Amid the ever-rising cost of food products, utilities, and more, many of us are giving our expenses a second look to identify ways of building up cash reserves. We know it can be hard to know where to start, so we’re sharing four ways you can save during a recession.
1) Create a Viable Budget
Your financial wellness relies on income and expenses—making sure the money coming in supports the money going out. Creating an organized system is the first step you can take toward accumulating savings. Make a list of your monthly debts, payment due dates, and the timeframe in which you want to make those payments. Check out our interactive budget calculator to get started.
2) Trim Subscriptions and Recurring Payments
To “live within your means” might be easier said than done, but most of us have some extraneous payments we’ve forgotten or could live without. Do you know how many streaming services you’re subscribed to? What about automatic deliveries or online memberships? While creating and trimming your budget, you can list and aggregate these payments to determine which can be cut from your monthly payments.
3) Focus on Your Health Expenses
Unforeseen health care payments can cause a financial crisis—especially when money is tight—but there are ways you can mitigate a potential issue. Take the time to reevaluate your existing health insurance. Have your needs changed over the past year? Are there elements of your coverage that you no longer need? You could also open a Health Savings Account (HSA), which allows you to pay for medical expenses with pre-tax money.
4) Control Your Housing Costs
Your mortgage or rent is likely the most expensive element of your budget. But that doesn’t mean you need to downsize your home, since a recession isn’t necessarily synonymous with a slow housing market. Instead, schedule a home energy audit, which can provide you with a roadmap to achieving big savings on your energy bills.
We’re Ready to Help You Save
At Cornerstone Bank, we’re always working to provide ongoing financial literacy education to the Central Massachusetts community. To support this initiative, we offered more than 100 literacy programs throughout the region in 2022. Additionally, our team is diligently working to offer the most complete line of flexible personal banking services and products to help our customers save as much as possible, especially in times of need. Interested in learning more? Contact us to start saving today.