These are truly difficult times for people worldwide. Due to the COVID 19 pandemic, the economy has been badly affected. As the US economy is trying to recover from the after-effects of the global economic downgrade, the citizens are gradually getting trapped in the vicious cycle of credit card debt. What you can start doing is prepare and equip yourself to face the realities of the present fragile economic condition. Here are 13 ideas to save money during this COVID-19 era that you can adopt to make yourself acclimatized to the financial crisis and get back on track.
1. Live below your means
According to most financial experts, people all over the world should try to live below their means so that they can fill up the gap between their income and expenses and make things go in favor of them. A frugal budget is a way to go as there is no substitute for frugality.
Eliminating all unnecessary expenses must be your first step, as this can help you make the best use of your hard-earned bucks. Understand the difference between want and need and question every purchase before you take the plunge.
2. Restrict yourself to one credit card
If you want to see yourself financially fit during this COVID era, make sure you let go of the habit of using all your cards simultaneously. Using 4-5 credit cards together can be the perfect recipe for a debt disaster. The more credit you use while shopping, the more likely you will tend to incur further high-interest debt that can become difficult to handle with your restrained source of income.
Therefore, financial experts often suggest people use one card perfectly so that they may not even feel the need to take out yet another card.
3. Use more cash than credit cards
Credit cards are the root cause of all the financial worries in your life. Though it helps you attain things that would have been impossible with cash at times, getting things on credit instead of cash is something that must be avoided during this economy. Use less credit and more cash so that you may contain yourself from compulsive shopping on credit.
4. Try eliminating your debts
The next thing that you need to do is to start targeting your high-interest debts and repay your creditors. You may also target the card with the highest interest rate and start working towards repaying the amount in full. But make sure you keep on making minimum monthly payments on all other debt accounts.
5. Live on a shoe-string budget
Try to live life on a shoe-string budget. Eliminate all unnecessary things that you can do without and restrict yourself to only those things that you need in your daily life. A budget will ensure monitored savings, and you can easily keep track of your income and expenses through it.
6. Trying to develop multiple sources of income
Though the US is proudly donning a 6.9% unemployment rate, you must yet try to develop multiple sources of income, despite having 9-5 jobs, to secure your financial life. Search the Internet so that you may get to know the avenues that you can explore to boost your monetary resources.
Look for a part-time job so that you can earn more to save a certain amount after paying off all the financial obligations.
7. Create a budget that can you can live with
You must create a budget that eliminates unnecessary spending on items that you can live without. Check your monthly spending to determine where the money is being spent. Make modifications to your budget as needed to eliminate unnecessary spending.
Frugal living is the secret to saving money on a daily basis. Learn to live within your means and follow a tight budget.
8. Save whenever possible
Look for ways that you can save money. Try and set aside some extra money and place it in a savings account. With the cost of prices going up, it can be difficult to make ends meet. But still, you have to set aside at least 10% of your monthly income.
9. Check your insurance coverage
If you have enough insurance coverage on your auto insurance or health insurance policy and you’re going through a tight budget, you need to make sure you’re just paying the exact amount of dollars for the necessary coverage that you may need.
If you see that you have extra coverage for which your premiums are getting higher, you can certainly speak with your insurer and then cancel them so that you can save money every month.
10. Save for emergencies
If you don’t have an emergency fund, you should build one. Save as much as you can for emergencies. Try to accumulate at least three months of living expenses in your emergency fund to combat this economy and job loss time. Make sure to contribute a small amount toward your emergency fund each month from your paycheck.
11. Earn extra
One of our ideas to save money is through extra income. There are a lot of online jobs that help you earn well and also learn the importance of saving money. If you have a strong base, you can have a good savings account. Try to endorse something you love. If you love to write, create a blog, and write articles on your niche or finances as you please.
This way, you can stay at home and take care of your household if you’re satisfied. If you can stay home and make money, you not only take care of your family but also contribute to the family income.
12. Comparison shop, ask for discounts and negotiate rates
Whether you are shopping for groceries, clothes, and utilities or purchasing a credit card, insurance, mortgage, or car loan, don’t forget to compare and negotiate the rates. Even if you’re buying a small thing, always ask for discounts. Comparison shopping is one of the most effective ways to save precious dollars.
13. Be educated
Little things can save us thousands of dollars each day, and if you’re not financially diligent, you have to go through a mess in the long run. Get organized with your money matters, read financial journals and blogs to understand the money savings tricks.
Most of us are so shocked by the recent pandemic and bad economy that we are overwhelmed and feeling helpless. But it is perhaps the best time to give a hard glance at your personal finances and take some solid steps so that you can stay afloat in this tumultuous economic condition. Start thinking about ways to cut down on extra expenses to gain positive results through your savings efforts.
I hope these ideas to save money has inspired you to create a budget and follow it. It can become a lifetime habit of saving money. Lastly, don’t lose hope. This tough situation will definitely go away soon.
Author Bio: Valentina Wilson is a writer. She loves to analyze personal financial matters and help others manage their finances in a better way. Traveling is also her passion. She believes that transparency and conversations about money are essential in gaining control of finances. To connect with her, go to her LinkedIn or visit her blog bestdebtconsolidation.org.
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