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6 Recession Tips in 60 Seconds; Pay off in full; Eat broccoli; Cycle; Use open source; NZ$10 haircuts; Use the library

Posted in News

Bernard Hickey details 6 fresh tips in 60 seconds to beat the Great Recession. Many thanks for your tips from last week and we welcome any fresh ones in the comments below. We'll do one of the 6 Recession Tips in 60 seconds once every week until the end of the recession.

This week they include:

1. Pay off your credit card in full every month.
2. Get a NZ$10 haircut. Thanks to jh
3. Cycle to work.
4. Love broccoli and use the florets and stems for 2 separate meals. Thanks to Les Rudd for that.
5. Open source everything. Thanks to Steptoe for that one.
6. Use the library. Thanks to a suggestion from Bryan Spondre for that. He's a big fan of libraries.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment in the box on the right or click on the "'Register" link at the bottom of the comments. Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making these comments.

Buy a hen. If the

Buy a hen. If the depression gets really bad you can trade the eggs for goods, if we get hyperinflation you can trade them for a wheelbarrow of cash :-)

Which you can then use

Which you can then use as toilet paper... :)

I can vouch for The

I can vouch for The Cutting Crew. They do a great job with women's haircuts for $25.

Why stop when the recession stops? They're good habits to keep for life. Here are some other ideas in no particular order:

Sell your unused stuff. Are you renting/paying a mortgage for a big place just to store all your crap?

Don't buy more stuff.

Store brand products are just as good (sometimes better) than the 'fancy' brands"”don't be a brand snob.

Supermarkets have really good deals for foodstuff with limited shelf life"”first thing in the morning (meats) or very late at night (bakery).

Cook in bulk"”refrigerate some for next day's lunch and freeze a portion for future lunch/dinner when you feel too lazy to cook. No excuse for a takeaway now. ;)

Don't stop putting money into your savings account"”even if it's just a nominal amount.

Try a different cut of meat for your Sunday roast. I like pork hocks"”cheap, meaty and delicious.

Tuck into a hearty breakfast. Otherwise this will force brain into making silly financial decisions. Coffee alone does not count. No time? Keep some breakfast stuff at work and eat it then.

You don't need to use *that* much shampoo. Or handwash. Or whatever the manufacturers recommend.

Try a navy shower. May be daunting in winter time, but what's your excuse during summer?
http://lifehacker.com/software/environment/conserve-water-and-save-money...

Do you spend enough on your credit card to justify the 'rewards' program? Otherwise nix it and use that money to pay your annual fee instead.

Are you overinsured? E.g. if you're generally healthy just get coverage for the major stuff like operations and cough up for the occasional GP visit.

Wear glasses/contact-lens wearer? Buy online and save more than 50%.

Reuse greywater (dish washing, laundry and bathing)
http://www.smarterhomes.org.nz/water/re-using-greywater/

Generate some income by starting a small side business
http://www.thesimpledollar.com/2009/04/11/50-side-businesses-you-can-sta...

Use Skype for international calls instead of the landline.

Board games are a really, really fun option for a night in with family/friends!

Invest in your career.

Expand your skill set or learn something new. Give the community education option a go"”or earn some extra money by becoming a tutor.
http://www.xtend.co.nz/communityed/

Repurpose your disposables
http://www.recyclethis.co.uk/

Especially on cold winterdays invite

Especially on cold winterdays invite families, friends and neighbours and cook meals, together. It saves a lot of money = less power, time, grocery. Rotate regularly so every family can save power (money) in not have to cook and heating the house.

Alternative to Skype would the

Alternative to Skype would the phone cards that you get at the dairy. Not everyone would be on the computer

I would agree about using

I would agree about using open source, but only to a point. Open source doesn't come with any support, apart from other users on forums, who may or maynot chose to help you. So if you were a business, and were setting up a shopping cart, to configure it and get it working may take you substainally longer, than paying for a commercial version, and also tends to be more frustrating. Also if the shopping cart breaks in after a month, your business could be losing business while you try to fix your open sourcce shopping cart, unlike a commercial vesion, where you have that commercial grade of support. There have been some research about open source vs commecial software, and when taking into consideration costs in time and frustration with open source, commericial software ends up being lower cost in the long run. I set up shopping carts, and used to use open source ones like os commerce and zen cart, but have moved to commerical versions, as they work out cheaper and more robust in the long run, and you have the company to fall back to who are accountable to fix any problems.

