Simple Ways to Manage Money during Covid-19

Saving money is no less than art. Mastering it cannot be everyone’s cup of tea. There exists no magic formula nor any book of tricks. But simple lifestyle changes can largely cut down on your expenses and improve savings. 

Simple ways to manage money 

Firstly try to understand your present situation, look at the debts, the money you earn, owe and spend. 

Write them down. Try to closely observe your daily finances. Try to make notes of the out flux of money. Try to be as detail-oriented as possible. At the same time also write down your long term financial goals. They may be buying a house or a car or even a vacation. Break that goal down into smaller monthly or weekly goals. Prioritizing is another key. Once you have listed down all the goals, prioritize them in the order of your choice. Try to analyse what you can do today to reach your goal. Take small but significant steps. 

Plan. A plan is necessary. It should be composed of multiple milestones and steps that you can take every day. Milestones like closing a debt, monthly savings and spending can be included. Once you have made the plan try to stick to it as much as u can. After achieving a few milestones, you will be surprised to find some extra funds with yourself. Things might be daunting and impossible in the beginning but should not give up. Missing a few steps might be okay too. But, you need to shift your radar back in its right direction. Be honest with yourself. There is no reason to set up goals you will not be able to achieve. 

Budget- Budgeting is one of the most important aspects. Once you have a clear budget, you know clearly where you can spend and where you need not. Try to categorically differentiate between your needs and wants. You can even take the use of spreadsheets to draw a clear idea. There are also several mobile applications devised to serve this purpose.

Close the debt- A debt elimination plan will help you reach closer to your goals. Try to get rid of unwanted furniture, appliances etc to make some money and add to your repayment plan. Taking up a second job too might aid the situation. Taking all these things into account, once you are out of debt, try to maintain that position. 

Look around- No one knows everything. Nor anyone has figured it all out. It is important at times to get out of your comfort zones and ask for some advice. Get in touch with family and friends who you think will be able to guide you well. Look out for professionals in the area. They would like giving you some advice. You need not necessarily take it, but there’s no harm in knowing a different perspective.

Try to set up an emergency fund aside every month to be used strictly in need of the hour. Try to improve your credit score. You can also make sure to pay bills and debts on time to avoid any outstanding payment. You learn from your experiences, make mistakes, unlearn, learn new things and eventually grow.

Note- You may get into vicious cycle of personal loan frauds. However, it is very important to identify them. Have a look on how you can avoid personal loan frauds.