Recession-proof Your Personal Finances

In this bad economy, it can be easy to lose sight of a few simple ways to cut back that can have a huge impact. With a few simple changes, you can cut back on your spending and even save money. All it takes is some knowledge and a little discipline and you can recession-proof your personal finances.



1. Cut back on food.



Numerous studies have shown the benefit of reducing your daily caloric intake. If you cut your portion size in half, and learn to manage the sensation of hunger, you'll be saving yourself hundreds (maybe thousands) of dollars over the course of a year, as well as extending the length of your life. If it's too tough to worry every day about cutting back, consider fasting for a day or two each week. By fasting, you can make cutting back a simple and recurrent process that is easy to keep up.



2. Find a roommate.



If you live alone, or if you have a spare room in your house, consider bringing in a roommate. Rent or mortgage payments can be the biggest strain on any amount of income. If you find a roommate to share your domestic space with, you can cut that amount in half. In addition, you can save money on your utilities. Make sure to find someone who is dependable enough to pay each month's rent on time and in full. Try to find a roommate whose lifestyle and level of cleanliness also fits in with your own.



3. Stop drinking and smoking.



If you spend money on alcohol, cigarettes or other substances, you're likely putting a good penny down on those things each month. Additionally, they may not be the healthiest things to put into your body regularly. If you like going out to bars, consider buying only one drink and sipping on it. You can have the social experience of going out, without the hefty financial cost of drinking at a bar. If you want to quit smoking and are having trouble making ends meet financially, the amount you'll save on cigarettes may give you the right incentive to quit.



4. Unplug your appliances at night.



Plugging in your appliances and electronic devices for extended periods, or leaving them on overnight, can be a huge burden on your electricity bill. Remember to turn them off or unplug them before you fall asleep and you'll be saving on eight hours of electricity every night.



5. Quit the gym.



If you have a costly monthly gym membership, it can be a great place to cut costs. Try going for walks or jogs outside or invest in a few free weights at home. A number of fitness videos are available for free online. All you need is the will power to work out at home or outside and you can save hundreds of dollars each month.



6. Cancel your cell phone.



If you work from home, or don't have a job that requires you to use a cell phone, consider cancelling your plan. You can use the wifi of your iPhone or Android to continue using it despite not having a plan and then sign up for free phone services like Google Voice or Skype instead. Apps like Talkatone make it easy to continue making calls without a plan.



7. Sell your old stuff.



You may have hundreds of items around your home that can be sold to a used goods or pawn shop for cash. It's time to slim down and count the things that you actually use on a daily basis. There may be a few things you can't part with, but the majority of things you own have likely passed their use-value. Sell it to make some cash and save the earnings in an interest-accumulating account.



The current economic recession has been tough on everyone, but with a few smart tips you can come out on top of it. Take a bad situation and turn it into an opportunity to learn how to maximize your income and reduce sources of needless expense.