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This is a collaborative post. All opinions are my own.
If there's anything the Covid 19 crisis has showed us, it's how quickly things can change...and how important it is to have some savings to weather the storm. I don't think anyone saw this coming: a worldwide pandemic that would shut down small businesses, leave millions suddenly unemployed, and cause entire industries to come screeching to a halt?! It was so swift and unexpected, it caught many of us unprepared. So what next? We can hope for the country to reopen soon, but that's uncertain and out of our control. In the meantime, one thing we can do is ramp up our personal savings and prepare for a bumpy ride. Here are some ideas to save those pennies while in quarantine.
1. Reallocate common spending categories to savings - Right now is a unique time. Our spending has been completely slashed in common categories like on gas, entertainment, dining out, and travel. This is a chance to take the money that would have normally been allocated for those buckets, and dump it straight into savings. Who knows, during this time you might find alternatives you like just as well (like recipes you can cook at home). If you can change some of those expensive habits for good, it will help you keep costs down even as restrictions get lifted!
2. Take the 30 day challenge - It can be tempting to do more online shopping right now than usual. To curb those impulses, instead of buying an item right away, put that money aside for 30 days in your savings account. If you still want it after the 30 day period is up, go for it. Otherwise, the money stays in your savings account. This will help you avoid a lot of frivolous purchases that you'll later regret. Once the money's already in your savings, it's more likely to stay there.
3. Cancel unnecessary subscriptions - Monthly subscription services have become sooo common, for everything from razors to clothing to meals. You might even have digital subscriptions you've totally forgotten about like Hulu, Audible, Photoshop, news websites, apps, and so on. Then there are memberships to places like the gym. Some of those services might have made sense before lockdown, but your habits may have changed now that you're home all the time (do you need a new box of clothes or makeup every month when you're hardly leaving the house?). Go through your credit card statement with a fine tooth comb and ditch those subscriptions!
4. Reduce household bills - Speaking of recurring expenses...this is a great time to look into things like home insurance, car insurance, internet, phone, and other household bills. While you're home during the day, shop around and see if you can find a better deal, or call your provider and see if you can negotiate a lower rate. A little bit of time can help your budget a lot.
5. Online trading - My take on investing is that it's for the long-term. Historically, over a long period of time, the stock market has always risen...so the safest and most surefire way to invest is to put your money in an index fund and leave it there for a long time. But if you're interested in trading, look for online trading sites with the lowest trading fees. If done well, this can be a way to supercharge your savings, quickly.
If you are determined to save money, then you will do it. You'll figure out many other ways to reduce your expenses and pump up your savings as quickly as possible. You just have to find your "why." Ben and I are motivated by our kids...making sure we have enough in the bank to keep our family safe and healthy, is far more important than any discretionary spending or creature comforts we enjoy.
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