<i>Su Yin Says: April 24th,

Su Yin Says:
April 24th, 2009 at 10:27 pm

Wear glasses/contact-lens wearer? Buy online and save more than 50%.

That is a very dangerous and potentially costly suggestion. I know someone who did that by purchasing cheap galsses online, and they damaged their eyesight with the glasses as they were not the right prescription. There is no accountability with these overseas online companies.

I disagree on open source...just

I disagree on open source...just choose your appilcations carefully.
Apache, php, perl, hmailer, squirrel, phpnuke and mods.
Full webserver, mailer server webmail server, and web site that is reliable and solid, and last for yrs...or at least till the MB or HD dies.
And loosing business while trying to fix...an old saying, "he who makes a back up laughs last" If hacked or HD goes down, run the backup and back in business in around 10 mins.

Some power saving tips: 1)

Some power saving tips:

1) After Boiling the jug store the left over water in a thermos for use later.
2) use your microwave more instead of the oven.
3)Turn the thermostat down on your hot water cylinder to lowest temp.
4)use an electric blanket on the couch and a blanket around your legs instead of heating the whole house.
5) Get rid of the old fridge/freezer in the garage they are the biggest power guzzlers ever.
6) Make sure you are getting the cheapest electricity deal here:

http://www.consumer.org.nz/powerswitch/

@Rob & Steptoe: let the

@Rob & Steptoe: let the open source v proprietary battle begin :-)

At interest.co.nz we use an open source LAMP solution running on a VMWare ESX virtual server solution from Webdrive supported by open source gurus Automatem. We have found this a very robust option.

The VMWare ESX virtual server is great: on a couple of occasions we have been able to address massive increases in load demand with a simple phone call to Webdrive requesting a doubling in processor resources.

While the rest of the team do use Microsoft Office Excel for it's heavy lifting capability I use Open Office and find it works with Office 2007 documents perfectly.

<i>Rob Says: April 25th, 2009

Rob Says:
April 25th, 2009 at 1:05 pm

That is a very dangerous and potentially costly suggestion. I know someone who did that by purchasing cheap galsses online, and they damaged their eyesight with the glasses as they were not the right prescription. There is no accountability with these overseas online companies.

Maybe I should clarify and say buy your frames online and get the lenses fitted by your optometrist.

There are a number of local companies and my coworkers I have bought contact lenses from them"”no problems. Like everything else, do a bit of research first!

Oh, please... Spare us from

Oh, please... Spare us from the open source bigots at least here... Is it really a place to discuss this?

Since when VMWare ESX server became Open Source software???

Rob's reasoning on both software and glasses is quite solid, just be warned.

Attitude to get something for nothing just amazes me.. Switch from "spend less" to 'earn more" side at last, for our own sake...

Cycle to work, switch off the lights, stop using the plastic rubbish bags never buy a new car, what a "great" ideas (why all those billions of people before us tried to get out of caves, idiots?..) sorry, just could not pass by silently..

Open Source software has no

Open Source software has no support is false, but I agree this is really no place to discuss this.
I support a New Zealand website that can and does turn over 100K an hour, there is a place for both, highly depends on the actual technology in question.
I see you run PHP here, great and fast...but never has been secure has it ?!

Steptoe, ask Guardian Angel, or

Steptoe, ask Guardian Angel, or TradeMe, or any ISP who hosts hundreds of thousans mailboxes, or banks, what is their cost of 10 minutes outage... And will they be able to restore their systems in 10 minutes from backup "when HD goes down".. Sorry I am assuming you will get an honest answer..

