Saving Tips from Financial Experts to Help You Ride out the Pandemic

Everybody has been affected by the permeating effects of the coronavirus pandemic has had on society. Even those who are lucky enough to still have a source of income and have prepared themselves financially for such an unforeseen event are becoming concerned over how long their savings or emergency fund would last them. Here are some penny-pinching tips financial experts have to give for people in such a situation.

No to Retail Therapy

ufabizphoto/Deposit Photos — Don’t let the stressful times lead you to resort to retail therapy to cope

Not being able to leave the house can result in a massive cut to one’s monthly budget. After all, having limited things to do outside also limits what a person can buy too, right?

In a way, yes. However, the long home quarantine period can also lead one to give into the temptations of online shopping, whether it’s for necessities like groceries or luxuries.

To avoid falling into this trap, Frost Brokerage Services and Frost Investment Services’ Angela K. Holiday advises people to not resort to panic buying as well as retail therapy. Making these mistakes can lead one’s credit card balances to rise, which can turn into debt when left unpaid.

Remember that having unplanned debt, especially during a global crisis, isn’t ideal.

Cutting Back on the Non-Necessities

baranq/Deposit Photos — Analyze your credit card and bank statements to see which expenses you can temporarily put on hold

Now is also the perfect time to review one’s spending habits. Start by going through all of the credit card payments and charges made during the past few months.

This process should also include the heavy-handed elimination of the expenses that may be deemed discretionary or unnecessary, according to certified financial planner Ande Frazier.

Unfortunately, one might have to sacrifice things like streaming subscriptions, data plans as well as fitness memberships. Going without these can leave a person with a significant amount of money they can then use for more important and urgent things like debt repayment and bills.

Try to Negotiate Bills

belchonock/Deposit Photos — Don’t take out money from your savings to pay for your piling bills right away

Speaking of bills, people should know that they aren’t alone in not being able to afford them at the moment. Credit industry analyst Nathan Grant reminds struggling individuals that they can first start negotiating with their landlord, credit provider, and utilities provider.

Find out if they’d be willing to settle for a different payment arrangement or even extend deadlines for bills. They might be more understanding towards clients and consumers considering the widespread effects of the coronavirus crisis.

Coming to an agreement on these matters can help an individual not deplete their savings paying bills when they have no source of income yet.