Here are four key ideas as to how your family can weather challenging economic times.
Diversify your Income and Skills
Inevitably during a recession, talk turns to redundancies and job losses. Few jobs are secure in the current uncertain environment, so why not think about skills that you have, or that you could develop, which are sure to be useful regardless of the economic climate?
Could you train for a new activity alongside your exisitng job? Could you develop a sideline activity that might soften the blow of a job loss? Perhaps you could get involved in innovative projects in which members barter skills and goods such as local exchange trading schemes (LETS)?
Spend Less and Enjoy Life More
What really matters to you and your family? And is your current income really necessary in order for you all to enjoy life? The looming recession is a great opportunity to really think about your priorities in life. Perhaps you would prefer to spend more time together as a family? Or spending more time enjoying the natural world could be as fun as movies and restaurant meals?
Read Kath Kelly’s book How I Lived a Year on Just a Pound a Day for a delightful account of one lady’s positive experience of living on a drastically reduced budget. You may not wish to go quite so far yourself, but there are many simple steps that you and your family can take to save money while still living well:
- Save Money on Food by preparing more meals from scratch and shopping wisely.
- It is important to insulate your home to save on fuel, but there are still further things you can do to further save money on energy bills
Budget Carefully
Do you know exactly how much you earn and how much you spend? And what you spend it on? This information is easy to collect, especially if you use some good money management software, and it is an incredibly powerful tool to help you while learning how to avoid wasting your money. You can then understand areas which offer scope for reducing your spending, while still leaving enough money for essentials.
Save, and Put Your Money Somewhere Secure
Do try to build up at least an emergency fund that you can call on if necessary. Before doing this, reduce any debt that you have to a minimum. This should be easier as you begin to reduce your outgoings, and find sideline sources of income, with the above tips. You may like to consider whether index linked savings schemes that track inflation could meet your savings needs.
And finally, read these Quotations on Money from the Wise and the Witty to help gain perspective on money worries.
