How To Improve Your Finances During Quarantine
There is no denying that quarantine is a drag. There is only so much you can do on your own at home. While binging Netflix and other streaming shows may help pass the time, watching TV gets boring before long. The sedentary, unproductive life is no fun after a while, so it is crucial to find something to keep your mind busy, especially when approaching or well into retirement years.
Have you considered straightening out your finances? Even the most put-together portfolio and strict spender can likely benefit from some financial maintenance, and there is no better time than the present when distractions are limited.
Organize Your Spending Habits
Before you can prune expenditures, you need to organize your spending habits. What percentage of your income goes to needs, wants, and savings? There is a nifty formula suggested by Elizabeth Warren, the 50, 30, 20 rule. In this arrangement, you spend 50% of your income on needs, 30% on wants, and 20% savings.
To know how you spend your money, however, you need to organize your finances. Take a look at your bank accounts, credit card accounts, and receipts. Create a book to show the spending on needs, wants, and savings. How close are you to the 50, 30, 20 rule? Don’t worry if you are not too close; that’s where streamlining comes into play.
Streamline and Update Your Finances
Look at your book of spending. Is there anything that immediately jumps out as expendable? For example, do you buy coffee every day or take frequent trips to fast-food chains? What about subscriptions, are there any that you do not use that often or at all? The idea is to cut out those items that are nonessential.
After trimming the fat, so to speak, you can focus on reducing other necessary bills. Did you know that many insurance companies offer significant discounts when you bundle multiple policies? For example, having your home and car insurance under one provider is a great deal.
Finally, you may find you have a surplus of cash to add to savings with the reduction in spending. Instead of chucking it into the same tired savings account, consider using a targeted, high-yield account. Many accounts will provide cash bonuses just for signing up and using the service.
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Sell Miscellaneous Possessions
Quarantine is an excellent time to clean up and out. People are superior pack rats, collecting numerous possessions through the years, and forgetting all about them. While there was a time when the comic books and superhero memorabilia made sense, maybe that time has passed.
Look through your attic, closets, garage, and basement. Sort through your possessions and collections to find things that can bring monetary value to your life. You can sell items on eBay or the Facebook marketplace. Declutter your home and rejuvenate your life.
Bring In Extra Income
You are never too old to bring in a little extra pocket cash, especially with the gig economy's growth. People of all ages are finding ways to earn money online, taking surveys, writing blogs, or freelancing for companies.
Too many people believe that once you hit 60+ years, you have nothing left to contribute, but that is so profoundly wrong. People only have more to offer as they age, especially through wisdom. If you have the ambition to make a few extra bucks, then consider sharing your knowledge through writing or blogging.
Do you have any other suggestions for improving your finances during quarantine? Leave a comment and share some insights, and, as always, keep reading Wise Ol' Crow.