20 Budgeting Hacks That Are Crucial in a Recession

Most of us need to spend less and save more -- and that's especially true during a recession when you might be unemployed, underemployed, or worried about losing your job. Here are many great strategies to consider. If you can put a few of them to work, you may save hundreds of dollars each year, and putting a bunch of them to work might net you thousands of dollars annually.

See which ones make sense for you given your needs, abilities, and interests, and once you've got more money on your hands and a stocked emergency fund, consider investing some of your extra dollars for your future.

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Many of us are not going to restaurants at all during these coronavirus days of lockdowns and quarantines. But that doesn't mean we're not enjoying restaurant meals that we pick up or get delivered. That's a fine way to help keep your local small businesses afloat and to support your community, but you may be able to save meaningful dollars by doing so a little less often. If you're spending $100 per week on restaurant meals and you can cut that down to $70, you'll save $30 per week, or $1,560 per year. Cutting out drinks and/or appetizers from your order is one easy way to rein in spending.

ALSO READ: Can Casual Dining Restaurants Survive Social Distancing Rules?

When interest rates are low, as they are and have been for a long time, it can make sense to refinance your mortgage. One rule of thumb is that refinancing is worthwhile if you can secure a new loan with an interest rate at least one percentage point lower. (But crunch your own numbers, of course, to be sure.) Only refinance into a new loan if you plan to stay in that home long enough to recoup the closing costs, and be sure to shop around for the best deal.

It's a money-saving cliché, but it's still quite effective. If you're used to treating yourself to grabbing a $4 coffee every morning from a local coffee shop, you're spending almost $1,500 annually on that treat. Consider just doing so once a week or so, and brewing your own pick-me-up at home on the other days. If your home coffee costs about $0.50 per mug, you'll spend less than $200 per year for a mug a day. You probably won't lose out on quality, either, as there are plenty of coffees to choose from, and gobs of coffee makers, with at least one sure to please you.

Recession, pandemic, or the best of times -- it's always smart to live below your means. That means using coupons when shopping in stores or online, and taking advantage of sales and discounts. Most things that you'll want or need to buy will go on sale now and then, so if you can wait for the sales, you can keep more dollars in your pocket. Using websites and browser extensions such as retailmenot.com, coupons.com, and swagbucks.com, you can get lower prices, free shipping, or perhaps credit for cash back later.

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You may be able to save some significant dollars by scrutinizing your credit card statements and bank statements -- because there's a good chance you'll discover that you're paying for things you didn't realize you were paying for. For example, you might have moved to a new town, but are still paying your former gym each month, and perhaps your newspaper subscription is still charging you too. You might also discover some wrongful charges, such as for purchases you canceled. Hospitals and hotels are among the businesses that surprise many people with various charges on their credit cards.

ALSO READ: 4 Things Budgeting All-Stars Do

A super easy way to save money when you spend money is by using cash-back credit cards. Some give you up to 6% back on grocery shopping, so if you spend, say, $300 per month on groceries, you might be able to get up to $216 or so back each year. Many retailers have cards linked to them that offer up to around 5% back, while some good credit cards offer up to about 2% cash back on purchases. Being smart about your credit card use can save you a lot of money -- as long as you're a responsible credit card user and not charging more than you should.

Many of us have crammed all kinds of foods into our freezers and no longer remember all that is in there. Take a little expedition through your freezer -- and perhaps your pantry too -- and you'll likely find enough food for many meals. Each meal you make from items you've had in such long-term storage might save you $10, so you might be able to save $100 to $200 or more overall.

There's a good chance that you've not been going to your gym lately due to the pandemic, and perhaps you had not been good about going to it before that, either. Well, with many memberships costing $40 to $60 or more, canceling yours can help you keep $480 to $720 or more in your pocket each year. Invest some of that money in equipment for exercising at home, and perhaps combine that with walks, runs, or bike rides in or near your neighborhood.

We all need to have emergency funds ready with at least three to six months' worth of living expenses, and once we have that and have paid off any high-interest-rate debt, we should be actively saving for retirement. An effective way to go about this is to automate much of it, setting up your various savings accounts to receive certain sums regularly from your paycheck or bank account. You can even automate some bill-paying, to avoid ending up with late-payment charges.

