Thousands of people soon have fewer monthly accounts due to short-time work benefits and loss of earnings how anyone can cut their budget for a few months.
Potential Savings In Times Of Corona: How To Reduce Expenses In The Short Term
CHECK ONGOING POSTS
The yoga class is cancelled, the fitness studio is closed. According to consumer associations, members do not currently have to pay their contributions. Because of the sports studio cannot offer its service, there is a breach of contract. The Corona crisis is not an extraordinary reason for termination. But until the studios and yoga schools usually reopen, you can leave the contract on hold and do not have to pay any contributions. It is best to contact the provider and clarify the details.
Some fees have to be weighed up: Does the small private ballet school where the daughter takes lessons to have to close if all members immediately stop paying? Or also the private music school? Depending on how tight your budget is (and how long the Corona restrictions will last), everyone has to decide with a sense of proportion whether they should continue to pay for the time being. The same applies to membership fees.
MAKE INSURANCE CONTRIBUTIONS EXEMPT
Should someone run into payment problems with an insurance company due to the Corona crisis, it is generally possible to suspend a contract or reduce the premiums. Different options are depending on the division and provider. However, it does not make sense to terminate existing insurance in a panic, as important insurance protection for risks such as an occupational disability or property damage to home and furnishings is lost. With many insurance companies, however, it may be possible to defer the contributions or give them a limited contribution exemption.
PUT THE SECOND CAR OUT OF SERVICE
If both partners now only work in the home office or hardly have to drive to the employer due to short-time work or childcare, the second car can perhaps stay in the garage for the next few months. The existing motor vehicle insurance does not have to be cancelled to bridge a car-free period. If you deregister the vehicle, the insurance cover can pause, and the contract is made free of charge.
LET OLD-AGE PROVISION CONTINUE
Many companies offer the option of deferring contributions. The contributions can be suspended for a specific time – with the great advantage that the insurance cover remains in place during the deferral period.
An alternative without receiving insurance cover is the temporary exemption from contributions. With many companies, insurance cover can be put back into effect after six months at the latest without a new health check.
If you switch to cheaper electricity, internet or mobile phone contract provider, you can quickly save a few hundred euros a year. Comparison portals on the Internet help to find inexpensive alternatives for the desired services.
GET TICKETS REFUNDED
Lots of concerts, soccer games and other events were already cancelled in March and for the coming weeks. You can now have the money for the tickets refunded. This is how a financial cushion can be built up. But here too, depending on the provider, solidarity is required: Small theatres and artists, in particular, are struggling to survive due to the Corona crisis.
TAKE A CLOSE LOOK AT BOOKED VACATIONS
Anyone who is in acute financial need as a result of the pandemic should review already booked vacations for the rest of the year – and cancel them in good time. In this way, a financial buffer can currently be built up when advancing payments that have already been made flow back into the account. If your financial situation has relaxed by summer or autumn, you can always treat yourself to a little break in the sun at the last minute.
If you are still unsure how to go on with your annual vacation: Check the cancellation conditions of the hotels, holiday apartments and flights in detail now – and note in the calendar until when a free cancellation is possible. Then you can still make a decision.
In general, now is an excellent opportunity to review all fixed costs. A few examples: Do I still read all the newspapers and magazines to which I have subscribed? Do I use all streaming services such as Amazon, Maxdome, Netflix and Spotify? Some pay-TV providers have offered to reimburse costs due to the Bundesliga break and to suspend the subscription if requested. The pandemic is not a reason for termination.
SUBMIT YOUR TAX RETURN QUICKLY
Take advantage of the long weekends without leisure activities and meeting friends to prepare your tax return for 2019 because many employees can hope for a tax refund, which can bring a small financial buffer for the account.