In these tough economic times, unless the upcoming global recession is short and shallow, people all over the world will be forced to adopt a new way of living. This is especially so for Americans whose access to free-flowing credit will dry up as lenders continue to turn off the taps.
As I had commented in a previous post, there may be a silver lining to this dark cloud, as people wean themselves off consumerism and credit, and start to live more authentic lives and within their means. It will be a long road, as mindless, wanton spending has become a bit of an addiction for millions of consumers.
I have just started to re-read a book that I had last read over 10 years ago, but one that is especially relevant these days. Called "Your Money or Your Life" by Joe Dominguez and Vicki Robin, it provides an interesting view on our relationship with money. Its concepts are not for everyone, but is worth a read.
The book does give tips to save money which may be useful to some readers. These include:
1) Stop shopping - or at least, only shop for things that are essential
2) Live within your means - Cut out all unnecessary expenses and luxuries such as eating out and travel holidays
3) Take care of what you have - This will reduce or eliminate the need to keep replacing things, often unnecessarily. This will also reduce the amount of items that are thrown away or wind up in a landfill.
4) Wear it out - Most of us replace things well before the end of their useful life because we see something cheap or on sale, or spend because we are bored or think we should keep up with technology.
5) Do-it yourself - Learn how to fix things yourself rather than spending money having someone do it for you.
6) Anticipate your needs - Impulse spending occurs when you do not know exactly what you are looking for. This is especially prevalent (and exploited by grocery retailers) during your weekly grocery shopping trips. Have a shopping list before you head out the door and stick to it.
7) Research before you buy - Do your homework before buying. Reading reviews will help you make an informed decision to get the best deal, whether based on price, quality, value or durability.
8) Get it for less - I never pay retail for anything, as I know that there is always somewhere to get an item cheaper, be it on eBay, Craigslist, online discounters, liquidators, using coupons, waiting for sales.
9) Buy it used - There's very few things that I wouldn't buy used, but a careful shopper can get great deals on gently or hardly-used items that people are trying to get rid of because of a multitude of possible reasons, including gifts that are unwanted, a need for quick cash, dissolution of a marriage, a move, remodelling of a home, upgrade in technology etc.
While these are obvious tips to me, I know some people who never think of these options.
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