Are you facing a job loss or a wage-cut? Or are you just not receiving your salary? Well, many people are facing the brunt of the COVID-19 outbreak. Businesses are not happy, economy is falling, the middle-class people are losing their incomes, and many such scenarios are not a pleasing situation for many. Physical harm of this pandemic is scary surely, but what is even more alarming is the psychological harm it is causing to the people, in general. The lockdown has had people struggling with their finances worldwide. In such a situation, how can one save up their money to last more during this quarantine? In what way can we manage our finances for better management? Credit Bazaar discusses the ways for saving up funds during this lockdown period as follows:
1.De-cluttering Direct Debits:
Did you know that you might be paying for something that you don’t even remember subscribing to? It might be that unwanted gym membership or a magazine subscription you no longer read. These expenses might be coming out every month and you might be paying them without paying any attention. Check your banks statements thoroughly for such types of expenditures and cancel them if you not required anymore. This might also include an old mobile phone or other gadget insurances. These are problematic areas as you do not even realise that you are paying up each month for things that you do not utilize. These are not essentials or important things that should be paid for.
“The main motto here is prioritizing! Whenever in any situation, be it a lockdown or not, you feel that your finances are being overused and savings are near zero. You just need to scrutinize where you are spending. After that, just make a list out of the expenses, ranging from the item of highest importance to lowest. You will realise that most of the expenditure is a waste and not even required at the moment. It is just like going to a supermarket to buy bread and returning home with bread, chips, chocolates, energy bars, chewing gum, and so on. Now who remembers that we left home to buy just bread? This awareness of what you actually want and spending just on that will help you control your expenses on a major level.”
In a way, this quarantine is teaching us that we can survive on minimum required things. Opposing to the popular beliefs, that the more the things you have, the merrier is the situation. Currently, most of us have the least grocery and things to eat at home, but still we are surviving and many of us are doing great at it. De-cluttering these extra fringes of expenditure really helps improve your finances and your life as a whole.
2. Checking your Credit Card Interest:
You have to be aware of the interest that is being charged on your credit card balances. You must consider moving your balance to a zero percent balance transfer card. There might be a transfer fee involved here but you can factor this in your payment plan and give your balances before the period for zero percent interest finishes off.
“These are very basic and simple things, but once we ignore them, they cause us unwanted expenses that could have been avoided. If we are aware and vigilant about these small tips and tricks, we can save so much money that could be actually used for something essential. Paying up interests that could have been skipped by just making a small transfer of balance is something that many people can opt for and skip that particular expenditure on interests. “
3. Shop for your car insurance:
Being laidback can cause you a lot of expenditure. And opposing to that, being a bit watchful and attentive, can save up your major expenses. Now this is a basic thing, such as your car insurance, you are just on the verge of the end of your policy. On a regular basis, you might think of auto-renewing it. But, what if we told you that other insurers might offer better competitive prices if we make proper research regarding the same? The insurers too want new and fresh customers and offer enhanced bets by giving better prices. You could save up a lot of money from this technique.
Many people tend to avoid the hassle and just plainly opt for auto-renewal of policies. But, a little perseverance here and there can save your finances in a huge way. You will be surprised on how much money you actually set aside because of this new low-priced insurance.
Additionally, this is also a perfect time to review some add-ons such as legal cover, courtesy car cover, and breakdown cover. Now this is something that you might not have thought of if there was no lockdown. A productive use of this quarantine period is to grasp these small smart ways to secure and safeguard your finances for a long time. It is possible that you might find that it is less expensive to purchase a breakdown cover as a unique standalone policy or that you might already be covered for it somewhere else, for instance, by your bank. Many times, we do not look at our policies carefully, and pay for things that might already be covered. An alertness of what your policies are offering can save up your finances greatly and stop you from expenses that could be skipped. This money saved can help you during this lockdown period as you will be able to last your available finances for a long time.
4. Improving your credit file:
Are you planning to apply for a credit card or a mortgage any time soon? If yes, it is a great idea to get access to a copy of your credit file and checking if you can improvise it. By taking small steps, it is possible to improve your credit report. Credit Bazaar assists you with easy tips and ways in which you can enhance your credit portfolios. With good credit management skills, you will be highly respected and put up first for loans and credit cards. Your good financial behaviour is depicted through these things and in various scenarios; a person with a good credit history is prioritized. This is because the lenders, landlords, and various other institutions feel that you are responsible about your credit and will make their payments on time. Also, you might not skip or delay any payment and are a favourable prospect for them.
