Getting your finances in order during the COVID-19 Coronavirus pandemic is just as important as practicing social distancing.
We thought we would share with you a few budgeting reminders and tips that local resident [and budgeting wizard] Shandon Anderson shared with us.
As George Washington once put it, “We must consult our means rather than our wishes.”
Whether you received a stimulus check or not, these helpful tips can benefit anyone looking to make the most out of their ?
Back to the Basics
1. Sit down and actually map out your budget ?
It seems quite obvious, but many people don’t have a physical budget they can look at. Writing down your incomes and expenses and determining your needs and wants is the foundation to an effective budget. There are many budgeting apps to help you get organized, such as Every Dollar or YNAB, or start in a spreadsheet app. Or you can go ‘old school’ with pen and paper.
2. Have a goal in mind ?
Having your budget mapped out without a goal serves no purpose. Your goal can be as narrow or as broad as you’d like. The Anderson family centered their budget around paying off their house in five years — and they’ve stuck to it! Every budget should have some kind of goal tied to it.
3. Crunch the numbers, cut if necessary ✂️
Luckily you don’t have to be a mathematician to budget. If more money is going out than coming in, it’s time to look for some ways to minimize your spending. If you’re in the green, you might still consider if you’re meeting your budgeting goals.
4. Find a support system ?
Anderson has helped many in our community learn how to budget. Having a support system not only helps keep you accountable, but it keeps your budget accountable too. You can join the “Apocalyptic April” Facebook group that Anderson started. The group’s goal is to provide tips, use less and appreciate more. The name changes each month, but the support remains consistent!
Cutting Where it Counts
1. Decrease your entertainment expenses ?
Satellite television and video games might be your go-to option for entertainment during the pandemic, however, there are other sources of entertainment that can fill your time. For example, streaming services offer a cheaper way of watching some of your favorite shows. Also, the library has apps like Overdrive, Hoopla, and Libby that allow you to check out materials from your phone or tablet for free.
2. Cut out buying paper towels and napkins ?
When it comes to paper products, consider using cloth material instead. You can make your own, or you can buy washcloths to replace products such as paper towels or napkins.
3. Spend less on non-food items at the store ?
Cleaning products and other nonfood items can rack up the bill at the store. You can learn how to make your own soaps, bathroom cleaner and laundry detergent with a bit of research.
4. Reduce your utility costs ?
Social distancing has kept most of us at home, which means we are more than likely using more of our utilities. Find ways to reduce your utility costs. For example, hang your wet laundry on a clothes racks, or a clothes line. And for all the fathers out there, everyone turn off the lights when you’re not in the room.
5. Reduce your food costs ?
Food can eat up your budget if you’re not mindful. Start by meal planning for a week. Doing so can help you avoid overbuying and overeating. It’s also important to eat your leftovers. Many leftovers are simply thrown away despite being perfectly fine. When prepping meals, make as many food items, such as bread, from scratch. Buying ingredients instead of pre-packaged meals will also save you money in the long run.
At the end of the day, there are unlimited ways to cut back on your spending, especially during a difficult time like now. These simple, yet impactful, budgeting tips can help you get started on your way to battle the financial challenges of today.
You’ve got this! ?
DISCLAIMER: The content above is not written by a financial advisor and these tips are only meant to spark discussion and not to be taken as financial advice.
