The other night I saw a clear sign that our economy is still in a bad place.  On the way home from church, I saw a multi-story building that used to be owned by Wells Fargo is now owned by LeeBankruptcy.com.  I stopped and grabbed a quick photo just for proof.

I had been thinking that the economy was not as bad as the news media has been making it out to be.  There are certainly problems out there, but I have been selling non-essential items right and left on Craigslist.  In a down economy who pays $150 for a Stroh’s pool table light or $250 for an antique pool cue?  If the economy is so bad why are restaurants and movie theaters full?  For a good number of us, it comes down to the daily choices of how we spend the money that we make.

I’m not bragging when I say that our family enjoys a pretty comfortable existence even in a tough economy.  Before things got tough we were already living within our budget, were watchful for areas where spending could be cut and had some reserves in place.  We already had a diverse set of ways to make money on the side to add a little padding when things got tight.  So, what adjustments might help in a lagging economy?

Embrace Change

A crappy economy is the perfect opportunity to make big changes in your life.  Lifestyle inflation catches us all by surprise at some point in life.  Earlier this year I wrote about my shock in discovering how much money I was spending on eating out and what it was doing to my body.  That was part of my lifestyle inflation. Writing down every penny you spend or creating a budget to live by is a great way to monitor for lifestyle inflation and really examine where your money is going.

Many of us now consider luxuries to be necessities.  Take TV for instance.  Many people consider cable or satellite to be a necessity.  I would think that should be among the first things to go.  If you are in a debt hole you don’t have time to watch TV.  You should be hustling every hour of the day. A tough economy gives us a chance to really look at the homes we are living in, the cars we are driving and the activities we are participating in.  Purging the items that are draining us dry can be one of the most freeing activities possible.  I think that is why we all enjoy the stories about people who sell everything they have and go travel around the world.

Avoid Sparkly Things

There are certain news channels and personalities who are constantly touting gold as a solid investment.  It was a solid investment 10 years ago.  Recognize that those personalities and news channels are getting paid to give you that advice.  Buying precious metals when they are at record high prices is a dangerous bet.

My friend Rich, who I’ve written about before, is a GENIUS!  When I was a young 21 year old kid he took me to his gold and silver dealer and told me to buy some silver and gold coins and bars.  I plopped down $1,500 on some silver.  At the time, silver was just under $4 an ounce.  Today’s spot price on silver is $27 and it has been up around $36 just a few months ago.  There are few things you can buy that will be worth 6x what you paid for them in ten years.  The time to buy precious metals is when they are low, not high.  The odds of someone buying gold today and making a profit are slim at best.

I think the only exception to my sparkly things suggestion is buying scrap silver and gold at garage sales.  If you’ve had a garage sale recently you probably know there are people who will come through and ask if you have any jewelry or silver dining ware.  As an example, it’s not unusual to pick up a set of silver dining ware for $200 at a garage sale.  Sterling scrap is currently going for $0.70 a gram, making that set worth anywhere from $500 to $1000 in scrap value (depending on the number of pieces in the set).  Obviously you need to know what you are looking for when buying gold and silver scrap, but there is money to be made for the educated.

Make a Side Hustle and Talk About It

Some people will need to get a second job to keep the bills paid.  And that is good and honorable.  Other people will want to establish a side hustle (or two or three) to keep some extra money coming in.  I have found that my side hustles lead to more side hustles.

Writing this blog is a side hustle.  I have always loved writing and apparently a growing number of people enjoy reading what I write.  But let’s be honest with each other.  It takes time to write this blog and time is money.  The advertisements that you see on the page make a bit of money when people see something they are interested in and click the link.  The items in my little Amazon store make a bit of money when people buy them through my link.  There are services and products that I use and believe in that I write about on this site.  When you buy them through me, I make a bit of money to pay for this blog and the time I spend writing it.

But that’s not the only money I make from my side hustle.  I’ve setup a few websites and blogs for people who know I can setup basic websites and do some SEO work.  I’ve been paid to offer my consulting services for some website owners.  I’ve written about my Craigslist activity enough that I now sell items for other people and take a percentage of the sell.  We’re not talking crazy money on any of these activities but it’s enough to pay some expenses and pad the savings account a bit.

What do you do that you could use to make a little money on the side?  Would people you know be interested in paying you to do those things for them?  Look for things you can start up on your own without much of an upfront investment.  Watch out for any ‘business opportunity’ that wants you to pay money to get started.  In a down economy there are a lot of predators look for desperate people.

Exceed Minimum Wage

One of the blogs I follow, EdwardAntrobus.com, wrote a post about living on minimum wage in the USA.  His post included an excellent simulator for the tough choices that someone making $7.25 an hour would face.  I encourage you to read Edward’s post and try out the simulator that was created by Urban Ministries of Durham – Read the post / Try the simulator

Final Thoughts…

People find themselves in financial struggles for a number of reasons.  One stay in the hospital can create debt that will take years to pay off.  Restructuring by major businesses can cost people their jobs.  Any number of setbacks can impact us.  But there are still a good number of us, my family included, who can constantly be examining spending choices and financial decisions.

What ideas or strategies do you use?  I would be really interested to hear them.  Share them in the comments section below.  Also, the more people who are in the conversation makes it more interesting.  By sharing this post using the buttons below we can open this conversation up to a diverse set of life experiences.  Thanks for reading!

Disclaimer: I’m not a financial adviser, just a Dad.  This post is for informational purposes only and contains information based on my personal experiences.  Always do lots of research before making any financial decisions for your family.