Spend wisely and save money in difficult economic times

Governments around the world are currently busy rescuing banks with eye-watering amounts of money, but who is there to help the hard-working family? Until similar plans are created to bail out the family, it looks as though we must take control of our finances ourselves. Fortunately, there are many creative and practical means of doing just that, including earning extra cash, possibly by working from home part-time, or by reducing outgoings through changing your spending habits.

You don’t have to buy it!

Much of the money we spend has little or no impact of our enjoyment of an activity. Did you really notice those extra drinks you ordered with your meal? Asking for a jug of water can save around $10 per family, and it’s better for your health too.

As parents, we are particularly vulnerable to pressure to spend our money. New parents can be overwhelmed by the sheer number of baby items available in shops, without realizing that many of these things are actually unnecessary or even unworkable. Always seek the advice of family and friends who already have children to see what you actually need and what will end up unused in the corner. Even better, borrow items from friends who are now past that stage and are probably anxious to free up some space in their own house.

If you think you are under pressure to spend when you have a baby, wait until the baby grows! Children can place enormous pressure on their parents for more and more material things. However, most children will eventually learn to accept ‘no’ as an answer and actually appreciate being given your time more than anything you could buy them. Many children would prefer to play a simple game with you than be left alone with a stack of expensive toys. And, we have all watched children at Christmas play with the box rather than the expensive toy! Never feel guilty for not spending a fortune on your children – they certainly don’t.

Green ways to save

We all know that we are in desperate economic times. However, this does not mean that we should forget all about our responsibility to the planet while we worry about our bank balance. In fact, the very changes we need to make to improve our finances can often have a beneficial effect on the environment.

There are a number of easy changes you can make around the home which will have a positive effect on both your personal financial situation and the health of the planet. For example:

• Use compact fluorescent light bulbs. Not only do they last longer and save energy, they also burn brighter as well. A win-win-win situation!
• Set the air conditioning at 78 degrees in the summer and turn the heater down to 68 degrees in winter. These are both quite comfortable temperatures, and will yield significant savings (only one degree above or below these temperatures can cause your bill to rise by up to 4%).
• If the house feels warm, use a circulating fan rather than adjusting the thermostat.
• Keep the windows covered during the summer to prevent heat from the sun’s rays warming the house and putting an extra strain on the air conditioner.
• In the winter, open all curtains and other window coverings during the daytime to maximize the benefit of the natural light.
• Don’t use the washer or dryer unless you have a full load.
• Wash your clothes in cool water and dry them at a low temperature.
• Never leave major appliances on standby (or even plugged in) when not in use. Always switch off chargers when not being used.
• Reuse where possible, and recycle where not. Set the family the challenge of finding a new use for something that is empty or no longer works. For example: an empty baby wipe container baby makes a great pencil case, tissue dispenser or bag holder. The only limit is your imagination!
• Plan all car journeys ahead so that you can reduce travelling time and save gas. An even better idea is to cooperate with a friend or neighbor to divide errands between you, or arrange a car share to work. You will enjoy the company and save on gas and parking fees.
• Keep a running list of all the things you need as they run out, and restrict yourself to going shopping no more than once or twice a week. Each time you go to the shops, you inevitably buy one or two more items than you had intended. If you nip to the store every couple of days, these few additional items soon begin to represent a significant expense.
• Consider starting an online business to allow you to work from home and save money on gas, lunch, daycare, and clothes.
• Turn off the engine if you have to stop the car for more than a few seconds.

All of the money-saving ideas suggested here can be adopted with relatively little effort. By taking care with the small, everyday expenses, you will soon notice a little extra in the account at the end of each month. Adopting small day-to-day savings that you hardly notice can help to bring that new wardrobe, car or vacation a little closer.