There has not been a tough moment like this in the recent past when the whole world is held down by a pandemic. The COVID-19 pandemic has affected the global economy and individuals are not exempted. With lockdown, job loss, and loss of income, there is an urgent need to learn to save money. If you ask a financial advisor for ways to save money during COVID-19, he/she will likely mention the five tips discussed below.
There has not been a tough moment like this in the recent past when the whole world is held down by a pandemic. The COVID-19 pandemic has affected the global economy and individuals are not exempted. With lockdown, job loss, and loss of income, there is an urgent need to learn to save money. If you ask a financial advisor for ways to save money during COVID-19, he/she will likely mention the five tips discussed below.
1. Start a Budget
Planning your expenses with your income after saving is a great way to achieve financial freedom. If you have not been using a budget before, this is the perfect time to start tracking your income and expenses regularly. You can create a budget manually using a diary’s finance planner, a spreadsheet or a mobile application to keep a tab on your spending. Plan everyday spending to see how much impact it will have on your future.
2. Cook Your Meals
Cooking meals for yourself and your family is a great way to save money during lockdown and quarantine. You do not need special preparations, you only have to be creative and have a structured food plan. You will save money and eat healthily when you prepare your meals yourself.
3. Reduce Subscriptions
Go through the list of subscriptions you pay monthly. You will realize that you rarely use some of the subscriptions you renew every month. The COVID-19 time is the perfect period to cancel some subscriptions. Stop the subscriptions for apps, TV, and premium memberships you will not need until the pandemic is over. This way, you will save money.
4. Open a High-yield Savings Account
Another way to increase your savings passively is by using a high-yield account. Look for online banks that offer a higher interest rate than your current bank. Let your savings grow from monthly interests and regular savings. Ask your financial advisor for banks with higher interest rates to benefits from during lockdown or quarantine.
5. Reduce Energy Usage
With lockdown, the chances are high that you will use more electricity to power your electronic and electrical appliances, which will undoubtedly increase your energy usage, switch off electrical appliances and bulbs. Remove plugs from the socket. Turn off the heat and cover-up to save energy.
Takeaway
Talk to your financial advisor for more personalized ways to save money during COVID-19. However, the tips above will go a long way in helping you save money during these trying times.
