Wednesday, December 10, 2008

Avoiding Recession

Forecast for next year's economy is not good. Most businessmen believe Philippine will be affected by the economic recession major countries are experiencing right now. Dr. Kurt Richebacher of The Daily Reckoning described the situation as the rapid, steep decline in the growth of consumer spending is the first decisive consideration to expect in the United States impending serious recession.
Local economist advised residente to star saving for the future to avoid the efect of the economic crisis. Here are some helpful tips how we could manage our budget effectively.

Distinguish between Wants and Needs: You will save a ton of money if you don't mistake wants for needs. Needs are pretty simple to identify--those items that are necessary to sustain: Shelter, food, clothing, transportation. Wants are those things that enhance or possibly improve our family life.

Is less better? Trimming down your spendings to more importante needs can help save money. Also, discounted items but high in quality may also give you extra for the family.

Try before you Buy: Make sure you got the best buy in the shelves before you leave. Its not a good idea spending money for unusable stuff. Such a waste of money.

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