6 Tips To Reduce Spending During A Recession

tips reduce spending during coronavirus pandemic cut costs covid-19 recession

The recession is here due to the global health crisis and political problems. It is no secret that the recent health crisis has affected millions of people across the entire globe over the past few years. Many employees have lost their jobs while some are already on compulsory leave. Thankfully, many countries have begun to ease their Covid-19 restrictions and recover from the massive supply chain disruptions. 

As many states reopen their economies and try to play catch up financially, it is the right time to reflect on your spending and think of ways to save more money. Notably, businesses have also started to reopen, and the chances are high that you will get back to work soon. 

So, you need to re-examine your finances, or else you may still return to your pre- pandemic poor spending habits when the normal lifestyle begins. The bottom line is, you need to track and trim your expenses to achieve your financial freedom. 

Thankfully, we will show you some strategies to help you cut back your expenses as the economy recovers. Keep reading to learn how to save more during the pandemic or supply chain disruption recession. 

Tips To Reduce Your Spending During Covid-19 Pandemic 

It is no doubt that cutting back your expenses will boost your savings potential. Here are the most effective ways to minimize your spending while maximizing your savings during a health crisis or recession. 

1. Check Your Food Expenses 

During the isolation and lockdown period, many households spent a lot of money on food deliveries. Now that the country is reopening, you should avoid buying fast foods and ordering door-step deliveries. All you have to do is prepare your meals at home. 

Another best way to minimize your spending on food is by growing kitchen herbs in your backyard garden. That will cut back the amount of money you use for groceries. Here are the other tips for cutting costs in your kitchen. 

• Make coffee at home instead of grabbing each cup along your way to work every morning. Items like coffee makers have eased the task. 

• Toss nearly spoiled veggies in the freezer instead of throwing them in the bin. You can even use the veggies to prepare smoothies. 

• Cook your meals in bulk to save on time and energy. Besides, it allows you to purchase ingredients in size, which is also more affordable. 

• Don't throw away the leftovers. Put the leftovers in the freezer to eat them later. That will save you much amount of money. 

2. Avoid Exchanging Currency In Banks 

Many countries are reopening their borders, and the chances are high you might want to travel to a foreign country soon. If you will need to exchange currency before travelling, try to avoid banks because they usually charge high exchange rates of 2.0-2.5%. These fees add up really fast.

To reduce your spending on currency exchange fees, consider specialized agencies that offer online currency exchange in Canada. An excellent example is Knightsbridge FX. Such service providers charge the lowest rates of 0.1-0.5% to help you save more. 

3. Reduce Cable Fees 

Another way to reduce your spending is by contacting your cable providers to negotiate a better fitting package and lower rates. The good news is that cable bills are often up for negotiations. You just need to be more persuasive. 

One of the things to mention during the negotiation is that you've been a long time customer who always pays bills on time. You can also tell your service provider how much you will save when you switch to a competitor. 

4. Reduce Your Car Insurance Costs 

It's no doubt that car owners have been driving a lot less since the pandemic started. If you own a car, there is a need to lower your auto insurance costs but not cancelling it. So, you can call your auto insurance company and request them to reduce the rates. 

The good news is, many auto insurance companies have come up with measures to ease their client’s financial burden. Here are some of the financial assistance options. 

• Ask for an extended grace period 
• Request the insurer to waive penalties and late fees 
• Ask for a new payment plan 
• Ask for car insurance discounts 

5. Cancel Subscriptions And Memberships 

If there is any subscription or membership you no longer need during the pandemic, consider cancelling it. That can be your gym membership or online services. Start with the subscriptions that renew automatically. This way, you will save hundreds of dollars in excess costs

Thankfully, many apps can help you trace, review, and cancel subscriptions you no longer use. Some apps can also lower your recurring expenses. Examples of such tools include Truebill, BillCutterz, and Trim. Notably, most of these services are free to help fit your recession-proof budget. 

6. Buy Used And Sell Unused Items 

If you don't have enough money to buy new items for your home, consider purchasing a used one. Although new things are better, you can still find a used product in excellent work conditions. That will help you save costs on purchases. 

Also, consider selling the items you no longer use in your home but still have value. You can then use the money to pay off your debts, lowering your spending. The good news is that there are many platforms to resell your items, including Craigslist and eBay. 

Final Words On Cost Cutting During Covid Or A Recession

Now that you understand how to reduce your spending during the pandemic, you can save more money. Other budgeting tips to help you lower spending include taking advantage of free programs, reducing non-essential expenses, and deferring payments. You will quickly achieve your financial freedom if you implement all these strategies in this guide.

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