The economic impact of the COVID-19 pandemic has distraught many groups, but it has especially affected millennials worldwide. Data intelligence company Morning Consult reports that millennials bore a significant percentage of the financial burdens brought by the virus.
Bouncing back may seem difficult due to student loans and rising home prices, but it is not impossible. Financial recovery in the time of COVID-19 is doable with good discipline. Take these practical steps to heart to pave the way for financial security even during these tough times.
Have a Strict Budget
With targeted ads and the seemingly never-ending slew of product releases, it may be difficult to keep your hands from clicking the “Add to cart” button. But to stay in control of your finances during an unpredictable season, it is vital to keep to a weekly and monthly budget.
Make strategic daily choices.
That is, try to reduce expenses in every aspect of your daily life. A simple but beneficial practice is to be conscious of how you use electricity and other utilities at home.
Assess with questions such as: Can I manage to lessen my use of air conditioning and heating? In what ways can I conserve water consumption at home?
Additionally, see if you can avail of more affordable services for your other practices. If you send money to family members who live away, remit online using affordable services that offer low fees. Use this technique for your regular delivery expenses, too.
Cut down on shopping expenses.
Unfortunately, it may also be time to dial back on online purchases and takeouts. Food is among a household’s usual biggest expenses at any point, so be extra mindful of how you use your budget in this area.
Eat out and take out less. Instead, cook more meals at home to save money. An extra benefit is that home-cooked meals are also a great opportunity to bond with your family at home.
Cut back on grocery shopping, too. Keep to your necessities by making a grocery list ahead of time and only buying what’s on it.
Review monthly payments and reduce as needed.
You should also review your monthly spending, such as your subscriptions. These usually include video and music streaming platforms, news publications, cloud storage services, and gym memberships. Choose only the platforms you use the most and cancel other subscriptions.
Don’t worry, as these changes are only for the meantime. Reducing to the essentials will help you build up your finances to help you live more comfortably in the future.
Make Wise Savings Decisions
While you have to make big changes to make ends meet, for now, do not compromise on your savings. Save as much as you are financially capable.
Always put money into your savings account.
Include savings deposits in your monthly budget. In fact, it should be a top priority in your budget planning. Savings are an assurance for your future, especially should unexpected events occur.
It will be best to keep your untouched savings in a high-yield account. High-yield accounts will have good interest rates, allowing the money you don’t use to keep growing while in the bank.
If capable, set up a separate emergency fund from which you can withdraw. This way, your actual savings account goes untouched. An emergency fund usually should store three to six months’ worth of household expenses.
An emergency fund is not always easy to build, especially during times of financial crisis. Maximize your tax returns and other sources of finances, such as side hustles, if any.
Seek out good investments.
Making good investments is not all about depositing money into a savings account. There are many opportunities to invest elsewhere, even during the pandemic.
Among your options is investing in the stock market. There is a wealth of resources for beginners who need a bit of assistance on where to start. The process is simpler than you might think!
Insurance is also an investment that has become more important today due to the health concerns raised by the virus. It is best to canvass among insurance companies and choose one that offers the most practical and affordable policy for your current financial status.
Think in the Long Term
The concerns that seem to crop up daily make it hard to visualize future financial independence. But it is important to keep having a vision for your future despite the season.
A vision will motivate you to keep making wise decisions. It instills confidence and hope as you work towards a more comfortable future. The times are tough, but remember, it is possible to rise above it all!