The pandemic has shown how quickly things can change due to a natural disaster. Suddenly, our ways of life had to give way to a new normal to protect the vulnerable. This entailed heavy sacrifices including the temporary or permanent loss of livelihood for millions. Many were left in difficult financial situations that required the government to step in. Although social assistance programs are welcome, it is hard to rely on them for your future. You need to protect yourself and your family by building a solid emergency fund that you can draw from in times of crisis. Save consistently by changing your lifestyle. Whichever saving schemes you choose, discipline and focus will help you boost your emergency fund.
Rethink Your Vacations
Vacations can eat up a lot of money. People spend large amounts anyway since they feel like they deserve to treat themselves and their loved ones after working so hard the whole year. It’s true that occasional rewards can be beneficial for our psyche, but these do not have to be as expensive as they currently are. If you like flying overseas for your holidays, then consider reducing these trips in favor of local spots. Try to find places that have the same feel nearby and support your local economy. You can also try micro-adventures around your city and nearby areas every month to break the monotony without spending much. Hiking, fishing, surfing, trail running, and other outdoor activities work best for active individuals.
Reduce Your Restaurant Expenses
Dining at restaurants can be practical for busy people. It also gives a chance to eat nice dishes after long stressful days. You can still do this from time to time but try to reduce the frequency so that you can trim your expenses. Those who have shifted to working from home should find it easier to save since they are less tempted to go for lunch at a restaurant unlike when they are at the office. Cooking at home can be a challenge if you are not used to it but this can become a very rewarding activity after a while.
Examine Your Transportation Costs
If you were planning to purchase a new car, then you might want to re-examine that plan right now. Do you have other debts that you need to pay? Is this purchase a need or a want? Can you stick to your current car a bit longer? Could you purchase a different model with a lower tag price? Would you consider a second-hand car that runs well instead? Apart from rent, car payments can take a large chunk out of your paycheck. Be very careful when it comes to vehicle purchases.