Saving money is something that we are all taught from a young age. We are reminded of the importance of having a financial safety net to fall back on in any moments of adversity and difficulty we might face.
At the same time, we are also taught about saving money for big purchases in life, including the likes of a first home or a dream car. It can take some time to save up for something of this magnitude, mainly if you are saving for something that is high in value.
While that may very well be the case, there are ways that you can save money, no matter your individual situation or circumstance. Little and often is the key, after all!
Following what has been an incredibly challenging year for us all, there is no doubt that some people are feeling the impact financially. However, at the same time, a record number of Americans entered 2021 with more savings than ever before. As a result, the temptation to spend this money is certainly going to be high.
While we recognize that this is the case for a vast majority of people both reading this and beyond, there will be some out there who may be looking for ways to continue on this path of saving. If that is the case, you have found yourself in the right place at the right time.
Detailed below are some of our top tips, specifically when saving money in a post-pandemic world. While things seem challenging right now, and with the world seeming more expensive than ever, you will find something of value here. Read on for more.
Restart Small, Restart Now
This is for those who may have found themselves hit particularly hard throughout the pandemic. If you entered the pandemic with a healthy pot of savings and have come to the tail-end of it with a much smaller amount, you won’t be alone.
Many people were made redundant throughout the entirety of the pandemic; it certainly has not been easy, even with government support and handouts.
At the same time, you might be wondering how you can rebuild this once healthy pot of savings if you are faced with the prospect of not having much there. While it might be tempting to put it off until you are more financially stable with a full-time job, this could have drastic consequences in the long term.
Start small, and put away small amounts of money regularly. Doing this sooner rather than later will give you a head start on what you initially thought you would have. Even if you contribute a few dollars each month, it is better than nothing and would be earning a small bit of interest while sitting in your savings account.
While we recognize this might not be at the top of your list if you are seeking to boost your finances after a challenging period, but it could pay off in the long run (no pun intended). Knowing exactly where and what you are investing in is the best place to start while also being aware of the budget you have to use. The last thing you want is to invest more money than you have available and put yourself into a more challenging situation.
At the same time, there is a vast range of investment opportunities on the market, each offering its own benefits to you. Furthermore, when selecting somewhere to invest, you want to ensure you have run through the rate of return and what you would be getting back from your investment.
Following a record number of people investing in Cryptocurrency in 2021, you might be considering this as an option but are unsure how best to go about it. With over four thousand different Cryptocurrencies on the market, it can certainly feel overwhelming when choosing the right one for you.
Unagii’s guide to DeFi and Money Legos breaks down one aspect of Crypto investment, which is worth considering when looking to invest your money. Made up of an ecosystem of investment networks and autopilot programs, you will find yourself with yields off your investment in no time.
Be Mindful of Your Spending
It goes without saying, but to save money, you need to not be spending excess amounts. However, if you are someone who is in a position where you have saved a lot of money during the pandemic, then you may be tempted to spend some of these savings once in some sort of normality.
While that is undoubtedly tempting, and there will be several businesses running promotional deals to tempt you back in, it is crucial to remain level-headed. Set aside a budget for spending in the coming weeks and months, and do what you can to stick to this budget.
What’s more, if you reach the end of your set time period where you have money left over, put that money back into your savings, rather than spending that too. Again, being mindful of your spending here is crucial and is an excellent skill to have, no matter your situation.
At the same time, that is not to say that you are not allowed to treat yourself. On the contrary, being mindful of your spending and allowing yourself a reward or treat now and again is a part of being human.
What’s more, you should not feel bad or beat yourself up if you have gone over your budget in specific periods. This happens to the best of us! So, dust yourself off, and pick up where you left off.
Freelance or Short-Term Work
If you are struggling financially due to the pandemic, then counteract this challenge by doing something in the short term. While it may not complete the bigger picture in your current situation, it will make a difference and tide you over while things are tough.
Freelance and short-term work is undertaken by millions of people worldwide, whether as a means of boosting their income or as a sole stream of income. Contrary to popular belief, this is worth considering when looking to further increase any savings you made during the pandemic or reestablish those that might have been lost.
Even if you are in a comfortable position, establishing a side hustle as a means of boosting your savings, alongside your primary full-time job, will set you up with an excellent foundation to work from moving forward. At the same time, there are always businesses looking for freelance or short-term workers; you will be able to find something that suits your skill set, and time availability, in no time at all!
If the pandemic has taught us anything, life is short, and life is precious. So, while having monetary savings will undoubtedly help and make a difference in our lives, you should not feel bad or that you are behind your peers if you had to use your own to get by. It was a challenging period, which none of us ever imagined having to face.
Each person’s situation is different from the next; try not to compare yourself to others and get back in the saddle. Things will continue to get easier with time, and opportunities will come knocking. We are sure of that.