ALSO READ: Only 38% of Americans Are Saving for This Major Retirement Expense

Many of these tips for saving money may not sound like fun, but this one should: Make a game of it. For example, whatever you spend this week at the supermarket, see if you can spend $5 or $10 less next week, and another $5 or $10 less the week after. If various household members share cooking duty, see who can make the least costly meal each week. Challenge a friend or family member to see who can go the longest without making a non-necessary purchase. You might even designate one or two days per week as no-spend days and see how you do.

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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

If you eat a lot of meat, you can save a lot of money by paring down that spending -- and you might improve your health while you're at it. Pasta, rice, potatoes, and beans cost a lot less than meat, and can be the basis of great meals when mixed with nutritious produce. You don't have to become a vegetarian or vegan, either -- just use less meat -- such as by favoring chilis and meat sauces over steaks and frequent burgers.

Here's another money-saving trick that can leave you healthier: Mow your own lawn. It's nice to hire people to do it for you, and those folks do need the work, but if you need to save money, you can keep those dollars in your own pocket by doing your own yard work.

We all have our favorite brands of various frequent purchases, whether it's Paul Newman's salad dressing, Jif peanut butter, Friendly's ice cream, Hellmann's mayonnaise, or Cabot cheese. There's a good chance that you would like your store's house brand version of the same items just as much -- at least for many of your purchases. Give house brands a try -- some, such as Costco's (Nasdaq: COST) Kirkland brand, are especially well regarded, and many times the company that makes the house brand makes the name brand item too.

If you're carrying any high-interest-rate debt, such as that from credit cards, you can save a lot of money -- by paying it off. Not immediately, of course. It will be a cash drain while you're paying it off, but you'll end up paying a lot less over the long run. If you're carrying $20,000 in debt, for example, as many people are, and you're facing a not-uncommon interest rate of 20%, that's $4,000 in interest payments alone going up in smoke -- each year. Pay off your debt and that $4,000 that you would have owed in the future gets to stay with you.

ALSO READ: How the Major Credit Card Companies Are Faring During Coronavirus

Leaving things to chance is often a costly move. If you can come up with a meal plan for each week, you can shop specifically for that plan and you'll have what you need on hand. You'll also be less tempted to just order take-out or delivery food, which tends to cost more. If you can save yourself one last-minute $35 food delivery each week, that's close to $2,000 saved each year!

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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Many of us have one more vehicle than we really need. If you and your spouse can get by with just one, perhaps by making more use of public transportation or a bicycle, you can save a lot by not having to pay for insurance, gas, maintenance, repairs, and maybe car payments, too, on one vehicle. Buying a used car next time you need a car, instead of a new one, can also save you a lot, and not leasing one is also the right move for many of us.

A good way to save insurance dollars is to increase the deductible on your policy. On a car insurance policy, for example, you may be able to save $100 or more each year by upping your deductible from, say, $250 to $500 or $1,000. You can even opt for a $2,000 deductible if it makes sense for you -- just be sure that you can afford to pay that amount if you have a claim and have to. Home insurance and other policies also have deductibles you might increase.

Here's a little money-saving trick when you're out shopping or even shopping online: Put something from your cart back. For example, before you check out at the department store with a cart full of clothes, choose one item (if not two), and return it to the rack. If you've been browsing an online store and have a cart full of 11 items that look good, remove one (or two). Do the same thing at the grocery store. This little trick might save you $10 or more each week, which could add up to $500 or more each year.

If you make it harder to spend money, you'll likely spend less. Different strategies are best for different people, but some have success by not carrying much or any cash on them, while others save money by leaving their credit cards at home when going out. Studies have even shown that we tend to spend more with credit cards, as it doesn't feel quite as real as spending with cash.

ALSO READ: 29% of Americans Have More Credit-Card Debt Than Emergency Savings

Finally, since it can be hard to wring more and more savings out of your life, consider bringing in more money as well. You might take on a side gig for a short while or a long while. If you find some side gigs you enjoy, it will be easier to keep at it longer. You might turn a hobby, such as woodworking or knitting, into a little business, or you might start tutoring kids virtually or offering stock photos online.

Selena Maranjian owns shares of Costco Wholesale. The Motley Fool recommends Costco Wholesale. The Motley Fool has a disclosure policy.