Despite the doom-and-gloom we’re faced with, certain opportunities present themselves. One of these is the chance to reevaluate and correct our mindset and behavior about money management. We need to have a battle plan for when the lockdowns get lifted so that this financial challenge doesn’t happen to us again.
7 Ways to Manage Your Finances Wisely and Mitigate the Effects of the Lockdown
1. Prioritize your expenses.
By now, you would already have an idea about what’s essential and what’s not. Since you have been confined to the four walls of your home since the lockdowns started, you have found out how much money you didn’t spend by staying at home.
The things you did spend on during this time of isolation are the ones that are pretty much needed for your survival. This doesn’t mean, however, that you would deprive yourself of certain luxuries and comforts. You just need to make sure you have all the essentials taken care of, including setting aside money for your emergency funds and retirement.
2. Cancel unused and unnecessary memberships and subscriptions.
If there’s one thing the lockdown has taught us, it’s how we used to spend our money on a lot of unnecessary things. While there is still uncertainty with our job and income securities as millions of us are still out of a job and strapped for cash, we should take a hard look at all of the things we’re paying for monthly and cut down on the ones we can live without for the time being. Consider canceling certain club memberships at this time and other monthly subscriptions you don’t need.
3. Check if you can have some of your monthly payments deferred.
The pandemic has left millions of Americans jobless. Understandably, these folks cannot make the usual monthly payments they do. If you are one of those people who have been sent home with no means of income during the lockdown, do not be afraid to ask for help.
Reach out to institutions and ask how you can apply for some breaks or reliefs. See if you can have your mortgages lowered in Nassau County and try to seek out the help of property tax reduction services.
4. Try to see if you can have some of your monthly payments lowered.
Other than payment deferrals, try to see where else in your monthly expenses you can cut down on. Lower your electric bill by conserving as much energy as you can. Call your internet service provider and see if you can downgrade your subscription to a more manageable plan.
Try to see how you can also minimize your automobile expenses once the lockdowns have been lifted. If you can go around just by walking, you’ll be saving a lot on gas or commute money.
5. Eat at home as much as you can.
One of the main money savers is eating at home or prepping your meals. Eating out may be an ordinary thing to most of us and we lose sight of how much we spend on our meals outside the home. Meal prepping saves you so much time and money, and since you’re already used to eating at home, you just need to keep it up.
6. Stay disciplined.
All the time spent at home has minimized, somewhat, your spending abilities which have led to bigger monthly savings. By this time, you may have already picked up certain habits that prove helpful in minimizing your expenses.
Stay the course. Even when the quarantine season is done, keep that frugal mindset and discipline. It will be beneficial to you in the long run, especially since there’s so much uncertainty in our future.
7. Look for other ways to make money.
The pandemic has taught us to not rely on our jobs or businesses for they can easily be taken away. Be on the lookout for opportunities to earn. There are a lot of different ways to make money. Get ideas online. Look for odd jobs that you can do around the neighborhood.
Don’t just sit there waiting for an opportunity to come knocking at your door. Make things happen. While there is still a lot of uncertainty about what the future holds at this time, it is best to prepare yourself and ensure your family’s needs by securing your finances.