5 ways to cut your expenses during the coronavirus pandemic

| May 14, 2020

The global COVID-19 pandemic has certainly impacted every industry in the world, both in the commercial and residential sectors. From the inevitable economic recession to the reduced overall quality of life, all the way to the long-term implications to the global economy and even the freedom to travel internationally, there is no denying that the Coronavirus will drastically change the modern way of life.

If you have suffered financially from this global pandemic by getting a pay cut or worse, if you have been forced into unemployment, then you need to start cutting back on your expenditure and reorganize your household budget until the pandemic is over and you’re able to get back to work or find a new job. This might not be an easy task, but it’s doable if you follow the right steps and implement several key solutions.

Calculate your spending needs

First and foremost, you can only regain control of your finances if you put in the time and effort into recalculating your spending needs in order to prioritize your finances and stabilize your cash flow as well as any cash reserves you do have.

Otherwise, you will invariably spend your money quickly before you’re able to reopen your revenue streams. You can start by noting down all of your current expenses, after which you can slowly eliminate one expense at a time in order of priority and relevance.

Next, you need to approximate how long your emergency fund will last given the current situation, which will help you find ways to stretch your financial reserves as much as possible.

Finally, note down the net sum of money that you are able to bring into the household on a monthly basis. With this sum in mind, you can further eliminate needless expenses, which we will delve into next.

Cancel all subscriptions and memberships you don’t need

The modern household runs on many recurring monthly payments to companies and service providers that make our lives easier and a little more manageable on a daily basis.

Perhaps you get your meat delivered straight to your doorstep, or maybe you have several prepped meals delivered to you a couple of times a week, or maybe your gym membership is on an automated renewal plan each month. These and many other subscriptions services are what you might consider to be extraneous expenses at the moment, so it’s best to put them on hold.

Far from it that you should worry where your next meal is going to come from, you can probably spare the delivery service and cancel your subscription until things stabilize in the near future. Be sure to cut magazine subscriptions as well, and enjoy free online content, cook your meals at home, buy groceries yourself at the store, and try working out at home – it’s free of charge and rewarding.

Lower your car insurance premium

Everyone who owns a car should obtain proper and comprehensive car insurance, there is no doubt about that. However, should you be paying your full premium amidst a global lockdown when you’re probably not even driving your car? Certainly not, which is why you need to contact your insurer to check if you’re eligible for a premium discount.

Some of the leading car insurance brands in Australia are already offering considerable premium relief to their clients, up to 15%, which can go a long way towards stabilizing your household budget and making your cash flow more manageable for the foreseeable future. If your insurers offer a premium discount during lockdown, be sure to take advantage of this perk as soon as possible.

Cut out extraneous expenses

Moving on, keep in mind that you can always cut back on your spending further if the situation demands it, so be sure to run through your list of costs one more time to weed out those frequent and seldom expenditures throughout the month.

Be sure to eliminate things such as ordering takeout and shopping online, refrain from paying for any online entertainment content that is not absolutely necessary, and only keep paying for the essentials like your preferred streaming service.

What’s more, be sure to adhere to a more stringent energy policy around the house by turning the lights off when you’re not in the room, turning all gadgets off when you’re not using them, and using your appliances in an energy-efficient way.

Increase your income

It might seem like an impossible task given the current economic landscape, but you can try to increase your income and diversify your income streams by putting your skills and experience to work online.

Now that people are spending more time at home, you have a golden opportunity to earn money on the side by freelancing for companies, sharing your skills and knowledge by teaching via Skype, or by taking up an online job in customer support.

There are plenty of opportunities out there, so be sure to research your options and land a side gig that will help you get back on your feet.

The global COVID-19 pandemic has definitely taken its toll on the economy, and even though things might seem bleak right now, that doesn’t mean that there’s nothing you can do to rejuvenate your household budget. Use these tips to revitalize your finances until you’re able to get back to work.