If you are working from home due to COVID-19, then saving 20% of your monthly income is easier than you think. This is because you are no longer using the same services or eating out as much as you normally would. 

I’ve had the luxury of being able to work from home for the past few months and I have been able to save over $1,000 a month since I cut out expenses like daily lunches, gym memberships, eating out on weekends, daily coffees, my monthly metro card, and dry cleaning.  

As a result of this, I’ve been increasing my savings and personal taxable trading account to save for my long term goals. For example, if this were to last a full year and you are able to save $1,000 a month, you would save $12,000. This month could be used for a variety of things including saving for a down payment on a house, your emergency fund, or retirement. If you were to put this towards retirement and assuming an 8% return per year, this would grow to over $120,000 over a 30 year period.

Budgeting

Saving during quarantine is as simple as making a budget and see where all your money is going, it opens your eyes to your spending habits. A lot of your spending is due to mindless spending that you are not aware of.

Your budget does not need to complex. It can be very simple as making a grocery list so you don’t impulse buy or having all your travel expenses budgeted out. 

With your budget, make sure you have a plan for your money. This plan is a good way to monitor your progress. My personal favorite way to hold yourself accountable is to start a personal diary. In this diary, you can write down the goals you would like to achieve and your daily progress. This is a good way to hold yourself accountable to your plan.

Cutting out expenses you don’t need during quarantine can accelerate your progress towards financial independence or that goal you’ve been saving up for. 

The quarantine a great way to get ahead on goals and make substantial progress. The more you are able to save, the faster you could reach your goals.