The record high unemployment rate and flagging economy has put much of the American public on its best financial behavior. Gone are the days of living beyond your means, in order to "keep up with the Joneses." Today, Americans spend less and save more, in addition to re-evaluating what it means to be rich. Does wealthy equal a big house with lots of possessions, or having more family time and a modest roof over your head?
If you’re still struggling to find a silver lining to this economic doom and gloom, read these six reasons to love the recession:
- Learning to live within your means — No more living off credit cards. No more living paycheck to paycheck. Americans are now hip to living within their income level. In fact, the national savings rate increased to more than 4 percent in 2009, compared to -1 percent four years ago, according to the Bureau of Economic Analysis.
- Retailers are slashing prices — The recession led many consumers to shop less, which really hurt the retail industry according to the National Retail Federation. Thus, retailers are trying to move the product out the door by slashing prices. You can find deals on electronics, automobiles, and brand-name clothing.
- Homes are more affordable — The National Association of Realtors ™ (NARS) reports that housing prices and mortgage rates are low, making this one of the best times to buy a home. And, there are a lot of foreclosures on the market. Check your state’s listings to see if there are affordable homes in your area.
- More coupons and money-saving opportunities — According to Bankrate.com, since the recession hit, 67 percent of Americans use coupons to save money on food, clothing, etc. regardless of their income. If you’re vigilant enough to clip coupons, you can save as much as 50 percent on your purchases, according to TheGroceryGame.com.
- Finding free activities — Many Americans found less expensive (or free) ways to entertain themselves. This includes staying in to eat rather than going out to dinner, or catching free concerts instead of paying hundreds of dollars for a show.
- Downsizing your home and getting closer to family — According to published reports, the fluctuating housing market has done away with the “bigger and better” mentality when it comes to homes. A study published in The Christian Science Monitor reports that downsizing to a smaller home not only saved families money, but improved their relationships as well.
Don’t get us wrong, the recession is troublesome for the American economy and hopefully the housing and job market will improve. However, the downturn has re-instilled some valuable financial lessons in Americans, and has hopefully re-established some good habits for ensuring financial success in the future.
For more information about getting on track financially, visit Military.com’s Banking and Savings channel.
