Sapa must die by fire!
One of the aftermaths of the Covid-19 pandemic is the rising cost of living, this has put a strain on household finances, with electricity bills, mortgages, fuel, and food all witnessing significant price hikes. Savings accounts in high-street banks, on the other hand, pay close to zero interest.
There are, however, ways to increase your wealth this year, whether by earning money or cutting back on wasteful expenditure. Here is a list of simple ideas to help you deal with the excruciating effects of Sapa:
1. Draft A Proper Spending Plan
Overspending is frequently the result of failing to keep track of how much money is coming in and going out of your account. Numerous online calculators could help compute your take-home salary after accounting for taxes, pensions, and student loans.
You can then figure out how much you can spend (and save) each month.
2. Cancel Frivolous Subscriptions
This year, we’re all planning to get out more and spend less time on our computers at home. It might be a good idea to cancel some of your expensive services right now, especially if they overlap.
Is it really necessary to have a Netflix, Amazon Prime, or Spotify account?
3. Cut Your Energy Costs
Working from home has most likely increased your electricity and gas consumption, and thus your expenses. Energy bills have gone up a lot recently, leaving homeowners with few options for changing. Instead, turn off standby appliances, replace outdated equipment with new, more energy-efficient ones, and wash clothes at a lower temperature to consume less in the first place.
There are other improvements you may make, such as adding double glazing or replacing your boiler, but they are usually fairly costly.
4. Make Investments
Savings will save you while investments till take you out of the trenches. Allowing inflation to destroy the value of your money will make saving even more difficult. Most banks are now charging very low interest rates, which means that if you keep your money in cash, it loses value over time.
Instead, consider investing your money to increase its value. In the long run, this should mean you’ll have to save less. But keep in mind that stock markets can move up as well as down.
5. Buy Second-hand Rather Than New
This year’s gift shops popularly called “bazaar shops” have been flooded with donations as people declutter their closets during the lockdown.
When you buy clothes, homeware, or books from a local gift shop, you will not only save money, but you will also be helping a good cause.
6. Always Haggle The Price While Buying
Like Investor Sabinus who is always looking for the best deals, even if you’ve been quoted a price for goods or services by a company or individual, you might use a cheaper price you found online as a bargaining weapon to reduce your quote.
This is true not only for your car purchase, but also for your phone, internet, and television subscriptions.
#Updated brings you lists, roundups and the latest news on the hottest topics. This piece highlights simple ideas to help the audience manage their finances better.
