Can you live without money? Practically, no. Everyone out there is hustling day and night to earn a penny extra so that they can afford a little luxury or earn sufficient to feed their family.
In such situations, when the pandemic hit us last year, it became more important to be cautious about the ways we use our money. Most of us lost our jobs or faced salary cuts. These crucial times made us realize how every penny counts. So, to come out of this economic crisis, how do you save some money?
Here are 5 easy tips that will help you save a little in 2021.
1. Pay off debt
Debt makes up the majority of your savings. So, if you have any sort of debts, pay them first. By doing this, your budget will automatically come under control. Debts make you pay high interest because of which you cannot save much.
Thus, keep the payment of debts as your priority. Once you repay all of them, the interest money will be saved and converted into savings.
2. Prepare budget
This is an important step that most of us avoid because we either find it too difficult or time-consuming. You don’t have to be a professional in this. Just keep a track of the expenses and the income. When you do this for a month or two, you’ll realize where your money is being used and how much you’re able to save. This will encourage you to cut down on unnecessary expenses. This will help you gain control over your life.
With the help of a budget, you can manage your money better. Budgets help you to understand the categories you spend the most money in. Analyze your budget and try to save more.
3. Shop online
Try to shop online as much as you can. It helps you save a little more as there is no room for intermediaries. When there are no middlemen, there’s no need to pay commission, and hence, you can purchase products at very reasonable prices.
Along with this, when you shop online, you get some more benefits like discount vouchers, cashback offers, or promo codes that help you save even more after the low prices. If you make online payments, you receive an additional benefit from the bank that you’re paying from. This way with online shopping you will be able to avail multiple benefits and save money along the process.
4. Open a savings account
Instead of a current account, try to open a savings account in your bank. This will help you attain a small rate of interest on the money you keep in your bank. Some banks provide up to a 5.5% interest rate. Fixed deposits keep your money locked but with a savings account, this is not the case. You earn money for whatever you store. Hence, this is a very beneficial strategy to save money.
Additionally, you can keep track of where you’re losing your money and keep control over the expenses. An everyday banking account that has no account fees can assist you in this process.
However, if you are a student, you can choose to open a student’s savings account to capitalize on more benefits like zero-bank facilities and other freebies.
5. Look for multiple income sources
This pandemic has taken a toll on all of our incomes and the salary does not seem sufficient to run the house. Under such circumstances, to avoid debts, you should always look for a passive income or side income. Apart from your regular job, look for other investments that can help you earn some rewards during the year.
You can either do some freelancing work in the field you’re interested in or take up a part-time job for after-hours. Apply for typing work or give home tuitions. You can also look for work from home jobs so that you can save traveling costs.
Over to you…
2020 has been a difficult year and the aftermath of it will also be experienced in 2021. But if we are judicious enough to use our resources from the very beginning, we might have to struggle less. Thus, start saving with these tips so that your pocket doesn’t have to borrow coins from somebody else to survive.