible. Better yet, plant your own garden. Learn how to properly preserve food you have grown or picked yourself by canning, freezing or drying.
Use coupons efficiently. There’s many website explain how the ‘grocery store game’ works and how to save money.
By being careful and prudent, you can cut down your grocery budget considerably and still eat healthfully.
Your clothing budget may range from 4-8 percent of your net income, depending on regional climate, season and occupation. Buy only the type and quality of clothing that your budget will allow. Control your desires for expensive clothes if you cannot afford them. Be very careful about using that department store credit card; it can ruin you before you know it.
Utilize thrift stores and learn to sew so that you can make your clothes last longer.
Transportation is next important basic necessities. Car payments, gas and oil, insurance and repairs must be included. Don’t forget about car repairs and preventive maintenance to keep them in safe running condition. Endeavour to keep your transportation costs between 10 – 15 percent. Be sure you carry at least the minimum auto insurance required.
Life insurance also important. It is recommend that you purchase term life insurance for the breadwinner of the family that will pay out 10 times your yearly gross salary in the case of death. This type of insurance is inexpensive.
Other smaller items that you are apt to overlook are entertainment and pocket money. Budgeting for these expenses keeps them from consuming more of your income than they should.
Every family budget should provide for two kinds of savings. One type of savings is for expected expenses. It is called operational savings. Special expenses like maternity bills, a major furnishing, new shingles for your roof. This savings fund is for things not regularly budgeted out of each check.
Other kind of saving is for totally unexpected, unpredictable emergencies. Authorities recommend you budget approximately 5 percent of your net earnings each pay period until you have accumulated six months worth of emergency savings. Then when an emergency occurs that reduces your reserve, built it back up with the same diligince as before. An emergency fund reduces the stress resulting from any future financial problem. Anything we can do to prepare for tomorrow in a regular, consistent manner will help diminish some of the emotional impact that might result from an emergency.
– Solve Your Money Troubles (Robert Morley )