Managing money in this tight economic environment, this juggernaut, which has been crushing the country's GDP since the implementation of an enforced lockdown due to ongoing pandemic, has become a task. The daily market highs and lows have been haunting us for months now. Panic, stress, anxiety have barred no one during this pandemic.
The financial pressure faced by all of us has led to an impact on our mental health and has caused a lot of tension in the market and stress. Bombarding ourselves with excessive information and news has led to a constant panic situation seen in society. This stress can be well managed if one thinks in a calm, headed manner.
Some precious tips and suggestions which can help during this crisis situation have been enlisted below:
Developing a frugal mindset
This is the basis of putting a cut on unnecessary goods and commodities and spending only on our necessities. By avoiding spending on that designer dress that we wanted, we can rather be happy that we have good clothes to wear. Designer dresses can wait, necessities can't. Sometimes, these unbranded clothing can suffice and can also turn out to be a perfect fit for us.
Budget Your Expenses
Sticking to a budget has always been a savior for us, from spending on exciting products that we might not need. A good chunk of monthly expense goes on buying all the daily requirements like food and groceries. Bills are another major chunk eaters from the monthly expense.
Putting a cut on electricity, avoiding the lavish use of lights and fans when not needed, can surely be done. Small savings on luxuries, semi-luxuries are sure to make a difference in the long run. Always saving a certain percent of the salary for a savings account and other secure investments.
Resisting take outs/ deliveries of food items
We all have midnight cravings, the mouth-watering delicacies are plotting on tempting us to have them, the random making that got played while scrolling through Instagram leaves us famished. We crave food.
Food can be a weakness for some people, but rather than ordering food late at night, we can wait until tomorrow and enjoy preparing the same with our beloved families. Enjoying the typical kitchen moments with loved ones is surely a memory to treasure. Avoiding food takeouts/ deliveries not only cuts on the extra expense but also adds on the family time we cherish. You see, a win-win situation!
Availing the various coupons/offers available on online payments
There are a number of online websites and other applications that provide us with hefty discounts on the purchase through online payments by applying offer codes/coupons. Saving extra money has never done anyone, any harm. Bring a little cheapskate can be beneficial at times.
We all make New Year resolutions and get ourselves enrolled for gym memberships/ yoga classes and whatnot. But the reality lies in the fact that we never really go after a month, or probably a week. Only a few dedicated souls stick to their resolutions, and others just give excuses for not following their resolutions. If you have a gym/yoga membership that you don't use, it would be better to cancel it and take the refund from them if possible.
Selling the superfluous items
There is always this one additional item in our house, which we think we are using, but honestly, we aren't. It's just there, lying in the corner. Well, why not finally make some money out of it by selling it with the help of websites like Quikr/ Olx. We all know we aren't going to use it, do better sell it!
Making future secure investments
Now let's assume following the precious tips that we just read, we save a good amount of money. But how do we use this money to make more money? It's simple, and we can invest in recurring deposits, which gives us interest in our money and then renew them once they mature. In this way, we can definitely make our money earn some money!
If you don't need to use your money right away, you could also take advantage of certificate of deposits that banks and credit unions offer. It will require you to deposit a minimum amount that will earn interest over time, however, it should remain untouched depending on the term you choose.
Different financial institutions offer different rates, so you have to do research to find the best one. CIT Bank offers competitive CD rates as compared to other online banks. It also has different terms you can choose from depending on what fits your needs.
Investing in life insurances
The only certain thing is uncertainty, and in a pandemic with such havoc created, securing life becomes our priority. The company provided Employer' insurance is not always enough. Securing a life of self and family becomes very crucial during a pandemic.
A good investment in government insurance is of utmost importance. Avoiding panic selling of shares in the stock market but rather channeling investment in insurance is wiser. A calm mind and channelized good investment are essential to secure the future.
Online internships can be an extra source of income for people with a full time already. The part-time job after the regular 9-5 job is a very good options for extra money. Also, students and can apply for the same as a hands-on experience, plus they can take care of their own expenses without having to ask one's parents.
Saving money, channelizing it correctly, investing in future secure plans can be the sole mantra for surviving financially in this crisis. Rightly quoted by Sir Albert Einstein, “In the middle of difficulty, lies opportunity.” We can all make fruitful opportunities from this difficult situation that we have been facing by being a blend of witty and a little cheapskate.