The world is battling a recession due to the coronavirus pandemic that took the world unawares. Money is barely circulating, and I do not want to detail the pandemic and subsequent lockdown effects. However, I must point out that it overwhelmed our healthcare system, shut down businesses and economies, and spiked worldwide unemployment rates. Many people have lost their jobs and are unsure of what the future holds for them. We are not in total lockdown anymore, but the odds are uncertain, and no one knows how good or bad things will get.
Now, since money is barely circulating and the world is battling unemployment and recession one might ask the question, how do I save the little I have so I can make it through the recession? Luckily for you, I have made this blog where I will be sharing tips on saving up some of your money during this period. These tips have worked perfectly for me, and using them will yield the same results for you.
Hello readers, My name is Antoaneta, and I am your friendly host in this blog, where I will share my ideas on how to save money during these trying times. Most of the blogs I make are about investments, but this one is just for prudent spending, so pay close attention, and I am sure you will learn a thing or two to help you on your journey to wise spending. Check out my other blogs such as, “15 Top Ways To Have A Stress-Free Life“. So, jumping straight into the day’s topic.
Here are Amazing Tips to Save Money During a Recession
Always chase refunds for services you may not be using at this point
If you have events or shows or booked halls or whatever you have paid for, and you know that you won’t be able to make it to these places, you have the right to chase your refunds. Consumer rights are in place for a purpose, so you can always demand that the money be returned to your debit card, credit cards, or bank accounts, depending on how you paid for the service.
Pick up your phone and start talking to someone in the company about it. It might be easier to get your refunds if you used a credit or debit card than cash payments since you can talk to the banks or credit card companies who can refund you and then chase the money the company now owes them. There might also be insurance policies in place for these kinds of situations, so you have to weigh your options.
Always check for any forms of entitlements
There are a couple of websites that can check your benefits for you for free and are easy to use, so you need to keep track of any entitlements because you worked for them, so you deserve them. These websites offer benefits and grant support so you can speak to any of their representatives to know what you may be eligible for. These companies can also help with consumer issues when trying to get your money back or not getting what you paid for. Finding any potential benefits is a way of having to save money because it brings more into your house and ensures you do not lose out on anything.
Try to clear whatever outstanding debts you have
Nobody is spending money unless they have to. No cars are running, not too many places to go, like parties, clubs, resorts, etc. So this is the best period to start looking towards clearing whatever outstanding debts you may have accumulated before this period. It could be credit card debts, consumers’ loans, and the like, but you need to start clearing them even if it is the thing you achieved during this lockdown.
There are two main methods, namely the snowball method and the avalanche method. The snowball method involves paying little by little till debts are cleared, and the avalanche method deals with a percentage of interest gained every month. So pick the one that suits you and start now.
Embrace the new saving habits you may have picked up during the lockdown
Many people have been forced to learn new habits that they never thought they would have learned. Some have given up smoking and drinking, dropped some costly membership cards, too much TV and data subscription, cut down on their spending in almost every way. Some of these people never thought they could do that, but they have, and it is time to embrace those habits.
The lockdown came with many disadvantages, but you have to agree that there is a silver lining; we are now learning better and healthier ways to live. Some have even learned a new skill or side hobby, and you need to stick to these new habits and bring in more to save money in the long run.
Use the final goal of what you want to do with your life to save money
Take a good view of your budget and strip out whatever will negatively affect your goal. Lunches and dinners in expensive restaurants, for example, might cost money, and I do not think that is in line with the goal an average individual set for himself. Now, let’s say you have saved all you can from all the possible places and you are out of choices, there is a little bailout you might want to check. Why not commit yourself that you will start saving a specific percentage of whatever money comes in on top of your regular income?
Develop a habit of autosave on additional money monthly
Yes, I asked, why not save a specific percentage? This may seem trivial, but I’ve tried it, and it has yielded results. Sometimes, we come across some extra funds, and it will be wise to try depositing a certain percentage to your savings account or box for a rainy day. It would help if you also tried tracking whatever money you are spending.
Saving is not all about hoarding money; it is about making conscious decisions on spending the money that comes your way. It might be in the form of investments, and if you want to choose that part, see one of my previous blogs captioned “Top 15 Ways To Save Money Quicker” and start doing something meaningful with the money you have saved.
Now that you have a few ideas on how to save money, I believe I have convinced you to start saving more during this period. If I have, please like and share this blog and subscribe to our platform for more of these blogs.
Recommended for further reading:
- The Miracle Morning: The 6 Habits That Will Transform Your Life Before 8AM
- Start With Why: How Great Leaders Inspire Everyone To Take Action
- You Are a Badass: How to Stop Doubting Your Greatness and Start Living an Awesome Life
- Atomic Habits: The life-changing
- The Self Confidence Workbook: A Guide to Overcoming Self-Doubt and Improving Self-Esteem