Recession Tips: Needs versus Wants
Whenever you are gathering tips for how to survive a recession, one important thing you should always do is weigh needs against wants. The best tip you can follow is to always make your decisions based on what you and your family needs. The “wants” will come when things get better but needs are for survival. Let’s look at a few recession tips in relation to needs versus wants:
Do you need a traditional landline phone? With landline telephones, the expense comes every month no matter how little you use it. And these days, people are opting to use their cell phones more. One tip for cutting your landline phone expense in this recession is to drop the long distance service that is tacked on extra to your local telephone service. Most cellular phone plans have long distance included with no extra charge.
Do you need a cell phone plan instead of pre-paid? Just like landline accounts, many cell phone plans have fixed monthly fees no matter how little you might use them. This is where a recession tip like buying a pre-paid cellular plan can come in handy. Check the details of the plan however. Make sure you understand the expiration terms regarding unused minutes each month. It’s best to have a plan where the unused minutes do not expire.
Your teenager does not need $100 tennis shoes. And this price estimate might even be conservative. Unless your teenager is a track athlete, there is no reason to spend so much on tennis shoes. However your teenager will try to make you believe that he or she needs them because all the other kids have them and they have to preserve their image. Take a tip and learn to say “no” to your teenagers during this recession. Your budget will thank you.
Your children do not need to be in every activity on the planet. This includes soccer, piano, Little League, ballet, Pee Wee Football, and the list goes on. Take a tip and discover new ways to spend time with your kids during this recession. You can fill their Saturdays with family activities instead of activities to give you a break from them or to fulfill your egos as you groom the next sports star.
You have to take care of your family’s needs first before you can take care of others. You can empty your pockets taking care of every charity that comes across while letting your family starve. Understand that most charities have high administrative fees so very little of your money actually ends up helping the cause. Take a tip and use your money on your family during the recession. You can’t help a charity if you can’t help yourself first.
Evaluate if you need a second car. A second car is expensive—especially if one spouse has lost a job due to the recession. You can get by with only one car. Take a tip and learn how to use alternate means of transportation such as a bus, train, or bicycle.
If you have chosen the route of self-employment, you need money to run a business. Many that lose there jobs in a recession will opt for self-employment. Remember that you are going to need money to venture out on your own. Take a tip and see where you can get this startup money from. You might be able to take out a loan on your whole life insurance policy or cash in some stock.