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Savers and workers across the nation may feel like they have limited options at the moment given the economic impact of coronavirus. People may feel that they cannot prioritise their savings plans given that the future of their livelihoods may not be ensured.
According to the latest figures from the Office for National Statistics (ONS), 29 percent of all businesses currently trading have reported that their operating costs were greater than, or equal to, turnover.
Additionally, of those that have not permanently stopped trading, 32 percent had postponed or cancelled bookings, services and events.
On top of all of these dire findings, some fear that the economic damage could be even worse as 2021 approaches, given that the various government support schemes will all be winding down.
With all this negativity, families may feel that they simply don’t have the ability to save at all the moment and financial survival must take priority.
However, Aaron Archer, the CEO and founder of Finndon, explained that even though the situation may feel tough at the moment, would-be savers can still take action.
As he detailed: “It may seem hard to start saving if you’re in the habit of living your best life pay check to pay check but you don’t have to be earning a lot of money to start your saving journey.
“No matter your salary or income, it’s never too late to take yourself from a spender, to a saver.
Aaron kicked off his advice with an important yet achievable first step: “Identifying spending triggers and how your emotions play into how and when you spend is an important first step.
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“Do you swear by retail therapy or get a Deliveroo when you’re feeling down?
“Working out where you spend your cash and what triggers it can help you start to make small changes with a big impact on your spending habits.”
The psychological aspects of life can play a big part on one’s ability to save, with very modern elements of life holding us back in ways we may not have realised.
As Aaron continued to explain: “Try to avoid the temptation of keeping up appearances on your social media feeds with your friends. Saving is traditionally quite private so remember that when you see people flashing the cash on yet another night out, or their latest clothing haul on your Instagram feed, that is only a filtered snapshot of their life and their finances.”
While guidance of this nature is undoubtedly helpful many people will likely be more concerned with the practical steps they can take to rectify their finances.
Thankfully, Aaron also provided insight into what actual number crunching can be done.
As he concluded: “Tracking your spending and looking through past bank statements can give you a great idea of where your money is going.
“With contactless the norm, it’s extremely easy to keep tap, tap, tapping.
“However, those purchases all start to add up. This might be a stressful and anxious activity to undertake, but understanding where your money is going will help you cut down on senseless spending.
“It’ll be hard to sacrifice all three entertainment subscription services and your weekly takeaway but you’ll be surprised how much you can save by cutting down just a little.
“Create money rules that work for you and your bank balance.
“Try splitting up your wage as soon as the paycheck hits.
“Put money straight into your savings and set the spend limits for luxuries such as takeout, Ubers and nights out.”
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