If preparing for a potential economic downturn is on your list of New Year resolutions, here are some simple tips to keep you on track.
As the threat of a potential recession looms for the year ahead, are you concerned about your and your family’s finances? If preparing for an economic downturn is on your list of resolutions, A Lotus In the Mud has six simple tips to keep you on track.
Revise Your Entertainment Budget
Restaurants and movie theatres are a nice treat, but rising prices have turned them into luxuries that can set working families back a large sum of cash. So instead of dining out, plan an evening at home and enjoy a delicious dinner with your favorite people. Pick up what you need at the grocery store, then make meal prep a fun event by getting everyone involved in the process.
Rent a movie or choose one from a streaming service and set up an unforgettable movie night in your living room with comfy cushions, blankets, and the requisite popcorn. You’ll be able to do more with less money and still get to spend quality time with friends and family.
Nix Unnecessary Purchases
In uncertain times, reducing unnecessary expenditures can significantly alleviate financial stress and anxiety. One effective strategy is to audit and cancel any subscriptions that you no longer use or need, which can add up to substantial savings.
Additionally, curbing impulse purchases by implementing a waiting period before buying non-essential items can help avoid regretful spending. For daily indulgences like fancy coffee brews, consider learning how to make your own at home. Not only does this offer a fun and rewarding experience, but it also cuts down on the cost of buying expensive coffee.
Purchase a Home Warranty
Investing in a home warranty can be a strategic move to mitigate financial stress and anxiety, especially during uncertain times. A home warranty can reduce expenses by acting as a safety net, covering the cost of repairing or replacing major home systems and appliances that break down due to normal wear and tear.
This not only helps in avoiding unexpected, hefty repair bills but also offers peace of mind. Knowing that a single, manageable fee can protect against numerous potential household issues makes budgeting easier and reduces the anxiety associated with sudden financial burdens.
Curbing impulse purchases by implementing a waiting period before buying non-essential items can help avoid regretful spending.
Downsize Your Home
Your big house may have suited you a few years ago when your kids were all living at home and you oversaw family gatherings, but you may now be craving a simpler, less cluttered lifestyle so you can enjoy more peace and freedom. Buying or renting a smaller home can have a big impact on your finances since you’ll likely spend less on living expenses, with lower utility bills, thanks to a smaller footprint.
This will leave you with extra cash in your pocket that you can put into an emergency fund. Knowing that you have this financial cushion to soften unexpected blows will help alleviate stress and anxiety.
Sell Your Unwanted Items
Even if you’re not planning on moving into smaller quarters, you can still make some cash by decluttering your home and turning your unwanted items into someone else’s treasure.
Look around your house and set aside items you wouldn’t mind parting with, and look on the internet to see if they have any monetary value. Once you know what they’re worth, you can list them on selling sites or take them to consignment stores in your area. Your space will feel bigger, with less stress-inducing clutter, and you may even end up with a nice chunk of change in your piggy bank.
Ditch Your Expensive Gym Membership
If you’re spending money each month on a place you barely ever have time to go to, cancel your membership and take that off your budget. There are plenty of ways you can get the cardiovascular and strength-training exercise you need without spending a dime.
Think about gardening for a full-body workout or taking advantage of your local park for jogging and other healthy activities. And if the weather is keeping you indoors, invest in a mini home gym with dumbbells or free weights, a stability ball, a yoga mat, and resistance bands and loops.
Make your budget recession-proof with a few adjustments to your monthly expenses. Take a look at downsizing to a rental and starting your own business to bring in more money. By being prepared for what’s to come, you’ll be able to weather economic challenges stress- and anxiety-free.
Lead image courtesy: Pixabay
