The coronavirus pandemic has thrown most non-essential business operations and work schedules into disarray. Many companies have laid off their employees, and many are unsure of when they’ll receive their next paycheck.
Adopting new saving habits is a smart move during these uncertain times. Save money during the COVID19 is almost inevitable if you wish to get by.
While your finances may seem messed up at the moment, worry not. I have come up with five ways to help you free up some cash and rack up your savings.
Don’t Stockpile Unnecessary Items
As COVID-19 cases continue to rise, most people are racing to stores to buy just about everything – toilet paper, disinfectant, bleach, pasta – you name it. While staying prepared is advisable, poor spending habits are inexcusable at such times.
Pandemic planners advise that you should at least be equipped with the essentials, including weeks’ supply of food, water, and drugs. I’ve seen people doing incredibly stupid shopping, primarily influenced by the panic around the situation.
One tip I absolutely love comes from Meagan Loose of Greedy Rates, who says she always tries to go grocery shopping more often with less bought in each trip. She does this so she “can scout for fluctuating sales more accurately, and it also means I’m less likely to throw out food gone bad.”
Honestly – I’ve always thought the opposite, but this makes TOTAL sense during the COVID19 pandemic.
Stocking sufficient quantities of essential items are smart, but stockpiling Clorox and Charmin isn’t necessary.
Buying things you don’t necessarily need might make you feel “safe” now, but it doesn’t help your finances. As for food, pick what’s necessary for your family. This is not the best time to try out new foods and veggies – focus on keeping that extra coin in your pocket.
Cut Out Non-Essential Subscriptions
A simple way to keep your monthly spending down is cutting back on monthly subscriptions, especially streaming services. As you spend most of the time at home, spending on content streaming and UberEats can quickly escalate if left unmonitored.
Don’t get me wrong – I am not suggesting that you forgo your Netflix, Amazon Prime, or YouTube Premium – but are there any that you don’t need as much and still pay for? If the answer is yes, consider cutting them off.
The idea is not to scratch them all but keep those that you need the most. Doing away with non-essential expenditure is a win for your savings account.
An easy way to find out the subscriptions that hurt your wallet the most is by checking your bank statements and credit card bills. Ensure that your weekly or monthly expenditure is worthwhile by sticking to essential subscriptions.
Use a Budget
We’ll all be spending more time at home until things get better. As such, you expect to foot various monthly bills, and coming up with a spending plan would be great.
Using a budget will help you reduce spending in non-essential areas while setting limits on essential expenditure. You know why budgets are necessary for cutting expenses?
They require you to track spending and set reasonable allocations for discretionary spendings like refreshments and entertainment.
With a budget, you will fast find out that you’re spending beyond what you planned for fun and refreshments. Monitoring your daily or weekly expenses ensures that you are within the budget. Using a budget proves to work magic when it comes to saving money now and even in the future.
Renegotiate with Your Bank, Health Insurance Company, and Other Providers
Some monthly expenses are common among us, including mortgage repayments, insurance premiums, and cell phone bills. The truth is, you can’t put these aside since they are payments for essential services. As for mortgage repayments, you already know how vital for households.
These expenses claim a considerable chunk of your monthly income, which is not definite now. Failing to make these payments doesn’t help, and the best approach is to talk to your bank and providers.
Most of these institutions are open to renegotiating payment terms to shield you from the harsh economic effects of this pandemic.
In the case of a private medical insurance or auto insurance, ask your insurance provider to restructure your premium payment. The same goes for life and home insurance policies. With less driving, your auto insurance provider would be more than willing to cut your premiums.
Also, call your cell provider and negotiate for cheaper plans after evaluating what you need most. For now, data plans seem to be the most essential. By negotiating for better deals that cover your essential needs, you get to save significantly.
Pick Up a Side Hustle
Side gigs are no longer trendy – they’ve become the norm, especially if you want to boost your income. With endless side hustle options, picking up a side gig is a pretty sure way to put a little extra paper in your savings account.
In fact, according to a study done by MasterCard, the projected gross volume of the gig economy from 2018 to 2023 is expected to more than double, reaching an anticipated $455 billion by 2023.
While saving may seem impossible in these uncertain times, using a budget, striking non-essential subscriptions, and picking a side gig are some genius ways to keep your saving game on top.