Let’s be honest here, if there’s one thing the entire UK population has taken from the Coronavirus pandemic, it’s the need to learn to spend less and save more. This is important as clearly there’s no warning before this kind of life-changing situation emerges, and when an emergency does emerge – as we’ve seen with the first wave of the pandemic – it seems to be finances that are hit the hardest.
Bearing that in mind, the fact that you should try and cut your expenses back in light of the current pandemic is a no-brainer. If you want to ensure that if we see another wave of this deadly virus – or face any other serious threat – you survive financially, you need to be clued up regarding your spending sooner, rather than later.
Let the current pandemic serve as a lesson in financial stability and how important leading a financially stable life is, for ensuring that whatever life throws at you, you are able to survive financially. If you’ve never been someone who is good with their finances, now is the ideal time to change that and learn to live a little more frugally, spending less and saving more.
Wondering what steps you can take to do that? Have a read of the simple tips below!
Create a cash flow forecast
The first step that you should take is to sit down and create a cash flow forecast. A forecast should map out all of your monthly earnings alongside your monthly outgoings. You need to be able to see what is coming in and what is going out in a clear and simple way. This should help you to determine what the lowest amount you could survive on each month is, and should also highlight where you may be overspending. It’s important to learn how to determine where you may be overspending, as this should help you to think more clearly about where your money goes, going forward.
Prioritise your needs over your wants
An important lesson to learn, when it comes to your spending, is to prioritise your needs over your wants. So, for instance, perhaps you are somewhat of a fitness fanatic and you’ve just seen the newest air fryer be released, designed to make cooking healthier food quicker and easier. While you might want to invest in this brand new gadget, it is a want and not a need, because you can easily cook healthy meals without it. You need to learn to differentiate between what you want and what you need, if you want to lead a more financially stable life.
Trim, trim, trim
When it comes to slashing your expenses, you need to try your best to trim costs from every aspect of your bills, from your electricity charges and internet to your tv package and phone bill. The more costs you can cut, the better. The key here is to do your research – take the time to go online and see if you can find cheaper alternatives to different bills. For instance, say you’re paying £45 a month for a phone contract on EE, online you may be able to find a cheaper alternative, such as a Lebara £5 SIM only plan that offers a similar package for a tiny percentage of the price that you were already paying. A lot of people pay high phone contract rates, simply because they like to have a new phone every year. However, if you’re happy to stick with your current phone, then a SIM only plan could be the answer to cutting costs.
There you have it, a few simple tips and ideas for reducing your spending in light of the current pandemic.