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15 Creative Ways to Save Money in Difficult Times
The world markets have been down in the time of the COVID-19 pandemic. There is a lot of anxiety for many around the world in terms of earning, saving, and managing cash flow. Most people are focussed on saving their jobs, making sensible choices with regards to purchases and effective loss cutting measures in their private and business lives.
So how can we save money and extract maximum value from what we have? Tightening the purse strings and making sacrifices/compromises on luxuries can seem the first steps, however, there is more.
Let’s look at some ways of managing money flow and making it last longer during these turbulent times.
15 Ways To Save Money During Difficult Times:
Creating a Budget and Understand your expenses: The first step is to understand your expenses. The first starting point should be analyzing debts (credit cards, loans, and overdrafts) to pay them off. There are plenty of budgeting apps present on app stores. It is easy to enter data, track and understand.
Remove an emergency/retirement fund: Once you’ve analyzed your expenditure every month, there will be an available amount. The simple thing would be to blow it all up! Instead of doing that, it would be more sensible to take that portion and place it in an emergency fund so that there is something to fall back on in case something severe happens.
Sell unused items: We tend to buy and hoard a lot. There are plenty of things that we have at home that are barely used and lying in some corner of the house. Identify these things and analyse if you need them in your life. This has a twofold impact on your life – firstly you are removing clutter from your life, secondly, you are generating income that is useful at this moment and the future!
Start Saving: The pandemic has assured many around the world who weren’t doing it previously to save. It is very important to have some sort of safety net, especially with the current times. Despite low-interest rates, there is no harm in building up a stockpile of cash. One can look at opening easy access accounts or just a regular savings account. Be sure to check which banking institutions are providing what. The devil is in the details, so make sure you go through all the fine prints and understand how you will be benefiting in the long term.
Mortgages payment: If one is burdened by mortgage payment, it would make sense to use the saved money to pay off mortgages as much as allowed. Rather than storing it in savings to pay off higher mortgages, it would be wise to have slightly lower savings and pay off higher chunks of mortgages without being penalized by the system. This would mean clearing off the mortgage sooner and in turn saving money in the long run.
Become Vegetarian: Consuming meat is an expensive affair and unhealthy in the long run. Even if you can’t be completely vegetarian, at least reducing meat consumption during the week could be a money-saving practice.
Bulk Buying: Instead of relying on purchasing in small amounts from grocery stores, head for wholesale purchases. Not only are you well-stocked for a few months, but you also have the added benefits of saving money and benefits of membership to wholesale shops.
Netflix & Chill: Going to the movies is an expensive affair. Think of investing in an online platform for your movies. Sit back, dim the lights, and get the popcorn ready to watch all your family favorites at home.
Skip eating out: As often as possible, reduce eating out at restaurants. While this may seem a little dampening of the mood, the monetary benefits are much greater. Keep going out to your favorite restaurants for special occasions.
Go for Second hand: Encourage yourself to get items from second-hand stores or online marketplaces. This not only is friendly on the wallet, but it is also great for the environment.
Cut down online shopping: A habit that has plagued most in the modern world. It is easy to get caught up in the online shopping world. Reduce the platforms you shop from or disconnect your credit cards to deter you from shopping.
Rent out extra space: If you have additional rooms at home or outside, give it out on rent or Airbnb. While the market rate may not be high, a lower cost-income is better than none.
Ditch your Car: This is the best time to ditch your car. Keep it for extremely important activities like bulk shopping or an emergency. Going to a friend or heading to a mall or just getting a quick haircut. Grab the cycle. Not only do you save money on gas, but you’re also helping your health and the environment.
Free or Low-cost Events: As humans, we still have to live and participate in regular activities. Look for events that are low cost or free rather than the usual high pay ones.
Hold out on vacay time: While the stress of the pandemic makes us want to leave everything and head for a vacation. Hold out till the times are better. Rather than blow up saved money on an unnecessary expensive vacation, think about going to a local spot for a couple of days instead. Not only are you helping your pocket, but you are also boosting the local economy.
The coming years will be tough and it is best not to be caught in the superficial world of having to live up to other people’s expectations. Social media, friends, peers, colleagues, and neighbors will expect you to keep up lavish lifestyles, but always remember that none of them will be footing your bills, loan repayments, and interests.
Not taking a vacation this year, eating at fancy restaurants, upgrading your iPhone or not attending your favorite music festivals could feel like the end of the world in the short term, however, these so-called ‘big’ sacrifices will reap benefits in the long run with greater savings.
Make sensible lifestyle choices like cooking at home, training from home, and chilling with friends at house parties. All these will add to make a tight savings budget! Secure Trade allows you to make the money matters in your hands and allows you to make smart and risk-free investments. It will give you more tips and tricks on how you can save and increase your money with a few smart and simple steps!