Smart Lockdown Tips: Growing Your Savings While in Quarantine
The COVID-19 pandemic continues to remain a threat not only to the healthcare industry but also to the economy. After it has effectively reduced business operations during the earlier part of the year, people are left grappling with the economic downturn. On top of that, some find themselves living off their savings while in quarantine.
Nevertheless, there is still good to be found in these times. One thing is that certain day-to-day expenses have remarkably decreased. You no longer pay for your daily transportation nor grab your favourite coffee on the way to work.
This period of reduced activity presents plenty of opportunities for you to increase your savings, stay on top of your finances and explore ways to supplement your income.
As ironic as it may sound, you can achieve financial security in these uncertain times—get started by following these tips!
Your budget allocations for transportation and lunch-outs have surely undergone drastic changes since lockdowns were placed. These are just some of the many changes you may have noticed. Considering this, you will need to draw up a budget that is appropriate for the new situation.
Once you have drawn up a budget for your quarantine lifestyle, make sure to stick to it. Doing so will help you cut back on needless spending and make you more conscious of your cash flow.
2. Save Your Earnings Automatically
Here’s a smart trick: set up a direct debit to automatically deposit a portion of your paycheck into a savings account periodically. Doing so ensures that you won’t have a chance to touch your savings at all. On top of that, it lets you see exactly how much you have left to get through the rest of the month.
3. Monitor Your Bank Balance
You will need to keep a close eye on your bank balance now more than ever. This habit of watching your balance will naturally prompt you to make wiser spending decisions. Additionally, it also keeps you from slipping into your overdraft.
As these are highly volatile times, you’ll want to avoid incurring debts or creating seemingly minor financial issues that can escalate later on!
4. Always Think Before You Buy
Acting on impulse and quickly giving in to the desire to purchase are not going to help you grow your savings while in quarantine.
One smart trick to help you manage your purchases is to wait for at least two weeks before buying an item that caught your eye. During this waiting time, your strong desire to purchase dies down, allowing you to make a more rational decision. Ultimately, this helps you buy only what you need.
5. Identify Your Financial Goals
Some people fail to keep up with their saving journey because of one thing: they aren’t quite sure of what they want to achieve. Without a fixed goal to guide and inspire them throughout the process, they’re likely to feel confused. Eventually, this makes them more vulnerable to slipping back into their old ways.
You can avoid this bitter fate by identifying your financial goals and being as specific with it as possible. Then, print it out and hang it in a place you can easily see. Doing so helps you remember the reason why you’re on a saving journey—and stay committed to it!
Amidst all the disruptions and challenges brought about by the pandemic, it’s also presented people with different ways to cut down their expenses and build their savings.
You can make the most out of this time of reduced activity by actively overseeing your cash flow, making wise purchases, and saving money whenever possible. Furthermore, eliminate unnecessary expenses from your budget and remind yourself of your financial goals every day. Doing all of these will help put you on the right track to truly growing your savings, even amidst this crisis.
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