This pandemic has truly changed everyone’s life. The once easy and convenient way of life has now become uncertain and unclear for some.
Remember those days when you might decide to go to the mall and window shop? Gone are those days! And not just because of the movement restrictions but because we now think twice or thrice before spending unnecessarily. Corporations might be understaffed producing chinks within the supply chain causing goods & products not to be on the shelf. In fact, locally we’ve experienced shortages of toilet paper, meat, cream cheese, coconut just to name a few.
While staying at home during the pandemic, you probably did a lot of cleaning up. Many went through their clothes and my goodness do we have a lot of clothes we don’t even remember buying much less wearing! This makes us realize that we buy way too much stuff and spend so much money on things that don’t add additional value to our life. You could probably live with seven shirts and three jeans if it came to it. No, let’s say you definitely could!
Many people lost their jobs, while some opened up for others. Many have no choice but to continue to work outside braving the dangers. If there’s one big realization for many of you, it’s that you need to increase saving money for the rain(ier) days.
I’m fortunate as my dear mother & father always instilled a sense of non-urgent preparation when it came to the future hard times or harder times that would arrive. Mom would always say if something was a good deal and you can stock up, you should. In other words … “get while the gettin’s good” and with all thy getting get understanding!
If you’ve always been a saver forever then it’s not a big adjustment. Once you get your mind right then really focus on turning plans into reality.
A Few Money-Saving Tips:
Have a savings plan tracker
Probably most of us are visual people and function best when there’s a plan set in motion you can see. I use a simple Excel spreadsheet form to track my income, savings, expenses, debts, investments, and anything related to my finances. Of course, there are hundreds of apps in the Apple Store or Google Play Store, but I’ve never really found one that helped me in my financial planning. If Excel or Google sheets aren’t more your style, you could make paper journals and write down expenses then colorful graphs and illustrations to keep you inspired. I say, find one that works for you!
Reduce your debts and pay them as soon as you’re able
Not having to worry about any financial obligations is the best feeling ever! Imagine working so hard and all your wages go to paying off debts. It doesn’t feel very good! If you had the choice, maybe you wouldn’t really use your credit card but there are payments and situations as an adult that one needs to go down this path. The key is to use your credit card only for larger transactions or ones that don’t accept cash. If you can pay outright, choose to pay rather than use your card. Once you’ve mastered this, then you might become one of those people (such as myself) that utilize credit for their own gain by taking advantage of certain cashback programs.
Know your financial ability before investing
As you can already sense in this article, I’m a moderate to low risk-taker when it comes to money. I save rather than invest which may be a good thing but also not entirely the better thing if you can get out of the market unscathed. Don’t really invest in things that you know you won’t be able to follow through. It’s important that you know that you can pay off a monthly mortgage before you buy a condo or a car. This pandemic is the perfect example! What if you bought a car because you were confident you have a stable job? And what do you know? No job is secure these days. So my advice is to make sure you actually have enough to pay the monthly fees for at least 6 months even without a job, then you’ll be fine.
Investing in things you can feel and touch and more importantly USE is a good thing. A house, vehicle, land, generator, freezers, an alternate form of heating, etc. These are all great things to invest in. And if there’s a sale on toilet paper and you have room to store it, who knows you might be able to barter with your neighbors for something your family needs in return. It still takes a village, no matter how small the community.
Have an emergency fund
This is designed to provide a financial buffer to keep you afloat during times of extreme need usually without having to rely upon loans or credit cards generally with outrageous interest rates. These could be major car repairs, appliances or washing machines that break down, unexpected medical bills, or simply losing your job altogether! How much should you have on hand? Well generally speaking it’s always good to have three months – six months worth of living expenses is ideal. Start with a goal right now of $1000 and work your way up from there.
Avoid online shopping too much
Shop only for essentials, or at least limit your non-essential ones to one or two things a month. These days, a lot of people are online and the temptations of online shopping are greater than usual! One trick is to go crazy window online shopping, add as many items as you want in your cart, and then not check out. Leave it for a few days or so and revisit your selections. First of all, some of the pries might have lowered a little, and by deleting them most of the time you never needed it to begin with. “Why did I think I needed a novelty toaster?”
Have a side hustle
These days, everyone has become an entrepreneur! People are selling everything and anything. Get on the bandwagon! What can you sell? Computer peripherals, masks, disinfectants, snacks, books, old furniture, old shoes, your services. The list is endless.
Treat yourself once you’ve reached your monthly savings goal
Yes, make it a point that you include a reward in your budget once you’ve reached your goal. Nothing too pricey of course! You might reward yourself with a favorite burger, a slice of cake, or lipstick! You could of course just stare at your savings account and congratulate yourself for being a responsible adult.
Save for something you want to do after the pandemic
Have some long-term goals. Wouldn’t it be the best thing in the world when you can travel, shop, go to Disney World when some of this craziness is over? Whatever it is you wish to do, it’d be great to have some savings for that! Think of it as your long-time reward for these difficult times. While doing so, you train yourself in becoming a saver!
