How to economize without losing your head

By now you should be aware that it’s official: The National Bureau of Economic Research said the US has been in recession since Dec. 2007. However, like many, I have managed to survive the recession so far. Here are my tips for calling the shots and saving my pockets this holiday season:

1.Rethink your expenses. This is a must. Start off with your credit cards. Don’t use them unless it’s an emergency. If you can’t buy something with your debit card, it means you cannot afford it on credit. Make sure that you are paying at least the minimum, that way your credit is not affected. Once you are able to stave off this crisis, you can increase the monthly payments. If you have any other monthly charges which you can live without, get rid of them. These are dry cleaning bills, house cleaning bills, and pet grooming (you can groom Fido yourself). Also seek different shortcuts or bargains for those expenses you don’t want to skimp on, like manicures (who needs a pedicure in this weather) and haircuts. For some people it’s a trade off. I rather keep my monthly donations (ASPCA, WWF, etc) than get expensive manicures and haircuts.

2.Sacrifice your mode of transportation. This is for city commuters. Don’t take that taxi unless is absolutely necessary, use the metro or subway, have an umbrella at all times and walk more. You will be glad you did. It is healthier and you are forced to do more thinking, which in many cases, helps you sort out problems and tackle your next big plan.

3.Personalize and budget gifts. This holiday season, put extra care and thought on the way you give. Survey those friends and family members you are planning to gift, and ask them to rate the gifts they would like to receive. You can send an email asking them to return it to you. Possible choices to include in the survey are gift cards (specific stores), itunes certificates, books (make sure you know their taste), kitchenware, clothes, home accessories, or things you already have in mind for them. The point is to save money by hunting for the special gift and giving them something they want and find useful. Make holiday shopping a good experience. Hit the stores early in the morning, wear something comfortable and have your IPod on. Enjoy, the holidays are only once a year.

4.Eat in. That dinner will cost you more than a week of groceries. So make a list and buy food you can prep at home. Buying vegetables and greens for salads and wraps it’s a healthy way to keep calories on check. Having a bowl of healthy cereal, a banana or an apple and coffee in the mornings helps control your hunger and stabilizes your metabolism. Don’t be afraid of trying a little cooking too, like rice, beans and grilled fish. Make it fun by drinking a glass of wine while preparing food and listening to music. This ritual twice a week warms up your place. Invite friends over for holiday cocktails, all you need is a few appetizers, wine and good conversation. There are plenty of websites you can check to help guide you through one of this fetes as well as channels like the Food Network. In harsh economic times, your home should be your retreat, so make it inviting.

5.Who hasn’t Netflixed? It’s nice to go to the movies with friends and make it a social gathering, but I suggest Netflix for regular moviegoers. The savings are big. For about eight dollars a month you can view up to 5 movies at a time. Invite your friends over, ask them to make a small contribution, and you can enjoy any movie of your choice with wine, some popcorn and something sweet. You can also rotate houses and make movie suggestions as well. This, of course, is for serious movie buffs.

6.Do little things around the house. If you cannot live without candles, then don’t, just buy in bulk. Tealights are a good choice and are not messy. Things like, putting the shower liner in the wash cycle and hanging it back to dry are cheaper, than buying a new one; turning off the TV and lights helps reduce electricity bills, especially if you are having the heater on this winter. The point is to be conscious about consuming less. Once you get into this state of mind, the rest is easier.

7.Find innovative ways to make money. Tools like E-bay, and craigslist are great places to sell your unwanted things. Also, if you speak another language, you can offer classes, or if you like pets, you can consider pet-sitting. For ex., this month I am going to bake brownies and sell them at my job’s cafeteria. Just be creative and don’t stress either.

8.Consider brewing your own coffee. I started doing this and it is so much cheaper. Brew coffee in the morning and just take it in a thermos or sealable cup to work. You will have fresh coffee the whole morning without even leaving your desk. Now that’s awesome.

9.Some reading materials are not created equal. Consider free newsprint. In major cities, they are everywhere. Also I rather subscribe to certain magazines than buy them in the stands. Yeah, it’s nice to stop at a newsstand and buy a magazine on your way to work, but believe me, if you have a defined choice of read, it’s cheaper to subscribe. I receive Time Magazine and save about 66% off the cover. I am now considering an Oprah Home subscription for about $10 a year, or 50% off the cost if I were to buy it in the stands for the same period. Now that’s a good splurge.

10.And finally, be thankful that you still have your job this holiday season. With unemployment at a 16-year high, you should not be complaining. Thousands more will lose their jobs this month. Ouch.