When the economy declines, UK family budgets get tight. If you fall behind on bills, then it creates stress at home. There are unique, outside-the-box strategies that help bridge gaps. The goal here is to provide practical ways to manage money better in tough times.
If funds run short-term, specialised lenders offer bad credit loans with no guarantor. You can research more options carefully, but such products can provide fast help covering essential costs during dips. You can monitor repayment terms is crucial, however.
How did the 2009 Recession in the UK affect people?
The unemployment rate increased snappily during the recession, reaching approximately 8% by the end of 2009. This represented a significant increase from pre-recession levels, with around 2.5 million people unemployed at the peak.
- 22% of the population lived in comparative deprivation after the recession.
- 30000 businesses failed alone in 2009
- Retail sales fell by 3.4%
Don’t forget tough periods eventually improve if families stick together and find their footing in crisis.
Diversify Income Streams
When things get tight, extra income helps cover gaps. Even small amounts take the pressure off monthly budgets. Consider creative ways to make money on the side. Lots of options exist nowadays to supplement earnings.
Rent Out Spare Space
If you have an unused bedroom or cottage, renting it out quickly brings in cash. List the space on websites like Airbnb, Vrbo, or Booking. Check your city’s regulations first. But even renting out a room for a few nights a month generates helpful income.
As of recent estimates, there are approximately 220,000 active Airbnb listings in the UK. So start the process today!
Hosting travellers can be enjoyable, too! You meet new people, share stories, and show off your town. Yes, more cleaning and monitoring comes with hosting. But many feel the extra effort pays off.
Sell Handmade/Vintage Goods
Have an eye for finding great secondhand stuff? Or enjoy arts, crafts, or making things? Turn those skills into profit! Websites like Etsy and eBay offer built-in online shops nowadays.
Shipping costs and seller fees apply, of course. But even part-time selling brings in helpful earnings now. Plus, it lets anyone get creative. Clear out that craft room or attic and make extra cash from home.
Barter and Trade Services
Trade skills and talents in your community to save money all around. Love to bake? Barter cookies for help with yard work or errands. Handy at repairs? Offer fix-it skills in exchange for meal preparation.
Skill swapping builds neighbourly goodwill, too. An additional set of hands runs a long way when funds gain tight. Teaching and learning from each other opens up even more trade possibilities!
Use Local Exchange Groups
Can’t find trade partners nearby? Join community service swap groups on Facebook or Nextdoor. Search by location and category to pitch your skills or needs. Lots of creative trades get arranged this way.
Don’t underestimate the power of skill shares for saving money. They add up, whether done informally or through local exchange platforms.
Small Amounts Count Too
It takes some extra effort, but increasing income bit by bit pays off. Even tiny amounts help cover daily costs. Get creative with gig ideas. Reach out to your social networks and community to uncover opportunities.
Embrace Minimalism and Decluttering
When money gets tight, living simply saves cash. Focus on needs instead of wants. Get rid of stuff you don’t use to make extra money.
- Go through each room and find quality items not used in the past year, like old electronics, clothes, and furniture.
- Post items online to sell on Depop, Facebook, and Nextdoor. You can sell it at a price below stores to sell faster and be open to buyers negotiating prices.
- You can use these earnings to pay debt or savings.
Cut Back on New Buys
- Stop shopping for fun. Only buy essential things besides groceries. Avoid wasting food, too.
- Ask yourself if you need something new. Shoes, kitchen items etc. The answer is probably no. Enjoy what you have.
Stick to Basics
- When the economy struggles, focus spending on rent, utility bills, transportation, and food.
- Have fun together without spending time like playing board games or visiting local parks.
This tough period will pass so being careful with money now gets you through.
Strengthen Community Ties
When the economy slides, communities that stick together do better. Consider ways to support each other that save everyone money, too. Forming sharing groups around things like cars and tools build close-knit ties.
Why own when you can access what you need from trusted neighbours?
Knowing one thing, trading talents is helpful too – from childcare to gardening. You can support tiny local businesses together over big chains. Nearby places often give the best care during tough spots.
You can use community gardens to grow plants which stretch grocery money and give everyone fresh vegetables. You can arrange coordinated weekly meals with others – share ingredients costs. You can make homemade potlucks or cook-offs. All can create a community cookbook with healthy but cheap family recipes. If you do such activities, it will bring laughter and connection during hardships.
Improve Financial Literacy
During downturns, learning savvy money skills bolsters confidence. You can explore reputable UK financial websites and follow budget-smart experts on social channels. For example, MoneySavingExpert Martin Lewis offers free advice to millions.
You can sign up for money management courses through services like Money Helper and OpenLearn, too. They have engaging free tutorials on tracking expenses, proper saving, etc. – even fun online quizzes.
Use Credit Union Resources
When money gets tight, credit unions offer more help than banks. Their rates and fees are usually better since members jointly own them.
Need a loan fast? Many credit unions now offer quick loans online approval for small loans – decisions in minutes! Interest rates are less than payday lenders. Terms are flexible, too. This saves big over pricey overdraft fees when funds run short term.
Credit unions also provide:
- Free financial advice tailored to your situation.
- Budgeting and money management workshops help build skills which will be great for long-term security.
- Youth programs teach kids smart money habits early, which sets up good behaviours.
- Many offer free credit monitoring and financial check-ups to help you stay on top of payments and planning.
Rather than chasing big bank profits, credit unions focus on improving members’ financial health. That personal touch makes a difference, especially during economic instability. Check local options to utilise all their offerings during rocky times.
Conclusion
When economies decline, special money strategies help families manage better. If you only rely on old habits, it won’t work when paychecks drop. So be ready to adjust and try creative fixes to keep life stable.
You can earn extra income, cut expenses, skill trades with neighbours, and use community programs. You must stay flexible and learn new tricks to build confidence for riding out downturns. The key is actively changing routine money ways to solve problems when budgets tighten.
