Seven tips for saving money in a recession

It's become clear that this recession isn't going to be ending any time soon. It's been said, 'When times get tough, the tough get going'. Which is what all of us need to do now. Saving money in a recession isn't easy, but it can be done.

When we ordinarily think of saving money, we think of setting aside a certain amount from our income to be stashed in a savings account. However, if you look over your budget, after expenses, and there's nothing left, what can you do? This is the time to approach the problem from a different mindset. Here are seven ways to tackle the problem of saving money in a recession.

1.The 'envelope method' is an old fashioned trick your grandmother might have used. In the old days, Grandma would take the available cash and distribute it amongst envelopes earmarked for various household expenses. When the envelope was empty, that was that. This forced her to carefully watch each fund so that it did not get depleted before the month was out. Today, rather than use cash, you can put a 'chit' designating the money allocated in your checking account for each expense. When you come home from shopping, deduct the amounts spent from the appropriate chit. Of course, you can use a spreadsheet, but the envelope method is more 'in your face', less easily forgotten. Try it, it works.

2.When shopping for food, always check those per-ounce/unit labels for the best buy. Although it doesn't make sense, sometimes a smaller size costs less per ounce. Go figure. Shop the store brands, grocery outlets, thrift bakeries and dollar-type stores. The extra time is worthwhile, if your goal is saving money in a recession. On a typical weekly shopping trip, you could save as much as $20 with this strategy. Watch your impulse buying!

3.Have you ever counted up the dollars you spend on home cleaning products? These items add up to a bundle. Did you know that you can make many of these products yourself, with simple, inexpensive ingredients, that do the job just as well? Check some of the homemaking websites for 'recipes'. Think outside the box. For example, paper towels are quite expensive these days. Buy a pack of those reusable fabric weave cloths instead. You can toss them in the washer and use them many times over.

4.If you've got growing kids, saving money in a recession can be a challenge when it comes to clothing. You can save a bunch of money by shopping the factory outlet stores, thrift and consignment shops. You'll save about 50% on new clothing and shoes at the factory outlets and about 80% at consignment and thrift shops. The styles are up to date and the used clothes are in good condition after all, they were only worn a few times before they were outgrown. When you consider the cost of clothing kids every few months, you can see this is a great way of saving money in a recession.

5.Save on transportation costs by car pooling or riding your bike to work.

6.Use credit cards only for legitimate emergencies. The more you pay cards down, the less interest accrues, which is yet another way of saving money in a recession. This technique also improves your cash flow.

7.Many people snicker at this idea, but that's because they've never tried it: at the end of each day, empty your pockets of change and toss it into a sturdy basket on your dresser or wherever. If you and your spouse each average just 75 cents a day, at the end of a month, you have about $45 cash. Over a year, that's $540! Do the same with recyclable cans and bottles.

Saving money in a recession is not impossible. In fact, it can be fun when you see that your needs are met, your cash flow improves and the plastic balances are declining. You'll feel a lot less stressed, the best part of all!