Last week we published an article titled Interest Rate Hikes: What Retired And Soon to be Retired People Need to Know. In that article, we discussed interest rates, inflation and recession. Today we’re going to offer up some ideas on how you can save a little money during a recession.
What is a Recession?
A recession is basically a period of economic decline. During a recession, individuals, businesses, and governments all suffer. Recessions cause an increase in unemployment and a decrease in both production and consumption. It can last anywhere from a few months to a few years and usually has a major impact on the economy.
Are we in a Recession?
Here are a few indicators that the economy may be in a recession.
Are Wages Decreasing or Stagnating?
Stagnating wages can be an indication of a recession when wages are unable to keep up with the cost of living. When wages remain the same but the cost of living rises, it can be difficult for people to make ends meet, which can lead to a reduction in economic activity. This decrease in economic activity is one of the signs of a recession.
Are There More People Out of Work And Fewer Jobs Available?
This one is a little confusing because in today’s economy, where “experts” are saying we are likely in a recession, but there is an abundance of jobs available. Remember, all of these indicators are not required in order to confirm we are in a recession – they are common indicators.
As a general rule, when there are fewer jobs available, it’s an indication that an economic recession is underway. This is because when fewer jobs are available, it means that fewer people are being hired, which in turn means fewer people have money to spend on goods and services. This then results in a decrease in overall economic activity, which signifies a recession.
Is There Less Consumer Spending?
A decrease in consumer spending can be an indication that we are in a recession because consumer spending is a major driver of economic activity. When consumers are not spending money, it means that businesses are not seeing as much money coming in, which can lead to a decrease in overall economic activity. This decrease in economic activity is one of the signs of a recession.
If you pay any attention to financial news these days you’ve probably heard “experts” say that we are likely in a recession. How serious this recession is or how long it will last remains to be seen. In any case, it’s wise to have a plan for reducing spending especially if you are retired and living on a fixed income.
Budget Saving Tips for Seniors During a Recession
Make a budget and stick to it.
Making a budget and sticking to it is a good way to manage your finances and make sure that you are not overspending. When making a budget, be sure to include all of your monthly expenses, such as rent, utility bills, and food. You should also include a reasonable allowance for entertainment and leisure activities, such as going out to eat or seeing a movie, as long as it is within your budget. Lastly, make sure to review your budget monthly to make sure that you’re still on track to reach your financial goals.
Don’t be afraid to shop around.
During a recession, it is important to be smart about your spending. One way to do this is by shopping around and comparing the prices of the items you want. This will help you to get the best value for your money. Additionally, it can be helpful to look for deals or discounts and make use of coupons or other promotions. Doing so can make it easier to stick to your budget and make sure you are still saving money during a recession.
Cut out unnecessary expenses.
During a recession, it is important to be mindful of your spending. One way to do this is to cut out unnecessary expenses. This could mean cutting back on eating out, reducing your cell phone plan, or eliminating any luxuries that you don’t need. Though it can be difficult to cut out these items, it can be a good way to save money and make sure you are still making progress toward your financial goals during a recession. Do you really need that morning cup of coffee? That magazine subscription? That streaming service? If there is anything in your budget that you can live without, then cut it out.
Look Into Part-time Work
During a recession, it can be helpful to look into part-time work. This can be a great way to supplement your income, as well as keep you busy. Additionally, looking for part-time work can help you stay connected to the job market and potentially lead to full-time positions in the future. Just be sure to keep in mind your financial goals and weigh the cost and benefits when considering taking on extra work.
Use Coupons
Coupons can be an excellent way to save money during a recession. Clipping coupons from the paper and searching online for the best deals can help you get the most bang for your buck. Additionally, taking advantage of store promotions and discounts can make it easier to stay within your budget while still having some fun. Make use of coupons and promotions whenever possible to make sure you’re getting the most out of your money.
Get Creative
There are lots of ways to save money these days. Is there a cheaper way to get what you need? Can you rent or borrow something instead of buying it?
Take Advantage of Senior Discounts
Many businesses offer discounts for seniors on certain days or for certain purchases. Be sure to ask about them when you’re out shopping.
Here’s a list containing a wide variety of discounts you can get if you qualify based on your age. The list contains everything from restaurants to retail to travel and entertainment.
| Company Name | Discount Amount | Age | Additional Info |
|---|---|---|---|
| Ace Hardware | 10% | 55 and over | Only valid on Wednesdays |
| Amazon Prime | $5.99/month | 50 and over | Requires an EBT card or Medicaid |
| AMC Theaters | 30% | 60+ | Valid ID required |
| Applebee’s | 15% | 60 and over | Discount not applicable on alcoholic beverages |
| Arby’s | 10% | 55 and over | |
| Best Western | 10-30% | 55+ | Varies by location |
| Burger King | 10% | 60+ | Varies by location |
| Celebrity Cruises | 5-10% | 55+ | Valid ID required |
| Chipotle | 10% | 55+ | Valid ID required |
| Country Kitchen | 15% | 60+ | Varies by location |
| Denny’s | 10-15% | 55+ | Varies by location |
| Dunkin Donuts | 10% | 55+ | Valid ID required |
| Good Year | 10% | 55+ | Valid ID required |
| Great Clips | 7% | 60+ | Valid ID required |
| Hallmark | 10% | 60+ | Valid ID required |
| Hertz | 25% | AARP 50+ | Valid ID required |
| Home Depot | 10% | 62+ | Valid ID required |
| Jiffy Lube | 10% | 55+ | N/A |
| KFC | 10-20% | 55+ | Varies by location |
| Kohl’s | 15% | 60+ | Valid ID required |
| Lowe’s | 10% | 60+ | Valid ID required |
| McDonald’s | 10-15% | 55+ | Varies by location |
| Outback Steakhouse | 15% | AARP 50+ | Valid ID required |
| Red Lobster | 10% | AARP 55+ | Valid ID required |
| Subway | 10% | 60+ | Varies by location |
| Target | 10% | 65+ | Valid ID required |
| Walgreens | 10% | 55+ | Valid ID required |
Summary
• A recession is a period of economic decline that causes an increase in unemployment and a decrease in both production and consumption.
• You can tell if we’re in a recession by looking at factors such as wages, jobs, and consumer spending.
• If we are in a recession, seniors can save money by taking advantage of senior discounts, sales, sticking to a budget, shopping around for the best deals, cutting out unnecessary expenses, using coupons, and getting creative.
• Many businesses offer senior discounts that can help you save money on your purchases.
How are you planning to save during the recession? Share your ideas in the comment section below.