As countries begin to ease lockdown measures, we start to imagine what the new normal will be. In many ways being apart has brought us together and shone a light on the people whose work keeps our society running.
Coming out of lockdown means we have passed the peak. But what new challenges will we face? One which worries many is a potential recession. This may sound scary, but it is within everyone’s power to prepare. This blog post will give you all the tips you need for your boat to weather any storm.
Rainy day fund
First things first, get saving. If you are one of the many who has been furloughed on 80% of what you were earning before, self-employed or someone who has been made redundant you will know by now how important having savings are. Savings can be what keeps your head above water in these trying times.
The hard part about saving is not spending the money. Saving with a credit union helps with this. You don’t get a bank card, so you’re not likely to splash out on impulse. Instead, you must make a withdrawal to put your savings back in your current account. This step gives you time to think before spending.
South Manchester Credit Union offers a range of savings accounts for different purposes. It is as simple as setting up a standing order. Our Christmas Club helps you save for the festive period by only allowing you to make a withdrawal from November. Another great account is our PrizeSaver. Every £1 put into a member’s PrizeSaver account counts as an entry into a monthly draw with a top prize of £5000.
Building savings is like growing a flower. You water it from time to time and watch it grow. The best thing to do is set up a standing order to a credit union account. This way you won’t have to put the money in yourself and you may be surprised when you ask how much you have. Even a small amount each week or month can make a huge difference. Let’s say you saved £5 a week – after a year you’d have £260.
It’s good to know what you are currently spending your money on. Last year I cancelled my NOW TV subscription after 4 months of not watching anything. At £7.99 a month that’s just under £32 I spent on nothing. Nowadays we sign up to so many things it’s hard to keep track – so it’s important to have a good look at your bank statement from time to time – what are you spending your money on?
Maybe it’s not a subscription, you may pop to the shop each day and buy something you’d get cheaper in bulk. Maybe you regularly travel by train but haven’t invested in a railcard or you eat out regularly. Whatever it is, most people spend money they don’t have to, this money can be spent on more important things or be saved.
Pay Down High-Interest Debt
Paying down high-interest debt can give you breathing space to budget and save. If coronavirus has left you worried about job security, paying off your obligations might bring you more peace of mind. Borrowing from a credit union is a great option for those with outstanding high interest. Credit Union loans can be used as debt consolidation. South Manchester Credit Union offer loans with competitive interest rates which may be the key to getting out of your high-interest funk.
The Bottom Line
It is impossible to predict what will happen next. So, it is also impossible to predict how whatever happens will affect you. The best thing to do is prepare so you are ready for anything. You may not be affected at all but what is the harm in saving some money?
If you’ve read this far, you’re on the right track. Keep educating yourself and looking for ways to improve your finances – you can’t stop the inevitable, but you can prepare for whatever comes your way.