Bulk products
Buying in bulk is usually a successful money-saving strategy, but amid a recession, this strategy might not bring the desired results. “On the surface, this appears to save you money, since a dozen cans of beans or 40 pounds of rice may be less expensive than buying individual units,” says Dennis Shirshikov, senior financial analyst with Fit Small Business. “However, most families struggle during recessions due to cash-flow issues rather than cash shortages. Tying up significant capital in bulk purchases is less expensive on average, but it means that if something comes up, you may not have the money to cover the expense.”
It would be great if you could pay in peanuts and pretzels, but since that’s not the case, it’s better to have some cash reserves for troubled times.
See also: 8 Pantry And Freezer Items You Can’t Go Wrong Buying In Bulk
Silver or gold
During a recession, precious metals are seen as more solid investments than stocks, for instance. Gold is usually the first choice, with silver a close second. But do these precious metals really hold up during an economic crisis?
According to Howard Dvorkin, CPA and chairman of Debt.com., now it’s not the best time to invest in gold or silver. “If I had a dime for every time one of my clients asked me, ‘Should I buy silver or gold during a recession?’ I still wouldn’t buy or invest in silver or gold. Precious metals do skyrocket in value during recessions, but silver and gold don’t help you when you have bills to pay,” he says.
