by Eileen Thai

Created on: August 25, 2008   Last Updated: February 24, 2010

With rising food and energy costs, falling homes prices, and the U.S. dollar at its all-time low, consumers are feeling the pinch like never before. Here are my tips for surviving the downturn:

EATING IN
One of the easiest ways to save money is to eat in! Cooking and entertaining at home is a very good thing and a lot of fun. The advantages are threefold: you eat much healthier because you control what you put into the food; by enlisting your spouse and/or kid to help out, it provides an excellent opportunity to bond with the family; and you save lots of money doing it. Need help getting inspired? Watch Food Network, pick up a few cooking magazines (Better Homes and Garden, Bon Appetite, Southern Living) and try some recipes. Invest in a blender, and start making those $5 smoothies at home.

DRIVE LESS or CAR POOL
Gas prices, approaching $4 a gallon this summer, is taking a toll on most families' expenses. Still, we need to drive to work, pick up our kids, and run errands. The key is to plan ahead to avoid running around. Make an effort to car pool, if possible, with colleagues to work, with friends or neighbors to grocery shop, to the library and other activities.

FREE EVENTS and LIBRARIES
Most towns and cities have something going on that is free - concerts or movies in your local park, free admission to a museum on the first Sunday of the month, for example. Take advantage of these freebies. Make use of your local library. You can check out DVDs, books, magazines, you name it.

ACTIVITIES
Discover activities that cost little money, such as walking or hiking. Swim in the local pool or YMCA. Pick up reading or gardening.

LIVE A SIMPLER LIFE
Do we need all those T-shirts and shoes? Do we need to live in a big house? Can we live without a bread-maker, juice machine, different kinds of exercise machines, etc, etc? Over the years, my husband and I moved from a 4-bedroom house to a 1200 sq ft condo to a 37-foot boat (roughly 370 sq ft). We learned that we really did not need all that stuff. I made a note to myself not to buy any more T-shirts. And we didn't, for three years! Streamline your life, get rid of the clutter in the house, and live a simpler life.

Don't fret. Good times will be here again. When it rolls around, your good habits will have converted you into a saver, and ultimately lead you to financial freedom and security.

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