Get a trusted forensic accountant

Get a trusted forensic accountant to go over your banking records. There has been some horrendous cases of overcharging of interest in NZ financial history.

i'm in melbourne and there

i'm in melbourne and there are plenty of places who have dropped mens haircuts to 9.95. I was pretty peeved though last friday when I handed over a tenner and had to ask for the 5c change (the tight hairdresser was hoping I wouldnt ask I think). So to extend the savings i recommend
- for all purchases make sure you get the right change back (every little bit counts, if its a 9.99 cut and there are no 1c coins in the currency you deal in then ask if you can accrue so after 5 cuts you can get the whole 5c)
- for haircuts, go for a number 1 so they last longer.

James Great to see you

James
Great to see you have a Scottish heart! Wins every time, like my Granny never missed a cent. She also said penny wise pound foolish,its sad the way many children miss out on time with grandparents.

A great source for (mostly)

A great source for (mostly) Open source software is http://www.freshmeat.net, for instance put in Word and up pop lots of alternatives....want a CRM system? do the same....You will find that some of this is commercial/shareware, but its often a lot cheaper than "tier1" and you can usually try it for free. One thing to look for is its updated date, this should be recent suggesting its actively looked after, and also a mailing list, a great way for free support which is just if not more important.

Libraries: These are also a good way to help the planet....re-use....

Passerby: check out what the NY Exchange runs on....how much do you think they would lose in a 10min outage? Also ESXi is indeed available as a "free" download http://www.vmware.com/download/esxi/ but its not for the faint of heart.

....Do you really think the likes of Trademe rely on one hd? dont be silly....Once you get >2TB restoring that amount of data is hard work and takes time, what ever the OS or backup software.....So you clone and/or snapshot the disk sets....the OS then does not matter....but you just paid EMC etc $6k+ a TB....

Its true, if only Gordon

Its true, if only Gordon Brown had spent more time with his Scottish Gran & Da. Bet he's in for a right bollocking when he moves on to a higher place. But then again perhaps it's all a brilliant Scottish plot to avenge the past - Braveheart2.

Gordon Brown's wife hires clothes

Gordon Brown's wife hires clothes to save money but he is happy to blow millions. 'penny wise pound foolish'

@bernard - If you paid

@bernard - If you paid $10 for that haircut Fair Go could probably get you a refund. Maybe even damages.

don't put your clothes on

don't put your clothes on the washing line - bang them in the dryer, there are more productive things to do with your time than faffing around.

drive as fast as possible to the speed limit (safely of course), consume heaps of gas but it is nice getting pole position at the next set of lights - feel good factor is worth it alone.

spend more by transferring money from one account to another, it's a waste of money but when you look at the end result of nicely rounded numbers it is easy to see your financial position at a glance

when your council issues revaluation notices, some people object to bring the assessed CV value down to save on rates, hmmmm...

i objected to bring the valuations up - was a very quick way to earn over $500K (on paper) to start the year off, and my rates still lowered.....

be nice to others (i can even extend this to BH for a great site even if our property predictions are at odds with each other) - Thanks Bernard...

Steven, I should have conveyed

Steven, I should have conveyed my sarcasm a bit more clearly...

I do not want to waste others time and go into details of difference between "free" software and "open source" software, but please check this for yourself. Giving away ESX for free does not make it an Open Source software. Please be precise in your argumentation.

I did not mention what kind of software the "Guardian Angel, or TradeMe, or any ISP who hosts hundreds of thousans mailboxes, or banks" use to their advantage. You wrongly assumed that I meant Closed Source. I did not give the list as an example of superiority of Closed Source over Open Source (that would have been quite a weak argument which you so easily reacted to mentioning NY Exchange). I was only referring to restoration times.

In your post you are referring mainly to Fault Tolerance, not data backup/restore, which is not the same (think about a requirement to keep copy of your data offsite, just for instance). Indeed, the difference is quickly disappearing, with utilization of geographically dispersed SANs, replication of the storage across data centres, etc. But you do not assume that Steptoe was referring to THAT kind of backup in his post do you?

And again, this is the last thing I wanted to do, distracting readers of this blog to technical intricacies of the information systems.

