More Ways to Cut Spending During the COVID-19 LockdownPosted on: May 18, 2020
As you go through this COVID-19 emergency, you’ve probably already trimmed your budget and cut spending to the bone in an effort to save money and stretch that much needed dollar. You’ve probably already done some of these:
- Deferred mortgage and credit card debt payments,
- Postponed payments for utility bills,
- Trimmed down your subscriptions and forsaken online shopping.
- Chances are you’re eating out less often and also aren’t spending any money on gas or public transit.
So what else is left to cut?
Here are some more money-saving ideas to slash your budget:
Reduce Car Insurance Costs
If your cars are in your driveway more than usual because of the coronavirus lockdown, you might want to consider ways to save money on your auto insurance policy.
One option to save money is to suspend your auto insurance coverage. This essentially pauses your policy but doesn’t cancel it. It will give you two advantages:
- You won’t have to pay for insurance while your car is out of use
- You can avoid a coverage lapse, which could increase your future rates
Not all companies allow customers to suspend coverage, some might allow it only in certain situations. It’s best to check with your insurer to see if this can be applicable to you.
Another way to save money is to reduce your coverage. Consider cutting back coverage that you aren’t using right now, particularly on most of the driving-related insurance like travel coverage or roadside assistance.
Cutting back coverage is a good alternative instead of cancelling completely:
- You don’t have to pay for unneeded insurance while your car is out of use.
- You can avoid a coverage lapse, which could increase your future rates.
- If you keep a comprehensive insurance policy, your car will be covered for non-driving problems like fire, animal damage, vandalism and theft even with reduced coverage.
To start, check coverage requirements mandated by your city or province. This will determine what coverage you can consider reducing on your auto insurance.
Many insurers are also giving refunds to customers because of premium reductions. If you’re driving less often now on a daily basis or you’re no longer commuting, this lowers your risk exposure and could result in a cheaper policy and a lower premium. Be sure to reach out to your insurance company to inquire about these possible savings.
Make That Switch
If you have the time to shop around, it’s possible to get better deals that can let you save money on household bills. Start with your energy bill. You may be able to save money on your energy bill simply by switching energy providers. Some provinces, such as Alberta, Ontario, British Columbia, Manitoba and Saskatchewan, allow you to switch suppliers. It’s easy, find out how to switch energy suppliers.
LowestRates.ca is a great resource where you can compare rates on auto insurance, home insurance, mortgages, credit cards, loans, and even loans to help you save money on most common household expenses.
Take Advantage of Free Apps & Services
Many paid apps, which usually have a seven-day trial period, are offering coronavirus discounts and free trials for the duration of lockdown. So while we’re stuck at home due to stay-at-home orders, we can download these apps and keep our mind off of coronavirus with free movies, TV, music apps, concerts, internet, fitness sessions, classes, etc. – without breaking our budget.
Check out some of these:
- ca – Watch TV and movies including HBO, Starz, Super Ecran and Letterkenny for free for 30 days. Sign up for the extended offer directly on the Crave apps for Apple and Android devices.
- Down Dog – The highest rated yoga app for practicing yoga at home is offering some of their wellness routines completely free.
- Headspace – This meditation and sleep app is offering a collection of free plans to non-paying customers to help ease the stress and fears caused by COVID-19.
Just make sure to cancel once free trials are over if you don’t want to continue with a service so you won’t be charged any money.
In this time of uncertainty, with so many people losing jobs and we are all worried about our budgets, we need to be proactive and explore ways in which we can save money, not just for now but for the long-term. We may need a complete change of spending habits and living below our means, a new way of living that we can stick with once we get on the other side of the pandemic.
If you need help with your money and debts, take the opportunity to speak with us about your financial situation. We will review your monthly budget and provide you with information and guidance to help you make informed decisions about your finances.
N.B. Whatever you do, make sure you do not deplete your savings or cash in your TFSA or RRSP without talking to us at Richard Killen & Associates first.
You can contact us by telephone at 1-888-545-5365 for a free consultation now. Or you can email us at firstname.lastname@example.org or email@example.com , or simply check out our website at www.rkillen.ca. We are committed to fully serve you in this time of uncertainty.