How can you enhance personal finance and liquidity during/after the corona-pandemic? Today, we would like to give you 5 tips about how to enhance personal finance and liquidity. With this modern era (amid the pandemic) being so tough on our pockets, we should ensure the meager resources at our disposal are utilized to their maximum efficiency. Read the following 5 tips (easy steps) about how to enhance personal finance and liquidity. Hopefully, they will helpfully accompany your journey to your financial stability and independence.
1. Set your budget (expenditure)
Draw up a budget. A budget is a plan on how you will spend your money. A person without a plan has no direction, and therefore no control over their resources. Write down a list of regular and irregular expenses. Regularly check whether the maximum expences are respected. Make sure you cut your court according to your size. Gain control over your money with a budget.
2. Remember to save (liquidity)
The bigger the package the more you save. Generally, it will cost more to process and package 4 bags of a product (weighing 1kg) than it would cost to package the same product in 1 bag (weighing 4kg). How do you plan your buying strategy? A bulky bag will cost less per unit (1 kg) than a smaller package (1 kg). Remember that the discount on bigger packages isn’t usually a true discount. The seller offers you the cost-degression-effect incurred by the large bulk-buying-behavior. But also ensure you do not overbuy and end up wasting products by having them expire on your shelves.
3. Inform your self about the market
Do some window-shopping. Strap on your walking shoes and head out for some reconnaissance. Do more than simply checking prices. Ensure the quality of the product and also beware of knockoffs, imitations, and counterfeits. Actively ask for discounts and information about upcoming offers (Read the next tip).
4. Headhunt seasonal sales and discounts
Seasonal Sale! Different products will experience varying demands throughout the year based on weather & climate, fashion trends, availability of raw materials, etc. Stores usually look to clear-out their shelves before certain seasons begin in a bid to make space for the new seasons’ products. For people living in the Northern Hemisphere, a good example would be cold-weather products being on sale in February as stores look to bring in summer products. Do some research on your area and find out which products are on sale in each part of the year.
5. Differentiate between needs and wants
Do you plan for your needs beyond your basic needs? Differentiating between your Needs and Wants is vital when drawing up your budget. First, consider your basic needs. You need shelter (rent money), food for vitality, some clothes for warmth (and common decency), and Education to safeguard your future. Secondly, assign a portion of your budget to serve needs beyond your basic needs (Maslow’s hierarchy of needs). For instance, you should also budget for your hobbies.
Personal finance and liquidity
With these 5 easy steps, you could save up some money and be that much closer to affording that dream vacation or buying that dream car, among other wants. Start your journey today! Enhancing your finances and liquidity is essential. It will help you cope with the impact of the current corona-pandemic and economic crisis. Do you have any more tips on how to save up your money? Let us know in the comments section.