7 Ways to Cut Spending During Covid-19
With the world shut down due to the Covid-19 pandemic, you'd think cutting back on your spending would be easy. The temptation of online shopping, long grocery lists, and entertainment subscriptions can really add up! We're here to provide 7 ways to help maintain your financial health in the face of the pandemic.
1. Modify your Mentality. As you know from the countless articles, posts, and publications that have dominated the news cycle since January, things are not business as usual. We are in a state of emergency, and your budget should be too! Even as the economy begins to reopen, it is better to be cautious and be over-prepared for the worst case scenario, keeping your long term strategy in mind.
2. Create a Written Budget. Creating a monthly budget is a great way to keep your expenses and savings in check and track your spending habits. Review your credit card charges and see where you can make cutbacks, then draft a document and stick to it! Check out this step by step guide.
3. Quit it with the Retail Therapy! As many of us have discovered, lowered income and more idle time spent on the internet can be a dangerous combination. Consider deleting your saved credit card information from your internet browser. Manually entering your credit card number for each purchase can be an effective checkpoint to analyze the urgency of the purchase. You can also put things in your shopping cart on a 24 hour hold, giving you time to assess if it's crucial that you buy that new massage chair from Sky Mall right now.
4. Eat Efficiently. It can be tempting to order food delivery or indulge in fancy groceries purchases for that pinterest recipe you're trying out, however now is the best time to scale back on food purchases. Skip the postmates and steer clear of name brands at the grocery store. The generic mac and cheese is just as good as the Kraft, we promise.
5. Take the Pantry Challenge! We all say “there's no food left in the house!,” but 99% of the time, we're lying. The Pantry Challenge is a great way to use the food you already have to cook meals which will cut down on your grocery bill and eliminate food waste. Plus it's fun!
6. Subdue your Subscriptions. Subscriptions to streaming platforms, data plans, and fitness programs can make up a surprising amount of your monthly spending. See if you can cancel or put some of these on hold for the next few months to free up some space in your budget. The knowledge that Netflix has over 36,000 titles available (that's over 6 and a half years of content) may help you give up your Hulu and Disney+ membership for the time being.
7. Seek Assistance. Paying your bills can feel like it's about to drain your entire savings account, so there's no shame in reaching out to negotiate your rent, cable or utilities. Many companies have already committed to help find solutions for those who are struggling to make payments in light of Covid-19.
Following these 7 tips can provide financial and emotional relief as we continue to manage our finances through the Covid-19 pandemic. Madison Monroe & Associates is here for you as a financial partner in these trying times. Don't hesitate to reach out by emailing us at firstname.lastname@example.org or calling us at (877) 346-2797.