How to Reduce Expenses and Stay Financially Sane During a Recession

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Let’s be real—recessions are tough. Prices go up, income might shrink, and suddenly the little luxuries we used to enjoy feel like distant memories. If you’re feeling the squeeze, you’re not alone. But here's the good news: a few smart tweaks to your spending habits can help you stay afloat (and even thrive) during uncertain times.

Here’s a no-fluff, down-to-earth guide to reducing expenses without losing your mind.

1. Get Cozy with Your Budget

First things first: know what’s coming in and what’s going out. Track your spending for a month—every coffee, every subscription, every impulse Amazon buy.

Tip: Use a budgeting app like YNAB, PocketGuard, or even a simple Google Sheet. When you see where your money goes, it becomes way easier to cut what you don’t need.

2. Cancel, Pause, or Share Subscriptions

Streaming services, fitness apps, subscription boxes... they add up. Be honest—are you really watching all those shows or using that meditation app?

Human hack: Keep one subscription at a time. Rotate monthly if you can’t part with them entirely.

3. Cook More, Order Less

Yes, cooking can be a hassle—but your wallet will thank you. The average takeout meal costs 3–4x more than a homemade one.

Try this: Batch-cook on Sundays. Make meals you actually want to eat. Bonus: it’s healthier too.

4. Refinance, Renegotiate, Reevaluate

Got loans, insurance, or monthly plans? This is the time to shop around.

Refinance your loans if interest rates are favorable.
Renegotiate with your internet provider or credit card company.
Reevaluate what services you really need.

You’d be surprised what you can get just by asking.

5. Embrace Secondhand and DIY

From clothes to furniture to tech—buying secondhand can save you hundreds. Check out thrift stores, Facebook Marketplace, or refurbished deals online.

Also, YouTube is your friend. Need to fix a leaky tap or hem your jeans? There’s a DIY tutorial for that.

6. Make Fun Free (or Almost Free) Again

You don’t need to spend big to enjoy life. Game nights, park picnics, free events, YouTube workouts—there’s plenty of low-cost joy out there.

Pro tip: Turn it into a challenge. How much fun can you have for under $10?

7. Start a “No-Spend” Challenge

Choose a week (or a month) and commit to only spending on essentials. It’s eye-opening, empowering, and even a little fun.

Track your savings at the end—it might just become a habit.

8. Side Hustle (But Keep It Healthy)

If your expenses are as low as they can go, consider boosting your income. Freelancing, online tutoring, selling handmade stuff—there are options.

But remember: your time and mental health are worth more than a few extra bucks. Don’t overdo it.

Final Thoughts

Recessions aren’t forever—but smart money habits can be. Tightening the belt doesn’t have to mean deprivation. It can actually be a path to more intentional, empowered living. And who knows? You might come out the other side even stronger.

The Financial And Tech Literacy