The Recession Survival Guide: pt 2/4

So, you've read the first two points in my recession survival guide, and you're back for more? well, never fear... I promised more and I, the socuse economist am a man of my word... Here it is then, part two of the recession survival guide.


Three: Smoking, Drinking and Gambling. Quit it!
Three of the most expensive habits known to man might be best left alone during a recession. Thousands of pounds a year is spent on each habit by each and every person who indulges in them. A thousand pounds can go a hell of a long way towards keeping a family afloat in a recession. Maybe it’s time to quit?

Please note, that I have never referred to any of these pursuits as ‘dirty’ or ‘dangerous’. I enjoy one or two of them myself once in a while and understand that it can be hard to quit. Smoking, drinking and gambling are no more dangerous than eating at McDonalds, and far less dangerous than driving to work everyday. In fact, given the correct application of willpower, these habits can be enjoyed perfectly safely, despite what the government says… whoops, off topic again!

Anyway, consider cutting down or quitting an expensive pursuit completely. You will feel the benefit once the withdrawal symptoms stop… twitch.

Four: Throw away the microwave.
Yes, you read correctly… the microwave is a sinful and evil mechanism… except for when it’s not.
Microwave meals are too expensive! It is well and truly possible to cook for yourself and eat well for a pound a day. I should know, I’ve been doing it for two months now. Curries, stir fries and pasta dishes will become your best friends, as you cook simple and cost-effective meals for 50p per person! (The extended version of this article has a brief example menu in it.*)

OK, so it won’t be ready in three minutes flat, (between 15-30 minutes, depending on the dish) and it’s not lavish, but can you afford to be?


*Please note: links to all extended articles will be added once they are operational.

The Scouse Economist's Recession Survival Guide, pt. 1/4

In these times of economic woe, some of us might need a helping hand in order to keep our heads above the water, so to speak. For this very reason I, the Scouse Economist have come up with a set of 10 helpful tips that if followed properly might actually leave you better off after the recession has passed.

May I introduce, the recession survival guide…

One: Pay by cash, not by card

It is fairly well documented that people can often lose their heads whilst shopping with their ‘magical cards that bring them money’. Not that I imply that these people are idiots, for anybody can fall under the bank’s seductive spell.

Now, let’s not get in to the politics of the matter (I’m saving that for the extended version of this article). For the moment, let us explain the principle of this point.

When you have money in your hand, you can count it to the penny and you have only that much to spend. With a card, it is all too easy to overspend, going overdrawn, in to an expensive overdraft or fall foul to the ‘credit-card-crunch’.

Here is my advice. Every time you buy something, take the time to visit a cash machine and take enough money out. Each time you take money out, print off a balance slip and keep hold of it. These balance slips are a great way to keep an eye on how much you’re spending. You will soon notice if you’re spending too much.

This will keep you out of trouble with the bank, and will also put a stop to those impulse buys that we all feel guilty about later. Well… sometimes.

Two: Stay in the black

As was suggested before, running out of cash and going in to the red is really something that most people want to avoid, if at all possible. This is not always so, and almost always hard to achieve.

Here is my suggested method. Yes, it does involve that dreaded word… ‘Budget!’.

Each month spend a single night with all of your records, statements and bills, along with a calculator and do the following:

- Work out all of your income and costs for the coming month, to the best of your knowledge. (Bills and payment sonly. Don’t count food budget and other constant costs at this point). There will always be a nasty surprise to bite you, but fear not, this is dealt with

- Assuming that once you do this there is a positive number (if not, skip to the last point), halve that number. The idea is to put half of your disposable income towards your living costs, and the other half in to some kind of saving scheme, just in case. (This need not be half and half. In fact, it is likely that half of your disposable income is not a liveable sum. If so, it is fine to use more money on living costs. Just try to put something away.)

- If you find that your disposable income is actually a negative number, you have a serious cash flow problem. Either you are making too many payments that you cannot afford, or you’re boss is screwing you out of money. Either way, this is the only circumstance where I will suggest that a person goes to a ‘Debt Consolidation Firm’. Usually, I hate the things… you end up paying more than double what you originally owed, but if you are running further and further in to the red, this may be the only option for you… but please, do not take this decision lightly. Before signing anything, seek professional advice.