Have you set a goal to become recession proof? We share 10 successful ways to save money during a recession to help you reach financial stability.
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Recessions teach us a lot. They teach us a lot about ourselves and about our finances. You can only really end up on two sides of the spectrum. That is, wow my family and I were really prepared or wow, we need to change some things.
Whether an economic downturn affects or doesn’t affect your finances, these 10 tips on saving money during a recession are going to benefit you.
Let’s get started.
#1. Limit Dining Out
Limiting dining out can be a great way to save money during a recession. Platforms such as door dash can cost you additional fees and unnecessary upcharges.
In the old days (pre-recession), dining out was a treat. But things are a little different now. We must learn to adapt ever so graciously.
Today, we indulge in instant gratification. Set a budget on dining out and limit the amount of times you do.
I understand it’s going to be a little rough getting out of your comfort zone but believe me it’s totally worth it! And remember, it’s only temporary.
#2. Under Indulge In Entertainment
Cutting back on entertainment is a sure way to pocket money during an economic downturn.
The times of purchasing new games online, buying new music, or going out to the bars for booze and live music should be put on a temporary hold.
When it comes to money savings goals during a recession, you’ll have to prioritize your needs over your wants.
Substitute the cinema for move nights at home or find other alternatives to have fun such as playing sports at your local park or visiting a library.
Not only is budgeting your entertainment a successful way to save money during a recession but it can also be a great way to spend more time with the family doing fun and healthy activities.
#3. Save At The Pump
Save fuel by adjusting your driving habits. By increasing your mpg, you can save money at the pump by stretching your days before having to refuel.
Driving safer and without constantly stepping on the pedal will allow you to get more for your buck. Change your driving habits and start saving at the pump.
Shop around at the pump
You can also shop around when needing to pump fuel. This strategy is an effective way to stretch your buck and save money during a recession.
Look at the gas prices in your area and go with what’s most convenient for you.
Prices are usually lower on Monday mornings.
#4. Meal Prep
Meal prepping is an amazing way to save money during a recession due the convenience of using household foods for lunch more than once.
Some benefits to meal prepping are:
- Healthier options than eating out
- Least expensive alternative
- Prepping can last a few days
- It’s a great winner habit to develop
It won’t take long before you begin to see the saving potential meal prepping has on your finances.
#5. Become Aware Of Utility Usage
It is important to keep track of your expenses, especially utilities such as electricity and water. Become aware of your usage to see where you can cut back on costs.
Cutting back on unnecessary use of electricity or water is a successful way to save money during a recession. You can cut the bills in half by:
- Turning off lights in empty rooms
- Using efficient and eco friendly bulbs
- Limiting the A/C timer
- Taking shorter showers
- Using less water
If you can find miniscule ways to cut back on utility usage then you will be successful in saving money.
#6. Monitor Your Daily Habits
Admittedly, a lot of us don’t monitor our daily habits. A lot of the things we do on a daily basis costs money. A great example for instance could be the purchase of a coffee every morning.
You can save money by monitoring your daily habits and seeing where you can cut back to make a difference. If you’re spending $6-$8 five days a week on coffee or a drink that’s $30-$40 you can be stashing away. That’s $312-$416 a year that could be used for personal savings.
The truth is the money that we spend on unnecessary things is overwhelming. It’s no wonder more than half of Americans cannot cover the cost of an emergency expense over $500.
Start setting your goals down and begin to eliminate the things holding you back from becoming financially stable.
Switching to a High Dividend Reward Checking account is a smart way to maximize your savings and earn more during a recession.
#7. Practice Self Grooming
Whether you’re trimming your own beard, cutting or styling your own hair, or doing your nails (ladies), practicing self grooming is an awesome way to stay on budget.
Practice self grooming to save money during a recession so you can stay looking fresh while saving an extra couple bucks every month or so.
It’s more cost efficient to invest in your own machine and pair of scissors to cut and style your own hair. The same goes for women’s nails. You can invest and a great set of nails oppose to getting them done at the salon. You can always look great even on budget.
#8. Shop Around
Don’t get #8 confused with shopping at malls or outlets. See which grocery stores have the best prices and deals so you get more than what you pay for.
If you’re used to always going to same grocery store you could be missing out on some amazing deals. Don’t miss on money saving opportunities due to comfort. Shop around and see what items are best to purchase from specific stores even if it means getting something things here and there.
#9. Delay Gratification
Save money during a recession by delaying gratification.
The clothing stores with 50% off discounts can wait, those won’t be going away any time soon. During a recession, it is important that you stack your money in case of an emergency.
Read: How To Create an Emergency Fund and Why It’s Important
It’s during these times of economic hardships that you see dealerships drop their APR to 0%. Yes a 0% APR is tempting but don’t fall for it. Whatever you do, do not get into further debt.
#10. Increase Your Income
And of course one of the most effective ways to save money during a recession is to increase your income.
When you increase your income you can continue to live within your means while saving the additional earnings.
You may increase your income through:
- The use of a high yielding savings account
- Discretionary income such as a spouse working
- Side hustle
- Raise or promotion
- Over-time at your job
Head over to our ‘Side Hustles‘ tab to see some of the many ways you can begin to earn additional income.
Be sure to browse through our posts to find a number of ways from which you can earn money through side hustles and even make money from home!
Let us know in the comments section below if you have other great tips on how to successfully save money during a recession. Our readers would love to hear from you!
Read: How To Stay Afloat During A Recession for more ways on how you can become recession proof!
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