As the coronavirus pandemic battered the world economy, businesses have been shut down and jobs have been lost. Even as more people have finally started to get back into their normal routines after months of lockdown, over 114 million jobs have been lost globally in 2020. Luxury vacation trips have been canceled to save money and/or abide by travel restrictions. The money which had been saving up for over a year for items like those gorgeous boots is used in overcoming a loss of income. In this hard time, it’s safe to say that the world has finally realized the worth of money.
A lot of families’ savings were used up in the last year. To overcome the losses that happened in lockdown, we all need to start saving again. Below are some ways to save money.
Budgeting:
Budgeting is a great place to start. This method has been around for a long time but is still just as useful. A budget means tracking your income, spendings, and savings regularly to monitor your cash flow. If you start a budget and stick to it, you are bound to save some money.
You can create your budget using any tool. While the paper pen method and spreadsheets are effective, many budgeting apps have been introduced. These help you track your finances. They create a daily, weekly, or monthly budget and remind you to stick to it. Some of these include Mint, Pocketguard, Wally, etc.
Cutting Out Unnecessary Expenses:
One thing to do is start cutting back on subscriptions. You probably have a lot of subscriptions for services that you don’t use anymore. You should check physical and online unused subscriptions and cancel them. For services you are currently using, try to coordinate with friends or family and pay for a shared account. Even though you will save a little amount from this, it can go into your emergency fund which has grown to be of much importance these days.
Another great option is cutting down on grocery expenses by growing your own food. If you have ever been fascinated by the idea of seeing your food grow in front of you or worried about the increased use of pesticides and chemicals these days, this is the time to start growing your own food. As impossible as it may seem, it can be very easy. And this way, you will cut back on groceries and maybe even start eating healthier because of the excitement that comes with this kind of work.
Lastly, avoiding urges to shop for unnecessary items is also important. As tempting as it may seem to spend on clothes to get rid of that extra stress you’ve been under, shopping expenses can pile up. Try to cut back on buying things you don’t need right now. Find some new ways to get rid of stress, learn a new instrument, solve a puzzle, draw paintings, write down your thoughts or do whatever works for you. A great way to resist splurging is the 7 Day rule, where you don’t buy what you want until seven days later if you still want it.
Written by Rishita Arora