Smart Spending: Things We Still Buy in a Bad Economy

October 27, 2011 by  Filed under: Loans 

Tough economic times teach us tough lessons about budgeting and smart spending. However there are things that we still continue to buy regardless of tight financial situations. We analyzed specific industries and products which still continue to hit record sales. Hopefully this will encourage consumers to be smarter about their purchasing habits and cut unnecessary products out of their life to keep from going deeper into debt.

During bad times – whether it be financial or job related distress, Americans often turn to sordid, cheesy paperback novels (usually found on grocery stacks) to escape the reality of their problems. Sales have shown that the four years before the recession occurred, romance novels were very low, almost flat lined figures. Then, a spike in sales hit in 2009 specifically, people were buying romance novels and sales went up seven percent. This may be reflective of the cheap prices, on average 8 dollars or less for each book. Steadily, this trend is seen at Barnes and Noble; even with overall decrease in revenue, romance paperback books remained steadily chugging onwards.

Next, a product that is almost recession-proof are nail polishes. Inexpensive beauty products have been on the rise and sales are up an astonishing 65% since 2008. People are addicted to trying new colors, coordinating hues with their outfits, and it’s a quick and flashy fashion statement. More importantly, nail polish costs are relatively low compared to other beauty products, which may influence its popularity despite the recession.

It’s no surprise fast food chains are doing so well in a poor economy. We turn to cheap, fast food and these fast food restaurants are not only surviving, but booming and opening up everywhere. McDonald’s has experienced an estimated 5% growth in revenue since last year.

Halloween is fast approaching and the next item on our list is – you guessed it, Halloween costumes. It seems that dressing up for Halloween is something Americans still cherish and continue to do despite buying costumes don’t come cheap, and can only be worn rarely year round. Generally, Halloween spending declined by $1 billion dollars in 2009 but in 2010 it made a comeback with $7 billion. This idea kind of parallels romance novels. Maybe people want to dress up to escape the dismal economic state.

Lastly, a bad economy nurtures lottery sales, which increased $1 billion from year to year since 2010. Looks like people still don’t lose that wishful thinking state of mind in times of financial hardship. What we really need to be aware of is the rising number of personal loan applications. Knowing how to budget our finances is a big step and buying the items above when not completely necessary illustrates that Americans can be smarter about their spending habits.

Free-lance writer with a passion for Writing and Research.
Amanda Rodriguez
Smart Spending Habits

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