How to take control of your finances
Now’s a good time to look at your household expenses. Many people have had their income reduced through a cut back in hours at work or because of home isolation and lay offs.
How to Take Control when things feel out of control when it comes to your finances.
Now’s a good time to look at your household expenses. Many people have had their income reduced through a cut back in hours at work or because of home isolation and lay offs.
What I’d like you to do, even if it seems impossibly scary right now, is to look at your monthly expenses.
If you know things are going to be tight or extremely stressful in your budget, now is the time to get that figured out instead of waiting for it to happen and being shocked by the reality of it.
Over the next few months cash flow is King!
First and foremost is to know what you have coming in to your account over the next few months.
Now look at your expenses. Figure out what things are an absolute priority to pay, food heat, water – are any of these companies allowing delay or deferral of payments. What expenses, if you could negotiate a deferral, would help your cash flow. Have you talked to your bank about deferring mortgage and loan payments, lines of credit. Have you called your credit card companies to see if deferral is an option. What things can be put on hold, things like gym membership, investment contributions, subscriptions? Make the calls and get informed so you know what is headed your way.
If you are blessed and still have income coming in and your finances have not been dramatically impacted are there impactful ways to help others? Can you shop local to help support your community? Can you reach out to your hair stylist, salon owner, massage therapist to see if they offer gift certificates. Most of these service providers are unable to work at all and will be severely impacted by physical distancing. Prepay for a few months of your regular service. How about your favourite restaurant, could you mange take out once a week or buy gift certificates that you can use in the future?
Regardless of our financial circumstances each one of us can lift someone up in this time and make positive a difference. Make a phone call to someone who is isolated. Facetime your kids or grandkids. If you can get out to the grocery store, is there a neighbor who needs some items picked up as well? Think about your regular destinations pre pandemic. Is there someone who needs to hear from you or is there a local business that needs your support or a kind word or suggestion from you? In a time where everyone is physically distancing, you can still make a positive social connection.