Hey there! Hope all is well. Today I want to hang out and talk about some basic financial planning. Before I go any further, let me first say that my heart goes out to the millions of people that have become unemployed all over the world. Most of us were NOT prepared for anything like this. For that reason, I’d like to take a moment of your time to encourage you to get your finances in order…STARTING NOW! Although I hope we don’t experience another crisis like this, I believe it is better to build an ark for the storm you don’t see than to wait for a flood to come through and wash you away.
You may be one of those millions that are unemployed and you’re thinking, is she seriously suggesting we make a plan for money that we don’t even have coming in right now? YES! That is exactly what I’m suggesting. Just because your income may have changed today does not mean things won’t get better, hopefully, sooner than later and you don’t want to wait for everything to fall back in place to get things in order. There’s no time like the present. Put your plan on paper (or device), on purpose so you are ready when life is back to normal. You may have to change your income on the paper now from what was to what is, but you should have a plan for your money and be as ready as possible for emergencies.
If you’ve been following the stay at home order, hopefully, this has allowed you to save some money. There are options to make purchases online and order takeout, which I totally suggest you do at times to support those businesses, if you can, but this is also a great time to save more and get your finances together.
Whether you are single or you’re in a relationship sharing financial responsibilities, please take this time to sit down and prepare a plan. Try to select a day and time where you can consistently look over your finances and for those working together, make sure you can meet on a regular basis to do your budget.
If you’re not sure where to start, I have provided an idea below on how you can begin. Feel free to tailor the agenda of your meeting to accommodate what works best for you.
–Always start your plan/budget meeting by prioritizing your bills. Create a list of required payments. These will be your everyday bills and responsibilities such as a mortgage, car payments, 401K/retirement and any type of savings plan. Then list those most important, must-have bills you may consider such as cable, security systems, etc. Next, you want to add in any maintenance, medical or repair bills that are non-recurrent.
–Then go over items that you want to purchase soon or things you’d like to do in the near future. Maybe you’re thinking of updating a room in your home, starting a new hobby or business or putting the kids in a new activity.
–After all of that, take a moment to talk about more costly plans for the future. This can include upgrading your home or car or investing in real estate. Finally, finish off with a discussion of where you’d like to be financially in the next 5-10 years.
There are many financial plans available that you can follow. For a more detailed financial plan, specifically one that my husband and I swear by, check out Dave Ramsey’s 7 Baby Steps. Because of this plan that we’ve followed for the past 14 years, plus the fact that my husband is able to work from home, this crisis is not as overwhelming to us as it may be for others. However, know that I am constantly in prayer for everyone that is being affected by this pandemic.
With that being said, I’ll leave you with this…
Know that this too shall pass. Just like 9/11, the Recession and other major crises that we have faced, we eventually overcome. Try your best not to panic and make bad short-term decisions that will affect you long-term.
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Instead, focus on how you can survive today and use this as a starting point for how you will THRIVE financially in your future.
Disclaimer: As I’ve stated before, I am not a financial expert. I will be more than happy to provide suggestions based on how we choose to handle our finances. Feel free to contact me at HangingWithLadyB@gmail.com should you have any questions. I will do my best to either answer you directly with my limited knowledge or consult my financially intelligent husband. If all else fails, we will definitely try to find the best information to assure you can get the help you need.
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Excellent tips here!! Thanks for sharing your knowledge 🙂
My pleasure and thanks for reading!
First of all thank you for sharing. 2ndly yes I wrote it like that. I’m going to get that book asap
It’s my pleasure! Just giving a few small pointers to get started during this time. There will be more detailed money management tips to come, so stay tuned!