Debt Free Destiny

Gas prices are finally dropping after hitting an all time high in July. While we are getting a break at the pumps for now, the past several months of seeing a poor US economy and weakened dollar have taken a toll on many people.

Surviving a recession is difficult but not impossible. The following tips will take some of the sting out of living through a recession and perhaps keep you from making choices that could be financially devastating.

Practice a More Frugal Lifestyle

Now is the time to track your expenses carefully and determine where you can “trim the fat” from you daily purchases. Rough economic times require attention to where you are spending your money and for most of us there are many places we can cut costs.

Just last week, while cleaning up after dinner, I began packing leftovers for my lunch the following day. Sounds easy, right? It is and in one week I save around $30 dollars just by not buying my lunch. That is a savings of $1,500 a year. Each of us have spending habits than once recognized can be modified or eliminated to save money.

Avoid Debt Triggers

It is no great mystery why debt grows in a recession. The cost of living goes through the roof and for the majority of Americans, our paychecks remain the same. Worse, some people are losing their jobs and have no paycheck to work with at all. It is important to try to avoid anything that triggers accumulating more debt. That means anything that makes you jump for your credit card.

• Avoid shopping online. It may appear to be a better deal, however most people tend to fill a “virtual” shopping card with items they normally wouldn‘t purchase if they were physically shopping.
• Don’t be tempted by a salesclerk who offers you additional savings by opening a store account. You may walk out of the store with discounted items, but you’ve just opened yourself up to another debt and with it another payment.

Shop Locally

The next time you drive by a yard sale sign, take a few moments and stop. It is likely that you have items in your home that you have rarely and in some cases never used. Well so do other people and many times you may be able to pick up clothing, or household items that are “gently used” at yard sales. You are literally paying a fraction of the cost of buying the same item new.

If you have young children, yard sales are an exceptional way to save money on clothing and toys. Let’s face it, our kids grow out of clothes before they are greatly worn and toys…many times are forgotten about shortly after the packaging has been discarded.

Another roadside stop to consider is a farmer’s market. Not only are you helping the local economy, you likely getting a fresher, cheaper product than the ones lining the Super Store shelves.

Just as generations before us, we can all learn lessons when the economy is in trouble. Perhaps just living a simpler life, depending less on modern conveniences, and the instant gratification we have become accustomed to, is all that is needed to make it through the recession. Practice a little common sense and a lot of discipline and you might find yourself making lifestyle changes that last beyond the current economic crisis.