Ways to save money during the lockdown

Ways to save money during the lockdown

Money | Frugal Living | Good Habits | Saving Hacks

Nia Bennett | Apr, 14 2020

The lockdown caused by COVID-19 has been a challenging time for many people and their families across the world.

On one hand, this global pandemic has taken many lives but it has also affected businesses which in turn has led to job cuts and financial crisis.

In trying times when people are struggling to keep their home expense and bills to a minimum there are a few useful methods that can help you reduce your bills and save money.

1. Cancelling unwanted direct debits

One of the easiest ways to cut down on unnecessary expenses is direct debits. Have a quick scan of your bank account and cancel direct debits/subscriptions for things you don’t use or you can skip on for a few months. If you’ve got SKY, Netflix, Amazon Prime, Hulu, Disney Plus - it might be worth keeping one for family entertainment and cancelling others. You’d be surprised how much money you could save just by saving a couple of pounds here and there.

2. Shop smart 

The lockdown makes it tougher to frequently visit supermarkets, so make the most of this by planning your weekly menu. This way when you go food shopping your only buying things you need. The average weekly food cost for the typical UK household is £91 for a family of two. There are ways to reduce this by shopping at different supermarkets and looking for cheaper alternatives. Planning your shopping items makes you less likely to impulse buy and more aware of your shopping. Just bring it down by £10 per week will help you save £40 per week and £450 annually. You could easily add this money to a savings account.

3. Reduce energy bills through clever hacks

Since all of us are in self-quarantine and working remotely, there’s a high chance that the electric bill might go up. If you do not have a smart meter, call your energy supplier and get this installed. It is a great way to keep track of bills. Small things like turning off standby appliances, washing clothes at a lower temperature, cooking food on a slow cooker, buying energy-efficient appliances and regular monitoring your energy usage will help you save a significant amount per year.

4. Review your budget

It is vital to review your budget while you and your family members are at home. It is true that the money you spent on fuel, travel cost or lunch doesn’t exist anymore but on the flip side are you using the money that you could be saving on food shopping, online shopping or ordering takeaways simply because you are bored. If you review your finances and set aside a clear budget, you are less likely to be frivolous with money.

5. Tax relief

If you live in the UK, you will be able to claim tax relief if you are working from home. Even though this is not a significant amount, every penny counts and you check to see if you are eligible on the HMRC website.