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It’s fair to say that the last few months have been a game-changer for millions of people all over the country. Many have seen a decrease in their incomes or even lost their jobs. Freelancers have been particularly hard hit by economic upheaval.
Things are likely to be unpredictable for some time to come, but if you haven’t already, you need to start planning your post-COVID finances.
Slash Your Budget To Essentials Only
You’ve probably already learned to live without a lot of things in recent months, but you can probably cut more unnecessary expenses.
Review all of your monthly expenditures and cut them down to the bare essentials. Cancel as many monthly subscriptions as possible for things like the gym, magazines, and streaming services. You can start adding items back as they become necessary and your income stabilizes.
Find Ways To Add To Your Income
Any additional money that you can bring in on a regular basis is going to be a huge help. If your freelance work isn’t coming in, you might want to look at other options such as market research surveys that pay you in paypal money transfers, or working on gig sites such as Upwork, People Per Hour or Fiverr.
Some businesses have actually been expanding through the pandemic and are hiring part-time staff including food suppliers and delivery.
Take Advantage Of Balance Transfer Offers
If you owe money on credit cards, you’re probably paying interest on the balance. Though the number of credit deals available at the moment is limited, there are still some options that could see you paying more off your balance and less in interest.
Depending on the length of the 0% transfer window, you could be able to pay off the majority of your credit card debt before the interest rate kicks back in.
Reduce Your Bills Through Price Comparison Sites
Most people stay with their current providers of energy, water, cell phone, and insurance because it’s too much of a hassle to change for the sake of a few dollars. Competition between suppliers often means that there are great savings to be had.
You could be saving hundreds of dollars a year by moving suppliers. The most common types of bills on price comparison sites include:
- Gas
- Electricity
- Water
- Cell Phone Contracts
- Insurance (pet, home, contents, car, professional indemnity)
Make a habit of checking for good deals before you renew any supplier contract.
Use Cash Back Sites
Each time you make a purchase online, you could earn some money back. Cashback sites are underutilized by people, and you can accumulate a good little sum of cash.
They are extremely easy to use: you simply sign up and find the online store you want to buy from, click through the link, and then just shop as usual. After a period of time, usually 14-30 days, you’ll receive your cashback.
Build Your Savings Back Up
If you’ve had to dip into your savings over the last few months, you’re not alone. The priority now should be to build savings back up as quickly as you can in order to offset any future surprises.
Even just putting a small amount of money away on a regular basis will get you into the habit of saving. Once your income picks back up, start putting a greater percentage of it aside.
Once your emergency fund is built back up (experts recommend 3-6 months worth of living expenses), then you can look to start saving towards other things.
Take Advantage Of Low-Interest Rates
Low-interest rates are likely to be here for a while as the economy tries to get back on its feet. While low-interest rates are not great for people looking to save money, there are some advantages.
Now might be a good time to look to remortgage your property at a better rate of interest. You could potentially be saving hundreds of dollars per month on your mortgage payments. The number of mortgages available is limited right now as lenders being more cautious, but if you have some equity in your property and a good credit rating, it should still be possible to get a good deal.
Key Takeaways
COVID-19 has had a huge effect on most people both socially and financially. The priority now should be to stabilize your expenses, maximize your income, and build up contingency funds to mitigate any future emergencies. If 2020 has taught us anything, it’s to plan for the unexpected.
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