The old adage tells us that when life gives us lemons to make lemonade. However, life has a habit of throwing us a complete curveball and things are not quite as easy as we would want them to be. 2020 is the perfect example of that. However, even with all of the upheavals and changes to life last year and the first half of this year, there are still many things that have stayed the same.
Bills are one thing that just does not go away, whatever else is going on in the world. They are always there and they always need to be paid. In one respect, it is somewhat of a comfort to know that the world still turns and life does go on.
Many people throughout the world have faced financial hardship over the past year as everything they consider important has changed and they have had to adjust to the new economic climate. Unfortunately, many individuals will lose their jobs, go into debt, and possibly lose their houses as a result of the COVID -19 outbreak.
This post will give you some ideas on how to save money and reconfigure your financial commitments and how you deal with money. It will help make sure that you can still live a comfortable life while also making savings on household bills where you can.
Consolidate your debts
Consolidating your debts is taking out a loan to pay off all of your outstanding debts in one big sum, leaving you with just one monthly payment to manage. If you are paying a lot of interest on the money you owe on loans, credit cards, and vehicle loans, for example, shopping for a lower-interest loan to pay off your existing debts will help you improve your credit score.
Although taking out a debt consolidation loan may result in you owing more money, the monthly payments may be lower than your combined instalments, leaving you with only one more manageable payment each month. To increase your chances of being accepted for a lower-rate loan, check your eligibility and make sure you have a strong credit history before applying. Before selecting if a consolidation loan is right for you, consider the yearly fees, fees levied, and the interest rate you are paying on your current credit.
Stop buying new things and reuse old things
When something fails, the first course of action is usually to replace it. Appliances in the household have a standard lifespan. If your appliance breaks down and is more than halfway through its lifespan, you might want to consider replacing it entirely. Repairing it, on the other hand, may be more cost-effective, especially for newer models.
Have you considered upcycling if you need new furniture? While not precisely mending an item, giving old or unwanted furniture in your home a new lease on life can save you money on new furniture and allow you to create a unique one-of-a-kind piece to accent your home.
Upcycling tutorials can be found online for the cost of the materials required – typically these may be got through donations of pre-loved goods – and you can make something unique for your house. There are a plethora of methods to repurpose items around the house. Old train sleepers make superb shelves, for example.
Remove the doors and the shelves from an old wardrobe and repurpose it into an entirely new item for your home, such as a side table or sideboard for your hallway, or even a coat and shoe cabinet. See what you can come up with if you use your creative skills.
Look at your utility bills
A popular choice for anyone seeking to save money, but ensuring sure you are not overpaying on your home bills by switching suppliers such as your energy provider if possible will save you money that you can put towards other necessities. Apply this to your bills and insurance policies to ensure you are getting the greatest value possible for the degree of protection you require.
Premiums for car insurance, house insurance, and life insurance can add up quickly, but switching to a provider that offers the level of coverage you require at a lower cost will help you maximise your earnings.
Switching to a different mobile provider can help you save money by moving plans to one that is more suited to your needs and costs less. With the average monthly mobile phone bill being 43 Euro, switching to a different mobile provider can help you save money by moving plans to one that is more suited to your needs and costs less.
Look after your income
If you are concerned that your income will be impacted by the pandemic, you might consider purchasing redundancy or income protection insurance. Check with your insurance carrier to verify what type of coverage you have and whether you are covered in the event of an emergency.
If not, one of these insurances may be worth considering to ensure your income is safeguarded. In the event of involuntary redundancy, redundancy insurance will payout, and income protection insurance will pay out if you are unable to work due to sickness, such as catching coronavirus and being unable to work for long periods of time.
Losing money in these exceptional times is a major concern, so while protecting your income means initially spending money, you will reap the benefits if you fall into one of the groups covered. It is possible that you will need to add this as a premium cover to your policy, but the extra cost each month can help relieve stress and worry about your ability to manage financially should your job or income be affected.
When reviewing your bank statements, it pays to be thorough. Removing any subscriptions that you are not using often can help you save money each month. Gyms, magazines, charity donations, streaming services, and other expenses may add up quickly, so if you are not utilising them as much as you should, consider cancelling and going without until you are in a better financial situation.