and monthly expenses.
Another area is the change of “in-store” retail purchases and of course the tremendous drop in travel via planes, buses, trains, taxis, and auto rentals. There are a couple of other areas which are down; groceries, gas purchases and entertainment, but I want to speak to where the saved dollars are going, the reason why, and what you can do to “catch the wave”.
One concern right now is Americans have had to look at their budgets more critically since the 2007-2009 recession. For obvious reasons it’s related to employment; it’s not rocket science and a fact that personal savings for Americans hit nearly 33% in April 2020; the highest it’s been since the mid 1960’s. Americans are really clear about the need to have ready access to cash and as I stated earlier, we are greatly reducing dining out, retail purchasing, and the travel part of the budget.
Simple stuff… sure, but here are 10 tips on what consumers are doing during their Covid-19 lifestyle that are allowing them to save a few more dollars. If you want to grow your future nest egg as we head towards financial, health and social recovery, take a look.
1) Move Bank Accounts to Take Advantage of Perks Being Offered and Potentially Earn More Interest: If you’re paying a monthly fee for your checking or savings account, you would benefit from researching some of newest banking offers out there. Not only do some of the best banks offer sign-up bonuses simply for opening an account and setting up direct deposit, but some offer attractive interest rates to new customers as well. It’s true that interest rates are not what they once were, but it’s still worth a look. Some of the best free checking accounts and best savings accounts can be found online. Potential Savings - $120 Annually
2) Turn Off the Television: One big way to save money is to drastically cut down on the amount of television you watch. There are a lot of financial lifestyle benefits to this: less exposure to spending-inducing ads, a lower electric bill (and perhaps a lower cable bill if you
downgrade your subscription), more time to focus on other things in life, such as a side business and so on. Potential Savings - $250 Annually
3) Sign Up for Every Customer Reward Program That Makes Sense: No matter where you live, you will find plenty of retailers who are willing to reward you for shopping at their store. Here is the basic game plan for maximizing these programs: create a Gmail or Yahoo address just for these mailings, collect every card you can, and then check that account for extra coupons whenever you’re ready to shop. You can add to those rewards and
discounts by using rewards credit cards to earn points on purchases at a wide range of stores that can be redeemed for cash back or other benefits. Potential Savings - $360 Annually
4) Master the 30-Day Rule: Avoiding instant gratification is one of the most important rules of personal finance, and waiting 30 days to decide on a purchase is an excellent way to implement that rule. Quite often, after a month has passed, you will find that the urge to buy has passed as well, and you’ll have saved yourself some money simply by waiting. If you’re on the fence about a purchase anyway, waiting a while can give you a better perspective on whether it’s truly worth the money. Applying this can be a game-changer to your budget and wealth building! Potential Savings - $1200 Annually