5 Ways to Reduce Your Expenses After the Pandemic
There is no doubt that the coronavirus pandemic is wreaking havoc on the global economy.
Here in the U.S., more than 25 million Americans have filed for unemployment between mid-March and April 23. The pace of new unemployment claims has slowed slightly, but some economists now forecast that the unemployment rate could exceed 15%.
With many Americans now feeling the financial pinch and the virus starting to peak in several of the country’s hot spots, protests have popped up across the country with many demanding that the U.S. reopen for business.
There’s much debate, however, on when it will be safe to reopen the U.S. economy. A few states began taking steps to restart their respective economies in May, and others look toward June.
Unfortunately, even as parts of the U.S. economy reopen, millions of Americans will still need to adjust to the new normal. For many, that means tightening their belts and reducing their expenses until businesses are back to full capacity, and the U.S. is firing on all cylinders again.
Here are a few tips on cutting your expenses in the wake of the coronavirus pandemic:
Create a Budget. The number-one way to limit your spending is to take a closer look at where your money is being spent. Write down or create a spreadsheet of all your expenses. Determine which expenses are necessary and which are discretionary. Then, create a budget that breaks down your expenditures into a few categories like needs, wants, and savings.
Continue to Make Your Coffee at Home. The reality is that a straight-up medium coffee (or a Grandé Café Americano) at Starbucks will cost you about $2, while a latté could run anywhere from $3.50-$5. If you make a Starbucks run three times a week, the expense could add up to $60 per month. Instead, a bag of ground Starbucks coffee costs about $8.00 and a box of K-cups (44 count) will cost you about $29.
Meal Plan and Cook at Home. Take a few minutes before your weekly grocery shopping trip to write down your meals for the week, including breakfast, lunch, and dinner. With a list in hand, you’ll be less likely to impulse buy and pick up unnecessary items at the store. Plus, if you have items at home to prepare your lunch and dinner, you won’t be as tempted to order takeout.
Cancel Your Gym Membership. Throughout the stay-at-home orders, gyms have been closed and many have turned to at-home workouts. Whether it’s running, walking, cycling or joining a virtual workout community, there are plenty of activities that you can do without the high cost of a monthly gym membership fee. We discussed some of these options in the April 14 Nicollet Navigator article, How to Stay Physically and Mentally Fit During the Crisis.
Reevaluate Your Subscriptions. Chances are, you signed up for one or two streaming services during the pandemic, and you’re not alone. During the first quarter, Netflix (NFLX) added 15.8 million paying customers, nearly doubling the company’s forecast. But, when the pandemic is over and your normal day-to-day routine resumes, will you actually utilize all the streaming services (Netflix, Hulu, Disney+, Apple TV, Quibi, etc.)? Determine which subscriptions you’ll continue to use and cancel the others.
These are just a few simple steps you can take to cut expenses when the stay-at-home orders and travel restrictions are lifted in the coming weeks and months. Of course, there are plenty of other ways to limit your spending that range from planning free entertainment activities to setting spending limits, from cutting coupons to freezing your credit cards.
The key is to find a financial plan that’s right for you and your family—a plan that allows you to cut expenses, reach your financial goals, and still enjoy life.
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Articles for Reference
https://www.lifehack.org/articles/money/30-ways-cut-your-monthly-expenses.html
https://www.fool.com/personal-finance/2018/09/18/20-ways-to-cut-spending.aspx
https://finance.yahoo.com/news/coronavirus-helps-netflix-snap-gain-121212815.html