Saving Money During COVID-19

July 15, 2020

The outbreak of the Coronavirus has caused chaos in all our lives.

If there’s one word to describe the implications and overall feeling in Australia right now, its uncertainty. We as a country are uncertain when there’s going to be a cure and we’re uncertain how this will affect our income and savings.

However, for some they are taking advantage of the current climate and kicking some serious savings goals. You’re probably wondering, “How can people save during this time?:

Well its quite simple we’re working from home and in lockdown and we can’t go out and spend money. So what are some ways you can save money during this crazy time:

Cut out the non-essentials

Let’s face it, most of us will be stuck inside our homes for majority of the next few weeks. Simple ways to trim your spending would be, only buying the essential items and if you can’t cut an item out completely – find a cheaper alternative. For example, your normal $30 bottle of pinot could be replaced with a $10 bottle that tastes just as good.

Get those refunds!

As a result of COVID-19, many events, flights and overseas travel services have been cancelled. In most cases, you will be entitled to either a refund or some form of credit according to the Australian Competition and Consumer Commission (ACCC)

Having a savings plan

If you fail to plan you plan to fail. So planning is the most important factor. One of the most effective ways to save your income is the 70/30 rule. Put away 70% of your income into your savings account and the other 30% will cover your living expenses.

Budget and never spend more than you earn

Have a budget and stick to it. Don’t get caught up on Afterpay. If you can’t afford something don’t buy it. Only buy what you need the necessities and when you have some money left over treat yourself and buy what you want.

Review your home loan repayments

The interest rates right now are historically low. If you don’t have a home loan below 3% you’re paying too much out of your pocket. Speak to your broker or your bank to refinance and start saving now! We recommend the team at Funding Force on (03)9369 0690.

A quote we heard which resonated with us is, “Now is for surviving, not for thriving” this especially is in relation to our money or personal goals. If you are off-track with where you wanted to be, that is okay. It is unusual times we find ourselves in and things will be back on track soon enough.

Stay safe and continue to #StopTheSpread.

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