COVID-19 Finance: The Best Tips for Saving Money During COVID-19
During the COVID-19 pandemic, financial anxiety is high as many people lose their jobs and file for unemployment. A large number of businesses have already closed their doors permanently. If you had been saving money for an emergency, it is possible that you’ve already used it to tide you over the initial months of the coronavirus pandemic.
If you are looking to start budgeting and get your personal finance life in order, here are some financial tips to get you started saving money during COVID-19.
1. Anticipate Financial Challenges
As you start the process of financial planning to weather the remainder of the pandemic, anticipate that you will likely face some sort of financial challenge in the future.
Even if you’re working now, you could be laid off in the future. This means that you should make everyday financial decisions as if you may need the money later.
2. Avoid Large Purchases
In general, it is probably a better idea to avoid large purchases for now in favor of putting that money into your savings account.
This includes non-essential appliance purchases, large home renovation projects, and other costly items that might be on sale. Some homeowners are paying to have in-ground pools installed in their backyards to give kids something to do during the pandemic when they spend more time at home.
However, in-ground pools cost tens of thousands of dollars, often in the form of a loan. It might be a better idea to spend a few hundred dollars on larger above ground or inflatable pool to avoid spending money that you don’t have to. If you can skip paying for a pool altogether and save that money, that would be a wiser financial move right now.
3. Rely on Community Resources
During this troubled COVID-19 time, one way that you can stretch your budget and save is to utilize any community resources that are offered to you.
Some school districts, for example, offer a week’s worth of lunches without having any income restrictions. In addition, food pantries are beginning to offer groceries and other items in drive-through operations where anyone can participate.
If you aren’t working and are having a difficult time making ends meet, these resources can make it possible to skip your grocery expenses and put that money toward rent. It can also enable you to save the money you would have spent on groceries.
4. Save and/or Use Wisely Stimulus Checks
If you receive a stimulus check from the U.S. government, it might be worth trying to save as much of it as you can if you do not need to spend it on immediate expenses.
If you have credit card debt that could be paid off in full by using the stimulus check, you can do that to save the money you would have wasted on interest. Just plan on not using the credit card again to rack up expenses.
Be on the lookout for the next round of stimulus checks.
Start Saving Money Now
It can indeed seem impossible to save during the pandemic. In some cases, it can be very difficult if you lost your job or have reduced hours.
But by following these tips and doing what you can now, you can be more comfortable if more challenges arise.