We are still fighting our way out of this
deep recession and it may be a while before we
start seeing improvement in
the economy.
What can you do to help protect yourself and your family from the harsh realities of the current recession? First, you have to know where you are financially and then understand your limitations. You have to learn to live within your means and to keep your spending habits in check. It may be painful, but it is necessary.
You may have to let go of some of the luxuries that you are accustomed to and start living a more frugal lifestyle. Then get rid of the extravagances that you really don't need and can do without. You have to understand that needs and wants are two totally different things. Buy only the things you need to survive, then save as much as you can just in case some things comes up that need prompt attention.
For instance, you may want a new car, but the one you have is still running and looking good, and more importantly, it's paid off. If you can't afford a new one, live with the one you have for now and buy another one when you can afford it.
If you are still using and abusing your credit cards, stop charging on them now. Take them out of your wallet or purse and lock them up. Most credit cards charge high interest rates and are hard to pay off. To many people, credit cards are like drugs and they get addicted to them. They can't live without their credit cards and over time, the addiction gets out of control. They find themselves in trouble, unable to stop charging. They get deeper and deeper in debt and eventually ruin their credit, driving down their FICO score.
Look for ways to save money. Right now, there is a push to educate people about the benefits of growing their own vegetables. It may sound old school, but many people are tilling the soil in their back yards and planting vegetables and fruits. Back yard gardens are becoming en vogue again and they can actually save you money while helping you eat fresh and healthy foods.
Another big moneysaving idea is bartering clubs. They are popping up all over the country and people are joining them in droves. If you have a talent or a skill, have something of value that you don't need or want, you may be in luck. When you join bartering clubs, you may be able to make trades of something you have for free services or for items of value, instead of paying for them.
Simple things like saving your aluminum cans, plastic bottles, newspapers, copper and other metals, and glass that can be sold at recycling centers can put money in your pockets and help protect the environment as well.
There are many, many ways to help you survive the current recession but you have to take the initiative. You have to do your homework and keep an eye on everything around you, especially your spending habits.
MoneyMatters101.com has amassed a list of money saving tips and techniques that may help you during these trying times. Such tips include savings on clothes and food, buying in bulk, do-it-yourself home repairs, and how to buy energy saving appliances.
For more ways to save money, click on moneysaving tips and read about the many ways you can help yourself through the current credit crunch.