Budgeting Tips for Saving More Money During Quarantine

Making financial progress is a common source of stress for many Americans. When the effects of COVID-19 began to take a toll on the economy earlier this year, many communities and businesses were caught off-guard and unprepared. Even for those who are good at saving, the current pandemic situation has made us realize the importance of stabilizing our spending habits. Though these circumstances have caused a lot of uncertainty and fear, there are many big and small steps that you can take to start budgeting. We want to highlight a few of these ways that may help you achieve quarantine savings that will prepare you for the future ahead.

Cancel Unwanted or Unnecessary Subscriptions

Consumers are far more likely to buy subscriptions if they only have to pay a small monthly fee instead of the entire cost upfront. This strategy has brought us some of the most popular services, like Netflix, Hulu, and Amazon Prime shipping. While the latter services have proven to be very useful during this time, what seems like a few dollars here and there can build up into a surprisingly large monthly bill. It is best in uncertain economic times such as these to really consider which subscriptions are necessary and which can be eliminated. Try downloading a subscription management software to help out. Using software like this can produce immediate financial results for you, and begin to stack up the savings in your favor.

Start an Emergency Fund

It can be incredibly difficult to set aside money when the budget is tight in the first place. With most restaurants, bars, and theaters scaling back services or temporarily closing, now is a great time to consider putting the funds you used to spend at these locations into an emergency fund. Financial experts offer different targets on the amount that should be in an emergency fund with a range of between one-thousand dollars to about six months of your income. Here are some steps to help get you started:

• Evaluate how much you are spending and earning now based on the last six months of bank statements
• Decide on a number you want to reach for your fund
• Make a budget to reach your funding goal
• Discipline yourself to stick to your budget and achieve your goals

The first three steps in this process can be done in an afternoon, and the final step is all about keeping yourself accountable. It may not be easy at first, but it will be worth it in the long run.

Take up a Side-Hustle

Most of us have more free time on our hands now than we did before, so perhaps now is the best time of all to find options to make the most of your pastimes and talents. Opportunities such as food delivery from a service like Postmates, GrubHub, or DoorDash make it easy to fit in a side gig with your normal daily schedule. Another field that is expanding rapidly due to the shutdown is the field of video tutoring. One does not even have to be a professional educator to get started with this. If you’re more of a creative and have found joy in crafting during quarantine, there are plenty of ways to share and sell your creations through Etsy or other e-commerce websites. While these side jobs are not meant to replace a full-time income, they can certainly provide a small boost that helps build up savings. They can easily help cover some monthly expenses.

Meal Planning Some people love to cook and some would prefer someone else do the cooking for them. However, if you are wanting to cut down on your weekly food bills, a great way to save money and avoid going out is to meal-prep at home. It is easy to find cheap alternatives to some national brands on certain foods, and cooking at home is certainly more cost effective than eating out at restaurants multiple times a week. Cooksmarts.com reminds us that we do not have to be professional chefs to enjoy every meal. Stick to what you know you like and pick some new cooking skills in the process!

Seek Government Assistance

Governments around the world have enacted new programs in response to the pandemic. Some of these programs directly tie back to government resources, but others are designed to force the hand of the industry to be as helpful as possible to individuals during this time. These assistance opportunities from the government are specifically designed to help anyone who is struggling at this moment. All eligible individuals should maximize the benefits that they can receive to assist themselves during this time. Whether it be eliminating a few luxuries temporarily or utilizing your knack for jewelry making for some extra cash, these are some reasonable and sustainable solutions that could put you on the right track financially. Set yourself and your loved ones up for a healthy post-COVID budget with some of these tips and tricks.