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Spending & the recession: will it be the same?

27 Oct 09 / Posted by: Liz Zuliani

For many of us, the recession saw us holding onto our money tighter when walking past the beauty counters in department stores and holding off on new and fabulous a summer wardrobe.

The recession has forced us to be more careful with our money and also reminded us to be more thrifty — have a nest egg just in case we lose our jobs or main source of income.

Now that consumers have learnt to ignore the siren call of over-priced purchases and make do with cheaper options and budget alternatives, will they ever go back to spending frivolously again?

Where have you cut back during the recession? Share your money saving tips and advice below.

At the Supermarket

The most common place for consumers to cut back spending during the recession is during the weekly grocery shop. Home brand products have always been available, but their take up has risen sine the recession — and many consumers who have made the switch from brand name goods to store brand goods say they’re not likely to go back.

Tip: Buy fruits and vegetables from your local produce markets, you could be saving 30 to 45 percent, especially if you buy in season and make use of their specials. When it comes to canned goods and other pantry non-perishables, buy in bulk from stores such as Aldi and also look out for supermarket specials.

Saving on meat and fish: Learn how to trim fat from cheaper cuts of meat and how to cook them. At the fishmongers, stay away from expensive fish and opt for locally caught fish for under $10 per kilo.

Eating out less

The upside for supermarkets is even though consumers are spending less on individual products, they’re buying more groceries on a whole because they’re eating out less.

As people discover the joys and value of cooking at home, after the recession is over, will consumers return to the restaurants?

Even for big groups, dinner parties have come back into fashion — is this a trend that will stick around?

Tip: Organising pot luck dinner parties is the ultimate way to go — the host doesn’t have to foot the dinner bill for everyone and people enjoy chipping in anyway. Stick to simple dishes, no need to show off with lobster dishes or flashy steaks, the company is what counts and who doesn’t like a good bowl of pasta?

Saving on wine: Test your palette and have a ‘cleanskin’ party. They’re really in vogue at the moment — everyone brings a bottle of cleanskin and then tries to guess which vineyard its from. And if you hit a bad bottle? At $7 a pop, you won’t hesitate to pour it down the sink, or use it for cooking.

Property

Despite the cut backs in household and personal spending, small home renovations are up. With people spending more time at home, they want to make it more comfortable, or a particular room. Renovators have their hands full with $5000 to $20,000 jobs — people wanting a new alfresco to enjoy the outdoor space or renovating a bathroom, kitchen or living room.

Tip: Focus on one room. $5000 may not sound like a lot of money when it comes to renovations but if you focus it on one area, your money can go a long way. If its your kitchen that needs a face lift, try adding or renewing the benchtop. Stay away from big cabinetry work as that tends to be the pricy part. In the bathroom, retile the room yourself and put in some underfloor heating for those chilly winter mornings.

Saving money on renovations: Have a mate that knows a guy that does some work on the side? Willing to take the risk? If you have a good idea of what you want to do, where to source the materials, then have a go at project managing your own project and finding the talent yourself. For bigger and structural jobs, leave it to the professionals, or it could end up costing you more money than its worth.