The only reason I posted was to try and draw their attention to what concerns me, namely treating Open Source software first, as panacea for all (technical) problems in IT, and now as a remedy for economical problems as well. The most important paragraphs of my post were the last two of my first post. Seems to me that they did not attract any attention :(

Please do not react directly and post new arguments about what fantastic job snapshots/cloning of disk set/free software, etc. do, believe me I am closer to all this than you think, and do not need to be educated here. Others will find this discussion annoying and irrelevant to the topic.

If am unable to get others hear what I say, I just remain what I am, Passer-by..

Here is a good tip

Here is a good tip if your in rental property - when your lease comes up demand a DECREASE in the rent. Rents are trouble it seems (headline - Tenants enjoy lowest rent in a decade:

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=1056...

Something they dont tell wanabee landlords - when a recession strikes rents fall and voids get longer.

Here in Nelson the number of properties available for rent has jumped up markedly in the past 3 months and the Nelson Mail carried a piece saying local rents were falling.

andy rents are falling around

andy
rents are falling around here too. look at the size of this mess,

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/522011...

Looks like the recession will

Looks like the recession will be the least of our worries over the next 180 days - the Pig Swine flu virus is looking like a serious global pandemic threat. Good time to buy shares in 3M - makers of N95 respiratory face masks.

Remember SARS and the bird flu virus? This Pig swine virus wiill be far worse. Goodbye tourism industry. It appears that a group of kids from Rangitoto College who have just arrived back from Mexico may have already brought the virus to NZ.

Get straight into the doctor order a Tamiflu prescription tomorrow and buy yourself some face masks.

Last time NZ pharmacies sold out of Tamiflu and Relenza - so get in quick!

Here is the story about

Here is the story about possible NZ importation of the disease.

http://tvnz.co.nz/national-news/akld-students-show-swine-flu-symptoms-26...

I say shut the borders immediately!

Yes Andy and Andrew J

Yes Andy and Andrew J - rents are in trouble indeed.
If I recall correctly a few pro-property individuals were talking up rental growth in 09....

interesting to see ex- Reserve Bank Governor Don Brash's view too that he thinks property could fall much further from where it is today

guess being nice and not

guess being nice and not raising the rents might just be a saving grace, as all tenants know they are paying well under maximum levels, then they might just stay put.

this flu business give me the sh1ts though, real or introduced, government hype, big business, or the end of us all - either and every way it is a mind number

certainly gives me less reason to care about what Bollard says next week

NZ features on the main

NZ features on the main CNN world site re the transfer of the flu here:

http://www.cnn.com/2009/HEALTH/04/26/swine.flu/index.html

From that CNN item: "The

From that CNN item:

"The students and teachers at Auckland's Rangitoto College returned to New Zealand via Los Angeles on Saturday, and the group remained quarantined at home."

Shoudn't the Govt urgently track down everyone who was in that LA/AKL flight and quarantine them asap? This things gonna spread fast of it is not taken seriously and if it gets hold here we will have no tourism industry!

possible probable means NZ and

possible probable means NZ and the world is gone burger until further notice

Walter K - I would

Walter K - I would have thought the stockpile of Tamiflu referred to in the ABC News link would have passed its use by expiry date by now.

BM 1. Alarmism is not

BM
1. Alarmism is not going to help one iota.
2. Closing the borders is nonsensical given it appears the Auckland kids have already contracted the virus - if it is highly infectious then their family/contacts will have already been exposed. As such NZ would already be a focus of transmission.
3. We know nothing of the mortality rate - yes 80 people appear to have died in Mexico city (which also happens to have some of the worst air pollution in the world, leading to a pre-disposition to respiratory diseases to begin with, and a likely worse morbidity/mortality once infection has taken place), but we have no idea how many have been infected/have survived. For example if 80 have died but 8000 have had the disease/recovered then you are talking about a 1% mortality rate.
4.Early indications from the outbreaks in the US and here in NZ (where we have been told some of the kids are already recovering) are seemingly more optimistic in terms of mortality/morbidity.
5. That is not to say that those at high risk (the immunosuppresed/the aged/those with existing respiratory disease) should not be concerned - bur running around like headless chooks demanding Tamiflu is not going to accomplish much at the moment.

