When Covid-19 struck the world, lockdowns happened in different countries. This resulted in the countries having an economic crisis which led people to lose their jobs. People had no choice but to use their saved up money to survive and continue living despite the pandemic.
A year has passed and we have seen major changes in the economy. This helped a lot of people to have a job, regain employment, and/or establish their own businesses hence, they will be able to save money again from their earned income for their future. By means of this, this article will assist you on how you can effectively save money during these trying times. HERE ARE 5 TIPS ON HOW YOU CAN SAVE MONEY. 1. Follow the 50-30-20 rule of thumb The 50-30-20 is a basic rule to follow when receiving after-tax income. During payday, of course, the first thing in your mind is to pay all the necessary bills and buy necessities for yourself or your family. However, your wants may also come to your mind especially that you worked hard to get your income. With this, 50-30-20 should be done: 50% of your income should be allocated to your needs (essentials) - bills, groceries, payments, insurance, etc; 30% must be on your wants - gadgets, netflix, clothes, etc; and 20% must be on savings or investments. Following this 50-30-20 rule is a great way for beginners to follow a formula when starting a saving journey. This basically dictates the percentage you should allot in certain expenses which would make budgeting easier for you. 2. Avoid impulse buying Impulse buying is an action in which a customer buys immediately without a second thought. Sometimes they correlate impulse buying to treating oneself. Treating yourself is not bad at all especially when you had a long busy day. What’s wrong is when you spend all of your money on unnecessary things. Sometimes we purchase impulsively, thinking that we only live once. But, did you even stop and consider that the money you are about to spend on can help you in the future? Think about it! In these days where budol is common among people, be one of those who keep their money values intact. You’ll thank yourself in the future when you do so! 3. Preloved stuff selling Preloved selling is the process of selling good condition owned items at a lower price. Each and every one of us has stuff that is not being used anymore. We hide it inside our cabinets, and drawers; we also put it in a storage room and never use it again. If those items are still in good condition, try selling them with a reasonable price. Especially nowadays that the pandemic has caused great financial crisis, being money savvy is a must. With that, many people already embrace pre-loved clothing as they are cheap and sometimes still comes in good quality. If your clothes are in good condition and still wearable but no longer used, selling them could be a good idea. You will be able to declutter your space and even make money from getting rid of unused stuff. 4. Alternative source of income Alternative source of income is having other income apart from earned income on one’s job. When you are an employee, the best thing to do with your earned income aside from saving up, is to have a small business that will help you to have an alternative income. If you don’t have time to put up a small business, try seeking help from your family. In addition, you can also apply for a part time job; start your own vlog, blog; and/or do freelance. Doing these things will help you earn more and maximize your time. If you have a lot of free time, it’s a good way for you to start building a new hobby and make money from it. There are also ways to earn extra income without having much effort, though. But whichever suits you, you should definitely build another source of income on top of your regular paying jobs especially in these trying and uncertain times. 5. Budgeting Budgeting is an act of financial planning. This is also called a spending plan. Nowadays, it is very important to plan ahead because tomorrow is not a promise. Our situation might get worse, resulting in the loss of jobs again. Planning on your finances will help you track all your expenses. Through budgeting, you will determine how much money you will spend as well as save. Consequently, you need to balance your income and expenses to avoid having debt. WHY DO WE NEED TO SAVE? Imagine saving up today; after years of doing it, you would have a large amount of money that you can use later on for yourself-such as buying a house and lot, a new car, or visiting other countries without worrying about the expenses. Saving is all about having financial security. Securing your life is the best thing you can do for yourself. Saving is not just about being ready for the future, it is also about being responsible for yourself. Your savings is for emergency, protection, and stability. It will give you stress free and peace of mind. Once you are settled, you have the freedom to spend all of your saved up money and enjoy it. Comments are closed.
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November 2021
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