The COVID-19 crisis has led many people to assess their financial health. Of 5,000 people surveyed by Resonate, a data marketing company, 80% expressed deep concerns over personal finances, especially as more workers are furloughed or laid off.1 If, like many others, you’re concerned about saving and reducing spending, here are some financial tips for saving money that can help.
How to Save More Money
Nowadays, some people are even saving for future pandemics—but how is this possible if your own job may be in jeopardy? One in ten people doesn’t have the financial support to last a week if they lost their job.2 No matter what your finances look like, taking steps to minimize spending is the best approach; here’s how to do it:
- Evaluate Your Household Budget: To start, focus on your three top expenses. Rent is often at the top; it is a necessary expense you can’t avoid. That is unless you can negotiate it down, your landlord offers a payback plan, or your mortgage broker will let you defer payments. Eating out and spending on clothing and other material items are often in the top three. By evaluating your budget, you can see how these are impacting your financial health and cut back.
- Use Personal Budgeting Tools: There are numerous programs and apps for tracking expenses. Some let you track spending on a spreadsheet while others link to your bank account to track bills and other types of spending. With more insights, it’s harder to forget about the importance of saving money during this time.
- Focus on Your Priorities: You have your necessary expenses, then variable non-discretionary expenses (you need clothing, but is that extra pair of shoes worth it?). Fixed discretionary expenses include magazine and streaming service subscriptions. Eating takeout is an example of a variable discretionary expense. Add up your priorities (housing, food, heating and cooling, phone, internet service, etc.) to see what’s left over and where you can cut spending.
- Cook at Home: Not going to bars and restaurants is one of the best ways to save money. You can better control what you spend when grocery shopping (although 67% are spending more on groceries during the pandemic).3 Stick to a list of ingredients. Simple recipes can result in fulfilling meals that don’t cost much. Takeout can create spending dilemmas, especially when it comes to tips and delivery fees.
- Find Better Deals: You can save on phone service and insurance by browsing the web, sending an email, or making a phone call. Chances are your auto insurer has cut premiums since fewer people are driving. If you’re driving less, this is a good place to start. Think about your phone/internet usage as well; perhaps you can score a cheaper data plan from the phone company.
Get Great Loans and Financial Advice
At The People’s Federal Credit Union, we offer an online money management program that can help you work toward financial security this summer. We’re also the best online credit union for finding low-interest loans. To learn more, continue browsing or contact our Texas credit union at 806-359-8571 for personalized assistance in Amarillo, Canyon, and Childress, TX.