The coronavirus has caused frustration and irritation for many, cramping their style and dampening their enthusiasm for saving. After all, many people have even lost their jobs. If you are fortunate enough to still earn an income, slowdown and the decline in the economy is still the time to seize the day and save.
It’s a good time to establish a plan of action and to start saving for more unpredictable rainy days.
A sensible saving goal
A sudden loss of income can be seriously scary. There are a number of reasons why you may lose your job. A person really needs to aim to always have enough money saved to cover your expenses for about 3 months while you try to find more work. Who would ever have dreamed that a virus could cause loss of employment on such a large scale?
Having savings now during slowdown will at least give you peace of mind, not to mention a bit of breathing space to recover from any loss of income. With the money you save, why not open a high-interest savings account as it will make your money work hard while it isn’t being used.
Saving on insurance costs
A major cost for you is no doubt paying insurance for your car. Believe it or not, during slowdown, you can still save with this grudge payment. As a bulk retailer, Costco gives you the chance to buy top quality goods at truly affordable prices.
Apart from retail, they also specialize in insurance and their policies are offered through Ameriprise, a reputable insurance provider.
Costco offers auto insurance and they offer every kind of coverage option. Some of the seriously worthwhile characteristics of Costco is they’re here for the long haul – they will be there for you throughout the length of your insurance term.
When you’re after savings, you will love that Costco Auto Insurance is all about loads of discounts that you can even use to reduce your premium.
Try to keep your savings separate for your funds for day-to-day expenses. You don’t want to end up spending your savings without you even realizing it.
An ordinary savings account can be useful when you are starting to save. You can open it with a small amount and you can add as much or as little as you like and whenever you like so it gives you lots of flexibility. You can also withdraw cash whenever you need to. This makes it a good place to keep your savings for unexpected expenses.
The U.S. economy is in a recession and as people grapple with the downturn, you want to pay off debt. The more you’re able to put aside for saving and the less debt you have, the better you’ll be able to face an emergency.
Paying cash eliminates interest
We’ve all got those regular expenses that are predictable and ongoing, such as paying for groceries, putting petrol in the car and paying for rent. We also have other expenses such as paying off a car or paying off that new TV set.
That’s why it is better to pay cash for expenses like this. It will certainly save you the extra cost of buying them on credit, with a whole lot of interest added on.
We might be in slowdown, but even so, it isn’t a bad time to evaluate your finances. Who knows what changes are waiting for us on the horizon? Now is the time to be thinking of putting yourself in a stronger financial position. Every time you save during slowdown, you’re getting closer to your financial security goals.