Tips for saving money post Covid-19.
If there is a silver lining to coronavirus it’s that we’ve all learnt to live smarter. And by “live smarter” we mean more frugally. Warren Buffet, worth $80 billion, still drives his Cadillac DTS (worth about $45 000), proving that disposable income does not have to be spent. It’s not uncommon to fall into the “earn more, spend more” trap.
Here are some tips for saving money and living post Covid 19.
1. The 80/20 Rule
What does the 80/20 rule mean? Spend a maximum of 80% of your income and save at least 20%. This is what “living within your means” means! To help you stick to the 80/20 plan, set up a direct debit that occurs as soon as you receive your pay cheque. Make sure the money is going to an offset or savings account that cannot be easily accessed.
2. Understand when you have FOMO and don’t succumb to it!
FOMO, otherwise known as “’Fear of Missing Out.” If the pandemic has proven anything, it’s that we have missed out on a lot and still survived. Expensive dinners and lunches are not necessarily needed every weekend. Why not substitute them for a night at home with a pizza and movie?
3. Don’t be afraid to negotiate a price
Prior to coronavirus, many of us would have felt uncomfortable negotiating a price. Whether it’s a new home, or simply a product at JBHIFI, don’t be afraid to do your research and negotiate if need be. Many retailers are happy to price match, within reason, to keep your business.
4. Have an outcome based approach on activities
If the outcome of an activity is the same, opt for the cheaper version. For example, if you need to save money forgo the gym membership and train at home. There are many apps that offer a multitude of training schedules that are easy to follow.
5. Re-evaluate your outgoings
During the pandemic what were the outgoings you put on hold? Do they need to be reinstated post pandemic or have you survived without them? Do you really need the latest fashion or larger office space?