As nations flounder with debt problems, budget deficits and increased austerity measures, the likelihood of a double dip recession looms. Inflationary pressures are inevitable making the value of cash decline. Although low interest rates are not the best advertisement for saving it becomes a necessary task to ensure personal cash flow can keep pace with an increased cost of living should an emergency arrive, or the recession result in job loss. It has never been a more vital time to ensure an emergency fund is established and savings squirreled away.
In order to save whilst coping with recession, unnecessary spending should be put on hold until the economy bounces back with confidence. No one wants to voluntarily make cutbacks in lifestyle, but there are many areas to consider cutting unnecessary costs in and diverting the wasted money into savings first.
The first step is to consider a financial over haul and identify ways in which actually spending your money costs you. Switching banks in order to utilize fee free banking and accrue interest payments on checking balances, is an excellent way to start. Many people pay monthly maintenance fees, ATM fees, fees for having checks and fees for holding a savings account. Comparison shopping between banks can turn up big savings, particularly if online accounts are considered.
Similarly unless credit cards are used solely for the advantage of an interest free loan and redeemable cash backs, it is time to consider their actual value. Anyone who routinely carries a balance wastes money on unnecessary interest payments.
By clearing down balances through low introductory offer balance transfer cards an immediate saving can be made on interest paid to the credit card provider. Resolve to never use credit cards for cash backs which impose immediate interest on the transaction, plus levy a fee for the convenience.
In order to position yourself well to take advantage of preferential interest rates, cash backs and statement credits, clear credit card balances down and curtail continued spending by cards. Only use credit cards to improve your credit score by making small charges which are cleared off in full each month.
Cut back on unnecessary insurance costs by seeking out a more competitive deal. Many people simply stay with the same provider, failing to realize how much premiums can differ. Putting different policies through one insurer can result in a saving, as can negotiating loyalty discounts or implementing safety measures in vehicles and homes.
Savings can be made by considering changing home utility providers, or switching to solar for home heating needs. This need not involve a massive outlay if one considers solar panel leasing which will continue to offer savings over time.
This type of saving is particularly attractive as it actually reduces the cost of bills which few enjoy paying. Individuals may find it harder to cut back on indulgent or impulse spending, but dependent upon the desire to save, cut backs should be made.
Obvious areas to slash costs are on entertainment, mall spending, dining out, junk food, memberships, gift giving, lottery tickets and other inconsequential’s. These things can be managed without for the sake of the bigger picture, which the security of savings represents.