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Essential Money Habits

Essential money habits needed at All Times

The effects of COVID-19 has caused several Companies to permanently shut down and as a result, many people lost their livelihood and subsequently the Economies around the world having to take huge hits.

Therefore, it is important to live frugally and employ the following essential money habits that are needed at All Times, thus avoiding the need go through Financial Difficulties.

  1. Make the Habit of Saving: Through setting up an Auto-Transfer Money into a Savings Account, you are actually kick-starting one of the easiest way of Saving. In doing so, you are making your future more secured with less to worry. Other ideas include: Using Discount Coupons to make purchases; Purchase during Special Promotions or Discounts and so on.

Besides helping the environment, you can even (for instance) save precious Energy by using less Electricity during Daytime and thereby reduce the Utilities Bill periodically. Even simple ideas such as prepare your Lunch/ Snack and Coffee/ Tea for work; Commute using Public Transportation rather than use your car/ vehicle and so on.

 

  1. Get a Good Health and Life Insurance Policy: Especially during the uncertain times caused due to COVID-19, it is imperative to arm yourself with a Good Health and Life Insurance Policy.

If you fall suddenly ill or (worse) pass away, it important to protect yourself and your Family through a Good Health and Life Insurance Policy that provides the necessary Policy Coverage within your spending ability.

 

  1. Spend Within Your Means: This is the Cardinal Rule for Saving which is to Never spend beyond one’s means (which includes earnings and savings). So, shop smartly and don’t fall prey to Buying Promotions. Many of us experienced spending money outside our Homes for: Travelling, Dining in a Restaurant, Movie Tickets and so on.

However, due to each country’s COVID-19 Regulations; Concert Halls, Amusement Parks, Movie Theatres and so on are closed indefinitely. Also, due to the effects of COVID-19; it is important to remember that whatever income we earn through our current Jobs has no Guaranteed Security. Yet, there is no need to Fret and be Stingy or live Miserly.

Without the need to be Stingy or live Miserly; you could spend for Special Occasions like Anniversaries, Public Holidays, Birthdays and so on.

 

  1. Utilise the Money Saved to Quickly get rid of the Debt: Whatever money is saved, keep some aside to quickly pay whatever is the remaining Debt (Credit Card, Bank Loans and so on) which thereby avoids the need to spend more money on paying for Bank Interests and (or) other Bank Charges due to the remaining Debts.

As much as possible, avoid using Credit Cards and cancel unused/ unnecessary Credit Cards. This thereby reduces the need to pay unnecessary Bank Charges. You just need to look for a Bank that provides a suitable Debit Card that has similar functionality of a Credit Card with low or no Bank Charges.

If getting a Debit Card is not possible, then use only One Credit Card with a threshold amount far lesser than what you earn or save. Use the kind of Credit Card that does not put a massive dent on your Finances (because of high Bank Charges and Interests). Remember: The quicker you pay off your existing debts, the quicker you can save a lot of money and prepare yourself financially.

 

  1. Monitor Your Finances: Prepare Budgets as that can greatly help in monitoring the amount spend for Utilities, Food, Travelling, Clothes, Amenities and others. Set a Target of how much you want to spend periodically and Monitor your spending through Budgets. You can even set a Target of saving for a special Trip to an Exotic Island or Visit a country for unique cultural experience like India or for getting a unique travelling experience like Australia.

Periodically monitor your progress made, the debts that are covered, Home Renovation Expenses and so on. This will then boost your Motivation to save more and more.

There are so many ways to save without compromising your way of living and yet live frugally within your means. The ones mentioned are some of the simplest yet essential money habits that can help anyone to save money.

 

Verdict: Rome was not built in a day but tiny drops of water make a might ocean. So, small changes can make a big difference in your Finances and you can start saving money from Day 1.

Nothing in Life lasts forever and so is COVID-19. Yet, until our Health Agencies and Government Agencies finds a permanent solution; we need to take care of our Wellbeing as well as our Finances through Savings.

Even the Parents can teach and encourage their Children to save money through simple ways like putting coins in the Piggy Bank. 

 

#Lifestyle #Savings #Money