Recession-Proof Strategies For Teachers (or, Anyone Else Who Wants To Thrive Financially This Year)
Written By Abena Sey
December 18, 2022
At the time of writing this blog, we are currently experiencing the financial strain resulting from inflation. Prices for items have increased overall, and people are feeling the pinch at the checkout counter. There are some practical things that you can do to survive, and even thrive, during this period. Here are some tips to help you recession-proof your finances. These are tips for teachers, or anyone else who wants to thrive financially this year and beyond.
1 - Cut back on excess spending related to cafes or restaurants. Little expenses, such as daily visits to your favourite cafe, can add up quickly. Choose to reduce your visits, or opt to make your own version of your favourite drinks. You can make your drink just as fancy and tasty as they do at the cafe. You can purchase your favourite flavoured coffee, syrups, spices, etc. at the grocery store. Make your drink fancy by investing in a reusable travel mug or beautifully decorated mug for use at home or at the office. You can achieve the cafe experience at home or on the way out, and best of all, you will be surprised at how much you can save when you do not pay the extra costs for the convenience of going out to cafes. If going to cafes is a way for you to socialize, you may choose to invite people over to your “home cafe” and ask them to bring desserts, if they’d like. There are many ways to create the same experience, without having to spend extra money. Another food expenditure that can derail your budget is eating out at restaurants. Splurges, such as frequent visits to restaurants, can increase your expenditures on food. Plan and prepare your meals at home to avoid this. You can choose to reduce your visits to restaurants, or plan for an upcoming meal out with friends in your food budget. Just as the examples provided to counter frequent cafe visits, you can make smart financial choices surrounding restaurant visits. Making these choices can save you a lot of money to hedge you during this financial period. You may also find other benefits, such as an increase in your overall health and well being.
2 - Set financial goals that reflect your priorities, such as debt repayment or saving towards a future expense. If your goal is debt repayment, create a budget that prioritizes that goal, and be intentional about a monthly amount that you would like to pay to attack your debt and areas in your budget that you will cut to achieve this goal. You can also consider ways that you can bring in income to support debt repayment. Extra money that is put towards debt will help you save a lot of money in compound interest, especially if the borrowed money is at a high interest rate. You can choose to consolidate your debt with a monthly payment and a smaller interest, but unless your habits improve, you will find yourself in the same situation after debt consolidation. Here is some information to help you develop better financial habits that support your goals of debt repayment. If your goal is saving towards a future expense, the same strategies of prioritizing and planning apply. Decide how much you can set aside each month, and work towards that goal. You will be amazed at how following the tips suggested above regarding cafes and restaurants will help you towards debt repayment or your savings goals.
3 - Cut expenses at the grocery store (psst...these tips do not involve couponing). Choose healthy, nutrient-rich foods to purchase, and plan your meals around the cost of goods that week. Oftentimes, the prices for food will fluctuate, so you can plan what meals you will make depending on the cost for the main ingredients in the meals. For example, if your protein of choice is on sale, plan what you can make with that protein. Compare the price per unit of goods. For example, at my local grocery store during one of my weekly shopping trips, I noticed that the price for three brands of honey were featured. I chose the best price that offered the most honey per unit and which was not necessarily the cheapest. While it appeared that the lower cost was cheapest, I would have received significantly less honey for the price. Pay attention to little details like that when shopping. You may also choose to take advantage of sales, if it works for your budget that week, and purchase multiples of your staple items. Go to the grocery store with a plan, and try as much as possible to stick with your plan (i.e., your grocery list). After a while, your shopping may become routine, and it will eventually be easier to predict how much you will spend. Do not let inflation catch you off guard at the checkout. Pay attention to the cost of items as you shop, and choose alternatives to items you normally purchase that have significantly increased in price.
4 - Do not be afraid to say “NO” to activities that will negatively impact your financial goals. You can say no to impromptu activities or outings that are outside of your budget, such as invitations to eat out for lunch. Sometimes, you may be gifted with extra time for lunch. This is a treat for teachers during professional development days. It may be tempting to go out to restaurants for lunch with your colleagues; however, you can regain your power and focus on your goals by either planning for this lunch out in your discretionary spending, or choosing to eat what you brought from home. As a rule of thumb, only attend activities that you have planned and prepared for in your budget to avoid throwing you off course. You can also limit your participation in fundraising initiatives. You do not have to feel guilty about saying no to giving opportunities, especially if you do not have extra money to give. It is certainly a good idea to be generous with your giving, if you have the capacity to do so at that time. Give what you can, when you can, and this giving must also be planned. Be careful not to overextend yourself and come off track under the guise of giving.
During this financial period, make smart choices to help you achieve your financial goals. Cut back on your spending, set & prioritize your financial goals, plan ahead, and do not be afraid to say “no”. These are ways that you can navigate through this period of the global financial crisis. It may feel like the circumstances around you are beyond your control; however, you can take back control over your personal finances through your daily choices.