The Covid-19 pandemic and its aftermath have led to significant financial difficulties for almost all families. Government measures introduced with the aim of staving off economic recession have contributed to hardships and collective belt-tightening. Supply chain issues, quantitative easing and galloping inflation have combined to ensure that families need to reassess their budgeting and finances. Rises in real estate prices worldwide, but especially in developed economies have further added to household expenditure. There is now an even greater need to be pennywise to avoid falling into hard times. But certain actions can be taken to counteract these financial challenges.
Develop a savings plan and budgeting skills.
Developing a successful savings plan requires determination and a little discipline. Don’t put it off, start saving immediately. even if you only put aside a small amount, do it regularly and stick to your guns. Analyse your spending and develop a clear picture of incomings and outgoings, necessary and unnecessary expenditures. In this way, you will be able to economise and rein in your spending on superfluous or frivolous items. When you understand your spending patterns, you will be able to set yourself a realistic budget. Review your budget from time to time and set yourself savings goals. It isn’t important how big or small your goals are, make them attainable and do your best to stick to them.
Take control of your savings.
You can take advantage of your bank’s varied accounts, promotions and saving schemes. Perhaps you need to maintain a transactional account to deal with your everyday expenses. This account can employ automatic payments and direct debits to cover regular bills. Bot you can also open an online savings account which is more difficult to withdraw from and into which you can make a regular payment to start growing your savings. When you have saved a certain amount you may be in a position to open a high rate term deposit which will pay you some interest at a future date.
Economise on your spending
Analyse your expenses carefully to assess how you can economise. Identify any expenditure that isn’t essential. This may be easier than you imagine. For example, you may be able to cancel some subscriptions or memberships. Try to reduce your grocery bills by planning meals carefully. Make a shopping list and stick to it. Compare prices carefully, buy in bulk and buy items when they are on promotions. Buy fruit and vegetables in season and grow vegetables in your own garden if you can. Try to reduce your power bills. Only heat the areas of your house that you are using. Use energy-efficient appliances. Take shorter showers. Run your washing machine on an economical cycle. Regularly compare service providers for example for power, internet, phone and insurance and shift to cheaper suppliers when you find them. Reduce or pay off debts, for example, credit cards. Consider carpooling or cycling to work, or even ask your employer about the possibility of remote working.
Finally, don’t be scared to reach out and ask for advice if you feel you need it. If you don’t have the money in your budget to pay for a financial adviser, there are government-provided services to help you budget and save more effectively.