April Showers bring May Flowers
Currently listening to There will be Sunshine by Snoh Aalegra, love this woman. Is it me or has this year been flying by? May will be here in a literal few days. Since we’ve been advised to shelter in place- what are you doing with your quarantined funds? I’m referring to the gas money you aren’t spending as much of, the dining out money that I’m sure you miss spending just as much as I do? Keep in mind, that’s only for a lucky few of us. Some of us have been forced to apply for unemployment, and may not be able to make ends meet. Let’s get into it.
Track your old spending habits - This month alone I was able to save an extra $600 just because I’m not leaving home as much as I used to. If I keep up those healthy habits, that can be an additional $4,200 I could put away this year. Those funds are currently tucked away in my Fidelity Money Market Account. Ready for me to pull the trigger if I want to purchase more stocks. I keep my savings at a completely different bank to avoid easy access. Remember, you have to know yourself to be successful at saving. If you can make instant transfers for unnecessary purchases, you may want to consider doing the same. Wherever you decide to keep your funds, make sure it’s in a bank that is backed by the FDIC (Federal Deposit Insurance Corporation). Your money is protected up to $250K. I really want to challenge you to save more than you normally would. In this climate (if you’re employed full-time), it’s hard not to. I currently use a budget template from over the years that anyone can use for on the go budgeting. I put it together on the fly, but it works. There are buget tracking apps available as well… I’m just old school. I have a budget very similar to this one that I keep on my phone for easy access. If I have an impulse by, I document it in my google sheets app. Budgeting hasn’t been easier. Feel free to utilize it to help track what you are/aren’t spending. If your managing to save, put that money away for a rainy day. Think planting seeds during this rainy time for May Flowers. Wherever you may be financially, it doesn’t matter as long as you have a plan in place for yourself to grow. If you’d be down for an “April Showers Savings Challenge”, shoot me an email and let’s do this together. I’m always up for a challenge!
Stimulus Funds - My family and I have been cracking jokes about those “I’ll turn your $100 into $800” memes. Please don’t let your cousin or friend leave you looking crazy. If possible, use that money to pay down some debt you’re trying to get out of. An extra credit card payment could be for the good and raise your score. Or finally start that emergency fund you’ve been wanting to start. If you can’t afford to put your entire stimulus check there, try starting with 30-40%. A little goes a long way. Especially when you have a high-yield savings account. Your money will be working for you. Online savings accounts typically earn more than a traditional brick and mortar bank so research “Online high yield savings accounts.” There are several to choose from. I’m currently nesting some of my funds with Synchrony.
Unemployment | Modify your budget - If you aren’t as fortunate as others, you may have been furloughed, laid off from work without pay, or working fewer hours than you normally would. If that is the case, be sure to apply for unemployment. Currently, qualified candidates will receive an additional $600/week until July 31st. Be sure to check with your state’s labor department to determine whether or not you qualify. COVID-19 rules have made unemployment benefits accessible to freelancers as well, so be sure to read up on it. If you’re in any of these situations, you may want to modify your budget. Here' are some things I’ve done to cut cost:
Suspend any recurring services that you aren’t able to use because of COVID-19. Think Gym Membership, Monthly Parking Garage Costs, etc. Right now you can catch virtual workout classes online for free. Some Trainers are requesting a donation so tip your instructor. They feel the epidemic as well.
Mortgage/Rent Assistance is available. Most banks have relief programs available if you’ve been affected by the pandemic. Please check your bank’s website for advice. If yore renting in Chicago, check here for information on rental assistance.
Refrain from pulling from your retirement account if you can. Try taking advantage of grants and programs that may be available before touching your own cash. A wise man told me to use OPM (Other People’s Money). The best advice I’ve ever received.
Cut unnecessary expenses. Like some of those disposable income subscriptions. Suspend those until things look better for you financially. Remember, it’s only temporary. Say it with me “April showers bring May Flowers”.
I’m releasing this one a bit late, but I hope you find this article useful. Stay safe and shelter in place as much as possible. Oh and don’t pick up quarantine weight. Stay active with some HIIT workout from youtube. Right now, my favorite is Mr. and Mrs. Muscle. Check them out when you have time. I was serious about the savings challenge… who’s in? Good Night :)