During this time when millions of people have lost their jobs, business has closed, the economy is affected. How can you start saving money?
We have to go back to basics and that is budgeting 101.
How To Start Saving In This Time of Pandemic
You have to know how much is your income
If you still have a job, good for you. But you can always look for ways to earn extra income in addition to your savings.
If you lost your job or your business has closed, look for other opportunities. Think of it this way “When God closes the door, He opens a window”.
Live within your means
Track down your expenses so you would know where your money is going. Limit your spending to basic things like food, water and shelter.
You need to look at the difference between needs and wants. In this way, you would know what to prioritize so you can start saving those extra money.
If you’re someone who saw your expenses shrink during lockdown, without dining out, shopping or travelling, you may consider it as a permanent lifestyle change.
You can assess your expenses before the pandemic and during the pandemic, which is important and which you can live without.
This may also serve as a wake up call to you that those things that you can live without might add to your savings or a way to start saving.
Have a Purpose
Why do you want to save? Having a purpose to start saving can lead you to make a conscious decision and effort to pursue your goals.
In line with the purpose, it is easier if the savings is in automation. Meaning you can automatically deposit your savings to your bank account.
Or if you don’t have an account yet, part of your budget is a percentage allotted to your savings.
Focus on Your Goals
And that is to save. You can start saving by having a 5% portion of your income.
Great things start from a small beginning, right?
Then as you go along, you can increase the percentage up until it becomes your habit.
Saving is a process and you need self discipline, self determination and focus. If there’s a will there’s a way..right?