We are definitely in a recession in the U.S. However, there are still people making money in all kinds of ways. Otherwise, there would be more people on the government dole than are actually employed. So let's just think about what we must do, compared to what our parents and grandparents did, to not only survive the recession but actually come out at least less scarred by it than perhaps some of our neighbors.
Profit or Loss?
When I read that a big automaker has lost money the last quarter, I already understand it's not a loss in the sense that they paid out more than they took in. This is a term used by big corporations to mean that they made less than expected, but they really did make a nice profit nonetheless. It's hard to feel sorry for them, you know?
For the everyday person, losing money means just that - their expenses outweighed their income to the extent that they are operating in the red at the end of the month. It doesn't mean they have less spendable income leftover - it means they owe more debt. Understanding this, we "everyday persons" have to learn to cut expenses drastically in order to still have some money leftover at the end of the month.
Cutting Expenses
For me, cutting expenses has meant learning to live a little differently without being so frugal that all the joy of life is removed.
- I've kept lights and entire circuits turned off when not in use.
- I use CFL bulbs in every fixture.
- I reduce water usage by making sure there are no drips or leaks and by only using the minimum amount necessary for any task.
- I limit trips in my vehicle to going to work, and I use those days as opportunities to run errands after work.
- I use leftovers to create new meals, reducing food waste.
- I recycle anything I can that's brought into the house so that I don't have to replace store-bought items so often. (Think, using plastic grocery bags instead of buying plastic trash bags.)
These are easy things to do that will really help the budget in the long run. By first reducing expenses we free up some of our money to be used in other ways, such as investing in a home business project or investing in our own retirement accounts. I've stopped just short of using video surveillance equipment to watch what is spent out of my wallet! Every dime that we can move from one purpose to a more profitable purpose has added value.