The Govt hasn't acted quickly

The Govt hasn't acted quickly enough in this instance

http://www.moh.govt.nz/moh.nsf/indexmh/pandemicinfluenza-faqs#happen

What could happen in New Zealand if there is a pandemic?

The New Zealand Government would take action to limit the spread of initial cases through a range of potential measures, including:
border management
isolation of sick people
restriction of public gatherings.

A pandemic could mean so many people are sick that it will affect workplaces, schools, hospitals and many other services. Some workplaces and schools may close.

There would be public announcements on TV, the radio and through other media channels that there is an influenza pandemic and information about what to do and where to go for help.

There is no doubt that in a severe pandemic, hospitals and primary care practitioners such as GPs will find it difficult to deal with large numbers of people with influenza.

Normal health and other services may not be available for several weeks. If you are sick you may be asked to phone your local doctor or nurse for advice, rather than visiting a waiting room and potentially spreading influenza. The Ministry of Health is planning for other possible options such as Community Based Assessment Centres (CBACs), where people with influenza-like symptoms would go to be assessed. People may also be asked to look after each other at home and given information about how best to do so.

It may be alarmist but

It may be alarmist but a global pandemic will be far worse than any recession

http://www.pandemicflu.gov/index.html

I pick Bollard dropping cash rate by 0.5% on Thursday given this latest news.

Seems to be a lot

Seems to be a lot of hype over nothing that serious ala bird flu

Tony Ryall NZ Health Minister

Tony Ryall NZ Health Minister on BBC News 10pm - "highly likely" these kids have the swine flu. Testing being done in Melbourne results in a couple of days.

This is nothing like bird flu - swine flu transfers rapidly human to human, reports now coming in from Mexico of more deaths.

If this thing goes pandemic what will world economies look lke in 6 months?

NZ already features on this

NZ already features on this global "outbreak" map http://maps.google.com/maps/ms?ie=UTF8&hl=en&t=p&msa=0&msid=106484775090...

Swine Flu? ... sounds like

Swine Flu? ... sounds like a condition that investors in failed finance companies have contracted.

What happened to 90 at

What happened to 90 at 9? Is Bernard off buying some Tamiflu?

Andy, Already got the Tamiflu

Andy,
Already got the Tamiflu from the last couple of scares.
You can see today's 90 at 9 off the home page.
We're putting it up now in the blog. Still 30 minutes away.
Bryan and I have just got back from interviewing the CFO of Rabobank

cheers
Bernard

Andy Hamilton - your post

Andy Hamilton - your post at 8.48pm April 26th is sound advice - unlike The Bank Manager.

I wish I had shares in the producer of Tamiflu.

Practice the same good hygiene principles that you should follow everyday people - cover your mouth when you cough or sneeze, wash your hands. Eat well, etc, fear god or whichever deity you subscribe to and DO NOT PANIC.

Bernard - glad to hear

Bernard - glad to hear you will be last man standing.

A fascinating piece perhaps worth including in one of your reviews today - it seems while this recent Wall St bounce has been going on insiders (ie those who actually run the companies concerned) have been dumpting shares into the rally in record amounts - clearly they do not think the rally has legs:

http://www.ritholtz.com/blog/2009/04/beware-insider-selling/

Trev - Tamiflu is made by Roche - their shares are listed internationally so you can buy them relatively easily if you wish.
I assume BankManager was being mischevious last night; either that or he was short the share market.........

More on insider selling here:

north island tamiflu was all

north island tamiflu was all gone before 8.30am. south island reserves probably gone by now too. let's just say running around like a headless chook might just stop you lying around like a dead pig...

I'm intrigued as to what

I'm intrigued as to what you folks are going to do with the Tamiflu - self medicate at the first sign of a cough?

@PoP - you should submit

@PoP - you should submit that one for a Tui's billboard.

