Month: May 2020

What is a recession?

A recession is when there is a decline in industrial production, employment, real income, and wholesale-retail trade that lasts for six months or more. It spells trouble for all of us. Sometimes it’s hard making ends meet in the best of times, but trying to raise a family in the midst of a recession is doubly hard to do. It helps to stay optimistic in this type of situation. We can tighten our belts a little and still share some quality time together as a family.

Tough economic times call for finding ways to cut down on spending, but not on activities, even when we’re on a budget. After doing a little bit of research I’ve come up with a few ideas that may help to weather this recessional storm.

Saving Money in the Kitchen

There are lots of ways to cut back including in the kitchen so let’s start there. First, get rid of all the prepared meals. Aside from being too expensive, they are loaded with excessive fat, sugar, salt, and all kinds of preservatives. These are things that your family doesn’t need. Plan wisely and schedule specific meals for each day of the week. Do your grocery shopping once a week and get exactly what you need for each meal. Try going meatless twice a week.

Do a little research and find recipes for low-cost meals that you can make like pasta and vegetables or a homemade veggie pizza. These are nutritious meals and won’t cost a lot of money.

Saving Money When Traveling

Even when arranging for a vacation or just family time together, put a schedule in place so that you don’t miss a minute of fun. Check with the local visitor’s bureau in your city and see what attractions they offer. Some cities sponsor summer festivities for a minimal fee or no cost at all. Spend the day at a local park; take along Frisbees, a baseball and bat, and maybe even a set of horseshoes.

Stop by your local public swimming pool one day for an afternoon of aquatic games. Even pack a lunch to serve up after the swim, picnic-style, at a nearby park. Everyone develops an appetite after a day of sun and fun. This is an ideal way for a family to spend a day together.

The next day, spend the afternoon watching a movie at your local theatre. If you get there early, you can get the matinee price. It’s another great way to spend the day, and see a great movie in the process.

Saving Money on Pampering

After this much activity, you deserve to pamper yourself a little. If you like to read, don’t go out and spend money on a new bestseller, join your local library and read all of the books you want for free. Also, stock up on some inexpensive candles and some aromatherapy bath beads (you can get them at the dollar store) and treat yourself to a relaxing soak in the tub. If you close your eyes, you can pretend you’re at a fancy spa. You’ll feel any stress that you may have acquired from the long day begin to melt away.

You can find ways to cut back on spending and not on activities, it just takes a little bit of strategy and imagination. So plan to cut back, have fun, and make some great memories to treasure for years to come.

Financial planning to survive a recession begins well before the possibility of a recession. Not understanding that a recession can occur is like assuming that a sunny day will not possibly be followed by a rainy day. Not preparing for possible challenging financial times is akin to not wanting to grow up. There are several actions and plans that must be carried out to ensure survival during tough financial times:

1. Maintain your career: Have you kept yourself up to date professionally? Is your resume polished? You can’t wait for the writing to be on the wall to prepare for potential lay-offs. Is there education you need that you have been putting off? To effectively maintain your career and hope to grow professionally, it is imperative that one networks regularly. You never know when someone you know is able to lead you to a different opportunity at just the right time. Considering and developing side interests seriously is smart. Explore your hobbies to see what could result in possible additional funds (and enjoyment). There are also significant tax savings to take into account. And having several eggs in the basket of your career never hurts.

2. Maintain your savings: Think you want the latest new car? Think again! Now is the time to be conservative and be very picky about your purchases. If you have to make a big purchase such as an auto, can you think outside the box and think of alternatives that will have less financial impact? How about using public transportation, moving closer to work or buying a used vehicle? Do you really need that latte on your way to work? How about cooking more and taking your food to work rather than going out? Little expenditures can add up. If you received that much in interest in your bank account, wouldn’t that make you happier than caffeine could?

3. Cover yourself! Make sure you are covered in the case of any emergency. Make certain you have adequate insurance for any potential risks to your finances auto, homeowners, medical, etc. A medical emergency not well covered could result in bankruptcy. Have you created a will to take care of any dependents? Do not leave them vulnerable. Insure that any children are well aware of the need to manage finances at an early age. They must also understand about the value of education and its usual impact on a stable, financially secure future. Do not leave this to chance. Have a continuous dialogue with them to cover yourself. You never know when you might need their financial assistance during a future recession!

Having these areas taken care of should allow one to endure the rainy days of life so the sunny days can be even more pleasant.