Prepare for a Recession

by Mary Ann Romans | More from this Blogger

Financial analysts are predicting that there will be rising prices on consumer goods in 2008. Everything from home heating oil to milk will cost more than it has in the last number of years. Couple that with problems with the interest rate and a plummeting stock market, and you have everyone talking recession. If you practice a frugal lifestyle, you should be more prepared than most others. Still, what can you do right now to ease the burden?

Prevent a loss of employment

During a recession there may be some job loss. Try to prevent this in your family by being the first to arrive at your job and the last to leave. Stay-at-home partners can take on extra chores, household tasks and child care to support the working spouse.

Stock up now on pantry items, using coupons and combining sales. If times get lean or prices go way up, you can create meals for your family from your pantry. Buy meats when they are on sale and freeze them, Also consider joining a food co-op where a few hours of volunteer work will yield you inexpensive groceries. Use alternatives in your cooking. Plan a few more meatless meals, use powdered milk in baking and curb the expensive treats.

Consider new frugal practices that you might not normally try, such as hanging laundry, shopping in thrift stores or biking to work. Every little bit helps.

Hold off on major purchases. While that new television may be tempting, realize that a financial cushion is pretty important right now. You might need that money for day to day living expenses.

Plan out ways to make a few extra dollars. Teach at your child's preschool, sell items on ebay, babysit, run errands, etc.

And finally, don't panic. Realize that a recession typically lasts about 9 months. With some good preparation, you can get through it easily.

Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.

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Learn more about Mary Ann Romans

Mary Ann Romans is a freelance writer, online content manager, wife and mother of three children. She lives in Pennsylvania in the middle of the woods but close enough to Target and Home Depot.

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