by Jaynee Sasso
The financial constraints forced onto many household budgets during the recession has pushed people to reevaluate their spending habits. Not only did the housing market need a correction but also the personal financial habits of many U.S consumers. The concept of redefining the word “essential” gave way to consumers embracing a new lifestyle of frugality. Unfortunately, see signs of this new way of life finding a permanent place in the hearts of today’s generation appear short lived. As the economy begins to recover, the tendency will be to go back to life as usual. This is especially the case for the families who view trimming their household budgets as an unfair consequence brought on by wealthy Wall Street executives. A sense of entitlement kicks in as they begin to reward themselves for enduring years of sacrifice.
However, order you must not fall prey to that mentality and beat yourself at your own game. The recent recession has given many a much-needed opportunity to discover and stop the hemorrhaging within family budgets.
What can you learn from the recession?
• Understand that purchases made today will affect your life not only in the next week, but the next year.
• Take time to closely monitor the amount of money passing through your hands monthly. For some more severe cases, a weekly assessment is necessary.
• Get aggressively proactive in learning how to properly plan for the future.
• To reallocate those dollars to address situations of greater importance, discover what you can really live without.
Wasteful spending is not always apparent when you take for granted that the good times will never end. The lesson in all of this is that change is constant and the law of gravity is still true: “What goes up must come down.”
I encourage you not to completely abandon the survival tactics you implemented to overcome the greatest recession in 70 years. Instead consider adopting your newfound wisdom as a way of life for securing your future.