During a recession you tend to become increasingly mindful of your expenses because you don’t know what is around the corner. If there is a possibility you could lose your job or that inflation could rise to such a level that it becomes difficult to meet your financial commitments then you may have to alter your spending habits. Ultimately, this means there will be less money to spend on luxury items. While there are obviously some things you are unable to do without, such as food and shelter, others are simply optional extras.
It helps to know how much money you have available to spend, so that you can prioritise what to spend your money on. If you have a habit of going online and purchasing lots of CDs, DVDs and books without really considering how much they all cost, it will be difficult to stay in control of your spending. Even if you’re trying to cut back it should still be possible to treat yourself now and again. However, instead of purchasing a DVD you may decide to rent one instead or to get a book from your local library.
Perhaps it is your cable or digital subscription that is costing you too much, but if you’re not prepared to give up the channels you watch it is worth shopping around to find the best deal. You may find that some companies offer a discount because they’re so desperate for your custom, while your current provider could be so keen to hold on to your custom that you find your bills are suddenly cut. You may discover a range of deals in which you buy different services from the same company for less money, so that your Internet connection, television service and phone line are all tied together in one package.
Even though living during a recession can be difficult when you don’t have money to throw away, it does make you more conscious of what you’re spending money on. You don’t necessarily have to give up luxury items altogether, but you may be forced to decide on some luxury items over others.
Instead of going on holiday abroad you may decide to stay at home and explore the countryside or visit local museums, instead. Plus, you can still enjoy shopping for clothes, but you may simply change where you shop for clothes. Rather than heading for the most expensive chains, for instance, you may decide to look in charity shops.
It is obviously up to you how to spend your money and if you decide that there are some luxury items you simply cannot do without, then you’re going to have to find a way to balance your budget. This could mean you have to give up some luxury items altogether or it might just be a matter of substituting some expensive luxury items for cheaper ones.