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Press Release updated: Sep 3, 2020 14:00 EDT

The COVID-19 pandemic has left many people feeling financially strained and uncertain about the future. Whether you lost your job or are simply trying to stay on top of your bills, it might be hard to save money right now. If you want to build up your funds, starting small and even saving one dollar a day or week can help you work toward financial stability.

How can you save and manage money?

Here are some ways that you can save money and cut back on expenses coming out of the global pandemic:

1. Make a monthly budget

Using a monthly budget is a helpful way to keep track of your expenses and make the most of your spending. Start by comparing your income to how much you spend each month and determine how much you want to save and what purchases you can cut back on.

One popular budgeting method is the 50/30/20 rule, which sets 50% of your monthly income toward essential expenses such as bills and rent, 30% toward fun purchases like shopping and dining out, and putting the remaining 20% into savings.

2. Get rid of unnecessary expenses

Spending a few dollars here and there on things that aren’t absolutely necessary can eat up your budget over time. Try to be super vigilant about tracking your spending, and it may surprise you how much more money you save.

You can also try saving on subscription services and plans by negotiating or thinking about what you really need — for example, you can cut down on your cell phone data if you’re relying more on home Wi-Fi. 

3. Learn how to meal prep

Dining out or ordering in adds up quickly. Cooking your own meals or meal prepping for the work week will leave you with extra cash left over for the bank. And those currently working from home or in quarantine may have more time in their daily schedule to try out new recipes, like instant pot beef stew!

4. Build an emergency fund

Including an emergency fund in your emergency preparedness plan can help you out of a financial bind and it’s a great safety net for unexpected bills or other expenses you might face. You can build up your emergency fund to cover 3 to 6 months of expenses, so that you can be ready for the worst — job loss, medical bills or car repairs. Even if you can only contribute a few dollars a week, any amount adds up over time and will come in handy when you need it.

5. Learn about your financial options

When you find yourself in unforeseen financial situations, having options such as an unsecured line of credit, a credit union account, or local assistance programs can help you get back on your feet and avoid going deeper into debt.

A line of credit is a loan from a bank or financial institution that you can draw funds from whenever you need to. Credit unions are designed to help members financially succeed and being a member can help you get better rates on loans. Finally, many local assistance programs provide you with free help paying your bills, reducing debts, and covering other expenses.

Getting financial assistance from these options can allow you to save up the money you can over time, while knowing that you have something else to fall back on. 

The bottom line: make the most of what you have

Whether you can put away a few dollars a week into an emergency fund or successfully follow a monthly budget, saving what you can now will make a big difference when you really need the money in the future. If you start saving today, you can come out of the COVID-19 pandemic feeling more financially stable and ready for the unexpected.

Source: iQuanti, Inc.