Nothing like a good "scare"

Nothing like a good "scare" every so often to cause widespread panic buying of medicines and drive profits up:

http://online.wsj.com/article/BT-CO-20090416-702258.html

Back in 2005, Tamiflu sales shot up 158% .. http://money.cnn.com/2005/10/19/news/international/roche.dj/index.htm

I never bought into the

I never bought into the bird flu scare- the virus was only transmitted from birds to people not person to person. The swine flu is different- it seems to be very infectious and is transmitted person to person. The Spanish flu of 1918 that killed 40 million people was also of swine origin. I bought two boxes of Tamiflu this morning but if you want some you will need to be quick- it is selling out quickly.

Excuse me for cynicism but

Excuse me for cynicism but wouldn't the Tamiflu/Relenza bought in the bird flu panic be nearing or have passed its expiry date? Time to bump up sales again, especially at the end of the northern winter. What have Roche's profits been doing lately?

The virus doesn't appear to do well in the West though, looks rather overcrowded third world going on the figures at the moment.

Having said that, the organic garden won't include any piggies, and maybe forget about the chooks too. And I'll probably replace the doom box that the teenager ate...

I am serious about getting

I am serious about getting a trusted forensic accountant to run a fine tooth comb over your banking records;
http://www.ihatebanks.com.au/behave.htm
- The Sun-Herald ran an article on 06-Apr-1997 entitled "Why you can bank on loan figure errors". It quotes Interest Research Bureau statistics as finding that the average error on a 3yr $50K overdraft is $15K in the banks favour.

- And the problem is not isolated to Australia. On 3-4 June 2000, the New Zealand Herald ran a front page headline with the title "Bank blunders costing millions". It cited research that suggested an average overcharge of $2500 on a $190K mortgage, with New Zealanders as a whole being $300-$400 million and Australians $2.5 to $3 billion out of pocket due to bank errors in the preceding 5 years.

The below is from Hansard 2005;
http://www.hansard.parliament.govt.nz/hansard/Final/FINAL_2005_05_17.htm...

Banking"”Interest-charging Procedures

7. GORDON COPELAND (United Future) to the Minister of Commerce: Is he confident that the interest-charging procedures of banks operating in New Zealand are subject to adequate legal scrutiny?

Hon PETE HODGSON (Minister of Commerce): Mostly.

Gordon Copeland: Is the Minister aware that Gray Eatwell and the Bank Customers Action Collective have made numerous efforts to have the interest-charging procedures of the Bank of New Zealand investigated by various authorities, including the Serious Fraud Office, the Commerce Commission , the Banking Ombudsman, and the Minister of Finance, yet, to date, a full investigation has not been undertaken; and does he think that is acceptable?

Hon PETE HODGSON: Yes, I am aware of the gentleman's activity over many years, and I am aware of his group. I am also aware that the authorities that he has approached have pretty well universally come to the view that he does not have prima facie evidence apart from that in his own case, in which the Bank of New Zealand overcharged him and then refunded him about $20,000.

Gordon Copeland: Is the Minister aware of an overseas court finding that the National Irish Bank has been engaged in illegal interest overcharging, and given the fact that the National Australia Bank was the parent company of the National Irish Bank at the time, and is still the parent company of the Bank of New Zealand, has he considered whether the New Zealand authorities are giving this matter the amount of attention it properly deserves?

Hon PETE HODGSON: The answer to the first question is yes. The answer to the second question is that as soon as they are presented with sufficient prima facie evidence I would be confident that they would act.

Gordon Copeland: Will the Minister consider appointing a suitable forensic accountant to conduct a preliminary investigation into this matter, so that the facts can be established and justice finally delivered to the Bank Customers Action Collective after its 10-year fight; if not, why not?

Hon PETE HODGSON: No, we already have investigative and enforcement agencies, in the form of the Commerce Commission or, if there is fraudulent activity, the Serious Fraud Office, and it is to those bodies, which are independent of the Crown, that Mr Eatwell or anyone else should turn.

You can use a mortgage

You can use a mortgage calculator to check the interest you are being charged is correct. Or calculate it yourself if you can do the maths.

Any discrepancies, go ask the bank to explain.