There’s a lot of uncertainty right now and depending on where we live some of us are feeling this burden more than others. We are not doctors, policy makers, or financial planners, but we are encouragers and we recognize our current situation is leading to profound financial impact for many. So what can we do? In our current climate how do we harness the most of our time and energy and take the best steps forward? Join us in our short bonus episode on ways to respond to what’s happening.
3 things you can do RIGHT NOW to prepare for anything that’s to come:
1. Beef up your emergency fund.
- Push pause on making extra payments toward debt. If you’re paying off a federal student loan you know that interest is not accruing on it, so while it seems like a great time to be paying extra, if you don’t have 3-6 months of expenses saved then pause your other goals and save up your money.
- If you do have 3-6 months saved then there’s not enough evidence for us to say that you need more. If you feel like you want more, do it, if not, wait it out and see. Your job volatility is going to play a big role in that decision for you.
2. Simplify your spending
- This is a great time to do a no-spend challenge, especially if you’re trying to increase your emergency fund. Things are closed, events are cancelled and you’re stuck inside!
- Also, There’s a lot going on. A lot to think about. Our brains can’t manage everything all at once, so things like spending will go on autopilot. When you pair that with some fear and anxiety we can make some bad spending decisions.
- Start simplifying your spending now by creating a simple meal plan, make a list of essentials you need to spend on, non-essentials you really care about (COFFEE) and non-essentials you’re committing to cut out.
3. Be the helpers
- In the coming weeks and months we’re going to start to realize the extent of the financial impact this will have on real people in our communities. People who were counting on work to make ends meet will fall short. People will lose their jobs, they’ll have anxiety and panic attacks, they’ll go into debt, you name it.
- It’s up to us to be the helpers. Take what you know about saving money and living frugally and share it. Bring a dinner, make a car payment, give generously to the people around you. You are your community’s frugal friend.
Whatever is coming in the next weeks, months, years, we’re gonna be here. We’re gonna bring as much comic relief to this messed up situation as we can but we also take our roles in it seriously. People are about to need a lot more frugality in their lives so don’t just tell them about the podcast, be the example. Show the people around you that this isn’t the end of the world and you can still live a full life with less spending.
See you Friday!