Updated: Nov 23, 2020
The COVID-19 pandemic has impacted many businesses around the world and almost destroyed some economies. It has also resulted in millions of job losses worldwide. Due to its impact, it has also affected individuals and their budgets. However, that’s not bad news. There is still something they can do about it.
Regardless of the ongoing pandemic or economic crises, personal budgeting and saving is always a great idea. There are many ways in which people can save money. However, some of these ways may not work or may not be an option during the current crisis. Therefore, given below are a few money-saving tips that are still applicable.
The first step, and the most important one, for saving money is to set goals. Setting goals can help identify how much individuals need to save. Everyone has a different objective based on their needs and plans. The goals that individuals set for themselves dictate the overall process of saving and also determines how much savings they will make.
Making a budget
The next step in saving money, regardless of the pandemic, is to make a budget. Budgeting allows individuals to analyze their incomes and expenses and get an idea of what areas need adjustments. However, budgeting isn't only to analyze income and expenditures. It also sets limits that individuals must abide by, for it to work.
Ditching unnecessary expenditures
When it comes to maximizing savings, it is critical to stop spending on unnecessary expenses. The key to analyzing which expenses are unnecessary is to look for ones that classify as luxury expenses rather than necessities. While it may be difficult to cut some luxury expenses during the pandemic, such as Netflix or Hulu, they can free up a portion of the budget that individuals can use towards savings. Depending on the goals and budgets of every individual, which expenditures qualify for cuts will differ.
Shopping around for better deals
One other thing that helps with savings during the pandemic is looking for better deals. For individuals, it may mean looking for better insurance or cellphone plans and replacing the existing ones. Furthermore, it may also mean using coupons when shopping. Regardless of what they are shopping for, there is always a chance that a better deal exists for it. While saving through this method may not result in immediate returns, it can add up over time.
Establishing alternative income sources
The process of saving doesn't only rely on cutting expenditures. Establishing incomes sources is also critical, especially during the pandemic, when getting a full-time job may not be an option. There are many different alternative incomes sources that individuals can utilize. These include online sources, such as freelancing, blogging, affiliate marketing, etc., all of which still work during the pandemic. Similarly, it may also consist of other sources, such as doing odd jobs or selling unneeded stuff.
It is crucial to start saving more than ever, given the ongoing pandemic. While there are many traditional methods of savings, they may not work in the given situation. However, there are still some ways in which savings are achievable, as discussed above.