The lockdown enforced and extended due to COVID-19 pandemic has caught most people off guard. Though the Government is working to lift it in a phased and calculated manner, there is still a long way to go before normalcy restores. With organisations experiencing a downturn and loss in business, along with the economy, the chances of pay cuts and delayed salaries are very much a distinct possibility. For those with an irregular source of income, the situation is even more perilous. In pressing times such as these, here’s how prudent money management can help you bolster savings and ensure you have enough liquidity to sail through.
How to Save More Money from Home?
Most of us resort to subscriptions on a monthly, quarterly or annual basis for various needs including food, entertainment, purchase, etc. While these subscriptions can help save some extra bucks, they need an upfront payment. In a lockdown, where movement is highly restricted, the chances of using these subscriptions are quite thin.
It’s highly unlikely that you would go out now to dine, watch movies or make hefty purchases. In such a scenario, it’s advisable to cancel unused subscriptions and get refunds for the same.
The refund credited to your bank account or mobile wallet can come handy now and help you to address daily needs. Even a few thousand rupees now can help you tide the crisis and ensure you don’t end up compromising on long-term goals.
Be thrifty with your resources
When liquidity is a crisis, it’s crucial to be frugal. Create a budget and identify discretionary expenses. Keep them at bay and ensure you spend only on things that are absolutely necessary.
For example, if you and your spouse are working from home and both of you can work in a single room, do so to cut down on electricity bills. Also, you could share your internet connection or use your mobile’s hotspot to save costs.
If you had planned to buy anything, defer it by a few months until the situation improves. These small but significant steps can help you save a sizeable amount of money. Today, there are many apps available that can help you craft a budget and stick to it.
Don’t resort to hoarding
As with any other crisis, people resort to hoarding of essential items fearing their unavailability and Covid-19 is no exception. Panic buying can backfire in two ways. First, you may end up paying more and second, it makes it difficult for others to access items needed, resulting in black marketing and shooting up of prices.
Note that the Government has taken care to ensure all essential items and services remain available to people during the lockdown. Hoarding will pinch your pocket hard and will make it difficult for authorities to restore normalcy. Therefore, buy stuff in quantity needed. This will not only help you to save but also contribute to the greater cause for the welfare of the country and society at large in these difficult times.
Be prepared for emergency situations
While the authorities are doing their best to deal with the situation, an emergency could crop up anytime. Ensure you have a sizeable contingency fund to deal with a crisis, should the need arise. There could be a medical emergency not related to COVID-19 and being well-prepared for the same beforehand could help you manage it efficiently.
Being locked down in homes for an extended period could lead to mental trauma and therefore make sure to exercise, meditate and have a healthy diet to stay fit. If you are on medications, make sure to have them on time.
Also, it’s advisable to have positive communication with your relatives, friends and family over phone and messenger apps. In case you need to venture out, follow the protocols of social distancing to ensure safety.
Tough times call for tough measures. Being frugal now will not only help you deal with the situation efficiently but also ensure you have enough funds to meet day-to-day expenses with ease.