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Tuesday, December 1, 2009

How to get bargains in a recession

With the economy in a recession, money is tight, goods are expensive, and luckily you can haggle almost anything these days. The drastic increase in unemployment means it is even more important to save for the unexpected. Everyone should have at least three months of living expenses in easily accessible savings. With the economy in a slump, it's definitely a buyer's market.

Follow these steps to get bargains in a recession.

Step 1
Figure out where every dollar is going
. Write a list of the things that you pay for with your money. Be sure to include monthly bills such as electric and mortgage, weekly purchases like gas and groceries, and small daily purchases such as the cup of coffee you pick up each morning on the way to work.

If you're paying a cable bill, make sure you get a bundle package, which combines phone, Internet and cable.

Step 2
Decide which of the things on your list you can't do without
and which items you might be able to cut back or cut out to save money. Look at each item and see if any could be replaced with a cheaper alternative.

For example, if your cell phone contract is almost expired, call the company and tell them that you're searching for better deals. They will immediately work with you to keep you as a customer.

Step 3
Save on travel
Slow down when you are driving by five miles per hour, consolidate errands and other trips, carpool with someone from work.

If you plan on staying in a hotel, your chances of negotiating better rates are increased at the hotel check-in desk. Recession rates are available as hotels want to make gain loyal customers in the future.

Step 4
If you're planning on buying jewelry, deals can be found in malls as well as independent stores.
According to a report by the Associated Press, discounts range from 24 to 40 percent off on jewelry and 20 to 30 percent off on watches. Make sure to get estimates from different gemologists to get an idea of what you're looking to spend. Once you've decided on a price, head to the jewelry store and tell the manager what you want to pay.

Another tactic is to ask, "What is your best price?" Then, start walking away and chances are, they will call you back and offer a better deal.

Step 5
If you are shopping at a department store, make sure to ask for a discount
when purchasing bigger items including washers, dishwashers, furniture and large electronics.;It's important to always ask for a discount on damaged goods or floor models.

Leave the credit card home when you go shopping, and bring only the amount of cash that you can afford to spend.

Tips & Warnings
Another good way to save money during a recession is to find a way to make some extra money for saving. Consider taking a second part time job, do child or pet care service for a neighbor, sell your Elvis collection on eBay, or have a garage sale. Put the extra money that you make into your savings account where you can get to it in an emergency

How to Get Bargains in a Recession originally published on eHow.com

eHow.com is an online community dedicated to providing visitors the ability to research, share, and discuss instructional solutions -- real people succeeding at real projects. More than 45 million people visiteHow.com each month for tips on how to do just about anything.

How have you been cutting back on your spending during the recession? Have you ever negotiated for a lower rate on a hotel room or a large appliance?

Related personal finance articles on eHow
How to Stay Cheerful during a Hurting Economy
How to Invest Wisely During a Recession
Quick Guide: Profit in a Recession
How to Manage Your Cash Flow
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Comments 1-2 of 2
  • Nacy's Avatar
    Posted by Nacy Mon Sep 28, 2009 8:11am PDT

    Worried about gas/grocery money? Need ideas for extra cash? Free, legit ideas at http://tinyurl.com/homeoffice

    Report Abuse
  • Sun's Avatar
    Posted by Sun Tue Sep 29, 2009 7:01am PDT

    #3 will get you killed in a city. Slowing down under the speed limit is not worth saving 4 cents on your fuel economy.

    Report Abuse
Comments 1-2 of 2

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