If recent times have taught us anything, it’s that life has surprises around every corner. During the uncertainty, keeping your finances in order can be a tricky task for any person. Tracking your finances, saving money, and spending money where it’s needed are all complicated tasks everyone deals with.
With so many lost jobs, economic hits, and a health pandemic, it is especially important to dissect your money. Staying financially smart is essential. It’s time to look at cutting costs by looking for things like cheap auto insurance companies, affordable rent, and ways to cut utilities.
Every day is important, and living your life day to day is an admirable way to live. However, when it comes to money, saving and planning for the future is also a commendable feat. This is especially true when there are so many unknown variables in life.
Here are a few ways to be savvy with your finances while we are experiencing difficult times such as during the COVID-19 Pandemic.
1. Plan for Retirement
It doesn’t matter how old you are — retirement is a stage of life that requires planning. If you don’t plan, instead of enjoying yourself and living a stress-free life with your family, you’ll end up working a monotonous job to make ends meet.
Planning for retirement can never start too soon. Many financial planners say to shoot for ten per cent of your annual salary. That may sound like a lot to put away in the present, but your future self deserves some attention also. If you’re still working towards your salary goals, at least put something into retirement. It could mean the difference of years in the future.
2020 can be the year you start saving for retirement. Just because you haven’t yet doesn’t mean all hope is lost; start small and do what you can as your bank account slowly grows. Check out more tips on financial management for retirement, and see how easy it can be.
2. Create a Budget (Even if You’re Young)
This should go without having to be said, but creating a budget is the best thing any person or business can do to assure financial success. If you have no idea where your money is going, create a budget, and document your spending. This is also a great way to determine where to make appropriate spending cuts.
In 2019, more young people than ever were “dead broke.” Being young can be financially difficult. It is the time in life when you are deciding about your future, your career path, and having a family.
The “what-ifs” in life are overwhelming without the worries related to COVID-19 and the current economic fallout because of the medical crisis. So start saving now by using a workable budget. You will find that even in the midst of a pandemic, you can come out financially stronger.
I’m here to tell you money isn’t as scary as it seems. Get a side-gig or even get three of them. Work until the wee hours of the night, and find what makes your heart work. Then create a budget, even if it’s only for a thousand dollars a month.
You don’t need anything fancy to create a budget. A simple spreadsheet with a list of your expenses will do. Save your receipts, and calculate your expenses at the end of each day. Have a purpose and a plan for your income earned through your side-gig. Right now, it may be to pay living expenses while the pandemic continues. But later it may be to pay down debt.
3. Check Your Tax Deductions
It may surprise some people, but there are many things you can do when it comes to tax deductions. Tax deductions can be endless, especially for small businesses. The various insurances that people and businesses pay will account for a lot of tax dollars.
But now more than ever, there are many ways to deduct your insurance policies off your taxes. Verify your deductions. If you are unsure about how to understand deductions, contact an accountant or tax specialist to assist you. This will save you money in the long run.
4. Review Your Insurance
With so many out of a job, insurance benefits may be changing. Take this time to review your insurance coverage. This includes medical coverage, car, home, renters, and business.
While some insurance can be deducted off your taxes, the best way to look for savings is by reviewing the insurance policies you pay for. Comparing insurance policies from different companies can be a great way to cut costs. If you’re not sure how to go about doing that, there are many insurance experts that you can hire to help at a low cost.
Auto insurance seems to be readily available for discounts and savings. You could have too much coverage for your car and be paying too much. Life insurance is essential, but are you setting too much aside for something that may not even occur? Review these things with your business and personal policies, and you could save more than you think.
5. Be Financially Smart, Even During a Pandemic
2020 is here, and so far, it hasn’t been kind. We are experiencing tragic events in the world, unlike anything we have ever seen. With so much uncertainty, pay close attention to your finances. Make a budget, find a side-gig if necessary, and cut your spending where possible.
It is a new world with new concerns and fears. While many are struggling to make sense of the pandemic and economic tensions in the world, the worst thing you can do is to assume you will come out of it financially stable. Financial savviness comes with practice and diligence.
There a million ways to do it, but starting small is still starting. Begin with a plan, budget your money, and find savings every chance you can. The time is now to start getting your money where it needs to be.
About the author
Robyn Flint writes for the auto insurance comparison site, AutoInsurance.org. She is a licensed realtor, blogger, freelance writer, and a published author. Robyn is also a founding partner of a real estate rehab company and owns two small sales businesses.