Save money during a recession

How does one save money during a recession?
Have you been saving hard for the world trip for the last two years? Looks like the wait will be longer yet. Whether you are a professional, businessman, employee or employer, saving is your profit. Investments are likely to freeze and this is the time to make cuts in every way to save resources.

Just because there is a recession, chances are, there will be less buying and selling. But business will not come to a grinding halt. The real estate sector has seen the biggest upsets of the early recession. It is hard to tell where you can save. Pull and push will be inevitable in most markets. But it could be that the market you are investing in is not really doing so badly. You may stand to make a gain. Most people tend to make the mistake of withdrawing from the fray rather than taking the risk. Go ahead and make the investment. It could be the biggest saver for your financial condition. If your research is right, you may be able to save despite spending during the recession.

In economic slowdown only the stronger companies will have the ability to survive. And those who can innovate during this time are the ones who will drive the market forces.
You can save not only cash by also resourceful talent during the slump period.

Here is what that can be useful:

• Don´t just fire anyone, loyalty pays.


• Don´t stop the networking with the clients even if you are not doing business with them. When the time is ripe you don´t want them to ignore you.


• Take some risk. Being afraid of failure will not be helpful. Avoiding it maybe harmful.
  Go on launch the new product. The response will be slow. But when the markets are buoyant, they will pick up.


• Don´t get too defensive.
  Don´t stop the outsourcing of talent or consultancy. They will help to tide the difficult times.

Saving is not only in terms of liquid cash. Every member in the organisation is a family member. As the family stays through thick and thin, these are the times when it is safe to be together. Give the employees the incentives to save money even during this period. This saving will help them and you as well during the recession. Spend money during this period on garnering goodwill. Have an emergency fund scheme which will take care of at least six months during the period when the recession hits the hardest. This gives time to cope up with the bad times and prepare for the next quarter.