Ideas to help you get a better handle on your day-to-day finances.
Managing your finances can be stressful even when things are good. So, it’s natural to feel completely overwhelmed when money is tight. And right now, with the coronavirus impacting many people’s livelihoods, money is tight for most of us. Making it ever more important to save money where we can and make the most of what we have. Hopefully these tips will give you a starting point for managing your day-to-day finances to bring balance to your checkbook and your life.
Make a budget. Yes, I know, easier said than done. Budgets are like cilantro, most people either love them or hate them. However, they are important especially when money is tight. Having a budget will allow you to easily assess your finances and come up with a plan. If you know where your money is going, you will have the power to make decisions about what you can cut (goodbye weekly pizza night), where you can save (who needs gasoline when you’re stuck at home?), and what you need to prioritize. Having a budget can bring you peace of mind during an otherwise stressful time.
If you’re not a budgeter, it’s okay. You can start now.
Setting up your budget for the first time will take some time, but I promise it will be worth it. There are a variety of budgeting resources online, like Dave Ramsey’s EveryDollar tool which is free and available through the website as well as a mobile app. If you’re more of a pen and paper person there are some fun budget planners on Amazon that can help you track bills and due dates.
Cut unnecessary expenses. Once you have a budget in place you can review your expenses to look for opportunities to save money. Do you have any subscription services that you don’t need or could go without right now? Are you able to cook at home more often to save on takeout? Everyone is different so this step is personal. For some people, Netflix may be unnecessary, while for others it creates family movie nights that are crucial to their “new normal”. You do not have to deprive yourself of things that are important and meaningful to you, but you should take the time to truly evaluate what you need right now. You may end up finding you needed much less than you realized and your “new normal” is really a fresh start.
Prioritize and accept help. When money is tight it’s important to prioritize the necessities to keep food on the table, a roof over your head, and a reliable means of transportation. If you’re experiencing a financial hardship this can be particularly difficult, so don’t be too proud to accept help. Every person is impacted by the global pandemic in one way or another. And thankfully there is a lot of help available. For example, many utility companies and insurance companies are extending deadlines before cancelling services or policies. Food banks are setting up pop-up distributions and many schools and local businesses are offering free lunches for children. Many financial institutions are also offering extensions and low interest loans. Despite the social distancing rules that are separating us physically, people are finding ways to come together to help one another. Don’t be ashamed to accept the help. We’re in this together and we’ll get through it together.
Create a system. Having a routine can create calm within the storm. This goes for all types of routines including finances. Establishing a systematic way of paying bills and tracking expenses will actually save you time, and most likely, money. Personally, I schedule my bill payments online while enjoying a cup of joe one or two Saturdays a month. I find it a relaxing way to start the weekend and a great way to keep myself accountable to my goals. For non-bill categories like groceries, gas, and restaurants our family uses the Goodbudget mobile app to keep track of our spending throughout the week.
The app has free and paid options and works like a cash envelope system that you access from your phone. Multiple people can access the same account from their devices, allowing you to stay on the same page and on budget. Whether you prefer a pen and paper system, a spreadsheet, or a mobile app for tracking your finances, creating a system that works for you will help you take control of your money and balance your finances.
Give yourself grace.
This is a difficult time. We are experiencing things we have never experienced before and had little if any time to prepare for. It’s okay if you feel overwhelmed. Give yourself grace. Give others grace, too.
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