Don’t beat yourself up if your dreams of a no-spend lockdown have quickly descended into regular UberEats overspending and buying a load of puzzles online.
We’re in a pandemic. Things are stressful – it’s perfectly reasonable to not be getting your spending and saving spot on right now.
But if you do want to use this time to sort out your finances a tad, there are some simple steps you can take.
We chatted to Alex Stedman of The Frugality, who’s working in partnership with NatWest, for her advice on managing your money in the midst of the coronavirus pandemic.
Here’s her wisdom.
Familiarise yourself with all your outgoings
‘This is my number one tip when it comes to saving at the moment,’ Alex tells us. ‘It could be something as simple as checking your banking every day and understanding each transaction. And then if you wanted to go further, make a list of direct debits so you know a rough minimum of what needs to come out of your account. This could be on a spreadsheet but equally could be a note on your phone.
‘You’d be so surprised how many people have direct debits they didn’t know they had, or simply realised they have ones they rarely use.
‘We made a few calls earlier this year and switched providers for a few payments, such as our insurance and saved loads per year.’
Yes, this will involve getting over your looking-at-your-bank-balance fear, but knowledge is power. It’s time to actually nose around your own finances and see where you’re spending.
Look into support
There should be no shame in admitting that a pandemic has really thrown you through a loop.
Alex says: ‘For some short term support, we took a mortgage holiday for three months which has helped us to manage our cashflow, as well as temporarily pausing our pension payments.
‘If you’re worried about any payments or debt over the longer term, don’t be afraid to call and speak to someone like Citizens Advice, the Money Advice Service, or PayPlan.’
Plan your meals
Avoid the panic buys at your weekly supermarket shop and last-minute delivery dinners by planning out your meals to use up what you have and what you can actually get hold of.
‘The main way we save money in our household is by meal planning for the week,’ says Alex. ‘Before we do our food shop, we make a list of everything we have in the cupboards (pasta, leftover chicken in the freezer, chopped tomatoes etc) and then we plan meals for the week with an aim to firstly use up what we already have – maybe it’s a lovely chicken casserole using the chopped tomatoes and chicken, or a pasta bake.
‘Working first with what you already have limits what you need to buy, we also try and cook everything from scratch and batch cook to make our meals stretch. I’ve loved Melissa Hemsley’s recipes for using up leftover food during lockdown.’
Go through your spending and cut the unnecessary bits
Once you actually go through your spending, you’ll notice the same things popping up. Ask yourself if these spends are actually adding value to your life – are they making you happy? Are they taking you closer to a goal? Are they saving you a load of time or serving a purpose?
Those spends that feel like money disappearing into a black hole with no lingering benefit are the ones you need to cut.
Have a clear-out
‘As we’ve all been inside a lot more, it’s a great time to go through your belongings and have a clear-out by selling items online,’ says Alex. ‘You might want to wait until you feel safer being outside, but a car boot sale is a great (and social) way to upcycle your belongings as well as helping financially. Or there are plenty of second hand reselling sites around that are quick and easy to use.’
Plus you get to be all smug with your super-tidy flat.
Talk to your bank
Don’t ask, don’t get. It’s worth giving whoever you bank with a shout to see if there’s any support they can offer.
Rachel Blackamore, NatWest’s Managing Director of Personal Banking in London and the South East says: ‘As Alex mentions, it’s really important to look into what support is in place as it’s likely your bank will be able to offer tailored advice based on your personal circumstances.
‘At NatWest we are offering financial support for customers who may have experienced unexpected changes in personal circumstances during this difficult time and need help managing short term finances and cash flow restrictions.
‘This includes measures such as mortgage holidays, interest free overdrafts of up to £500 and the removal of late payment fees for credit cards and refunding cash advance fees. The best place to start is your bank’s website as most banks now have online forms to request support.’
Set a specific goal
A great goal is SMART – specific, measurable, attainable, relevant, time-based.
So rather than just vaguely thinking ‘I’m sh*t with money and want to not be sh*t’, give yourself a specific goal.
That might be just trying a no-spend day every week, saving a specific amount of money by the end of summer, or cutting your fun spends by 25%.
Whatever goal you choose, make sure it’s specific, measurable, attainable (as in actually doable, so you don’t immediately get disheartened), relevant (to your goals and lifestyle), and time-based (meaning there’s a deadline).
Rachel says: ‘As lockdown restrictions are starting to ease, it’s a good time to start planning ahead.
‘If you are spending less than normal while social distancing, think about opening a savings account and setting savings goals. People who set a savings goal are found to save double compared to those who don’t set a goal.
‘There are plenty of online resources such as savings calculators to get you started. Using a calculator can help you to understand how long it will take to save a specific amount, or how much you need to save to have enough by a particular date.’
If you want more tips and tricks on saving money, as well as chat about cash and alerts on deals and discounts, join our Facebook Group, Money Pot.
Got a story to share? Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.
Share your saving tips and tricks in the comments section below.
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source https://metro.co.uk/2020/05/15/what-should-money-lockdown-12708501/
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