We’re all feeling the effect of Covid-19 on our finances, and it can be difficult to adjust to our new way of living. Tully has compiled a list of easy money saving tips to help navigate reduced incomes.
1.Make a budget and stick to it.
One of the most important parts of adjusting to new circumstances is making a list of all your expenses that cannot change. This usually refers to housing and bills. Once you’ve figured out how much you need to spend on those each month, you can take a look at how much you can afford to put towards food, your mobile and TV subscriptions, entertainment, leisure, or savings. Some of the other tips on this list will suggest ways to cut down these costs, but once you’ve decided how you’re going to spend, you can track your money, and be diligent about following the budget you’ve created.
2. Plan your meals
This is one of the easiest ways to cut costs. Part of your household budget should be food shopping allowance, and be strict with yourself about sticking to it. If you make a list of food and ingredients to take with you to the shops, it should be easier not to get distracted and go over budget. Plan out your weekly meal schedule with your household, and try to find places where ingredients can be spread over several meals, or where leftovers can be the basis of another meal.
3. Cancel subscriptions and memberships
We often don’t actually realise how much we have going out of our bank account each month. If you have multiple entertainment streaming subscriptions, perhaps pick one of each type to keep and cancel the rest. For example, if you have Netflix, Primevideo, NowTV, and AppleTV, it may be best to just have one. Similarly, if you pay for Spotify, Amazon Music, and iTunes, perhaps just pick one to have through the coming months. There are also may be gaming services you subscribe to, or computer software such as Microsoft and Adobe that you pay for every month. Club and gym memberships also may not be useful or usable right now. Assess which of the products and services you pay for every month are still necessary and cancel the others.
4. Reduce energy usage
We often don’t realise how much energy we’re using. Make sure you turn off outlet switches when they’re not being used, and only keep your phone or computer plugged in until it’s charged. Turn off lights, and only boil the kettle a couple of times a day. Often heating appliances are the most expensive part of our energy bill, whether an electric shower, hair dryer, washing machine, or the kettle. When using the washing machine, cold water is more cost efficient (30 degrees), and most machines have eco settings. Dishwashers also have eco settings. For more information on sustainable energy usage, take a look at the Tully blog post here.
5. Talk to your lenders and suppliers about payment support.
There are a number of options available right now to support people in making monthly payments on bills. You may be able to apply for payment holidays or reduced payments, or perhaps you can negotiate getting yourself on a different tariff with your energy suppliers. If you’ve had a significant reduction in income, trying to find ways to reduce your biggest monthly payments is probably an important place to start. Credit cards, loans, and councils are also offering payment options at this time, so do make contact and tell them your situation.
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