Ask a CPA: How can I save money during this pandemic?
One thing this pandemic has taught so many of us is that our financial situations can change from one day to the other. While some were able to save money working from home, many lost their jobs during the pandemic, and others were furloughed, uncertain as to their futures. During times of uncertainty like these, it can be hard to think about saving any money at all when we’re barely making ends meet, if at all.
However, it’s in times of harsh crisis that we learn our most valuable and powerful lessons. Most of my financial learning didn’t come from books or classes, but rather from lean episodes of my life during which I had to learn to budget, save and avoid financial mistakes the hard way. This pandemic is no exception.
If you are wondering how to save your coins during this pandemic, here are three simple tips that may help:
- Control your impulses
Being at home as a result of the COVID-19 pandemic also means potentially falling prey to a host of temptations, among which online shopping and impulse spending. With the world at our fingertips with a decent wi-fi connection, whipping out our credit cards is far too easy and convenient…until it no longer is.
The first step to saving money in any circumstances, and especially in times of crisis, is to control one’s impulses. This is not just a matter of willpower, but also and most importantly one of setting up the right processes and systems in place not to fall prey to the spending call. One of these systems can be a realistic yet tight budget, setting up automatic payments to avoid the temptation to over-spend, or even having an accountability partner. It can also be reflected in small daily decisions such as opting to cook more at home as opposed to ordering out, or replacing the time spent shopping online with exercise or educational pursuits.
- Be proactive about saving
Saving money, especially during a crisis, requires being proactive about it. It takes being mindful of one’s expenses, and researching the appropriate outlets and systems, to succeed in setting money aside during an unpredictable time such as this.
This may mean researching cheaper deals through applications such as Groupon for instance. It may also entail calling utility providers such as Internet provider Verizon Fios or mobile provider AT&T , to inquire about existing rate rebates, or re-negotiate existing contracts.
- Build emergency savings funds
Last but not least, building an emergency savings fund can go a long way towards helping improve one’s financial situation in times of crisis. It is typically recommended to have emergency savings of 3 to 6 months’ worth of living expenses. However, just starting with one month goes a long way…This starts with the conscious decision to set money aside, and also find other avenues to make extra money, especially online.
Have you tried saving money during this pandemic? Share your insights with us by emailing us at corporate@thecorporatesister.com
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The Corporate Sis.
