For a while it looked like our economy was improving and that soon prices would level out and start falling again, but when I researched online for information about electricity yesterday, there was doom and gloom all over the place regarding food, utility and fuel prices. Australia did a bit better than most countries during the recent economic crisis, but now, due to the floods and storms, food prices are higher than they've ever been and fuel prices are going up due to the high Australian dollar and trouble in the Middle East. What's happening here is being mirrored in countries all over the world. Many people are struggling, no one is safe in these troubled times.
If you've ever doubted your role as homemaker/housewife be assured that now is the time you will help your family more than ever before. Take the lead and make sure that every penny coming into your home now is used to its true value. Develop a plan to take your family through this crisis. When food and fuel prices rise and utilities bills increase faster than they should, it's your job as a home maker to be frugal and smart. Look around, research online and ask your friends about good wholesome recipes for main meals and snacks. Whatever your grocery budget was before, see if you can reduce it a bit. Stop buying convenience foods and start cooking everything from scratch - it will save you more than you know. Buy fruit and vegetables in season and if you can't afford fresh vegetables, check out the prices of frozen. They're often a bargain when the fresh prices go up. Buy as much as you can in bulk, not only is it usually cheaper, it cuts out a lot of packaging.
This is a good time to start networking with your friends and neighbours. Despite what you may think, everyone is dealing with high prices and even if there has been no talk of cutting back, when you start that conversation, I'm sure most of your friends will tell you they're struggling too. Can you start buying a bulk meat order together? If you can find a good local butcher and buy a side of beef together, you'll pay (in Australia) about $7 a kilo instead of anything up to $20 a kilo at supermarket prices. The butcher will ask you how you want the meat divided up and you can still get topside mince (ground beef), T-bone, rump, round, chuck, roasts, silverside (corned beef) and sausages all included in that price. Don't forget to take the bones too, for stocks and soups.
If you have a family and haven't started a stockpile yet, now is a good time to start. Look around for things that will store well for a while in a cupboard and when they're on special, grab a few of them. It will take you a few months to build your stockpile but it will see you through these bad times well and it will save you money and time. Old posts on stockpiling here.
If you're new to frugality, it's an exciting time. Don't see it as a burden to be endured; it's an opportunity to develop character and to protect your family. My hope for you is that you'll see this as a permanent change and even when prices fall and times get better, you'll remain a tightwad and continue to live a simple life. If I were coming to this for the first time, I'd stop ALL unnecessary spending and spend only on:
ADDITIONAL READING
This is a good time to start networking with your friends and neighbours. Despite what you may think, everyone is dealing with high prices and even if there has been no talk of cutting back, when you start that conversation, I'm sure most of your friends will tell you they're struggling too. Can you start buying a bulk meat order together? If you can find a good local butcher and buy a side of beef together, you'll pay (in Australia) about $7 a kilo instead of anything up to $20 a kilo at supermarket prices. The butcher will ask you how you want the meat divided up and you can still get topside mince (ground beef), T-bone, rump, round, chuck, roasts, silverside (corned beef) and sausages all included in that price. Don't forget to take the bones too, for stocks and soups.
If you're new to frugality, it's an exciting time. Don't see it as a burden to be endured; it's an opportunity to develop character and to protect your family. My hope for you is that you'll see this as a permanent change and even when prices fall and times get better, you'll remain a tightwad and continue to live a simple life. If I were coming to this for the first time, I'd stop ALL unnecessary spending and spend only on:
- Food, groceries
- Utilities - electricity, water, rates
- Fuel and transport
- Debt repayment - mortgage, credit cards, car payments etc
- House, car and clothing maintenance
- Insurance
- Medical and dental checkups
Work out how much you're currently spending on all the above and try to work out ways to cut your costs in every category. If you can do that, put the money you saved aside as an emergency fund or to pay off debt. Once a month, as a reward, give yourself money for a treat. Not too much - a movie, DVD or a magazine. The rest of the time, entertainment will be inviting friends around for a BBQ, recording a free movie to watch, and getting acquainted with your library. They're a treasure trove of books, magazines, DVDs, CDs, games and free activities.
If you can make your home a safe and comfortable haven for your family they'll enjoy being at home more. If they're going out to work or school everyday, make your home a joy to come back to - a place where they'll rest, recover and regain strength. Don't be frugal with the love either, that needs to be given out freely and on show all the time. Nothing makes a family more united and strong than knowing they're loved and cared for. That is your job. In addition to putting food on the table, love in their hearts and paying the bills on time, these tough times are a unique opportunity for you to step up and guide your family. It's not an easy job but it's a part of our job description: homemaker. And when you're older, you'll look back on these years and know they make you and your family stronger. Sure, everyone enjoys the good years, but it's the difficult ones that we learn from and that make us tougher, more united and resilient. Let's get our aprons on and start work.
Australia - food and food price increase.
Australia - tough times ahead.
UK - rise in the cost of living
UK - inflation
USA - Gasoline price rise
USA - cost of living reaches record high
