Simple savings tips to help during this unsettling time
As the coronavirus continues to cause nationwide uncertainty, you're certainly not alone if you've found yourself in a precarious relationship with your finances at the moment. With income worries undoubtedly at the forefront of many minds as we continue to unearth the devastating impact of Covid-19 on the economy, we have put together this short blog post to provide some basic savings tips to bare in mind as we progress further into this unchartered territory:
1. Re-evaluate your budget: Take a close look at your outgoings and cut back on any non-essential spending. Remember to factor in a reduction in travel, eating out, attending events etc.
2. Prioritise debt payments: Bank and other credit providers have introduced measures to help support people during this time for example, payment breaks. Be sure to get in touch with your bank/ provider before you miss any payments.
3. Seek help as soon as possible: The Government, as well as a range of charities have a range of support systems in place to help individuals throughout this uncertain time. Do not underestimate the impact that an uncertain financial situation can have on your Mental Health Wellbeing, and be sure to seek wellbeing support if necessary. We have included links to a range of support services at the bottom of this blog post.
4. Set savings goals: You may wish to consider putting away any money you're saving from limited travelling, eating out, cancelled events into an emergency fund. Saving smaller amounts on a regular basis can help to lessen the impact. Try setting money aside each pay-day, as well consider further cut backs you can make.
5. Avoid the temptation to splurge: It can be natural to turn to online shopping at the moment as many are staying inside, and spending time browsing the web out of boredom. Before splurging, add any items to your basket and then take some time before actually making the purchase. You may find that after returning to your basket a few days later, you are less keen to actually proceed with the order.
6. Make your money work: Money sitting at home won't get any bigger, but putting it in a bank account will earn interest. You may also wish to consider exploring other types of bank account such as Monzo which offers savers the option to round up their purchases to the nearest pound and save the additional money in a separate savings account.
Please note the information contained in this document is for information purposes only and should not be construed as advice. Please contact DAM directly if you wish to receive advice on the basis of your individual circumstances.