A time of financial uncertainty can be really stressful… here’s what you can do with your money during that season. 1. Start A Budget (0:51)
Budgeting is important during normal financial times. But it may be even more important during times of uncertainty! So if you don’t keep a budget every month, now is the time to start.
A lot of people may think that budgeting is restrictive. But that’s definitely not the case.
Rather, a budget gives you permission to spend. A budget is a framework for your income and expenses. And it allows you to tell your money where to go.
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2. Increase Your Emergency Fund (3:14)
If you don’t know what the next couple of months will look like for your finances, it’s important to have an emergency fund. An emergency fund acts as a safety net. It’s there to catch you if something bad happens. Like losing a job or encountering a large unexpected expense.
A great goal for your emergency fund is to keep 3-6 months of living expenses saved up in an emergency fund. If you don’t feel like your current emergency fund is enough to get through a time of uncertainty, it’s time to start saving!
✅ How to Start an Emergency Fund |
3. Pause Extra Debt Payments (5:04)
If your emergency fund isn’t to the level you need it to be in a time of uncertainty, it’s time to do everything you can to save as fast as possible! One way to put extra to the emergency fund is by pausing extra debt payments. If you are currently working on paying off debt, you’re probably paying more than the minimums to really make some progress. And during this time, your emergency fund may not be fully funded.
If these uncertain times are making you weary and you need to build up an emergency fund even more, now is a great time to pause extra debt payments and instead, put more to savings. It’s still important to cover your minimum payments. But anything extra that you were putting to debt can now go to savings!
4. Cut Unnecessary Spending (6:04)
Another way to get extra money to your emergency fund is by cutting unnecessary spending. To do this, take a look at your budget and see what kinds of things you’ve been spending money on that you don’t really need. This can be things like entertainment, eating out, vacations, clothing, subscriptions, and gifts. In a time of uncertainty, it could be beneficial to cut those things out of your budget. Just for the time being!
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5. Spend On Your Basics (6:36)
By cutting extra unnecessary spending in your budget, you can focus on your four most basic necessities. The things that you truly need to cover every month. In a time of true financial emergency, you can cut off all extra spending and focus on these four things: food, utilities, shelter, and transportation. Those are the things that you truly need each month, and you can make sure that you have those covered.
6. Take On Extra Work (7:19)
If you’ve encountered a larger unexpected expense, lost your job or feel that a layoff may be on the horizon, you could also take on extra work. Now may be the perfect time to find a side hustle or a part-time job to supplement income.
During uncertain times, it’s easy to feel panicked. But instead of feeling anxious about what might happen to your finances, you can take some of these steps to help provide a financial foundation during an uncertain financial season.
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