We live in an idealist country that has spoiled us rotten. Our money managing skills are equivalent to “swiping the card”. All these years we’ve been swiping around and calling it money managing. Next thing we know, we’re filing for bankruptcy. With the recession in our hands, it’s like being trapped in an island where credit cards don’t work. We are forced to go back to basics:
- Basic needs – food, gas, groceries, mortgage/rent, and utility bills. Begin cooking your own meals and planning them weekly. A home-cooked meal can last about 3 days for the price of a single meal from a store.
- Miscellaneous – budget wisely on this one. List extra expenses that might arise such as supplies or repairs.
- Keep track – if you can pay more than the interest on your credit cards, do so. Keep track of what you owe and strive to pay it back. The more interest you pay, the more money the bank earns from you, and the deeper you are in debt.
- Coupons/Discounts – keep an eye on sales, discounts, and coupons. These can save you.
- Happy time – Recession is depressing. Plan a monthly happy time for the family (use a coupon!). It doesn’t matter if it’s simple as long as you’re together.
- Extra Money – hide it from yourself! This is your rainy day fund. Make sure that whenever you take money from it, you’ll pay yourself back.
There are no government programs that can help us emerge from the recession. Soon the government may lose its money and these very programs will get cut first. We are in recession because we need to change our money managing skills. We must all learn from this recession and only then can the economy arise from recession.