We never thought that life would change like this. We were living an everyday life, and this pandemic happened and wrecked our finances.
This is a lesson to learn that anything may happen. So it is in our best interests to be ready financially. And we are not sure when this will be over. The world economy will struggle for some time, but we will return to our everyday lives.
If we want to take control of the finances after this pandemic is over, we need to take some drastic steps to control our spending. However, there are a few things that you can do to save some money during these times of lockdown.
1. Control your spending
There is no better way to save money than to control your spending. I know, with all the markets and showrooms being closed now, most of us are not spending any money on unnecessary things.
If you feel like you are still doing a lot of online shopping, this is the time to stop and save any cash or savings for the future.
2. Save on insurance premiums
Another place to save some money is your insurance premiums. You can do a few things to save money and reduce your spending. The first thing to do is get all the insurance coverage from one company. It can help you earn some loyalty discounts.
But compare all the premiums to see if staying with one company saves you money.
Car insurance: Most of us are staying home these days. You can talk to your car insurance provider if you work from home or have lost your job.
Insurance premiums are calculated based on the risk to your car by driving. If your car is mostly parked in the garage nowadays, you may be eligible for a reduction.
Tip: Check for excess. Also, you can think about changing your excess amount. It can save you some money. Of course, you may change anything later when things go normal.
Home insurance
Home insurance premiums are calculated based on how risky your residence place is. For example, insurance premiums are higher if there are high chances of robbery and theft.
As you may be staying at home most of the time, this risk may have been reduced. You can talk to your insurance company about your situation and ultimately reduce your premiums
1. Save on Mortgage interest rates
Even if you can save a few dollars each month, it will add up at the end of the year.
The interest rate is historically low at this time. As a result, you may be able to save a few dollars now by either talking to your provider or switching your financial institution.
3. Avoiding colossal energy bills
Most of us and our family members are staying indoors now. As a result, our energy bills will be higher. Try to limit energy use by being more mindful of how you use energy at home.
Talk to your family members and kids about the situation and how you can go through this together. Limiting the use of Air conditioning and changing the settings of temperatures will help you a lot.
In summer, keep your temperature settings at 22 instead of two points higher at 24. It will save you money. Don’t use it, of course, if you don’t feel too hot or cold.
Save money on gas bills: If you use gas stoves for cooking like me, your gas bill is always higher. I use a gas stove for cooking, but I always cook in big batches. Especially the onions, garlic, and ginger, as this is the base of every curry. I always prepare it in a batch so that it can be used for the whole week.
It has helped me in reducing the gas bill. Also, I cook legumes and vegetables for two days together. It saves time as well as money.
Tips: Instead of using dryers, dry your clothes in Air. Drier cycles cost a lot. Air drying is good for saving money and is a healthy option. Also, cook in batches, as this will save you money on gas bills.
4. Check your mobile plans
If you have big mobile plans, look and try to figure out if you can reduce that. Sometimes you are in a contract with expired companies but remain with higher plans you don’t need.
Especially when you need to have cash with you to sustain for 6-8 months, it is wise to talk to your company to see whether you can get a cheaper plan.
Also, if your kids use phones, talk to them if their needs can be met by calling using the internet. For example, your kids may be home nowadays, and if they need to talk to their friends, they can speak through apps like Whatsapp.
Tip: Talk to your mobile plan’s providers, and if the contract period is over, you can use better strategies for your phone.
5. Save on groceries
There are a few things that you can do to save money on groceries. First, try not to stockpile fresh foods. This will waste your money instead of saving you any money.
Cook from your freezer
This is the time to give your freezer a new lease of life by cooking everything stored there for a long time.
Shop home brands
This tip is everywhere, and it has some weight to it. Home brands are always cheaper, and the quality is good compared to the price. I don’t see any difference between washing hands with the home-brand hand wash and the branded one. So why not save the money and make your self richer instead of big brands.
Cook from scratch
Cooking from scratch is a good option for saving money and a great healthy option.
Use leftovers
Create something new from your leftover foods. For example, if you made a stir fry for dinner, you could make a sandwich for breakfast. Or you can make a wrap with those stir-fries.
Tip: Shop for groceries conservatively by keeping your list of ingredients according to your present needs and not buying anything you may need in the future.
How to save money each month on groceries
6. Avoid any debt
Avoid any debt at this time. Don’t use credit cards for shopping and anything else. You may be unable to repay the amount, which can further exaggerate the problem.
So the only tip for this is to stay away from any debt. Governments are doing a lot in providing financial support. Check with your country’s policies regarding this, and you may be eligible for financial aid.
How to get out of debt when you are broke
7. Create a new budget
If you already love to budget, start creating a new budget. This is when we learn to live only on basics, and you may be surprised to know how much you spend on the things you don’t need.
Travel, parties, outings, gatherings, and even shopping are not possible now. You can skip all these categories from your budget. Also, you may have stockpiled many items, which will be sufficient for the coming months. So you may not need to buy those items.
8. Stay healthy
Keep your health optimum by exercising, staying inside, and eating healthy. A healthy body and mind can help you cope with anything around you.
Keeping yourself healthy helps not only in your finances, but it helps by not overwhelming the health system.
9. Make minimum payments on credit card debt
Under normal conditions, it is advised to pay your debt as early as possible. But the situation is different now. It is difficult to make even minimum payments. So instead of paying your debt fast, consider paying only the required amounts.
12 tips to pay off credit cards faster
10. Consolidate your debt
Interest rates are all-time low. So if you have debt on different accounts, you can try consolidating it at one place with lower interest rates.
It may help you pay less money on interest rates. Even a few dollars a month will help you save a lot every year.
11. Keep an emergency fund
There will be no better time to think about an emergency fund. Even if you are tight on budget and don’t have money, keep at least 10 dollars weekly for your emergency fund. It will help you have some safe heaven.
Building your emergency fund by starting with a few dollars can give you peace of mind.
13. Start living a frugal life
This is an excellent time to start living a frugal life. Living a cheap life will help you to learn to live within your means.
“It’s not your salary that makes you rich. It’s your spending habits,” Charles A. Jaffe.
Few things, if done consistently, save you a lot of money. For example, buying groceries with a strict list, cooking food from scratch, not buying everything from a brand, cutting your grocery bill, and energy bills all add up.
These are straightforward habits, or you can say they are mindful of your living and spending, but they have a tremendous effect on finances.
35 frugal habits to help you save money
- 35 fun activities to do on a No spend a month
- Cashback sites and apps to save money and get cashback.
How is the world economy getting affected?
Productions are getting affected everywhere, and so is the economy. Even when this will be over, things will not be over. We must adjust to the new normal, which may be lower pay rates or no jobs.
It is not about one country or one place, it is about the world. Economies will take time to recover, and it will hit everybody hard.
The only action we can take is to save whatever we can and live conservatively. Although, this is not for the short term. Living frugally will help you when the world economy starts recovering.
Even when everything will be over, economies of all countries will be in more debt so will be people like us. This is because we defer our mortgages which we have to pay anyway. So individuals will be in more debt.
Banks that have slashed interest rates to historically lower rates will increase their rates. Like other businesses, banks and financial institutions will be in recovery mode.
This is what I read in other publications. This post is for information purpose only.
I just wanted to share how I love to save money even when I don’t have tons of money.
I hope this will help you in getting your finances a bit under control and you will be able to go through this with courage.
Let us pray and hope that world recovers soon and that everything becomes normal.