By:  Bonnie Sutherly
Extension Educator, Family & Consumer Sciences

February 18, 2008

Whether reading the newspaper or watching the television newscast, much is being written and reported about the downturn of the U.S. economy. I don’t think we are in a recession yet, but I do know there has been a slowdown in the economy. Some people are out of work, some people are working fewer hours, jobs are more difficult to find and the prices of gasoline, heating fuel for our homes, food and meals appear to be going no where but up.

In good economic times we tend to spend money because we think we have it.  In the last few years we have become a nation of spenders, not savers. In fact, we are spending far more than we are making, which leads to a whole lot of debt.

Now, we have an economic downturn and we are pulling our hair out because we have forgotten how to cut corners and do things for ourselves. Here are a few reminders in how to cut corners. These may help your budget.

Food

• Cut your food shopping trips to no more than one a week. This will save gas, time and money.
• Stop buying “junk” foods for snacking. Substitute fresh fruits and vegetables, fruit juices and milk drinks, and oatmeal and peanut butter cookies. You will be getting more nutrition for your dollar.
• Plan meatless meals
• Plan for use of left-overs.
• Waste less! Ohioans throw millions of dollars worth of food a year into garbage cans.
• Prepare brown bag lunches when possible.
• Use the Food Stamp program if you qualify.

Housing

• Buy furniture and appliances on sale or at an auction, garage sale, or second hand sale.
• Choose equipment with a high energy efficiency rating.
• Learn to clean, repair and restore household items yourself.
• Buy items that require as little maintenance as possible.
• Maintain your home. Make minor repairs before they become major ones.
• Turn off air-conditioning and open windows in temperate weather.
• Close rooms and turn off heat to those rooms you are not using.
• Consider an attic or a roof fan.

Clothing

• Study your present wardrobe, determine needs and work out a clothing budget.
• Buy color-coordinated clothing which can be mixed and matched.
• Do not make impulsive clothing purchases.
• Buy clothing on sale when possible.
• Use yard sale purchases, especially for children’s clothing and maternity wear.
• Avoid clothing that requires special care such as dry cleaning.
• Read and follow care instructions to make clothes last longer.
• Dress up or modify an outfit you already own. Accessories can add a new look to last years’ wardrobe for a minimal cost.
• Learn to sew.
• Wear “work” clothes for messy, dirty jobs.

Transportation

• Keep your car in good running condition
• Walk more—drive less.
• Ask yourself, “Is this trip really necessary?”
• Save on fuel with good driving habits.
• Increase your deductible on auto insurance.

Personal Habits

• Have an easy care hair style.
• Trim your children’s hair between professional cuts.
• Barter talents and resources.
• Start a “child-care pool” with a group of friends.
• Teach children ways to live on less by caring for their clothing and toys to minimize repairs and losses.
• Make gifts.

Managing Money

• Use credit cards only if you pay the bill in full each month.
• Do not carry more money than you can afford to spend.
• Pay bills early when creditors give a discount for early payment.
• Check to see if you are a taxpayer who is eligible for the earned income tax credit.
• Take advantage of community services such as concerts, fairs and public tennis courts.
• Spend less on vacations.
• Read magazines and books from the library.
• Keep track, item by item of where you money goes everyday, week and month. Go over this spending record periodically with the entire family. Decide as a family, how to live on less.

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