The last pandemic that resulted in a worldwide lockdown was ages ago. It ended by wiping out half of the population, leaving countries in tatters. With all the technological advancements, you would think that pandemics were now just a story of the olden days. A story that exists to serve as a lesson for human civilization, and boy, we had never been more wrong.
Managing Your Personal Spending is a Must
The debilitating consequences of a pandemic are now upon us. Every single person is affected, but the wide gap between the “haves” and “have-nots” has never been more visible than during this outbreak. It also negatively impacts every industry in the economy, with healthcare and the financial sector taking most of the brunt.
As businesses and companies stopped their operations, a huge chunk of the population was left to fend for themselves, causing a full-scale economic crisis to emerge. In America alone, almost 3.3 million people have already filed for unemployment—the highest percentage to have ever been recorded.
Missed paychecks and lesser income made us realize the difference between our wants and needs. We suddenly realized that, after all, we do not need a weekly coffee fix that costs 4 dollars. That homemade meals are much healthier and savoury than Chinese takeout. And weekly gym memberships can be converted to home workouts with the family.
As our workload changes, we must also reevaluate our personal spending as we look for ways to earn some cash. Whether you are currently unemployed, home-based, or an essential worker, we all need ways to save every dollar bill we have. So, here are tips on how to cut your expenses and save every penny you have.
1. Set a budget plan
First, carefully assess your financial situation. Think about the current savings you have and the likelihood of receiving cash assistance and relief from your employer. Also, consider specific government orders in granting an extension on rent and utility payments and loan contributions.
List down your weekly essential expenses such as groceries, utility bills, medicine, transportation, and childcare (if applicable). The traditional way of actually listing them down helps you get a picture of how to balance your expenses.
2. Stick to the essentials
Here is the good news: closed bars, restaurants, and gyms are beneficial to your wallet. However, withdrawals to such a lifestyle will now be directed to excessive food deliveries and takeout. Food is a necessity, but one which costs a fortune and high delivery fees are not. Try cutting back on your food takeout and making your meals instead.
Aside from gaining another skill, you also get to spend the rest of the quarantine as a healthy individual. With the deadly virus at large, the last thing you need is high cholesterol coupled diabetes.
3. Shop wisely
Another venture that we tend to overspend in is the weekly trip to the grocery store. If you can, try to plan your daily meals and list down the ingredients that you need. Pick versatile and local ingredients and try to do simple recipes for now. Grand meals will need grander ingredients such as expensive sauce and spices that you would only use once.
On the actual grocery day, try your best to avoid cravings and impulsive buying. Be mindful of what you put on your cart. Settling on cheaper items and frozen goods in the meantime would not hurt anybody.
4. Time to unsubscribe
An easy way to free up your monthly expenses is to cut down unnecessary subscriptions, especially ones that are useless right now, such as gym memberships, PR boxes, and meal subscriptions.
Check your credit card for unused subscriptions and those free trials that you have forgotten to cancel. Trim down redundant subscriptions such as Netflix, HBO Go, and an Amazon Prime account all at the same time. Choose one video streaming service for now and let go of the others. Also, if you have a home internet connection, why do you even need a Spotify and Youtube Premium account? You can easily listen to your favourite music by availing yourself of their free package.
This is also the best time to rethink your big data plan. Find a cheaper phone plan and compare different deals from different service providers. You can also opt to forgo your phone data plan for now and capitalize on your WiFi convenience.
Your spending should always be proportionate to your earnings. In fact, even if you do get higher pay or income in the future (and you can, with our help!), it is still best to keep your expenses to a minimum. Don’t spend more than necessary. This goes for both business-related matters and personal expenditures. If you have more questions or concerns about your finances, don’t hesitate to reach out! It’s important that we manage our finances well; we have to maximize our resources and spend our income wisely. Feel free to message us anytime. Annette & Co. will be more than happy to give you FREE expert advice on your spending concerns!