How to save and manage money during the recession. What are the best ways to crack the system and use the best of it for your money management.
It’s time for a useful batch of advice on managing your finances. In this article we have enlisted five techniques to utilize your money in the right way, please keep scrolling.
1. Find your monthly “number.”
This means figuring out how much money you need every month to survive. Write on a piece of paper that you’ll keep insight into your bare minimums. Your rent, your food budget, your minimum/full credit card payments a month, your loan payments, your utilities, and your phone bill. Make space there for your savings column as well. Find your number. Now, write down your income. Do the math and see how much money you need to hit your survival number.
2. Know your APY
That stands for Annual Percentage Yield, or how much money savings accounts guarantee that you will make if you keep your money there all year long. You are probably thinking right now why would you do that, since statistics show that APY for Americans is 0.99 % per 100,000 dollars. BUT, we have a catch for that as well! There is a thing within online banks called a High Yield Savings account. This is safe, highly convenient, and it gives you a much better APY percentage. In conclusion, you want your APR as low as possible, while APY as high as possible because APR is the interest you are going to pay, and APY is the money that you are going to make.
3. Automate your savings
Create a reoccurring transfer from your checking account into your High Yield Savings Account that you will never have to think about. That way, you will grow your money over time in your HYS, and you will be reinvesting your money in your checking account.
4. Consolidate your credit cards
There are balance transfer cards that give you zero percent APR, and that means that you can have the same amount of debt, but you can transfer it to a card that has zero APR for a year, so you are not paying as much.
5. Get a cashback credit card
Since it is the time of the pandemic and lots of people aren’t traveling, this could be a perfect choice for your budget. When you go to buy some groceries or order things online, you can use that card to make money even though you are spending money (it will make sense once you start using it). If you have no idea which card to use, do some background checks on your own (which bank seems trustworthy, etc.).
You did the cleaning. Now what? Start. Investing.
Yes, you. This is a whole topic for itself, but the best tip about investing is to start TODAY. If you don’t have much money, there are many options where you can start with the minimum amount so you can slowly get adjusted and see how it works. Before you even know it, you will start learning about investing and be very interested in it. How it functions, what makes an impact, how the stock market works. You’ll get to learn about various topics, from finances to politics. It is all very connected. You can use automated software and choose which amount you will be trading. Still, if you have a regular trading account at a trading company, we always suggest using an all-in-one type of bank. Online banks usually give you the option of having cryptocurrencies on your account, and then you have everything in one place.
Some last piece of advice
Since the recession will hit the hardest probably at the beginning of 2021, if you don’t have a passive income by now (stocks not included), you should consider finding a source of one. Even if you have 2 hours a week for the job that would make that option available, it’s enough. Consider cashing in on your talents, hobbies, whatever you are good at, but it’s not part of your regular job. We have endless opportunities thanks to the internet, and we should use it, especially now. You can be lucky and go viral in a week, or it can take a couple of months. If you are persistent and invested in sharing your knowledge with others, it will surely pay off. After some time, it will be up to you whether you are going to use this money to invest or pay things that make you happy. It’s your choice. We hope you are going to apply this advice to your budget and make everything work. Do your best for yourself.