It’s been a tough year financially for many families due to a sluggish economy. In times like these, many people look for ways to cut costs and stash more cash to tide them over until the recession eases.
To get you started, here are three tips for boosting finances in a tough economy.
1. Make Positive Changes Last. Many surveys show that Americans are shifting their priorities in profound ways. For example, 63% say they are less materialistic, and 70% say they consider spending time with family more important than ever. Sixty three percent vow to no longer carry a credit card balance, and many are saving more – the personal savings rate has soared to 5.7%, the highest since 1995.1 Once you adopt these changes, it’s a good idea to continue them even when the economy gets better.
2. Pay With Cash or Checks. People who pay with credit or debit cards tend to: buy more things, pay a higher price for them (sometimes twice as much) and become less aware of how much they’ve spent than those who pay with cash or checks.2 You can avoid these pitfalls by putting plastic away for good. One way to get into the habit of using cash for everyday purchases is to set up a cash envelope system with one envelope for groceries, one for entertainment, etc.
3. Earn Extra Money. Start a part-time business or work a few hours a week at a second job to beef up a college savings or retirement savings account. Business opportunities, such as Primerica’s part- or full-time opportunity, are great ways to do something enjoyable while earning extra money each month.3 More information is available here: www.PrimericaBusinessOpportunity.com.
1 CNNMoney.com, June 1, 2009
2 Money, July 2008
3 In Canada, the part time option is not available in all jurisdictions and, where it is available, is subject to certain restrictions.