Most of the country is facing the difficulty of COVID-19. Since there have been disruptions to businesses, communities, and families, many of us have been financially stressed during this time. However, this pandemic also gives us an opportunity to determine ways to manage our finances better, which could be useful once COVID-19 is out of sight.
Smarter Ways to Handle Finances During the Pandemic
Reconsider your financial model. A great model for your monthly budget is the 50/30/20 rule. Allow 50% of your salary to go towards things you need, 30% on things you want, and 20% to be put into savings or investments. This strategy is a great way to analyze what you really need and what you want.
Analyze your annual memberships. See how often you use your memberships to gyms, social clubs, apps, and streaming services. If you generally use them less than 30% of the year, consider canceling the memberships. If you’ve started working out from home, consider dropping your gym membership to save money. Not using some software on your laptop that you paid for? Downgrade to a free version.
Declutter. Use the time to clear out all the stuff you haven’t used in the last year. Instead, donate them to charity or sell them on to declutter the house and possibly make some money.
Develop a frugal mindset. Identify different ways in which you can save. Purchase non-branded clothes and accessories, switch out your lightbulbs to cost-saving LED ones, and take all electronics out of standby mode to help save money every month. Keep looking for more of these minor ways to save money. All the little savings will add up to a lot.
The team at Action Insurance Group are here for you during this challenging time. We help you to find and secure insurance that suits your current needs and current budget. Contact us today to get started.
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