How to spend during Recession?
July 10, 2009 12:48am CST
We are witnessing Recession and Economic slowdown everywhere across the globe and no one is yet to arrive at a proper conclusion that when will this recession be over. We have witnessed that the spendings have come down at a drastic phase and people think twice before buying any products. At this time of Recession how do you spend? Are you upto any cost cutting measures? What are the ideal ways you suggest to overcome this recession and Economic slow down? Please post your valuable response.
• Hong Kong
17 Jul 09
First, I must say that thinking twice before buying any products is the right attitude of spending no matter it is recession or the economy is rocket high. Now, back to how to spend during recession. I would say it is the best chance to spend if you have a relatively secure income source (such as your job is kind of secure and resistant to recession). The reason is simple, things are getting cheaper in now when most shops are having sales and big discount to attract customers. Thus, a dollar spent now is going to give you more satisfaction than when the time is good.
18 Jul 09
Well said mate. Taht is a pretty good analysis from your side and I appreciate that one. If our Jobs are recession proof, then it is a right time to spend as we get everything at a discount rate. But the problem is not many jobs are recession proof and people are unable to spend even a penny owing to no salary hikes or better jo profiles. In India, only Public sector units are paying a Handsome amount as of now and not Private sectors are doing that. Infact, private sectors have resorted to Cost cutting measures nowadays.:-(
21 Jul 09
Yes, that is what happening in India. Now a days I getting so depressed without having a salary hike for two years. My expenses are going high and I can't control it. I currently stay in a hostel and I give one-thrid of my salary for staying in hostel. I have to spend all the other expsenses using the rest of my salary and save some for future. I don't know how long I can go with the same salary. I have updated my resume in many job sites. It seems there are no openings.
• Hong Kong
21 Jul 09
Fewer job openings around is kind of normal as businesses are cutting investments and save cash so that they won't run into troubles when the banks tighten the loans. At time like this, I think it is important to at least stay in a job and keep working because having better preparations and gaining more experiences now will give us more advantages when the economy turns good again.
10 Jul 09
the more people who change the spending habits the longer we will be in recession, if people stop spending then companies stop making profits and pay people off, which then means they stop spending and companies lay more people off. Everybody needs to be sensible and to cut their spending to a certain degree but not massively as if people stop spending and putting money into the economy then the situation will continue to get worse.
10 Jul 09
Yes that is true and you have hammered the point well. We must cut our spending only to a certain extent and if we stop spending money, then definitely we would be at the receiving end as the situation will continue to get worse. It can be like while purchasing clothes, instead of opting a costly and branded one, we could opt for a less popular brand and in that way we can cut our costs. Simply not buying what we wish is not going to help us anyday in anyway.
17 Jul 09
I am one of the many persons who is affected due to recession. I didn't get a salary hike or bonus for the past 2 years. My company is saying it is recession time and there is no money, but the work is going on well as usual. I tried to shift my job, but the other companies are also not offering good hike, they are also blaming recession and making it as a reason to give low salary regardless of the factor that they are affected by recession or not. I have planned to cut down my spendings due to recession, but later I realized that it is not practical because I got used to spending a lot. But, it is high time and I seriously have to put an effort to stop spending more. Thanks for reminding me.
15 Oct 09
I would really find other better and cheaper alternatives before parting with my money. cost cutting measures are simply using common sense, so it's not really any harder. find cheaper or better alternatives and be sure that it's a need rather than a want. the golden rules are there, just follow them. :)
15 Oct 09
You are absolutely correct. What you say just reminds me of Warren buffet saying "Never spend money on unwanted things. If you do that, then you may need to even forgo the things you want the most". Yes, a meaningful decision before spending would definitely help us to protect ourselves from recession and the impacts of The economic slowdown. Thanks for responding to my discussion and have a great day. Happy Mylotting. Cheers:-)
• United States
16 Jul 10
I know the economy has taken a hit on us. My husband's boss seems to find ways to short change his paycheck and will only pay him for working up to three hours a day (if things do not get done within three hours time he must stay later and finish, but his boss will not pay). I try to be as frugal as possible. I only have the barest necessities and that is not even helping. I have already gotten rid of our home phone and cell phone (we had no choice), we cannot sell our house (although we may end up having to), and now we have an insurance company that keeps on telling us that our premiums are the same (I thought that houses and cars depreciate in value). Unfortunately, we cannot get rid of the car because it is our only mode of transportation (we live in the country so we have no busses). We are not even living paycheck to paycheck we are barely living at all. Everytime we turn around we are giving money to these companies instead of being able to save money. I was hoping to start on my craft projects, but money is so tight.
• United States
15 Jul 10
I am frugal with money because the economy has hit my husband and I very hard. YOu know how some people are able to live from paycheck to paycheck, we cannot even do that. My husband's paychecks seem to be getting smaller and smaller (most of the time it is because my husband's boss cheats him out of pay) and we are struggling so much. We have the barest of necessities and still the money is not there. We have to have power, food, the Internet (me to make money and attend grad school and my husband attends college), the car, a mortgage, and of course the city bill. The money we have is not enough and I do the best I can to make it stretch. My husband is diabetic so I have to be careful with what I buy. I have managed to cut out grocery bill down to 25.00 a week (which believe me it is not easy). I am also trying to make some money on here so I can start on my Christmas gifts. I am also learning a couple of crafts so I can start selling online. I already paint ornaments and will start doing that this weekend. I am also learning how to make jewelry.
17 Feb 10
we eat rather cheaply all through the year. during the winter, we have a lot of soups with homemade bread and during the summer, we have a lot of salads and tortilla wraps (with chicken). we visit the library once a week to get movies and books (i cannot remember the last time i bought a book!) we also shop at thrift stores for a lot of things. we bought our daughter a pair of ice skates for $5-! we do a lot of out door things like skating and tobaganning in the winter (we are in Canada) and swimming at the beach in the summer.