MONEY SPEAKS ONE LANGUAGE: "IF YOU SAVE ME TODAY, I'LL SAVE YOU TOMORROW"
Fola Ilori
08.03.20 4 MINUTE READ

Simple Ways To Save Money

Saving money during the coronavirus pandemic can be a challenge for many due to the loss or changes in wages. So what can you do to save some extra cash during these uncertain times? We will walk you through some of the ways you can save money if your income has been affected. Theses include:


- Recording your net income and expenses

- Developing a budget and savings plan

- Determining where to put your extra cash


1. Recording Your Net Income and Expenses


The first step towards saving is keeping track of your net income and expenses. Net income is the money that you earn after subtracting taxes and other deductions from your gross income. For example, a person earns wages of $1,000, and $300 in deductions are taken from their paycheck. Their gross income is $1,000, and their net income is $700. Expenses are the amount paid for any goods or services such as grocery shopping, gas, etc.    


When recording your net income and expenses, it is important to be thorough, meaning tracking all major and minor expenses. Every purchased candy bar, car payment, and cell phone bill should be monitored and recorded. The more information you have on your spending, the more prepared you are to make an informed decision on your budget and savings plan.


To help you with the process, you can use an expense tracker app and your bank statement to monitor your general income and spending habits.  

2. Developing a Budget and Savings Plan



Once you have some information on your cash flow, you can begin to develop your savings goal. The goal may be long-term, like saving for retirement or short-term, like saving for a new phone. Whatever your goals are, understanding your purpose of having savings and knowing your net income and expenses can all work together to help you define a budget that works for you.


Once you have developed a plan, you may need to adjust your spending habits. This may mean cutting your expenses.


Below is a list of 5 simple ways you can reduce your spending.  


      Plan your Meals

It is easy to get into a routine of eating out or purchasing items at the store, which you didn't plan for while grocery shopping. To avoid unnecessary spending, consider cooking your meals rather than eating out. Also, create a grocery list before going to the grocery store. Once at the grocery store, avoid purchasing items that you did not account for on your grocery list. Try eating before going to the store to keep from being led by your cravings.


You can also consider cooking your meals in bulk, so your meals last longer and require fewer trips to the grocery store.  


     Cancel all Unused or Rarely Used Subscriptions

Subscriptions can be expensive and add up without us noticing, take a look at your expense tracking list and see what subscriptions you may have let go unnoticed or worse, completely forgot about! If so, cancel them immediately to spare yourself any unnecessary charges.


     Reevaluate your Gym Membership

In these uncertain times, going to the gym may be potentially unsafe due to the pandemic. Now is the best time to save money and stay safe by canceling your current gym subscription and exercising at home or in your neighborhood.

     Reevaluate your Cell Phone Plan

Keep track of how much data you use within the month to determine the best cell phone plan for you. If you're working from home during these difficult times, consider reducing your current phone plan and opting to use your home wifi instead.


     Price Compare

Before making a purchase, take the time to compare prices. In doing so, you may find amazing sales for the goods or services you desire. For example, you may find it cheaper to buy your general household items online rather than at your local store.  

3. Determining Where to Put Your Extra Cash  


Once you can put some cash aside to use to create your savings, you will need to decide where to place the money. Below are suggestions for where to place the money.


     Bank  

You can choose to place your money in a savings account with a bank of your choice. The benefit of putting your money in a bank is your savings incur interest over time. Before you decide to place your money with a bank, make sure you know the interest rate, monthly fees, required opening deposit, and withdrawal limit fees.  

 

     Invest

If you would like your savings to grow at a much faster rate, consider investing your savings in stock. When investing to save, you may want to consider less risky investments. Before opening an investment account, be aware of the minimums to open an account, commission, fees, and the amount of risk attached to each investment.

 

      Financial App

If you find that you don't have the minimum required to start a savings account or an investment account and you would like to have more control over your savings, you can place your money in a safe and free financial App like Afriex. Afriex is a money transfer service that allows you to store multiple currencies on its money app, which can be beneficial as the value of money is constantly changing. The app is attached to your checking account, and there is no limit to the number of withdrawals you can make using the app. For more information about this app, visit https://www.afriexapp.com/support.


Developing a savings plan that works for you can be challenging, especially at a time like this, but with the right tools and patience, you can reach your financial goals!





Sources:NerdWallet |  BetterMoneyHabits | Forbes | USNews | BankRate| Investopedia | Fidelity | SEC | SimpleDollar