Saving Money During The COVID-19 Pandemic
Setting up an emergency fund will help
you survive the tough times. Here’s why you
need to save money during a pandemic.
Why is it important to save money especially during the pandemic? It’s almost a no brainer! The COVID-19 pandemic resulted in loss of jobs and reduction of income. It affected everyone. From business owners, employees, self-employed, etc. There’s no exemption.
Becoming financially prepared makes all the difference during unprecedented times. That’s the reason why financial planning should be on top of everyone’s priority list. However, it’s not just during the challenging times. In fact, everyone should save money regardless of the present situation.
The drastic effects of the pandemic are the best example why you need to save money. Because of the economic fallout, setting up an emergency fund is your first defense against debt and other financial difficulties.
If you haven’t started yet, this is the best time to make it your priority. In fact, according to Ramit Sethi, a financial expert said, “If you’re someone who is worried about your money, you should work toward saving at least a year’s worth of emergency fund.”
Here Are Some Profound Reasons to Get You Started
Offers Better Mental and Physical Welfare
Money is one of the biggest factors to stress especially the lack of it. In fact, some studies show that about 14.5% of the population in developing countries are stressed because of money. This involves the lack of appropriate budget, impending bills and financial uncertainty.
The truth is, it’s one of the triggers for mental and emotional misery. Financial uncertainty is not just troublesome, but it can be deadly. That’s because a person when stressed has a higher risk of engaging with unhealthy habits. This is often the starting point of an unhealthy lifestyle.
On the other hand, getting your emergency fund in order will secure you and your family from unexpected medical expenses and improving your quality of life at the same time.
Develop Self Discipline
Starting an emergency fund will give you a better perspective with your spending. That means you get to be mindful of each buck you spend. This will ultimately change your spending habits. Aside from the money you get to save, you also develop a keen sense of responsibility with how you manage your funds.
Offers Financial Security
Financial security is the ultimate goal of saving. That translates to future financial stability. Your financial habits will determine how you will live in the present. If you notice, financially stable individuals have more savings and margin which often translates living comfortably within your means.
This lessens the risk of getting into debt and bankruptcy when something unexpected like the current pandemic happened. Furthermore, this involves hard work, dedication, and sacrifice to make room for a brighter future.
Gives You More Opportunities
Having saved money not just offers a secure future for you and your family but it actually gives you more control of your life. For example, having bigger savings gives you a chance to invest. This means you have a chance to increase your income passively.
It’s also one of the best ways to explore other opportunities like opening a business, get a PPO insurance plan, etc. This is especially helpful if your job gets compromised because of the lockdown.
Now, Are You Ready to Save Money During the Pandemic? We’ll Show You How.
Choose to Cook at Home
Taking out food has many advantages especially if you don’t know how to cook your own food. However, it’s expensive compared to cooking a simple meal plan. Aside from the money you get to save, it offers a better chance of managing your diet which results in a healthier body and healthy eating habits.
Sell Unused Stuff
It’s understandable to hold on to stuff that has sentimental value. However, there are always a few things that you need to let go. While many of these things often end up in charity, you can take a closer look at some of the items and sell them online.
Check Your Debt Payments
Check your loans and debt payments like home mortgages. If you have an outstanding loan that you think you can’t make on-time payments, make sure to reach out to your lender and ask for other options. Often, this results in temporary lower loan payments.
Also, refinancing your home mortgage will help you generate savings. Since, loan interests are low because of the pandemic, this could be the best time to refinance your mortgage. Make sure to visit your mortgage lender and ask for other options.
No Impulse Spending
Delay gratification is always wiser. That means, you get to wait a little before you buy something you like. Learn to hold off from spending for a few days because sometimes the best deals come when you least expect them.
When you delay buying something, either you get the same item at a lower price in the coming days or you realize you don’t need it after all. You can even try used items such as tools and electronics. However, make sure you only buy from a reputable seller when buying secondhand items.
Getting your spending in check often leads to cutting on nonessential expenses. For example, you can make your own coffee instead at the local cafe. Make savings your priority.
Spend Money Wisely
Saving money doesn’t mean you’re not spending at all. The truth is, you learn to manage your spending. The best example is to take advantage of vouchers, sales, discounts, online coupons or store weekly ads. You can also opt for cash back apps for better earning percentage. The key is to make the right choices.
Open A Separate Savings Account
Getting a separate account dedicated only for savings lessens the temptation to spend it. However, make sure to use the savings money for emergency purposes alone. If it’s not an emergency, keep your hands off of it.
