RECESSION

The recession is big news here in the UK, everyone is incredibly concerned with the security of their savings, their pensions etc. This week has seen another hit on the banks with huge amounts being lost off share values. Confidence in the financial sector is taking a major knock, banks that you would previously have said were ‘safe as houses’ are floundering waiting for government assistance to pull them through. Where will it end?

One thing is for sure the media are having a field day – nothing sells like death, destruction and a failing economy. Government is trying to incentivise public spending whilst the media counteracts with tales of total financial melt down. Obviously, this instils great confidence in the population and so the cycle continues. In these uncertain times I have become an avid reader of the business section which has never been quite as exciting as it is now!

2009 is likely to be a challenge for many, including ourselves, however I do not believe that we should indulge in the current frenzy of doom too all. So said we have started our contingency plan, nothing major or panicked, more a subtle change of habits in order to plan for a slightly unsettled year ahead. Firstly we have reviewed the house hold bills, sadly there is nothing much to be done here, slight tweaks at best – changing provider for gas & electric, down scaling on the broadband. Another thing we have been very conscious of is electricity, for instance our house is reasonably large and takes FOREVER to heat up, so we currently only put the heating on if it is absolutely freezing or guests are coming round. Everyone thinks we are mad however whether the heating is on, or off, I am still in a heavy duty jacked...

Next we are looking to the food bill. On food there can be no compromise for quality, however we are implementing a ‘smarter’ purchasing plan. Now I know this sounds like logic, but how many of us just pop to the shops and end up with a trolley full of non-necessities costing a bomb? I have made a menu with a months worth of our favourite dishes, including one new, untried, meal per week. Next is a water tight shopping list of exactly what is required for our meals over a two week period. Why haven’t we done this before??

Currently we do a major shop once every 6-8 months at costco for all our bulk purchases i.e. toilet paper, washing powder, shampoo, soap and meat. We buy huge amounts of meat, weigh it and re-package it when we get home. This is a great saving as the meat is of the best quality but also discounted because it is bought in bulk. I estimate that our current food bill can be brought down by about £50 a month. Not a massive saving in itself however taken with other cost cutters I reckon we will be saving an additional £1,200 a year.

Sadly Americo won’t let me spend it on anything else!!