Are you a full-time employee concerned about the long-term effects of the current recession? If yes, you are not alone. Many busy adults are concerned about the recent economic downturn, particularly the record high inflation rate, the stock market collapse, soaring gasoline prices and the shortage of basic grocery items. Is there a way to combat the potentially negative effects of the current recession?
The good news is that consumers can do a lot to prevent the worst. In many cases, it’s possible to make a few painless lifestyle changes that take the sting out of the super high prices of groceries and household goods. Likewise, there are several effective hacks to earn extra income, reduce monthly expenses, and potentially save a few bucks in the process. The following suggestions, taken together or individually, can go a long way in supporting working adults who want to make the most of their income while minimizing expenses.
Online Micro Jobs
If you want to Make your money inflation-proof, Consider increasing your income. Micro jobs are tasks that take less than about five hours a week and are very popular with students and young professionals looking for a second steady income. Some of the most popular mics include teaching English to foreign students, website evaluation work, freelance writing, and blogging. The beauty of these short-term jobs is that they require few highly skilled skills, the hours are extremely flexible, and the pay rate is reasonable for people who need some extra cash each month.
Refinancing student loans
One of the quickest ways to cut a decent chunk of your monthly expenses is Refinance student loans into a brand new commitment. The benefits of this strategy are numerous. They include the chance to get much better terms, installments and repayment terms. After a short, simple online application, borrowers can end up paying much less than before with a one-time monthly payment. Thousands of working adults are surprised to find that their credit score is better now than it was when they first took out their educational loans. That’s just one reason they can usually get cheaper interest rates when they refinance. There’s no better survival trick during a recession than reducing monthly student loan payments and getting an instant boost to your personal bottom line.
Curious about the current student loan forgiveness plan? The Money Girl podcast has you covered. Listen as Laura Adams explains it by clicking the player below.
Freeze of investment activity
It’s not usually advisable to stop contributing to retirement funds, but when you’re in financial trouble it’s usually one of the first temptations. However, investments include other forms of monthly contributions in addition to IRAs and 401k accounts. They also include investment accounts held with brokerage firms. If you currently deposit several hundred dollars a month into a stock or forex account, you should consider suspending all trading activity until the tough economic times are over. Don’t close retirement accounts. Instead of stopping making monthly payments to them, consider halving the amount for now.
Sale of personal and household items
When push comes to shove, people sell their stuff. One of the most painless ways to survive a rough spot is to search the garage, attic, basement, guest room, storage shed, and anywhere else you’ve stashed old stuff. Go through everything and be sure to either sell, donate, or discard each item. Keep only the essentials. The second benefit of this tactic, in addition to the money you make from selling lots of items, is that you’ll do a great job clear up clutter from home. Selling personal goods is a one-time opportunity to increase income, not an ongoing opportunity to make money. Still, it can provide a decent cash injection during an economic downturn.
Purchase of used and refurbished items
If you need to buy something like an appliance, piece of clothing, household accessory, or electronic device, explore the used and refurbished market. This is a particularly effective approach when buying tech products from online retailers. There are many refurbished options on dealer websites, and prices are often 20% to 50% off.
It doesn’t cost anything to create a weekly meal plan, and you don’t have to be a world-class chef to create a list of seven dinners that you already eat regularly. The goal of creating meal plans is save food and give yourself an incentive to consume more food at home. It’s a fact that eating out is one of the most common forms of overspending. Working adults who make it a habit to plan at least five meals a week will immediately save money by avoiding the high cost of dining out.
Targeted grocery shopping
Meal planning is smart, but learning how to make targeted grocery lists is a similar way to cut spending and weather recession cycles. The trick to creating excellent lists is to take the time to include all the necessary items you need for an entire two-week period. Avoid the temptation to shop once a month or you will run into spoilage issues in most cases. For maximum convenience, group your list items by their location in the store. This not only saves you money, but also cuts down on the time you spend down the aisles looking for products.
Minimizing fuel costs
The best thing about reducing vehicle fuel costs is that there are multiple ways to do it. First and easiest is to drive fewer miles per week by combining rides. Most who attempt to use this approach quickly discover that the trick is to plan ahead. Don’t run errands to one location one day and a second location the next. When shopping, you should aim to buy groceries and necessary household items only once or twice a month. Another tactic for reducing fuel consumption is to set aside one or more days per week for commuting or carpooling to work. Finally, it is possible to save a significant amount of cash by joining a wholesale club that offers discounted gasoline in its stores. For a small annual fee, the average driver can get all their petrol or diesel fuel about 10% below market prices.
Watch this episode of the Money Girl podcast to learn more about saving money on everyday expenses.