Coronavirus has disrupted almost every aspect of life, with a significant impact on the economy. With the long-term consequences of the Coronavirus lockdown still unknown, there has never been a more important time to take back control of your finances.
It is always a good idea to have a ‘rainy-day’ pot of money set aside for emergencies. So, to help you build your nest-egg and make your money go a little further during the lockdown we’ve put together a few simple steps to help you save money.
Set yourself a budget. Work out how much of your income you need to get by on, this includes rent and mortgage payments, bills, food and necessities. Once you have worked out your necessary outgoings, you will be able to see how much you have left over. Divide what you have left over in half, set one half aside for savings and put the other half into an account you use daily and use it for small treats for you and your family throughout the month.
By creating a budget, you may also be able to see areas of your monthly spend that you could even cut back on a little. Do remember to treat yourself occasionally though, lockdown is hard enough as it is, without a small luxury now and again!
The average person (in the UK) spends around £145 each month on their commute to work! One silver lining to come out of the lockdown is the fact that, if you’re stuck at home, you’re saving your commute money. On pay day, work out what you would spend per month on your commute and put that money straight into a savings account. Before you know it, you’ll have a nice little nest-egg without even trying too hard to save!
Use this time to go through your bank statements and cancel any direct debits you are no longer using or no longer brings you any joy. As lots of subscriptions offer you free trails, it’s easy to forget that you may have agreed to pay a subscription once the free month trial ends – have a search through your statements and check for any payments you don’t recognise. Also, during lockdown your priorities might have changed. Netflix may have become an essential part of life and things like your Gym Membership are going to waste – cancel or put these on hold until you’re able to use them again.
If you booked a gig or concert, or a holiday that’s looking like it’ll have to be cancelled or postponed, get in touch with the organising Company as soon as you can to see what options you have. While many places may ask you to move your plans to a later date, others will offer discounts, refunds, or gift vouchers. Try not to be too disheartened if this year’s holiday is cancelled, as you could always pay yourself forward and put the money you get back toward next year’s trip!
We hope you’ve found these tips helpful. Should you need professional advice on how to manage your money during Covid-19 there are organisations that can help:
*The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.