Back to Basics: 4 Ways to Recession Proof Your Life

Recent labor statistics indicate that more U.S. workers are putting in for jobless benefits than expected. Meanwhile RealtyTrac, an online property database, reports that foreclosures are up 21% more than last year at this time.

Time for you to recession proof your life! Here are some ways how:


STOCK UP ON CASH 
A contingency reserve is a must-have right now. If you don’t have at least three to six months expenses stashed, get more aggressive about saving. Cash equals power in a recession. Also, using cash is a tried-and-true way to save and live within our means, since unlike credit cards, we can actually see how much we’re spending. Credit experts say we tend to overspend by 20% when we use plastic. What’s more, in smaller stores, local mom and pops, using cash can sometimes score you discounts. Business, stung by the bank’s 3% credit card interchange fee, would much rather you leave your credit card at home. This strategy works best at gas stations, the local tailor, repair store, beauty salon and deli, small-sized shops where that interchange fee can really take a toll.

SHOP SIMPLE
Buying generic pharmaceuticals and filling your grocery cart with store-brand products instead of upscale labels can help save up to 50% on everyday goods. Considering the average two-person household spends $200 a month on groceries, a single person could save a quick $50 just opting for basic brands. As for pharmaceuticals, we pay an average $85 more for name-brand. By switching just one monthly prescription from a brand name drug to a generic, you could save more than $1,000 a year. Not sure your drug has a generic ? Ask your doctor or pharmacist.

MILK YOUR HOUSE
Our homes may have lost value in the last few years, but there’s money to be made and money to be found under our roofs. Your home can be a source of free entertainment, revenue and savings, especially in a recession. Here are five places to find cash in your house. 

1. Your kitchen. Use it! Reduce your eating out habits in half, since families spend more than 40% of their food budget on dining out, according to Consumer Reports. Save at least $100 a month. 

2. Your garage. Your car is source of savings. Empty out the trunk, inflate the tires, share trips and drive a little bit below speed level, all to keep your car fuel efficient. You can reduce your fuel costs by up to 30%.

3. Your extra bedroom or finished basement. Get a roommate or take on an exchange student. Earn anywhere from $300 and upwards per month, depending on your neighborhood.

4. Your overflowing closet. Unwanted clothes, handbags and lightly worn shoes from your closet—preferably with price tags still attached—price well at second-hand, vintage or used clothing stores. In this economy, resale shops are getting tons more items, as folks look to turn their unused garments into cash. Bring in items that are still in style. Depending on the store’s policy, you can generally earn up to 50% of the resale price. 

5. Your couch. America could be $10 billion richer ($90 per household) if it simply cashed in all the loose coinage lying around, according to Coinstar (Stock Quote: CSTR), which operates coin machines in more than 15,000 supermarkets worldwide. It costs 8.9% fee to convert coins to bills, but free when turning coins into a gift card or gift certificate. Commerce Bank’s Penny Arcade machines are free to use - but are only available in some states.

CREATE A SECOND INCOME.
With unemployment at 6.1% and increasing, it’s imperative to create extra revenue streams for yourself, or at the least, invest in learning new skills that can make you a more competitive job applicant. (Also if you keep busy you won’t spend money.) You can even make money by investing more of your free time in income-generating activities. Think of a clever way to monetize an activity or hobby you’re already doing. For example, if you have Web skills, consider freelancing on the side to help people with their Web sites and blogs. You can do this all from the convenience of your home. If you have a knack for cooking, offer to cater friends’ parties. Sell items on eBay.com (Stock Quote: EBAY)or have a garage sale. 

Babysitting, tutoring, teaching an aerobics class on Saturdays, proof-reading college essays, etc. This tip also forces you to think as an entrepreneur, to take more control of your career path, and in this uncertain economic and job market there’s no better time than now to reevaluate and redraw your professional future.

Indian Retail

I think my mother would die if she walked into a store to find the aisles narrow and the shelves that should fit 50 items holding 75.  But this is the norm in India.  In fact many hypermarket retailers deliberately outfit their stores with narrow aisles and overflowing display bins that simulate the feel of open-air markets common in India.

The bazaar-style shopping is so common that organized stores only account for 4% of India’s $322 billion retail industry. This percentage is expected to increase to 22 of $427 billion by 2010.

The difficulty with retail in India is the country’s diverse population and distinct regional cultures. When you say Indian consumer, there is at least 10 distinct consumers. Cultural and religious preferences influence how a consumer and region shop. For example, types of rice and how people buy it differs in the north and south. In the north, rice is sold in open sack so consumers can inspect the goods. In contrast, in the south rice is common staple and sold in sealed packets.

Tiny, crowded, hole-in-the-wall neighborhood shops have an advantage over “organized” retail. Small shopkeepers know their customers personally, offer free home delivery, let customers order by phone and keep a tab. It is not uncommon for a CEO to order his groceries over the phone and pay the bill at the end of the month. Personal service has been traditionally favored, and it is the cultural custom that the large foreign box stores are having trouble competing with in India.

Not only is India emerging as a luxury retail leader, it is also attracting retailers from around the world, especially the West. Foreign retailers that are expected to enter the Indian market include: Germany’s sporting goods company Adidas, UK’s health and beauty company Alliance Boots, fast fashion retailer Topshop, American grocery store Kroger, French hypermarket Carrefour and Dubai’s Max Retail. These retailers are not interested in opening just one store, but rather anywhere from six to several hundred. Adidas plans to open 6 of its Originals stores, while Alliance Boots hopes to be in over 300 units. Along with expanding the international retail presence within the country some Indian corporations like jewelry company, Tanishq, are venturing outside India. Within the next several years, Tanishq plans to open 25 stores in the United States.

As India continues to gain economic power, debate over whether to encourage local and traditional, or foreign and modern retailers also gains importance as an often-controversial topic. While many Indian consumers greatly oppose organized and large retail and prefer local markets, there are others that believe that those same retailers are necessary to the betterment of the country. For example, in the western state of Maharashtra, local farmers are developing their own chain of grocery stores where they will sell directly to the consumers. Additionally, local neighborhood merchants, known as kirana stores, are hoping to have legislation passed that would help ensure their protection and longevity amidst the competition from the new malls and large-scale retailers. To help these small retailers, mall developers are also using different methods of rent models, where rent is determined by either percentage of revenue or a set minimum rent, whichever is higher.