If you follow my blog, then you know over the last few months we have been going through a journey to find financial freedom. Starting with a small emergency fund, then creating a budget were the first basic steps of this amazing transformation.
Who knew we would wake up to face such uncertainty. I wrote this article weeks ago, but never published it because I didn’t know how you would take to it, but it has been sitting on my mind and after praying about it I realized you may need this now more than ever.
This health crisis will bankrupt more people than it kills. That is a scary thought, and I don’t want that to be you! I don’t want to insight fear, (The Media is doing that enough) I just want you to be aware that your decisions, now more than ever, will affect your financial future. I want to discuss some important financial tips or advice that you need to know now.
Make a Budget!
Now more than ever it is absolutely imperative that you operate on a budget. This is the perfect opportunity for you to get your shit together, and I say this not to be rude or vulgar, but because it is that big of a deal!
If you are not getting paid then you need to take whatever money you have right now and decide where it will go and why. That means if you only have $500 left to your name, then you need to make sure you know exactly where that $500 will go, down to the penny!
What’s most important?
First things first, make sure you cover your basic necessities: food, utilities, shelter, and transportation. Everything else comes second!
With grocery stores having little to no stock, I had to buy food that I normally don’t buy. Seriously my family may be living on mac and cheese if this last too much longer!
I normally have extra money in my grocery budget by the time the next paycheck comes in, so this was never an area I really worried about. This time it was not like the norm. For the first time in a long time I used all of that cash and our next pay check is at least another week out.
By the time I realized what was happening and made it to the grocery store, they had been wiped out. When you are staring at empty shelves on every aisle, you pick up what they have left.
In my case it was 2 cans of spaghetti sauce and macaroni and cheese. I couldn’t even tell you the last time we ate macaroni and cheese, and I can guarantee it wasn’t from a box.
I looked at my grocery list and decided to shop based on what was available versus what I would normally purchase. I started to think what could I make with these items left.
I also took how filling each item would be into consideration. Pasta is filling and it can go a long way with a family. Thinking back to my childhood in South Louisiana we ate lots of rice and gravy because it was cheap and filling.
I will not panic, if we run out of bread guess what!?! I have a recipe for amazing homemade bread. If we run out of milk, I have a case of coconut milk sitting in my pantry. When I take a deep breath and truly assess the situation, we are ok.
Another thing to realize is we have a cash envelope for restaurants, if things get bad I can always use that money for groceries. My point of all this is when you start to panic or things get blurred, just take a deep breath and process for a moment. You will see a logical way around the problem.
My mantra is “We have a budget and we are sticking to that.” With what I already have in our pantry and what I was able to purchase at the store we should have plenty enough to make it through another pay period and then some.
On a side note, if we run out of toilet paper and can’t find more, that bag of miss matched socks will finally have a purpose! LMAO
Cut out the excess.
With businesses closing down, you should be quarantined at home, so anything like entertainment or restaurants and such need to be cut from your budget. These are luxuries, not necessities.
And if you are not getting a pay check then pause all of your subscriptions. Netflix, Hulu, Amazon, etc. Take that money you will save and put it away in your emergency fund.
Your first priority is to make sure your family has food. Then you want to pay your utilities because trust me the last thing you need is to be in the dark, literally.
Make sure your house note is being paid because again living on the streets is more dangerous than ever. Some banks like Wells Fargo are offering to suspend your house note, check into this, but do not take out a loan. Finally make sure your vehicle note is being paid and you have your gas tanks filled.
Temporarily Pause your Debt Snowball.
If you are at the point that you are paying down debt, or following the snowball plan, then put that on hold and start to put your extra money to savings. This does not mean stop paying those bills, but rather don’t worry too much about putting extra on them.
You need to have an emergency fund built up in the event you lose your income. It is important to remember that this too shall pass, things will not be like this forever and you will go back to hitting your debt hard once this passes.
Remember the promise the Lord gave you, “I know the plans I have for you” declares the Lord, “plans to prosper you and not to harm you, plans to give you hope and a future.”
Jeremiah 29:11 NIV
Make Extra Money.
Another thing you need to be doing is selling off your excess stuff. Furniture, clothes, purses, jewelry, maybe that extra car. Sell everything you can, this will help ease your burdens if you are without a pay check. It will give you extra money for your emergency fund or to cover your four main areas.
Try to get a part time job. Places like HEB, and Sams Club, and grocery stores are in desperate need of workers to stock shelves. Some of these places are hiring on the spot.
People need groceries delivered and lawns mowed. Think outside the box. What can you do to help others.
What NOT to do!
What I don’t want you to do is take out any loans! There is so much crap going around about how interest rates are dropping and getting a loan is so great…blah, blah, blah.
Listen to me carefully. You do not need a loan or credit card for any reason. Period. It will not help you, it will not keep you safe and afloat. Taking on more debt can have a huge impact on your financial goals. These things will hurt you way more than they help, trust me!
If you need anything from advice or just to talk please reach out. I am here for you.
Stay Safe & Be Fearless
Candace 🙂
