Now that you are done with school and in the work force, it is time to shift into cruise control?
Unfortunately this statement could have been true during an economic boom, but the recent economic bust proves the statement wrong. The volatile economic state right now will have many new faces in the work force scratching their heads because life is not as good as they expected it to be post school. Your quality of life should not deteriorate nor should your mental state, but you will find yourself working hard only to have to cut back on some purchases you may have been looking forward to. This article is specifically aimed at anyone that is in the work force and experiencing an economic bust (dare I say recession?) for the first time in their life. 6 key ways to survive an economic downturn are listed below.
1. Decrease your subscription costs. Most people need to own a cell phone for a variety of reasons, so the most logical method to save money is to get the most basic plan, without the very amusing video messaging of course. Do not join any fancy gyms that will cost you over $50 a month. Do not subscribe to any celebrity gossip magazines or any magazines that will not directly improve your life. Unfortunately, hearing about Britney Spears’ new boyfriend will not improve your life. Pretty much do not join anything that charges you a monthly fee unless you absolutely have to.
2. Watch your food costs. It is important to eat healthy, but it is not important to eat at a fancy restaurant a couple of times a week. The best solution is to go grocery shopping at the beginning of every week with a clear list of what you will need to eat for the whole week.
3. Ditch the plastic. There is nothing wrong with holding one solid credit card that offers rebates, low rates, and low yearly fees. The killer tends to be the credit cards with high interest fees and with annual fees. On top of that, the more credit you have available the greater are the chances you will spend money carelessly.
4. Avoid purchasing a new car. If you live in a city with an exceptional public transit system and you work on an easily accessibly bus route then by all means avoid purchasing any vehicle. If you must purchase a vehicle then search around through the various automobile trading websites until you find the right car at the right price.
5. Live at home. Once again the most valuable advice I could give anyone, milk living at home as long as possible. If you truly insist on moving out then make sure you have enough money to survive in an emergency, in the event that you should be out of employment. Ensure you make a wise decision in terms of whether you will rent or buy and that you have the proper amount of money saved for the option you choose.
6. Stay in school. This may seem like a total contradiction but it makes absolute sense. If you cannot handle the pressures of having to work for your money and worrying about budgeting your income, then simply stay in school until you are ready. Not only will you hopefully mature but you will also boost up your resume.
{ 3 comments… read them below or add one }
I really wish I could go back to 2006 when I first graduated and started working and do everything over again. For that period of 6 months when I did not have to make loan payments yet, i did not save up a dime. I dont know where I threw my money but it would have been a great time to save when I could.
Now 2 years later I am looking for secondary streams of income b/c the 9-5 just does not provide enough. Iv cut back in every aspect of my life and guess what? It still is not enough. Credit cards set me back, partying, alcohol, and an ignorance to save. Stay in school forever.
Good Advice! It’s funny how life works: you look back at all of the dumb stuff you did, and then you try to help someone else not do those same dumb things. I can concur with everything here, especially with the new car thing and the living at home thing. The thing about getting older, is that your decisions effect for a longer period of time. Tread carefully when deciding how to finance anything. If you buy a brand new car, you may have that payment long after your car has lost its pizazz. Leases last a year. Marriages last a lifetime. The decisions you make in your twenties will have a ripple effect on the rest of your life, so think things over and choose carefully.
@doctor s Believe me nobody enjoys a nice buzz off a few drinks like I do. The key for me is delayed gratification (ironically a concept with its own article on this blog) meaning that I save up and wait to go out partying. When the day comes believe me it is worth the wait. I usually try to save up and find a bargain down south. I am actually headed to 5 star resort in Jamaica in 2 weeks once I complete my exams. I have not been out since Halloween, I have just been working and studying waiting for my chance to get away. You can’t go back in time but you could certainly learn from your mistakes. It is very good to hear that you are working on improving your finances! I enjoyed reading the articles on your blog and I hope that you come back here.
@caleb I enjoy your blog and I hope that you do not give up, keep on going at it. I agree that a serious amount of thought must be put into every purchase you make, whether you like it or not. We all would love to live a life where money is not a issue but let’s be honest our income is limited and our wants are unlimited. The key is to strike a perfect balance.