Money Management: Getting More Savings amid a Crisis

Money Management

If someone tells you that saving money and managing your finances is easy, it’s either they’re lying, or they’re just too privileged, especially with the current economic situation. But there are some money management tips and hacks that you can do without much effort that could add more digits to your savings.

None of the tips here would be about avoiding shopping or borrowing money as the former is a coping mechanism that gives some people joy, and the latter just can’t be avoided sometimes. These tips are simple, and you can combine them with the digital rebates and incentives you get when you’re shopping to keep the momentum of your savings going.

Saving More Money During the New Normal

The truth is that saving money is a crucial skill, but it’s also tough when the economic uncertainty and other global crises keep you from making ends meet and saving money. But once you’ve figured out some things you can do, it would help you pay your bills on time and save for the future without too much worry.

Having savings wouldn’t just allow you to secure a comfortable life with access to necessities like food, house, clothes, hobbies, and interests. You’re not just keeping yourself financially afloat, but you’re also making sure you have something for the rainy days and a financially stable future. You can start with these money management tips:

Buy only what you will use for a long time

As mentioned, this list wouldn’t prohibit you from shopping as it could be something you need, but if you could consume less and only buy the things you need until you build your savings, it would do wonders for you.

When you get tempted by the newest iPhones and trendiest fashion, remember that these are all passing things that you might not even need in a few months. You could also do the “30 Wears Test” to see if you need to buy something. The 30 Wears Test is a campaign that Livia Forth originally conceived to encourage more people to shop for clothes more sustainably.

Still, it’s also applicable in general shopping situations. In a nutshell, this test would require you to ask yourself, “Will I wear or use this item at least 30 times?” and if your answer is no, then it’s not worth it. Just save your money, instead.

Incorporate the 50-30-20 rule in your money management

Everyone has bills to pay and some things they want to buy with their extra money, and you can have money to do both while still having some savings if you follow the 50-30-20 rule. It’s simple as you need to allot 50% of your total income for necessary things you need to pay for, including your rent, food, medications, and other bills.

For the rest of your income, 30% should be for the things you want, such as a new video game, shoes, or vacation. As for the 20%, then it should go to your savings, but of course, it wouldn’t hurt if you could allot more to your savings.

Following the 50-30-20 rule would ensure you will have money for the necessary things you need to have money for, and you don’t need to avoid treating yourself to some cheap form of luxuries. And at the of the day, you would still have some savings.

Don’t forget to pay your bills on time

It’s not a secret that you will incur some late fees and possibly a higher interest rate when you forget to pay for your rent, bills, and credit card — if you have one. So, it would help if you took the time to set a reminder on your phone to pay your bills.

Stop using your credit cards

Speaking of credit cards, you should avoid using them as much as you can — you can even consider canceling them. If you don’t have one, consider yourself lucky, as having credit cards can tempt you to buy stuff using the money you don’t have yet. It gives you the illusion you’re not spending more than a purchase’s original price, and it will make paying for it easier, but there are interest rates and some late fees that will accumulate and will shock you when you get your statement.

Save Like a Pro

Money management doesn’t take too much effort, especially once you’ve gotten into the habit of only buying what you need or not buying too much and saving money. You will reap what you sow when you have some proper savings, so start saving today.

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