7 Frugal Lessons From the 2000s Recession Era To Apply Now
Many Americans are facing significant economic headwinds. The job market is tight, and prices are stubbornly high, with little relief in sight. For many people, this may remind them of the Great Recession of the late 2000s. Some even think our current period is worse.
One thing is sure. Some of the same frugal rules Americans employed during the Great Recession can be used today to stretch your funds. Here are seven frugal tips that can optimize your budget and save more money.
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1. Get Creative With What You Have
A frugal tip that regained popularity in the late 2000s was to make the most of what you already owned. This doesn't mean stopping buying things, per se, but rather squeezing the value of what's in your home.
For instance, shop your pantry to keep grocery spending down. Search through your house to see what you have before buying something. While you may not be able to turn found items into cash, they can keep you from spending more.
2. Embrace Discount Grocery Stores
Shopping at the grocery store is painful for many Americans. Ground beef is up over 21% over the past year, orange juice is up 23%, and a loaf of bread is up 4%, per NBC News.
Shoppers dealt with similar price hikes during the Great Recession by opting for discount grocery stores such as Aldi and Lidl. Pair that with shopping with a list, and you can claw back some cash.
3. Pick Up a Boring Financial Habit
Many Americans suffered financially during the early 2000s. Instead of spending, more Americans moved to save money, according to the Federal Reserve Bank of St. Louis (FRED).
You can follow a similar mindset and start a boring yet effective habit after reviewing your budget. Establishing a small automated transfer after each paycheck or paying more than the minimum on your credit card balances are good options. Additionally, if you find that you don’t need everything in your checking account, move a portion of it to a high-yield savings account each month.
4. Rethink Your Brands
Buying high-end products may be more enjoyable, but during the Great Recession, over 70% of Americans opted for economical alternatives, per Yahoo Finance. What name brands do you like to buy?
Research to identify cheaper options that do the same thing. Do you like premium hardware? Look for inexpensive tools that let you do the same thing. Just try to keep reliability in mind, as you may end up spending more if you have to replace the item quickly.
5. Budget for Socializing, but Within Reason
Having a social life is important. And, it's easy to overspend to go out for drinks or dinner with friends. People didn't shun socializing during the Great Recession; they just got creative.
Having drinks at home or potlucks is an effective way to still socialize with close friends. It’s healthy to keep some social spending in your budget, but looking for ways to stretch it gives you the freedom to hang with friends without creating burdensome debt.
6. Don’t Forgo Secondhand
Replacing an item of clothing or something for your home can create an unplanned expense. Buying secondhand has always been a valuable way to save during tough times, and doing so today can reduce expenditures.
More people are shopping secondhand, and continued growth is expected, according to Forbes. Research your local thrift stores and find a few that you like to stretch your budget.
7. Review Your Convenience Spending
Convenience spending isn’t all bad, but when finances are tight, it can make matters worse. Worse yet, when that spending becomes automatic, it further deepens the problem. Buying pre-cut produce at the grocery store, buying lunch out and unused subscriptions were all things Americans sought to cut back on in the late 2000s.
Review at your convenience to identify items you can cut without missing. You don’t need to cut everything; keep a couple and rotate them as needed to keep life interesting.
The Great Recession was difficult for many, but it offers many lessons. If you want to cut costs, adopt a few of these tips to increase savings.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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