Are you spending too much during this lockdown? Try these 4 tips to manage your finances better.

Many countries across the globe are facing serious financial difficulties during this pandemic and many families are struggling to feed on 3 meals a day. Millions of people are out of jobs while many businesses are on standstill due to the lockdown. In the face of this hardship, this could be the best time for you to learn the best approach to handling your finances

Rolled 20 U.s Dollar Bill

1. While the lockdown has helped us in a way in curbing our excesses because we haven’t been able to go to movies or buy clothes that we don’t need. It is also advisable to adopt the 50/30/20 rule which helps us allocate 50% of our income towards things that we need like food, rent, education, etc.. We can allocate 30% of our salary on things that we want to like movies, non-food shopping, travel (if possible), and other less essential needs. The remaining 20% can be allocated for safe investments like mutual funds, health funds, college fees, and weddings.

2. Thanks to the lockdown, many families now spend precious time together more than before. It will be helpful towards managing your finances if you spend time with your family in the kitchen trying out new recipes which will cut costs on restaurant foods and pizzas.

3. This lockdown has forced us to devise ways to spend a good time with our families as we now watch movies together on Netflix rather than spend extra cash trying to see a movie in a theatre downtown and also spending more money on tickets and snacks.

4. Now that the lockdown is effective in many cities across many countries, people don’t travel unnecessarily which has reduced the cost of parking, fuel, and car maintenance.

If you own more than 2 cars, you can consider having to sell one and go out in Uber or other online cab services that are affordable.

Remember, this is just a phase and it will pass. Make the best of this period to come out stronger than you were before the pandemic financially; get stronger and more independent because the benefits will last for a lifetime.

May 10, 2020/by Grandeur Travels