Effects and advice

Effects and advice
11-May-09
So what are the effects of the recession and what can I do to get through it? There are many economists that will tell us that consumer spending is dropping, and this in turn is affecting the wider economy. Set against that, individually, many of us have found our incomes dropping, or removed entirely. The policy of Amhrán Nua is that we should work together to help the whole country get out of this economically difficult time, through our stimulus packages, while keeping in mind that certain realities must be faced.

If you have debts or heavy mortgages hanging over you, you are not alone. Tens of thousands of people around the country are in the exact same position, so don't give up hope. They will get through it, and so will you. The first thing to do is talk to you bank or lender, and explain the situation to them. They will probably be able to adjust the terms of your loan so that it becomes more affordable. There is more flexibility now than ever before.

There are also various groups that specialise in debt assistance and relief, so do talk to them. Be careful about groups that promise to consolidate your loans, some of these could be categorised as high risk lenders. Look at all your options before deciding on the best course of action, get informed, learn what you can and can't do.

On an individual level, we all have to learn to make the most of what we have. We are reminded of the sobering words from the last time an economic crisis of this magnitude arose: "Use it up, wear it out, make it do or do without!" There are a lot of ways you can make the most of what you have:

Buy your vegetables at the local greengrocer, and your meat at the local butcher. These businesses often have special offers to match the best that budget shopping chains can do, and a superior quality of produce, with the added benefit that you are helping your local economy.
Get involved in home gardening. Any green area can be turned into a small home garden that can help ease the burden of high food bills. Even if you live in an apartment, there are many indoor plants and vegetables you can grow using only a window and a little patience.
Look at all your expenses. Save all your receipts for a week, two weeks, a month, then put your expenses into two categories: essentials and non essentials. See where you can save money by shopping around a bit, by cutting out things you don't need, and by replacing more costly items with lower cost but similar goods or services. Its astonishing the amount of money that can be saved just by taking a clear look at what you are spending. Be prepared to haggle.
Its a truism to say that in a recession, cash is king, so save what you can. Even the cents in your penny jar are viable currency that can pay for things you need.
Consider going for holidays locally rather than abroad, Ireland has many wonderful areas to visit with your family, and budgets can be cut considerably while still enjoying the thrill of new experiences. Not for nothing is Ireland a major tourist destination!
Electricity bills can be cut by shopping around a bit, there are alternate suppliers to ESB at the moment. Consider doing heavily electricity dependent tasks at off peak hours to reduce the costs, such as washing clothes after 11pm. The same advice applies to phone and internet suppliers. Turn down the heating by one degree, only fill the kettle with the amount of water you need, turn off lights as you leave a room, and switch off or unplug appliances on stand-by.
Purchase your home heating oil during the summer months, or when the prices are low.
Check the benefits and tax credits you are entitled to receive from the government.
Consider upgrading the insulation in your home, and assistance available for that purpose.
Join your local library.

These are just a few examples of the many ways you can save in a recession, by looking at your incomings and outgoings you will spot many more. So can you enjoy the same quality of life on a reduced budget? Of course you can, and not only that, you will have the satisfaction of knowing that you are maximising your resources and taking the right steps to ensure a longer term higher quality of living as well.