As we move through the later months of the global pandemic COVID-19, some families have had their budgets stretched and emergency funds drained.
Many would assume that would make saving money nearly impossible, but this isn’t always the case.
Keep reading to learn ways you can save money throughout COVID-19 and any economic recession!
Lower Utility Costs
Between electricity, water, and gas, your utility costs can amount to a sizable portion of your monthly budget. While utility bills won’t be as much as your housing costs, they might be your 3rd largest monthly expense behind your mortgage and food costs.
There are thousands of ways you can lower your utility costs, but here are some of the most effective:
- Raise your thermostat in the summer, and lower it in the winter. Even if it’s only a couple of degrees, this can help lower the amount of electricity you use year-round.
- Use fans and dehumidifiers. Using fans and dehumidifiers can help to make your home feel cooler, allowing you to use less air conditioning.
- Avoid hot water. By using cold water you can drastically decrease the use of your hot water heater which can save you money.
- Unplug electronics. While this might seem like a minor way to reduce electric costs, it can add up over the weeks.
Avoid Credit Mistakes
Late fees and other financial mistakes can put a dent into any progress you’ve made with your money.
When it comes to saving money, you’ll need to avoid these at all costs.
It’s not just late fees, though.
There are many different fees and costs when it comes to managing your money that you can avoid.
- Credit card late fees and interest
- ATM fees
- Bank account maintenance fees. Consider switching to a bank account without fees.
- Overdraft penalties
While these fees might be not a significant amount alone, they can easily add up, saving you hundreds per year.
Stick to the Budget
Even throughout tough times, you need to stick to your budget as best as possible.
If your income has decreased due to a job loss or decline in pay, it’s time to revisit your budget and adjust your spending accordingly.
Look for areas to decrease your spending, even if they don’t make up a large portion of your budget.
Categories like entertainment can easily be cut to boost your savings.
After each month passes, go back and check your spending to see if it aligns with your budget. If you find that you consistently overspend in one area, examine ways that you can either cut your spending in that area or look to cut your spending in other categories.
Lower Food Costs
Between your grocery bill and eating out at restaurants, your food costs will often be the 2nd largest portion of your budget.
You should aim to trim these costs by reducing the amount you eat at restaurants and reducing waste in the kitchen. This can be done in various ways, with the majority of savings coming via planning.
Poor planning can cause you to eat out more and spend more during each visit to the grocery. Plan your meals ahead of time to cut your food costs.
Make More Money
You often can’t talk about saving money without also talking about how much money you make.
Because of this, making more money is key to increasing your savings at any time.
Throughout a recession, you might feel as if this is impossible, but here are a few things you can do to earn a few extra bucks each week.
- Flip furniture. You don’t need to be the best woodworker to successfully flip furniture. You can make a nice profit on many pieces. Check out this guide to flipping furniture to get started.
- Build passive income streams. Even if it’s just a high yield savings account, it can help to keep your finances afloat throughout tough times by increasing your income.
- Make money with a 3D printer. Use your printer to create items and sell them online.
Saving money throughout any economic crisis certainly poses unique challenges. But by keeping track of your money and sticking to your budget, you can boost your savings.
To keep your savings intact, there are a few things you should consider:
- Lowering your utility expenses
- Avoiding financial fees
- Sticking to your budget and cutting costs
- Boost your earnings
How have your finances held up throughout COVID-19 or previous economic downturns? Comment below!