The economic downturn caused by the pandemic on everyone merely is unprecedented. It becomes imperative for anyone that is impacted by Covid19 to take a moment to look at their financial position closely. Per the Depart of Labor, In April, fourteen percent of Americans lost their job in some shape or form. It relied on the stimulus efforts from the federal government to manage their expenses. Let’s take a look at 20 financial tips to manage your money.
I believe that Personal Finance is an art, and given everyone’s financial position differs at every walk of their life, everyone has their route to achieve commercial success leading to increased wealth. I have personally used these tips in the past, and being a financial analyst, I was able to grow by savings by forty percent as of last year. So, I know they work, and my motive from this blog post is to help you increase yours as well, especially if your income is in the mid to high range.
- Always, always, always spend less than you earn. It generates savings that can become part of an emergency fund such as the pandemic.
- First and foremost, the rule of personal finance is to understand the importance of savings. No matter what you do, do not live your life paycheck to paycheck, and what I mean by that is if your pay is weekly, biweekly or monthly, make a habit of saving money by the end of the day.
- Just like risk and reward go hand in hand, it is always important to live for yourself, and what I mean by that is to reward yourself every time you set and achieve a monetary saving goal. For example, the day I saved $1250.00, I decided to treat myself with a flashy Bulova watch.
- Any economist will advise you that nothing is free. Still, if you are privileged to have friends, coworkers, relatives, and or family with deep pockets and they are willing to offer things to you for free, then always look at the economic value of the free product you have received. If you don’t need them or they are of no use to you, then apps like eBay, Letgo Offerup will help you get monetary value from someone that needs them. I have sold a Karaoke system, a guitar, a piano, and a toilet, amongst other things, and have made over $540 from it.
- I feel that interest related to credit card debt is an unnecessary expense as credit card companies make money by charging you an excessive amount of interest on credit card related mortgage. If you have a credit card debt, start paying it down as soon as possible. The quicker you pay, the better you will be.
- Volunteer your skills on a barter system basis. The pandemic has taught us to live for ourselves while acknowledging others, we as a whole need to help each other out and what better way to do that than to barter your skills and trade them with your wants. It creates a win-win situation.
- Make things last longer by maintaining them. Things like your personal car, lawnmower, snow blower, Weed Wacker, HVAC system, etc. require a big chunk of maintenance. Often, we tend to ignore them as we simply don’t realize the maintenance costs associated with expensive things adds to the life of the product, thus increasing its economic value.
- Become environment friendly; if the destination is close by or at a walkable distance, then simply walk, it is suitable for your health, and it will save you a few bucks on the gas and add less mileage to your car.
- Work out regularly, no matter how hard it seems. Health is wealth; living a healthy lifestyle will make you reduce your medical costs and healthcare-related bills.
- Your closest pharmacy, such as Rite Aid, offers you free health checks such as blood pressure checks. The pandemic has taken a toll on everyone, if financial worries have caused your health to deteriorate, then take advantage of the available options.
- Before buying anything from a store that may be a big ticketed item, always search online for a bargain. Some stores offer a price match guarantee, and compete with other online sellers, take advantage of that.
- If you have recently relocated or your financial situation has caused you to relocate, then its best to reach out to your friends, family, or neighbors to get recommendations of where to find bargain deals and buy things that will last long.
- Before buying any product, always read reviews of the product, go online, and watch YouTube videos of video bloggers that have tried and provided their expert opinion on the product.
- Make a sound judgment on your spending habits, days like Black Friday can deplete your savings very quickly as they introduce products to never before heard prices and are bargain purchases. Try to avoid them or simply make a sound decision to buy or not to buy.
- Read financially savvy quotes that motivate you, for example, “A penny saved is a penny earned.”
- Set up a budget and keep to the budget, if your monthly money goals not achieved due to an unforeseeable expense, try to adjust your finances to make up for the additional cost but always keep up with your costs.
- Look out for the coupons your local stores offer. Sometimes a coupon is printed on the back of your sales receipt. Don’t ignore them; save them for the next time you shop.
- Don’t get more than one credit card. There will be many offers from clothing stores, appliance stores, electronic stores, etc. that will entice you to enroll in their credit cards simply ignore them.
- Don’t shop every day, try not to go to a store of a mall for specific days in the month. Practice no shopping days.
- Minimize eating out. I have avoided eating food outside altogether just as a precautionary measure as part of the pandemic. You never know your cook might have contracted the disease.
It’s best to strategize your financial position, given the current economic condition. I hope these 20 financial tips for managing your money helps you out with your finances. As part of this blog, I will be updating these tips occasionally to help further you save. I believe in spending money while making the experience worthwhile, so spend wisely and make the best out of your buck.
I hope these 20 financial tips to manage your money help you to become more money proficient. Please feel free to provide feedback/comments on the article. Please share this article within your network.
Disclaimer: The thoughts shared in the post below are simply a representation of my views and opinion and should not be construed as any financial advice. Please consult a financial professional before making any real financial decision that impacts your life.