7 Ways To Stay Motivated To Save Money During A Pandemic

The COVID-19 pandemic and the subsequent economic downturn has forced many to change their financial plans. For most, long term plans have all of a sudden gained precedence over everything else.

When it comes to long term plans, savings play a crucial aspect and in these unprecedented times, it is absolutely imperative to get rainy-day fund ready and get to filling that savings jar that's been collecting dust. It is also imperative to account for worst-case scenarios like unemployment or massive pay cuts and adopt a conservative approach when it comes to planning holidays, dining out and commuting. Saving your cash is probably the right thing to do.

Here are a few practical tips to help you work on your savings in the middle of a pandemic:

1. Build a realistic budget

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Taking control of your finances is absolutely essential in times like these, monitor your spending and make sure to see where you're stepping out of your limits. Start with the 50/20/30 budget rule. Senator Elizabeth Warren popularised the '50/20/30 budget rule' (sometimes labelled '50-30-20') in her book 'All Your Worth: The Ultimate Lifetime Money Plan' originally published in 2005. The thumb rule is to divide up after-tax income and allocate it like this: spending 50 per cent on needs; 30 per cent on wants; and 20 per cent to savings.

Also read: 8 Ways The Indian Millennial Can Manage Money Better

2. Build a positive relationship with money

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Financial wellness is just as crucial as physical and mental health. How we spend money is determined by our upbringing, our thoughts and our feelings. Removing these negative feelings about money can help one overcome money blocks and change our financial situation. Recognise your spending triggers and the emotions associated with them in order to manage money better and with a positive outlook.

3. Start saving no matter how little the amount

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This is one of the most ignored aspects of money management. We tend to operate basis the false impression that saving just a little amount won't make much of a difference. On the flip side, the attitude is what counts regardless of how small the amount is. Do remember to find the best interest rate for your savings.

4. Review your 'rainy day savings'

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Activate a sufficient amount of cash as it shall be a buffer in tough times. If you are low on cash, you might look at the options of getting a loan against your fixed deposit. Keep in mind, in the face of a liquidity crunch, credit card usage is advisable to the extent that it fulfils your minimum requirements. It is important to maintain fiscal discipline during this time.

Also read: How To Manage Household Finances Better In The Middle Of A Pandemic

5. Cancel subscriptions you don¡¯t need

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An easy way to get more money back in your wallet is to cancel monthly subscriptions, such as streaming services, meal subscriptions etc. The COVID-19 pandemic has turned into an accidental experiment in spending behaviour that businesses and academics are analysing closely. Unprecedented times have forced more people into frugal living where long term goals and happiness are both taken into account.

6. Stop comparing yourself to others

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At some point, we have all probably compared ourselves to someone else. Things have gotten all the more complicated thanks to consumerism, social media and the advertising world that lure us into owning more things. It¡¯s a habit that many of us have fallen for and we don¡¯t even realise it. Where you are on the ladder of accomplishments has nothing to do with how rich or poor you are. You cannot put a price on your health, marriage and relationships. If you want to know how to stop comparing yourself, not just financially, but in general, it all starts with being true to who you are.

7. Practise gratitude

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Gratitude can change your life because it makes you appreciate what you have rather than what you don¡¯t have. Yes, the pandemic has hit a lot of us very hard, but it's always good to remember that none of it is your fault and it's the work of external forces. Be kind to yourself and take solace in the fact that things will fall into place sooner than you know.

Also read: Did You Have To Take A Salary Cut Due To The Pandemic? Here Are Some Ways To Manage Your Money