Uncertain financial times creates the need to be better at planning and managing your money. It is important to undertake decisive financial actions that are based on a sound strategy. Following is a six step approach to use to make these important decisions.
Why is savings the most important step?
Saving whether it be building as much cash as you can or looking for ways to save with your expenses has to be your first goal. Lower expenses can take several different forms from coupons to finding ways to reduce streaming services or utility expenses.
Why is impulse buying so destructive right now?
Impulse buys can be caused by the constant bombardment of ads and during this time when people are on screens more than normal, the temptation to buy can be overwhelming. Even if your income has not be impacted, now is the time to use shopping restraint.
What is a simple budgeting tool that most people could use?
The make it to Monday is a simple budget that is only focused on spending that is discretionary which includes food, eating out and entertainment such as streaming services. Instead of budgeting for the entire month, just budget for each week, start fresh on Monday and work to make it to the next Monday. It is often more manageable for some people.
How can we make sure are still paying our bills and loans on time?
Contact your lenders and service provides to find out what options they are offering if you have suffered a financial setback. Don’t wait for them to call you because some of your options might already be closed to you if you fall behind. Early action is important in times like this.
Where all should we look for ways to save?
Looking for ways to save can be difficult, if you are still employed refinancing loans to lower rates and lower payments is a good option. Other options include looking for ways to eliminate some of your expenses that you consider to be necessary but you might have to make different choices.
What are examples of expenses that should be eliminated?
These would be habits that include smoking, consuming alcoholic beverages, buying processed food, and even overbuying on fresh food that is wasted. All of these habits have varying degrees of savings and some also include benefits of improving your health.