Everyone is feeling the pinch. From people losing their homes and jobs to truckers parking their vehicles because they can’t afford diesel fuel prices, no one has been unscathed by the current economic crisis. Not to mention, the domino effect: fewer truckers delivering produce = higher prices for salad fixings. Families having to downsize = house pets with nowhere to call home.
These are definitely hard times that we’ll be reflecting on later to our children and grandchildren. However, there is no need to give up hope and allow the economy to sweep us away. Now, more than ever, is a time to start planning for the future (if you haven’t started yet) and making better decisions in life.
As a grad student, I don’t have to worry about losing my job…I don’t have one. I don’t have to worry about losing my house…I don’t have one of those either. I don’t have to worry about where my kids are going to sleep or what they’re going to eat for dinner tonight…thank God. My only real responsibility right now is myself. With my somewhat fancy free lifestyle, I’m not in as much of a bind some of my friends and family members are. Furthermore, because I’ve always made it a point to live not only within, but below my means, no financial surprises will send me to the poor house right away. Still, I am not careless. After sitting down with myself and considering the current climate, I’ve compiled a list of wise choices that can help safeguard me against poverty during a recession.
- Buy local. Imported goods bring higher prices. Shopping for my groceries at the local farmers’ market will save a lot of money and support the farmers. I may have to change my menu a bit (no veggie burgers for a while), but I’ll have plenty spinach and strawberries to go around.
- Maintain your living expenses. I rent. During times of economic woe, the renting market will offset the housing market. Renters may try to increase rent up to 30% a year because they can, but if you talk to your building manager or owner, they’ll usually be willing to work with you. If you’ve been a good tenant (i.e., paid your rent on time and didn’t wreak havoc in the apartment), a manager won’t want to lose you, and so may not raise your rent. Furthermore, from a managerial standpoint, it can take up to 6 months to rent a vacant apartment after a tenant has moved. Gaining an extra $200 a year by increasing the rent would not be worth losing up to $4,000 by having a vacant apartment.
- Walk/bike more. I have a friend who drives everywhere. Now that gas is up to $3.47 in the city, he’s been finding ways to run his errands on foot. Overall, this makes him more efficient. Instead of running all over town every day to pick up a few items, he plans to go out and get everything in 1 or two days. He’s also discovered that Shop n’ Save is a lot closer to his house than he previously thought. Not to mention, walking outside eliminates the need to purchase a gym membership. See, money savings all over the place!
- Cook at home. Eating out = $$$. Eating in = ☺, and it’s usually healthier.
- Relax. The economy, the market, and life in general will always ebb and flow. It’s important to stay in control of your circumstances instead of allowing your circumstances to control you. Yet, keep in mind that this, like all other things, will come to an end. In the meantime, try to enjoy it.
