Less Spending Due to Lower Wages During Recession?

Lower wages might mean people are using up their savings account to get by.

13:18 14 June 2013

The recession has seen some interesting phenomena, including less spending. One of the reasons believed for the low contributions to the economy is the fact that there may be more competition for jobs, and henceforth perhaps the willingness to accept low wages that do not really allow for extra spending money.

 

Essentially, many people may be just scraping by, and if they have savings accounts, theycould be dipping into those, even if the savings were initially meant for retirement years.

 

Keeping a savings account may be more difficult than ever with this type of news, but there are a few ways you can hold onto the funds in your savings account, or minimize the amounts you withdraw. 

 

• Look for bargains and used items, thrift shops, and even pawnshops are able to provide some of what you need at a fraction of the cost, eliminating the need to dip into your savings account, or at least cutting back the amount you end up having to withdraw. 

 

• Keep the change. Change always seems so minimal, and often times we try to get rid of it in some fashion or another. If you keep the change in a jar at home, it will continue to grow, but you will be less likely to spend it because it is change. When you have a larger amount you can deposit it into your savings account to help replenish any amounts you might have taken out. Every little bit counts. 

 

• Make a little extra. If you have a hobby or talent that you can use to try and supplement your current income, it may give you just enough to be able to purchase items without dipping into your savings account. Who knows? That favourite pastime may even help you add to your savings account funds more than you expect.