While there are challenges during this unpresented time due to COVID-19, there are opportunities to get ahead financially. We have some tips to turn the challenges into a saving opportunity and prepare for a successful Post-COVID financially. Here are 3 tips for saving money during the coronavirus calamity.
Saving Tip 1. Downsize and Consolidate Debts
Whenever credit card debt seems overwhelming, a good first step toward getting rid of it is to scoop it all up into a debt consolidation loan at a much lower rate. Another option is to consolidate your credit card debts to your mortgage if you have enough equity on your home. This can be done with little or no out of pocket expense by doing a cash-out refinance. Don’t carry credit card balances- With coronavirus outbreak and lockdown, Americans have been piling on more credit card debt: 47% now carry balances, up from 43% in March, and nearly a quarter say they’ve take on more credit card debt amid the economic crisis, a CreditCards.com survey found.
Saving Tip 2. Creating New Healthy Habit of Saving
Social distancing may not be fun, but It can lead to substantial savings. It may be a great time to budget your spending and save money by cooking at home more and eliminating gym memberships, traveling, and eating out. Also, it is always important to have an emergency fund. Emergency funds help you avoid debt and ensure you can cover unexpected expenses if you get sick or lose your job, both of which are more likely right now. There is something to be said for the peace of mind you will get from knowing that you have the money to cover any surprise costs. Set a monthly goal to start saving and investing for a better future.
Saving Tip 3. Take advantage of low interest rates
I wrote an article a few months ago called 3 Refinance Solutions during COVID-19 Since then, interest rates have repeatedly hit record lows, indicating it’s STILL a good time to refinance or purchase to take advantage of historically low interest rates. Warren Buffett became one of the wealthiest people on the planet by taking advantage of opportunities. He sees some fantastic opportunities right now, courtesy of the Federal Reserve. “This is a very good time to borrow money, which means it may not be such a great time to lend money, but it’s good for the country that it’s a good time to borrower money,” he told his shareholders. The Fed “did the right thing” by cutting interest rates down to the bone, Buffett says. For home buyers and homeowners, it is an excellent time to borrower: New and refinance mortgages are being offered at the lowest rates on record. Warren Buffett says
“Rather than getting nostalgic…embrace the new opportunities and challenges available to you now.” Richard Branson