We are in A Recession. New Zealand has now had 5 quarters of negative growth. Export Manufacturing is down 25% on last year alone. At the end of the day there is less cash floating around to be shared with everyone. Here are a few things that may help when it comes to surviving the recession if your finding it hard.
- Stick to a monthly budget
- Refrain from buying expensive items on credit
- Set up a fund for emergencies (at least two months income)
- Try to add the maximum amount allowed to your pension/retirement fund
- Stay healthy with a proper diet and exercise program (This is a preventative measure that will reduce the cost of prescription drugs and other health-related costs)
- Pay down debts
- Purchase with cash
- Buy groceries in bulk utilizing coupons whenever you can
- If you have teenage children who are receiving an allowance, determine if they can apply for a part-time job after school – but employment is becoming harder to find.
- Increase your deductibles on car and homeowner’s insurance
- Keep your automobile well-maintained
- Winterize your home and use energy-efficient appliances and light bulbs
- Walk whenever possible instead of driving to a local store
Anything you can do to reduce the amount of expenditures can only help you through this economic downturn. In the meantime, stay calm, focus on your budget, and save as much as you can.