What can a family do in a time of crisis? COVID-19 has hit us all hard. It is true that in really difficult economic times, people revise their way of life and return to the logic of saving by giving priority to the things that really matter, and that is vital for us all to do. Of course, the concept of basic necessity varies from season to season and from society to society, depending on everyone’s different needs. However, you can make some changes to save money over the years.
GET ON TOP OF YOUR ACCOUNTS
Before attempting anything as a savings measure, accurately calculate your monthly income and expenses to get a detailed picture of your household cash flow. This is absolutely necessary in order to weigh the importance of each of your expenses and to evaluate the ways you can reduce it.
EAT AT HOME
Make sure you eat at home more and more often, and prepare food from home for your daily trips and work. Avoid junk food that you are used to and teach your children to eat healthy home-cooked meals at regular intervals. This way you will avoid health problems while at the same time you will save money that on a daily basis seems insignificant but on a monthly basis is not negligible.
BETTER MOBILE PHONE ACCOUNTS
Get rid of unnecessary cell phones and look for the cheapest connection (competition offers opportunities). Many families have 2-3 mobile phones, so try to cut down if possible or use a family package.
Look for the cheapest energy solutions. Take advantage of the cheapest night electricity and follow the instructions for cheap PPC solutions. Insulate your home well, explore the solar water heater solution, replace light bulbs with energy-efficient light bulbs, and turn off lights and appliances when not in use.
You may want to look at the companies that can assist you with long term payback to save more money over the years. Things such as cash for annuity payments which can contribute to saving money in the areas that you need, to sink into other areas such as family.
GET THE KIDS INVOLVED
Get your kids involved in the family money-saving effort. Discontinue private schools if the cost is too much, limit tuition, and motivate children to take an active part in their education. Ask them to participate in the daily chores and activities around the house so that they can be properly trained and gain a sense of responsibility.
FORGET THE LOANS, IF YOU CAN
Forget borrowing in the current crisis to avoid the unexpected (e.g., job loss). Discard credit cards if they are not absolutely necessary; limit yourself to debit cards if they are so necessary. If you have already borrowed and are having difficulty with your installment, try to transfer your balance elsewhere where the interest rate will be lower. If you have mortgaged the property you bought on credit and find an immediate or potential price reduction below the loan amount, then you may need to ‘transfer’ the property to the bank and prefer the rent over the interest-bearing installment. Yes, the dream of owning a home will be lost for now, but you will also get rid of the nightmare of debt.