It has been over two years since the pandemic broke out, and the world has shifted. We were locked inside our homes, the world stopped, and the economy slowed down. And yes, most countries are experiencing the economic impact now.
On a more personal level, I am practicing some habits to be financially smarter and prepare for a looming recession. Don’t worry; this is not a heavy piece; instead, you can take some tips!
While 2022 is turning out to be a “comeback” year for most- with revenge travels and spending- there is no denying that inflation is happening worldwide. The cost of prices is rising while the wage is not increasing. A compromise has to be made. So let me give you three tips and practices that I apply to my budget not to feel the burden of it all.
Look for side-hustles
This first tip may sound intimidating to some, as others need help to grab a side hustle that easier. Luckily for me, through connections and sheer dedication, I was able to get side gigs and projects online and from past clients. My earnings from these hustles help to increase my budget each month, on top of my salary from my regular work. There are multiple places to look online for side hustles, and they can even be customized depending on your expertise! So go ahead and take that shot now!
Save in banks and take advantage of interest rates.
Now that I earn extra from my side hustle and save some from my regular job’s salary, I have remaining funds to go to my savings. The best thing about it now is banks are easier to access as most of them are available via apps on your phone. Online banking has made things so much more convenient for me! Yes, I dread queueing up in banks.
On top of the convenience of banking online, these banks offer exciting interest rates to attract users to invest with them. Some banks even provide up to 6% pa. If you want a vision of how much you can earn from your extra funds from interest alone, you can check it at SavingsCalculator.org. Just input the amount, the time, and the interest rate to know how much your money will grow over time.
Look for a passive income.
Another thing that came out of the pandemic was the book of small businesses. People started taking risks in founding their companies, such as food carts or coffee shops. These are some ways of having a passive income! Starting a new business can be scary, but if run properly, it can be a rewarding experience!
There are less scarier ways of having a passive income too. One route is via the old-school way: investing in stocks! This may take some time to learn but watching the rise and dips of stocks can be fun and exciting, especially when you get the hang of it!
There you have it! I hope you can pick up some of my tips and practices to help you grow and protect your savings. This is not the right time to be intimidated by financial conversations. Instead, let’s embrace it because it is the hard-earned money we are talking about, right? 🙂