One way in which you can improve your credit file is to register on the electoral roll, which represents a proof of address and is verified as a part of your credit score. Moreover, ensure that there are no spelling mistakes. Now this is an easy fix, one good glance over your complete credit report will make sure that you do not have any basic spelling errors. Your file must be perfect and you might have ample of time during this lockdown to ensure that. Even if you spot some error, do not panic, just add a ‘notice of correction’, which permits you to give explanation on why a particular payment was missed. This shows that you care about your credit and that you might have valid reasons for a miss out. A genuine explanation might impress your lenders and show your responsible financial skills.
Now you might think how improving your credit file could save up your finances? Well, it can majorly impact your finances in the short as well as the long run. Right from low interest rates on loans, to better credit card deals, you can get so many benefits with a good credit portfolio. Renters, landlords, banks, financial institutions, and nowadays, even prospective marriage candidates, consider your credit files to understand your credit behaviour and how responsibly you manage your finances. Thus, never underrate the power of credit management as many people and institutions judge you on it. It shows them that you care about paying up on time, keeping your credit track clear, giving timely interest payments to the people you owe, not delaying or skipping any payments, spending responsibly, and many such other traits. For instance, a person with a good credit score and credit file will enjoy a low interest rate of loans, and over the years huge funds can be saved as the interest amount he/she has to pay is low, thus leading to higher savings.
5. Considering current accounts:
If we compare current accounts to saving accounts, many of them pay a higher interest rate. Due to this lockdown, several top deals might have disappeared in the past few weeks; however, there are few attractive offers still available. Various such offers provide incentives such as cash back on the purchases of debit card. Thought current account might sound like a stress to you, but if you consider certain angles, there are many benefits to it. The cash backs offered as well as the low rates given to current account holders for various types of purchases can save a lot of money here and there. Small amounts of funds saved leads to major finances saved on an aggregate.
6. Clearing your credit card quickly:
Okay! So during this lockdown, many people have been granted payment breaks for mortgages, rent, or other debts, but they will come to an end rather soon. If you are scared of these perks coming to an end, and that you predict that you might struggle for paying off these expenses, just talk to a debt advisor. Credit Bazaar provides complete assistance for good credit management, loans and many such services. By opting for simple altered approaches, you can save up majorly on your finances. This lockdown you must choose to head down towards a Money Detox for reducing your expenses and simplifying your cash flows. This could include cutting off utility bills, building a small emergency fund, and tracking down unwanted direct debits. If you’re main objective is to clear a catalogue debt or a credit card, but at the same time, you cannot afford large payments. The idea here could be to set up a standing order for the current least payment or just by rounding it off. This clears the card several years sooner and you could save up on a lot of interest.
7. Switching and saving:
Switching energy providers is a thought that might not ever have crossed your mind. You might not have done that in a number of years or might have never ever switched too. However, if you observe carefully, there are high chances that you probably are on a costly standard variable tariff. By searching, shopping around, and switching to a fixed rate deal with a new supplier, you could save so much on your annual bills. All this could happen in a very short span and could save huge funds.
It is not rocket-science to change your energy provider, or search for new less-priced insurance deals during your car insurance renewals. However, these tricks might not cross the mind on a regular basis. During the lockdown period, one might get ample of time to scrutinize their expenses and make use of these easy methods to lessen the financial burden. On a daily basis, you might skip these tasks, ignore them, and might choose to pay extra to avoid the hassle. But, now since you have the time, you must go for these easy tricks and will thank yourself for the same in the long run as it will save you huge amounts of money on an overall basis.
People have got this time to carefully review their expenses and manage their finances well. During such unprecedented times, one needs to take care of their finances and Credit Bazaar assists you in ways to do the same. The above mentioned ways are easy and doable and can help you save finances during this crisis which you don’t know how long it will last. You will be grateful for these saved funds in the future when you do not have to borrow and loan, as you will be able to utilize this money. Hence, on a whole, we advise you to take the plunge and go for these methods for saving up your cash!
For any queries regarding Credit Score improvement or Loan contact Credit Bazaar CR Arcade 2nd Floor, Opposite Delta Garden, Next to Shree Mahalaxmi Restaurant, Mira Road East, Thane : 401107