We already know that geopolitical tensions can play havoc with the global economy which is why the recent Russia/ Ukraine war has everybody worried and asking what it means for other countries with similar tensions like China and Taiwan. How will the current unrest affect the price of gold? How much gold do you have and would you get more money if you sell gold jewellery right now? Gold buyers around the Brisbane area are reporting higher than usual activity in gold dealing.
It’s not looking good but there are things that you can do to save money so that you are prepared when things get tough.
#1. Create a budget you can stick to
Creating a budget is one of the simplest ways of managing money. All you need to do is list monthly recurring expenses and compare what you earn to what you have to spend. If you are left with little to no money at the end, go back to your list and take out those things that you don’t need. This is not rocket science, just a practical way of managing your money. You will be able to see those expenses that you can and should cut back on in order to have some savings in the end.
#2. Stop impulse buying
Grocery stores usually offer discounts and they load the checkout aisle with tempting items like candy bars and soft drinks and as you stand in line you suddenly realize that you crave a chocolate especially the one that is sitting so close and within easy reach. You can’t fault the grocery store for using the oldest trick in the book but you can divert your mind to other things and not give in to sudden impulses.
A lot of people spend more on comfort items than they do on absolute necessities. These comfort purchases include restaurants, groceries they don’t really use, alcohol, clothing, streaming service, and so on. It is easy to fall off your budget. Retailers don’t make it easy by offering sales and discount deals. Your local sneaker store might be offering 25% off certain shoes, you might think it’s a great deal but do you really need new sneakers?
#3. De-clutter your home
It might be time for you to scale down, not only by cutting down unnecessary purchases but also by getting rid of things you don’t need. Look for ways to make money from your old things. Check if you can’t sell your old things at pawn shops or on sites like gumtree. Look at your jewellery box. How many pieces do you still use? Do you have gold jewellery that you no longer care much about? Look for great ways to sell gold jewellery in your area to the different gold buyers. There are a lot of gold buyers who will give you a good sum of money for your unwanted gold jewellery. Some buyers will also buy damaged jewellery. So, lighten the load in your jewellery box and earn cash you can save.
What should you do with all that money you are saving?
The logical answer to that is to keep it in a savings account. It’s a logical answer but not necessarily the best one because of inflation. Thanks to COVID, global political and economic tensions, and Central Bank policies, inflation has been growing and degrading the power of money. The money you keep in a bank’s savings account is not safe from inflation. If your savings account pays an interest of 2% a year, this means you will have 2% more than what you had before however if inflation is more than 2%, your money can buy less than what it could when you started saving. That is why it is important to watch inflation and why you should find a way to protect your money from the effects of inflation like putting your money into a safe haven asset like gold.