For many families, 2020 has been a tricky year. Dealing with the virus crisis has changed our lives in many ways and made us look at things very differently. Especially when it comes to our relationship with money. The virus has turned many of us into savers. What has happened in the last 9 or 10 months has made quite a few of us realize just how important it is to have savings to fall back on.
With this in mind, I thought you would all appreciate a money-saving related post. Below, I outline effective ways you can minimize what happens on those occasions when you are suddenly faced with a big expense. Ways to ensure that you do not have to dip into your savings. At least, not too much.
Learn to repair your household goods
Most of us cannot manage without our appliances. So, when a breakdown occurs we have little choice but to call in a professional to repair them or buy new ones. But there is a 3rd option, which is to carry out the repairs yourself. It is not difficult to find high end dishwasher parts online, order them and use them to carry out the fix. Provided you find and follow a good ‘how-to’ repair YT video like this one you will usually be able to fix your own household goods efficiently. If you cannot do so for whatever reason, get a quote from a professional as a last resort.
Consider stopgap solutions
If you have your savings locked away in a high-interest account or a bond, there is a fair chance that if you have to take the cash out you will face some sort of penalty. Plus, usually, you will have to wait a while to get your hands on the cash. If you have savings arrangements like that and suddenly find yourself needing a big chunk of cash to do something like repair your car or maybe your boiler, do not automatically withdraw all of the money. Instead, stop and look for a stopgap solution.
You could for example ride your bike to work for a month or two while you save enough for the repair. Or ask the garage to accept payment in instalments. Provided your stop-gap solution will cost you less than the interest you would have lost by pulling your money out of your high yield account it is the best option.
Learn to live more frugally
Most of us have already made significant changes to the way we live. Doing things like cutting back on takeaways, cancelling unnecessary subscriptions, using up leftovers, and growing your own food are all great money-saving methods. But there is so much more you could potentially do to stop wasting money, save more and make the money you have work harder for you. This summary article contains links to the best resources to help you to do exactly that.