How to Make & Save Money In Today's Economy
Making and saving money is challenging in the best of times, and even tougher during a recession. Many countries have experienced weak or stagnating economies for several years after the 2008 financial crisis. Governments have struggled with record debt levels. Private sector job growth remained anemic and inconsistent. Consumer debt levels also stayed near record levels. High gas prices resulted in higher prices for basic groceries and other essentials. To make and save money in this kind of economy, you have to think and act like a business and make every dollar count.
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Instructions
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Making Money
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Use up spare capacity. During a downturn, businesses often reduce production to adjust to falling demand. Some businesses may offer discounted rates to use up their spare production capacities. Depending on work and family obligations, you could have a spare hour or two every evening, plus an additional five to eight hours over the weekend. Opportunities to fill up this spare capacity include freelance jobs, contract work and overtime. Do not turn down reasonable opportunities to earn extra cash.
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Sell surplus assets. Businesses routinely dispose of assets that they are no longer using, such as unused factories and surplus inventory. Advertise old mixers, food processors and baby strollers online or in newspaper classifieds.
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Rent spare rooms in your house to college students. Advertise the rooms online or on bulletin boards. Check references before renting, especially if you have young kids living at home.
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Sign up for free training opportunities to prepare for the jobs of tomorrow and to make productive use of your spare time.
Saving Money
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Prepare a family budget or update an existing budget. This is an annual summary of your cash inflows and outflows. See if the expenses match up with revenues and identify potential shortfalls.
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Reduce credit card use because unpaid balances generally carry a high interest rate. Train yourself and your family not to ask for everything you see advertised on television. When you have some extra cash, pay down your credit card debt because you are unlikely to earn a higher rate anywhere else.
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Spend only on necessities. Think like a small business owner who cuts back on advertising, travel and other items not directly related to the business. Postpone vacation travel; reduce dining out plans and buy generic brands. Major stores put up their weekly fliers on their websites---review them before doing your grocery shopping.
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Refinance your mortgage because a weak economy usually means lower interest rates. Consolidate some of your high-interest credit card debt into loans with lower interest rates.
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Barter with other consumers to save on cash expenditures. Use online consumer-to-consumer bartering sites---such as Craigslist, BarterQuest and Swaptree---for exchanging a wide range of goods and services.
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References
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