It’s that dreaded R-word.  The question haunting politicians and average Americans - are we in a recession?  To middle America, sky-high gas prices, groceries, heating bills, and adjustable mortgages sure feel like a recession, even if Ben Bernanke and the politicians in Washington won’t admit to it.  If you’re feeling the pinch, the economic data show that you are definitely not alone.  According to today’s Wall Street Journal, the retail sector suffered its worst holiday season since 1991.  Even higher income Americans are feeling the pinch, with American Express reporting that its more affluent customer base have been slower to pay their charge card bills.

I was shocked when I walked into the Safeway the other day and saw a dozen eggs for $2.39.  I thought I was in the organic egg section.  But no, that was the price of a carton of regular large eggs, which has basically doubled in the last year.  A gallon of milk, at $4.00, has also shot up in price.  I don’t need to remind you of the astronomical increase in gas prices. 

 Now, has your salary doubled?  Probably not.  But there are a few things you can do to lessen the pain while the politicians continue their academic debate over whether there even is a recession.

• Go through all the clutter in your home.  There are two benefits to this:  one, you find out exactly what you already have.  I can’t tell you how many times I have gone out to buy an item I thought I needed, only to run across something very similar at home later.  You’ll also uncover items like unopened DVDs, clothes hardly worn, and other toys that will stave off a desire to go shopping and add to the clutter.  Additionally, what you don’t want can be collected and donated to Goodwill or the Salvation Army for a tax deduction.
• Collect all your spare change in the house and go to the local bank to exchange it for cash.  Don’t use Coinstar - it charges a steep 9% commission on your change.  This may seem a bit like penny-pinching, but it’s not.  I bet you have at least $50 to $75 in loose change all over the house, in the bottom of your purses or bags, and under the sofa.  If you found $50 on the sidewalk, you’d be excited, right?  This is a no-brainer.
• Audit all of your monthly expenses.  In addition to the obvious candidates, like brown-bagging your lunch, take a look at those regular monthly charges for your cell phone, internet service, Netflix, gym membership, etc.  My husband and I had switched to a cell phone plan with a lot more minutes because I was traveling on business frequently and used the cell phone for long business calls.  Now that I am not traveling as much, we looked at our cell phone usage and discovered that we had over 5000 rollover minutes from last month!  We agreed that it was definitely time to downgrade the cell phone plan.  We also discontinued the Netflix service, because the DVDs would sit next to our TV for weeks at a time.  We had good intentions, but with our busy schedules, it was frequently difficult to sit down and watch a two hour movie often enough to justify the Netflix service.

Saving a bit of money here and there may seem trivial, but, believe me, it adds up.  Why else would a $157 billion company like Bank of America decide to cut off hand soap and sugar-free hot chocolate to employees?  If you have any tips to add, feel free to post them here.