Making Your Money Work for You
We have seen our world change this year and we are in an economic downfall. Fortunately, it’s not all doom and gloom. We can prepare to weather this storm and the next one. Here’s how:
Budgeting
If your income has been drastically reduced, or close to zero, your priorities have to be keeping a roof over your head and food on the table. Mortgage/rent, utilities, and food should be the very first needs accounted for in a crisis. Lenders and service providers may not be cutting off utilities or garnishing wages, but you don’t want to fall behind if you can help it. If you have been using the snowball method to pay down debt, hold off on that for now. With so much uncertainty, it might be a better decision to hold on to your extra money in case you need it. Consider paying the minimum amount on other debts, so you don’t fall behind, but save whatever else you can.
Do you have a steady income? If the answer is yes, you are in a much better position than many. Your paycheck will allow you to focus on maintaining your home and keeping you and your family healthy, safe, and fed. No one could have predicted the situation we are in now, but if you have been budgeting all along, you may have had the opportunity to have stashed some money aside. If you have the means to continue paying down debts or saving above and beyond, continue to do so, but don’t feel guilty if you can’t right now.
This entire world is experiencing this crisis for the first time. Everything has changed so why should your budget stay the same? Now would be a great time to create a revised, slimmed-down budget. Try to remove your unnecessary spending, and direct it to savings. If you need help creating a budget, take a look at our Household Budgeting Worksheet for guidance.
Debt
Brace yourself, because what I am about to say may sound strange coming from a financial institution. Don’t rack up new debt! It is smart to use your rewards card like this one on purchases you would have to make anyway (like groceries), but pay it off before the interest can accrue. You would be surprised at just how much you can earn by spending your allotted budget on groceries and paying with your VISA Rewards Credit Card. Only use what you know you can pay off in a month – this is a good practice regardless of the current economic situation.
The main thing is that you don’t financially commit yourself to something you can’t pay back. If your job is up in the air, or your salary has decreased, now is not the time for frivolity.
Shopping
Be on the lookout for resources that you can take advantage of every time you shop or buy online. This includes unemployment benefits, local food pantries, church programs designed to assist less fortunate community members, and many more. Don’t forget to “shop smart” by planning meals based on what is on sale. Stretch your meals when possible, and use coupons or a cash-back app like Ibotta to save on groceries.
Meat is expensive and shoppers may be restricted to how much they can purchase, so if you can, try to choose a meatless main dish at least once during the week. The savings will add up, plus you are helping the environment. Looking for meal inspiration? Consider making your own meatless pizza or vegetable lasagna. You can also take the time to do a fun and inexpensive activity with your kids. Mine love to help stir cake batter or whip up frosting. Here are some fun cake, cookie, and brownie recipes you can bake together.
Speaking of the grocery store…
If you find yourself in a grocery store instead of opting for grocery pick up or delivery, you can get the cash you need in the checkout line. Skip the ATM and the ATM fees, and choose cash back instead. Make the most of your money today.
How are you holding up? Do you have any tried and true budgeting or savings tips you would like to share? Comment below or email me!
Krista Kyte is a personal finance blogger and personal banker with over 17 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that will help consumers reach and maintain financial security, and start living the life they’ve always wanted.
