5 Tips to Save Money During COVID-19 Crisis [Infographic]
The coronavirus pandemic has brought substantial changes to businesses in various industries and the lives of individuals. As the health crisis continues, more people are dealing with financial uncertainties. Families have seen income reduction due to employees getting laid off and challenges in acquiring a new job.
With this, many seek effective strategies to save money, keep their finances in order, and alleviate the financial anxiety they are feeling. While budgeting and cutting back on your expenses is an excellent way to keep yourself afloat with your finances, there are also other ways to manage and plan your financial future.
Here are some tips on how you can save money during the pandemic:
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Evaluate and categorize your budget expenses.
Not only did the COVID-19 crisis bring upon significant changes to people’s work and lifestyle, but it also affected their finances. If you have been staying home for most of the days from the start of the pandemic, you may have seen a significant change in your usual monthly expenses. And now is the time to evaluate the changes in your expenses. It will help you effectively manage your cash flow and as well as cut down on unnecessary spending.
To understand where and how you are spending your money, you need to list everything you spend money on every month. This includes your fixed expenses: housing costs, food, utility bills, insurance, and debt repayments. It should also include your variable expenses (discretionary expenses which may change over weeks or months): clothing, personal care, recreational expenses, entertainment, and fuel.
Cancel subscriptions and memberships you cannot use.
While subscriptions and memberships provide you with a wide range of advantages, these also take up your monthly budget. And as the lockdowns and quarantines continue amid the coronavirus pandemic, there are still uncertainties. Some establishments, including gyms and cinemas, are still not allowed to operate, and various activities and social gatherings are still prohibited.
Cutting down on online app subscriptions and gym/club memberships can help you control your cash flow and budget. It will also allow you to reallocate your supposed monthly subscription and membership payments to more important things.
Plan your meals.
Planning your meals can help you budget more effectively and save money. By creating a weekly menu, you will have a better idea of what ingredients to buy at the supermarket, preventing yourself from impulsively buying products that are not on your list.
Plan your visit to the grocery store.
Establishing a schedule and a plan on when to buy your essentials helps you lessen your chances to contract the virus. It also allows you to save on your expenses.
It is best to make a list of which food items and other essentials you need to buy from the grocery store. With a list on your hand, you can directly go to the aisles you need to, avoiding buying nonessential items. Additionally, you can lessen your time at the store, limiting your contact with other people.
Spend your money strategically.
Cutting back on your expenses will help you boost your cash flow during a pandemic. But, aside from that, you can also save money by spending it strategically.
When shopping, utilizing vouchers and leveraging cashback apps allows you to get a discount for your purchases or get back a percentage of the money you spend. Furthermore, you can also use credit cards to complement your budget and improve your savings. You can utilize your credit card as a financial tool for emergencies, particularly when you are low on cash.
On the other hand, if you do not have a credit card but have been wanting to get one to use it as a support for budgeting your expenses, many banks are accepting credit card application online Ph. But before you apply, make sure to compare credit cards and see which has the best rewards and benefits.
Looking through a comparison website can help you select the best credit card option for your needs. Visit our website at www.ichoose.ph to see the ideal credit card services for you and your financial well-being.
Sources:
- https://www.forbes.com/sites/advisor/2020/03/27/retooling-your-budget-for-covid-19-5-smart-steps-to-take-now/
- https://www.businesswire.com/news/home/20200414005603/en/Strategies-to-Save-Money-During-The-COVID-19-Crisis
- https://moneyfit.org/blog/budgeting-during-covid
- https://www.cnet.com/personal-finance/coronavirus-lockdowns-5-ways-to-save-money-before-you-receive-a-stimulus-check/
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