Everyday Ways to Save

By Melissa Abramovitz

With layoffs so widespread, the threat of a pink slip looms large in all sectors, and it’s an especially anxious situation for parents. So what can you do to help protect your family? Stay strong in the current job market, cut everyday costs, make smart financial plans for the future, and remember: there is zero shame in asking for help if you need it. These are tough times, and we may need each other to get through them. But we will get through them!

Keep Your Day Job

How can you make yourself indispensable in the current job market? “Number one is to be aware of the value you are bringing to the organization,” says Helen Scully, a nationally certified career counselor who owns Scully Career Associates in Roseville. “Figure out what the company needs from you and strive to contribute that as much as you can.”

“Being politically astute is also important,” adds Scully. People need to recognize what it takes to get along with their boss, sometimes doing jobs others don’t want to do, and being aware of how to communicate successfully with those around you.” Scully also emphasizes, “It’s important not to go to sleep on the job. Keep your resume current, be aware of what else is out there, and talk to an outside job counselor if you think your job may be threatened.”

Pay Fewer Bills

If you do lose your job, or just want to save money in these challenging economic times, there are a variety of ways to save on everyday expenses. “Figure out what you can do without,” suggests Jean Conner, a Sacramento job recruiter who lost her job in 2007 and is struggling to make ends meet. “I no longer get my nails done, and I now borrow movies from the library instead of renting them. We don’t go out to eat, and I use grocery coupons for things I use anyway. We do things at home with friends like playing cards and games rather than going out. We also swap skills with family and friends – like my husband helps them fix things and my mom bakes bread for us.”

Maureen White of Sacramento, who recently lost her job as a manager with the nonprofit Big Brothers Big Sisters, also uses coupons and frequently goes to garage sales and thrift stores. “I’m a voracious reader, so I buy my books at garage sales,” she says. She also eats very simply, and if she does go out to lunch, she shares a meal with a friend or saves half of the meal to take home for dinner. “Think about what you really need,” she advises. “Some people can do without a cell phone or having a maid come to clean.”

Budget and Plan Like a Pro

Professional financial planners agree that learning to live within a budget is critical for both surviving a recession and getting out of debt. “People should be focused on paying off the credit card bill in full each month and not buying things they can’t pay for,” says David Brown, a financial advisor at Ameriprise Financial Services in Roseville. He adds, “If you have credit card debt, I recommend paying down the debt first and then trying to put some money into a savings account, since interest rates on credit cards are high and the interest you can earn on savings is relatively low.”

Even though interest rates on savings accounts are low, putting money away for a rainy day is still important. “I always like to suggest to my clients to ‘pay yourself first,’” says Jeff Rupp, a Certified Financial Planner® with US Bancorp Investments, Inc. in Auburn. Rupp adds, “Save money by taking it out of your paycheck each week before you get it. It’s easy to save that way, and you can feel good about spending what’s left!”

Everyone can benefit from learning sound budgeting and everyday savings practices, no matter what shape the economy is in. Such measures might be necessary if you’re worried about unemployment, but adopting savvy spending and saving habits now can put you in an even better financial situation after the economic storm has passed.