Best Ways to Save Money during a COVID-19 Quarantine
Saving During the COVID-19 Quarantine: How to Go About It
In 2019, the COVID pandemic changed our lives. Many companies closed their shops resulting in job losses. Although some businesses managed to stay afloat. But they had to cut back on some expenses. Employees had to agree to lower salaries to maintain their jobs. The direct result was many people had to tighten their belts to survive on the available income. Fortunately, facilities like quick easy payday loans online can bail you out during tough times.
But it can still be difficult to get by. It gets even worse when you have a family to look after. Our article shares how to budget during COVID. Let’s see what you need to do.
1. Start by Evaluating Your Expenses
How has COVID-19 affected you financially? You may be one of the people who suffered immensely. Start by taking stock of your current financial situation. If there has been a significant drop, it is time to re-plan. The reality is that some of the things you enjoyed so much have to go.
Developing a family budget during COVID-19 requires you to focus on the essentials. Instead of dining out, think about cooking in your kitchen. You could save up to 10% of your income by letting go of non-essentials.
2. Continue Putting Money into Your Emergency Fund
Did you find yourself asking, how much is the COVID-19 crisis payment? You may have been one of the lucky recipients. If you had an emergency fund, you now realize how important it is to have one. It may have sorted you out during an especially tough period of the quarantine. Budgeting tips during COVID require that you continue saving.
Please put aside some money into your emergency fund every month. A good idea would be to have enough funds to survive for a minimum of 3 months.
3. Do Not Allow Debts to Pile Up
Try to avoid getting into debt as much as possible. That means you have to keep up with the obligatory monthly payments. You shouldn’t, for example, skip credit card payments. You don’t want to deal with the high-interest rates the lender will impose.
Please remember that your payment history determines your credit score. A poor rating will impact your ability to get loans when you need them.
4. Live Without Unnecessary Subscriptions
Do you want to know how to save money during COVID? If yes, here is how to go about it. Write down a list of every service you have subscribed to. Now, one by one, determine which one is really necessary. When you figure out what you don’t really need, cancel that from the list.
Can jogging outdoors be as effective as a gym membership? So yes, cross that out. Do you have to pay for the priciest TV subscription? If you had to go for the basic packages, how much would you be losing? After all, there are tons of streaming services that will give you access to all the movies and TV series you need.
Good, you have now decided on which ones to go. Tally the savings and see how much you have been spending. It may shock you into never doing it again.
5. Go For Budget Holidays
Are we saying that you should stop everything that is fun? Can your family, for example, still enjoy vacations or holiday trips? The answer is yes. But, go for the tourism budget for COVID response options. Forget pricey destinations. Rethink some of your plans by enjoying what is readily available. Take a road trip, go camping or tour local destinations. You can discover some fantastic places right within your locality.
Many hotels and Airlines are also giving discounts to encourage the resumption of tourism. They’re also trying to fill openings that are open due to reschedules or cancellations. Take advantage of this, and you will save some good money.
6. Look For a Side Hustle
Side hustles are excellent ways to make extra money during COVID. It also provides an opportunity to diversify your income source. If you lost a job during the COVID pandemic, you now know the importance of diversifying income sources.
Do you have a skill in things like accounting, writing, tutoring and even consulting? If yes, try your luck with side jobs. A cursory search on Bing or Google will give you many fantastic ideas of what you can do.
If you have a talent in tailoring, interior design or hair making, monetize it. Now is not the time for free favors. Put aside the money you earn from your side hustle. It will amaze you how much you can make.
7. Become a Smart Shopper
Personal budget during COVID needs you to become a smart shopper. Create a list of essentials before you go shopping. Do not buy anything outside of your list. But that’s not all, there are other smart ways to save money:
- Do not go shopping when you are hungry. This way, you avoid the temptation of picking snacks.
- If you do not know how to say no to the kids, leave them at home when you go shopping. You won’t deal with tantrums from your toddlers because you did not pick their favorite toy.
- Avoid brand names that may be a bit more expensive. You can find good quality products in other brands.
- Take the time to compare pricing. Some outlets will sell the same brand at a higher price because of different factors. Such could include the location of the business, requiring higher expenditure and rent.
- Pool resources with family or friends to buy bulk items. It becomes cheaper for everyone in the end.
- Do not be shy about using coupons or taking advantage of discounts. You will, for example, find that some freezer items tend to get cheaper during the day. So, plan your shopping for later in the day, instead of early morning.
Budgeting in COVID times requires cutting back on some expenditures. Develop a list and decide what you cannot do without. Before you go shopping, check what is in your cupboard. You don’t need to buy what you already have. Be a smart shopper by implementing some of the tips we have shared above.
Continue to save money in your emergency fund. You never know when you may need it. Keep up with your payments so that you do not affect your credit score. Also, it doesn’t hurt to have an extra source of income. Now is the time to monetize your talent or skill. Stop giving out services for free to everyone.
Do you have any money tips you can share with us? We would love to know how you budget during COVID.
Daniel Miller is an experienced specialist in the business and financial area. Daniel has also worked as a financial advisor at a bank and provided consulting and advice about budgets, savings, insurance, stocks, retirement funds, tax advice, etc. He is currently doing specific research on the topic.