With Covid-19 causing many problems for the economy, people are looking for ways to save money before anything goes south for them. Should the worst happen and someone in the house loses their job, you want to be ready for the financial burden of losing a job or reduction in pay. Even if you aren’t in that situation, saving money can help you build your wealth, and that’s always a good thing.
No matter your reasoning, the idea of saving money is something that can resonate with everyone, so we put together five simple ways to help anyone save money.
Turn Off the Lights
This one is easy, when you leave a room, turn off the lights. It’s a simple trick, but it can make a massive difference in your electricity bills, especially if you don’t have a fixed rate on your electricity. Since lightbulbs are designed to emit light by passing energy through a filament, they inherently waste a lot of energy. About 5% of the energy emits light, while the rest of the power is dispersed as heat from the bulb. This will help you reduce the amount of electricity you use in the house. If that doesn’t cut the bill enough, you might want to compare your electricity providers to see who has the best price for the same product.
Bundle Where You Can
When it comes to the things you need to live life, you have to make sure they are protected with insurance, too. Home insurance, car insurance, life insurance, and the like are essentials to operate within the limits of the law. You might have the best deal at each place, but have you looked into bundling them all into one provider? Sometimes, having the best value at each home doesn’t mean you have the best deal overall. Often, insurance companies will be able to offer better deals for bundling all of those services into one plan. Since you are getting all the services together, you can get discounts that help you save massive amounts of money each month.
Eat Out Less
Maybe you have a fever for flavour and love to eat out a lot. I mean, who could blame you? Great meals, great service, and no mess to clean, so what’s the downside? It’s expensive. Most restaurants operate at roughly a 300% markup, so you’re not just paying for the food; you’re paying for the experience. All in all, you can save about $245 or more a week by simply not eating out and instead eating your groceries at home.
Getting rid of your debt might sound like a way to get rid of a lot of money now, but its real purpose is to save you money in the future. Holding debt means you are probably occurring passively, so the hole is getting bigger without you even doing anything. If you don’t get rid of the debt, it’s only going to cost you more and more with each passing day. The sooner you pay off the backlog of debt, the sooner you can start building and saving again.
Budget Using the 80/20 Rule
Budgeting is the best way to save money. Since you know what will happen month to month with your finances, you can budget your money around your life. This “visualization” of your finances allows you to do a lot with your Money and understand where it will go. The 80/20 part refers to the percentage you should use to split your Money and save. The 80% is living expenses, including everything from groceries, rent, subscriptions, and other things you know you are going to have to pay for. Those items should eat away at your 80% pool. The 20% is what should be automatically put into savings. This 20% allows you to passively save with a purpose, instead of just putting away what you have left from the month. Now, you have the guaranteed 20% should things go south, and you can add what isn’t spent from the 80% pool to that savings at the end of the month or start of the next pay period.