The current pandemic is causing people to think about their finances now more than ever. With rising layoffs and pay cuts, we are now being advised to prioritize our needs. This could be an excellent time to look for ways to save money.
If you’re wondering where to start, here are five tips to help cut expenses and save money.
- Write out your expenses and create a budget
Take a moment and calculate how much you are spending per month and compare it to your monthly income. YNAB or Mint, can help create your budget. Or contact Team Hewins, and our advisors can assist you in this process.
- Ask your car insurer for a rate reduction
Due to the shelter in place order, many of us are driving less than usual. Contact your car insurance agent and see if you can lower your payments. Your carrier may already be reducing your premium as a result of the pandemic, but you should check with them regardless.
- Cancel or freeze subscriptions/memberships
Take a look at your memberships and subscriptions: health club, magazines, wine clubs, meal kit services, streaming music services, etc. The cost of these subscriptions adds up over time. Consider the ones you are not using to their full extent and cancel or put them on hold.
- Negotiate your bills
Work with your providers to negotiate your payments. While rates are low, you may be able to refinance mortgages and personal loans. Contact your bank or provider for possible payment deferrals or reduced rates. My colleague, Karl Schwartz, recently wrote a blog that goes into more detail on mortgage relief and student loan payment deferrals that are part of the CARES Act.
- Cook more vs. food delivery
There are many benefits of cooking at home – you can control the ingredients, portion size, and save money compared to ordering from restaurants. The tips and delivery cost can jack up the price of the meal. Making your meals at home can be a healthier option and a fun project for your extra time. However, if you do decide to treat yourself, we recommend supporting local restaurants.
Written by Clarissa Rocha, Office Coordinator.
Team Hewins, LLC (“Team Hewins”) is an SEC-registered investment adviser; however, such registration does not imply a certain level of skill or training, and no inference to the contrary should be made. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas.