26 Mar #56-Do not just survive, THRIVE during economic uncertainty.
Do not just survive, THRIVE during economic uncertainty.
These times of uncertainty are impacting virtually everyone in some way. We wanted to offer a few suggestions so not only will you survive, but hopefully you will turn these events into a learning lesson to thrive.
Often, we are told to have 6 months of living expenses available to us to mitigated problems such as the one we are facing where many people cannot go to work, or hours are shortened. Even without the current events, if you were sick or had to medically not work, creating this savings is a good idea. Having 6 months of savings is maybe something that you currently do not have in place so going forward, here are three suggestions.
1) Have an auto deposit done from your paycheck into a savings account. Overtime, you will gradually get this safe buffer for yourself. We are often okay having a small amount each check withdrawn and this can quickly add up to big savings and comfort in knowing you have an emergency fund! Try and have 10% each check, but if not that amount, then try for $50.00!
2) If you pay off any loans or credit cards, continue putting the payment into savings. It is interesting how after a loan, car or credit card payment is completed; many people still find they are out of money at the end of each check even without the payment. If you discipline yourself to pay yourself as if you were a car payment, when you need or desire to buy that new car, you will have the ability to pay cash for it rather than finance it and save yourself money in several ways.
3) If you get a raise, put the amount of the raise away again in a direct deposit. The saying is out of sight, out of mind can really directly assist you in this. If you could do it before on the income you had, then continue living on the amount you were used to and see how fast your savings can grow.
A final bonus tip! Stop using credit or debit cards and pay in cash. It is much harder to give away that $50.00 or $100.00 bill than it is to swipe a card!
Taking action, creating a plan and creating a buffer savings account are all ways in which to weather any storm! Even while stuck at home, working your mental muscle and creating a money muscle will make this uncertainty give you something of value!