How to Economize in Recession and Hard Times

We could all stand to save a few pennies!

Everyone is aware of the need to economize in a recession. People are being laid off at an alarming rate and foreclosures are going through the roof. These are some hard times! Cutting your budget to get by is becoming a necessity as the recession deepens. With some careful consideration, you can find ways to get more for every penny you have.

Instructions

1. 

   Stop eating out. Convenience food takes a huge cut of the average families budget. By making meals at home, you can save a lot of money. Home cooked meals taste better, are healthier and are easier to prepare than you probably expect.

2. Examine your bills and expenses and cut liberally. Nobody needs things like cable television. The new converter boxes are cheap and watching TV is free. This can be a difficult step, but it is necessary in order to economize in a recession.

3. The bills that you do need, like phone, Internet and power can be reduced to the minimum. You don't need the highest speed of Internet or the most expensive unlimited cell phone plan. Get a prepaid phone or switch to a basic service plan. Cut power costs by switching off lights, adjusting the thermostat and hanging a few loads of laundry.

4. 

   You don't need to be driving your car every day. Excessive driving is expensive as gas prices rise. Plan your errands so they can be done all at once. If you have to drive to work, join a co-worker in a carpool. This can make a significant impact on your budget.

5. 

   Sell off the things that you don't really need. If you have an extra car, turn it into cash. Consider having a yard sale, if you live in a busy area. Many families can make upwards of one thousand dollars in one weekend by selling off unneeded belongings. What a great way to economize in a recession!

6. Pull out the black belt techniques of the real masters of frugality. It's not just crazy people that save tin foil anymore and more people than ever are trying cloth diapers. While you may not want to continue these things when times are better, you might actually make them a part of your normal lifestyle after the recession is over.

7. Take on part time work. While many companies can't afford to hire another employee, they may have odd jobs that you can pick up on the side. Babysit some children or fix a fence. Do some consultation if you have professional skills. Every little bit helps and this extra income can add up fast.

8. 

   More moms than ever are going to work for the first time. While having an extra source of income can be a big boon, working moms often bring home very little take home pay after expenses such as daycare. If dad can be home with the kids, go for it. Or, consider finding a work from home job. They are out there and will cut down on the expenses of working considerably.

9. Sign up for the WIC program in your area. The income requirements are quite liberal and you will probably qualify. Most state run WIC programs offer basics like milk, cheese, cereal and bread. Some vouchers also include fruits and vegetables. Also, there's no shame in visiting a food pantry to get to the next payday.

10. 

    Consider a house sharing arrangement, especially if you or a loved one is under the threat of foreclosure. This isn't easy, by any means, but it can really help you economize in a recession. Both families split the household expenses and bills, drastically cutting costs for you both. It works best if the rules and expectations are clear right up front and everyone is willing to work together and cooperate.

Tips & Warnings

• Get your family's cooperation in economizing. For young children, make it a game. For older kids, make them feel like a needed and valuable part of making your plan successful.

• If you house share, do not interfere in the discipline of the other family's children.