Recession proof your life

Nestle club emailed these tips to me.  I know they would be glad if I will share these to all of you, so here it is.

1. Pay yourself first. This is sound advice from personal finance experts. After getting your salary, put money aside for savings first before dividing the rest for your utility bills and other expenses.
Make it a habit to save, even if you can only afford to put aside a small amount at a time. You’ll be glad to see how much they will all add up in the long run.

2. Review your budget. Go over your finances and spending habits, then decide to eliminate the things you can do without. Make sure you only buy what you really need. For instance, pay more attention to keeping yourself healthy by spending more on nutritious foods rather than filling your kitchen cabinets with junk food.

Learn to minimize spending when paying for recreation-related activities. For example, you can fly during off-season times of the year, split gimmick costs with friends, or cook food at home instead of eating out.

3. Learn to shop wisely. It would be wise to look for bargains and compare prices at different stores. Find out where you can buy things at the lowest prices, especially when it comes to big-ticket items.

Sometimes, buying in bulk leads to bigger savings. But this also depends on what you’re buying. For example, don’t buy a lot of food items that easily expire since they might just end up in the garbage bin.

Be wary of big sales. Buying two new pairs of shoes because they were on sale is not sensible when you still have several good pairs.

4. Avoid going into debt. Excessive borrowing in the form of credit card purchases may lead to more financial worries later. It is also not wise to take out loans on things that are not considered necessities. Try to pay in cash as much as possible so you can track where your money goes.
Two good techniques financial survivors have found useful:

* Go the DIY (do-it-yourself) way instead of paying others. Spend some of your free time cutting your own grass or fixing things around the house. It makes sense to do things you normally pay others to do for you.

* Be resourceful and grow or make things yourself instead of buying them. Plant your own vegetable garden, sew your child’s costume, etc.

5. Find ways to earn extra income. There are people who actually thrive during a financial crisis because they know how to diversify and develop multiple income streams. You can start a small business, take up a second job, invest wisely, or sell stuff you don’t need anymore.

If you can find other creative ways of cutting back on “wants”, you’ll find that it’s actually the practical and wise thing to do. You’ll end up feeling good about yourself, and end up with more cash, too!

Hope these tips will help us to spend our hard earned money wisely.

photo via: Man of Exception

what ever happens in life we should always remember to live life to the fullest