Now, More Than Ever, We Need To Lock Down Wasteful Spending

For many, managing the household budget can feel like being buffeted around on the winds of fate. Those who only periodically check on their bank balance and rarely log their income and expenditure may feel as though the number on the screen every time they check their banking app changes almost arbitrarily. Indeed, it’s easy to lost track of the little expenses. The ones we deem too insignificant to log or simply take on the chin as a premium for modern living. Accountants, however, understand that when it comes to budgeting, every penny matters. And only by accounting for all funds going into and out of the home can households manage their budgets proactively.

 

However, in the wake of the COVID-19 outbreak, even the shrewdest of us is starting to feel the pinch. Many of us have lost clients who have had to suspend their operations or have even gone out of business altogether. Some of us may have been placed on furlough. A great many are trying to make ends meet with significantly reduced household income. As such, now more than ever, we need to lock down wasteful spending while we ourselves are on lockdown…

 

Don’t let your auto insurance policy roll over

First of all, if you’re unlikely to be using your car at all during lockdown, The Nerd Wallet has some very useful advice on cancelling or suspending car insurance payments. However, if you still need to use your car, it goes without saying that you need auto insurance. What you don’t need, however, is to keep overspending. Never let your auto insurance policy roll over. You’re being naive if you think your provider will reward your loyalty. Always stay on the lookout for new

 

auto insurance providers who can get you a better deal. And don’t assume that you have to stick with a bad deal, either. You can change your provider half way through a policy. While there may be a fee incurred this will usually pale in comparison to what you could save. Your new provider may even pay the fee as a sweetener.

 

Never stop comparing prices

 

Of course, your car insurance isn’t the only place where you can make savings. It’s time to get proactive. Stay on the lookout for new deals for everything from your phone and internet to your gas and electricity.

 

Never stop comparing prices. It’s not as if one provider’s electricity is better than another. If you’re working from home, you might want to weigh the cost of a better broadband deal with fewer bandwidth / download restrictions against the potential productivity cost of staying with a package that’s no longer fit for purpose.

 

Squeeze every penny of your food budget

 

In some ways, the lockdown may be a blessing in disguise. This is an opportunity to target wasteful impulse spending in grocery stores and excessively relying on restaurants and takeout. With a wholefoods plant based diet, meal planning, batch cooking and meal prep you can squeeze every penny out of your food budget.

 

Take the hassle out of tracking your spending

 

Finally, you’re busy right now. So don’t make the mistake of assuming that you need to record and track your spending manually. We’ve already written this post about digital apps that can help take the legwork out of managing your household budget.

 

In these uncertain and chaotic time, it behoves accountants to be their own best client.

 

 

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Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/