How To Save Money During a Pandemic
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It’s no secret how the coronavirus pandemic turned the world on its head. Enterprises were forced to temporarily halt their operations or seek new ways to conduct business.
Sadly, this resulted in subsequent retrenchments, leaving many people jobless and under heavy financial strain. For this reason, it’s become more important to know how to save money during a pandemic.
Take a look at these five simple but effective ways to save money to help you weather uncertain times.
Evaluate your expenses
The pandemic changed people’s work and lifestyles significantly, creating a direct impact on finances.
The shift to work-from-home arrangements and stringent quarantine guidelines give people an opportunity to save money. However, alternative options for many restrictions may still hinder you from achieving this goal.
For instance, while WFH setups cut transportation costs, they increased electricity bills and other home expenses. Dine-ins were prohibited, but food deliveries became more accessible, and the list goes on.
Given this, it’s essential to assess what changed in your lifestyle and identify opportunities to save money. Switching to more practical alternatives like home cooking can let you save at least 10% of your monthly income.
Commit to a budget
The future remains uncertain, so it’s best to tighten your belt. Create a feasible budget for all your essential expenses and commit to it.
Break down your current expenses in a list and identify items you don’t actually need. Take a look at some of the expenses you can consider cutting down to stick to your revised budget:
App subscriptions. People used to watch movies in theatres before the pandemic. These days, app subscriptions make convenient options for entertainment.
While you may not be splurging on physical services at the moment, digital alternatives may eat up your funds in the long run. Not that you should give up Netflix while you’re in quarantine, but you may consider trimming down similar apps that you don’t often use.
Online shopping. Since people were restricted from going out, many businesses offered a more convenient way to shop. Ecommerce rose to greater heights during the pandemic as people preferred a safer way to buy stuff.
But while online shopping makes it safer and easier to purchase things, it may also cause unnecessary expenses. To avoid splurging on irrelevant items, allocate a specific amount for online shopping and only check out items you truly need.
Gym memberships. Trips to the gym or clubs were also put on halt as people were forced to stay at home. You may not have maximized your gym membership, given the current situation, so it makes sense to review your plan.
It may be best to downgrade your membership or discontinue it to save more money. After all, there are thousands of home workout videos on Youtube, which you can watch for free!
Spend mindfully
Instant gratification is common, especially among millennials these days. But the thing is, this keeps you away from a more meaningful goal.
Before you buy something to “reward yourself,” it’s always wise to wait a few days. Usually, the desire to buy something you think you deserve withers, and you forget about it altogether.
As a general rule of thumb, something is worth buying if it is necessary, useful, and will add value to your life. Fight the urge to buy on impulse. It wouldn’t take long before you realize you’re actually saving a lot!
Make money from decluttering
You already probably know who Marie Kondo is. If you don’t know her yet, she is a Japanese organizing consultant and author who teaches people to get rid of everything that doesn’t “spark joy.”
This means decluttering your home and personal spaces to tidy them up. The great news is that decluttering can help you mentally during this challenging time, plus you can make money from it, too!
You can consider selling your decluttered items to your friends or online. Websites like Carousell and social media channels like Facebook Marketplace and Instagram are excellent platforms for selling second-hand stuff.
Consider new streams of income
The pandemic makes it clear that it’s more than beneficial to have multiple income sources. This way, you won’t run the risk of going into debt when you lose one paycheck.
Relying on a single income source may threaten your financial stability, so look for other ways to earn money. Leverage your skillset to begin a side hustle, and make money from your expertise.
There are many job opportunities online, and your WFH arrangement will make you much more flexible! When you earn more, you can also save more.
Wrapping Up
The pandemic undoubtedly makes saving money more challenging but crucial. With a few helpful tips, though, you can start saving up to prevent getting cash strapped during rainy days.
*Cover Photo/Thumbnail Photo from Pexels