7 Ways to Cut Your Expenses During Coronavirus

April 1, 2020

Now that all 50 states have some sort of “stay at home” or “shelter in place” order, it’s becoming apparent that the economic slowdown is far from over. The original re-opening of the U.S. economy was originally planned for Easter weekend, but that date has loosely been revised to the end of the month or the first week of May. And even that may be optimistic.¹

The Fed estimates that 47 million Americans could lose their jobs, bringing the unemployment rate up to 32%.² Some analysts believe these shocking numbers are conservative, and the situation could get much worse.

Even if you’re not in danger of losing your job or you’re retired with a comfortable cushion, it’s smart to take a close look at your finances and cut out any necessary fat.

Here are the top 7 expenses to reconsider:

Gym Membership

With gyms being closed, most have automatically frozen payments. However, we recommend checking to be sure your membership fees are paused. You can still exercise by taking advantage of free (or paid) online workouts.

We recommend checking out the free options first. 24 Hour Fitness, Core Power Yoga, Orange Theory, and Planet Fitness are all offering free exercise classes online. Peloton (the New York exercise equipment company famous for their 4-figure bike) is currently offering a 90-day free trial of all of their workouts on their app.³

Subscription Services

Yes, we get it that your Netflix subscription is essential, but now’s a good time to look at all your subscriptions and get rid of any you’re not using or that overlap. Those fees can add up!

Banking and Credit Card Fees
Do you have a credit card that charges a membership fee or a bank account that makes you pay them to hold onto your money? If you’re paying fees and not getting benefits equal or greater to what you’re paying, switch to a free alternative.
Home Services
Do you have a regular house cleaner or pool guy? Consider taking over these tasks for now. Depending on where you live and the current laws, you might not be able to have these services legally performed in your home anyway!
Dry Cleaning
Most of the country is on lockdown and unable to go to the office. Social outings and fancy dinners are also off the table. As a result, wearing professional attire isn’t required or applicable to a lot of people right now. As you know, dry cleaning is expensive. If you’re doing a conference call at home with your coworkers, consider skipping the business suit and opt for business casual instead.
Food Delivery and Takeout
Restaurants are closed for wining and dining, but most are still offering delivery and takeout options. This sustenance route can be expensive because not only are you paying for prepared food, but you’ll also be incurring delivery fees and tips. Cooking at home can save you a substantial amount of money, and it’s likely to be healthier!
Retail Therapy
Online retailers are slashing prices across the board, sending tempting emails to your inbox on the daily. While 50% off might seem like a steal, ask yourself if you really need that pair of pink flamingo shorts before you add them to your cart. With an uncertain financial future, unnecessary purchases should be avoided.

The Bottom Line: According to a study by the Federal Reserve, a shocking 40% of Americans are not equipped to handle a $400 emergency. Hopefully, you don’t land in that camp, but in these uncertain times, hanging onto your financial position can be a challenge. We recommend continuing to save when possible.

While we don’t recommend hoarding cash, make sure you have enough on hand for a rainy day (or several). Financial planners recommend having up to six months of living expenses distributed between two savings accounts and about $1,500 available for immediate use.⁴