How to Save Money During the Coronavirus pandemic. We are all going through difficult times during this pandemic so we decided to write a short guide on how to save money.
The first step to start saving money is to figure out how much you spend every week and month. Make a list of all your expenses— every jeepney ride, taxi, Jollibee, and Rent payment. The list should start with the biggest expense and end with the smallest.
When you create the list, organize the numbers by categories, food, groceries, and rent, and make a total for each category. The more information you have on your expenses the better you will understand your spending behavior and learn where you can make changes.
1. Find where you can lower your Expenses
When you finish listing your expenses and dividing them up into categories – study it carefully and see where most of your Income/Salary is spent on a weekly and monthly basis. Look for expenses you can easily remove without making a big difference to your everyday life.
Here is some advice:
a. Don’t eat out so often;
b. Make coffee at home instead of Starbucks;
c. Think carefully about every purchase.
2. Make a Budget
When you have a clear idea of expenses and what you are your essential expenses. Make a clear budget for each spending item every month. For example, rent, vacation, eating out, groceries, and the amount allocated to each category should not be more.
3. Set A Minimum Savings Goal
With the budget complete everything left over should be kept as savings and not spent on “new” expenses. Try to make it a habit to save between 10% and 15% of your monthly income.
If you can create an automatic savings account that pulls money directly from your salary into a separate account.
4. Review
At the end of every month take a few minutes to review your expenses for the month and adjust your budget if it is not following your plan and fix problems quickly. If possible, look for ways to grow the amount you are able to save even more.
5. Watch your savings grow
If you follow the 5 steps correctly your savings should grow every month. This should help you achieve greater savings goals like saving for the down payment of your house or investing in the stock market. By understanding how to stick to your budget and save money it may help you find more ways to save and hit your goals faster.
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