Are you familiar with the quote that says, “Save money and money will save you.”?
If you are and you agree with it, then you probably have a good savings plan, retirement fund, and money tucked away for a rainy day. During the Covid pandemic, when it rains, it pours. Saving money can be a life saver especially when you have commitments, responsibilities and your source of income unstable or at risk. No one knows what the future holds; even full time employed individuals with insurance, benefits and health care are also at risk. Some of the most secure jobs (historically) are at risk in today’s pandemic. Bankers, government workers, and teachers are just as at risk as temporary staff in the hospitality trade.
Panic is part of the New Normal
As risks of losing employment increase, the cost of living rises, health care becomes more expensive, salaries stagnate and levels of debt increase… Who would say that they are financially safe now, or in the foreseeable future? The COVID-19 outbreak is one of the biggest challenges of our generation. As freelancers with no stable income,what can we learn from this pandemic?
When it comes to saving, 1 out of 3 Brits are living in danger. Specifically, below a third of individuals in the United Kingdom have less than £1,500 in their bank, and 15% of them with no savings at all. SO what can you do with your money to help it go a little further?
Learn to transfer your debt
If you are paying a large amount of interest on your debt, then you could make use of the promotional period a credit card offers with 0% balance transfer deals. This would give you some more time to gain control over your debts. Just ensure that you already cleared your debts before the promo period ends. You can also look at consolidation loans, moving all debt into one place.
Learn to plan your expenses in advance
When you plan your expenses, you are giving yourself an overview of what needs to be paid and what is unnecessary. This way, you can adjust your expenses according to your expected income.
Learn to use personal finance software
There are tons of free software packages that can help you track your expenses, income, and even investments in detailed reports. This can be helpful since it gives you analysis on where your money goes and could help you decide how much savings you need.
Moreover, the COVID-19 outbreak has placed a lot of people in unexpected circumstances. Regular employed people were unfortunately dismissed as businesses suffered financially. What more for freelancers whose services are only limited to a client who would avail their service? Saving money is a good habit as we do not know what awaits us in the future.