There’s no question that a recession changes the way we spend money. In fact, it can completely alter the way we live our lives. When times are tough, people are forced to make difficult decisions about how to allocate their resources. This often includes cutting back on spending and finding ways to save money.
But first, let’s dive into the last recession in 2008. The Great Recession was a time of financial hardship for many people. Many lost their jobs, homes, and savings. It was a difficult time for everyone.
People became more cautious with spending
In the years following the recession, we saw a change in the way people spent their money. People became more cautious with their spending and began to save more. We also saw a rise in the popularity of frugal living. People began to search for ways to save money and live a simpler life.
The recession has changed the way we spend money, but it has also changed the way we think about money. Before the recession, people were more likely to spend money without thinking about it. But now, people are much more mindful about their spending. They think about what they really need and what they can live without.
What businesses take a hit during a recession?
Businesses that are considered luxury items or non-essential items are usually the first to take a hit during a recession. This includes businesses like clothing stores, jewelry stores, and electronic stores. We often see a decrease in spending on these types of items during a recession. However, there are some exceptions. For example, people may continue to spend money on clothing if it is necessary for their job.
We also see a decrease in spending on travel and entertainment during a recession. This is because people have less money to spend on discretionary items. Businesses that provide these services often suffer during a recession.
What businesses thrive during a recession?
Interestingly, some businesses actually do quite well during a recession. This includes businesses that provide essential items or services. For example, we typically see an increase in spending on groceries and healthcare during a recession. This is because people need to continue to purchase these items even when times are tough. Entertainment businesses such as online casinos, cinemas, and strip clubs see a rise in customers during a recession.
We’ve talked to Igor from Electric Gambler who says the following about gambling during a recession:
“People are looking for ways to escape the reality of a recession. They want to have some fun and take their mind off their financial troubles. This is one of the reasons why we see an increase in business during a recession.”
So, what does all this mean for the future?
It’s difficult to say exactly how the current recession will change the way we spend money. However, one thing is for sure: it will have an impact. We may see a rise in frugal living, a decrease in spending on non-essential items, and an increase in spending on essential items. Only time will tell how the current recession will change the way we live our lives.
Do you have any tips on how to save money during a recession? Let us know!