Want no more money problems? Listen up to these 9 must-do steps. There is no way in predicting tragic storms, destructive earthquakes, virus pandemics, wars, house fires, the sudden death of a loved one, or unemployment. If we could tell our money ‘a tornado is coming, hang on tight’, life would be so much easier. In fact, we can tell our money to do that, but what if we weren’t ready? In knowing how to fix money problems you can do some simple steps. To get started, I’ve got 9 easy-to-do steps to help you manage money wisely starting today!
First things first
First and foremost, remember these times of despair are just that, a time. It’s not forever, it’s not the end of the world; it’s just a season that is visiting for a while. It may seem like an eternity but it will pass like all our other seasons IF you want it to. The hard part is getting through it without much pain. But you must get through it, keep moving forward! Want to know more about motivation? Check out How to Get Motivated: 4 Critical Tips to Start Anything.
Your 1st priority
Your first priority is to take care of yourself and your family. If it’s a spreading sickness, do everything in your power to protect yourself and your family from getting sick. Did a storm hit your house? Then get your family to a safer shelter. If you lost your job, then start looking for a replacement job, even if it pays less than the work you had before, just get something going so you have a little income.
When the overall shock has faded, this is usually about a week to 10 days depending on the severity, you can start working on these 9 must-do steps to get your life back on track and put your money problems behind you.
9 Steps to Manage Money Wisely
1. Clean up the unnecessary subscriptions
Get rid of unnecessary subscriptions: magazines, the gym (unless you’re using it), weight loss programs, email subscriptions that you’re not using every week, and might I even say cable TV? When you add all these things up, you will be surprised at how quickly things add up! It will make you sick. Stop giving your money away to companies you’re not using! Again, look at the numbers and the amount of time you use these things. Is it worth it? Is it distracting you from accomplishing your goals?
2. Work on your budget
Having a budget is the BEST tool out there to manage money wisely. Money problems happen when a budget is not in place. What I love about a budget is that it can help you find the holes and to see what holes need to be filled. For instance, my husband and I recently redid our budget and found that we were spending way more than we thought on eating out. Ouch! I like to think of a budget as a treasure hunt or a crime scene. It lays it all out so we can solve the case.
A budget doesn’t need to be restrictive, tedious, or confusing. Keep it simple. Paper and pencil work great. Or step it up to an excel worksheet. I already created one for you that you can use for free. Go to Freebies to get yours.
If you want something beefier that has printable reports I highly recommend Quicken or Quickbooks. We use both for different accounts.
Start your budget out simply. Scale down and only focus on your necessities. This may be hard but look at it from a survival perspective. What can I, or we as a family, live without for two months? Do we have an emergency fund?
There’s another post about budgeting to checkout. #1 Cause of Money Problems, plus 4 tools to solve it
3. Make extra money
Wipe your money problems away by making extra money. There are some amazing side gigs out there that I’ve even done! For instance, you can grocery shop for others. This is actually a fun job if you like the grocery store. There are numerous delivery services that are desperate for people to work. I suggest searching online using keywords like “work-from-home jobs”, “part-time jobs”, and “best side hustle jobs”. There are a lot of opportunities.
Heads-up: Many bloggers say to start a blog. FYI – You’ll be spending more money on starting it than making any money on it. They are only telling you to start a blog to sell their blog-building tools or to exercise their affiliate programs. Building a profitable blog takes time and money, it’s not impossible, but it is a lot of hard work, especially starting from scratch. Just being honest here.
Simply look at what businesses are booming in tough times and then go there and inquire about opportunities. For instance, health care during a pandemic, delivery services, construction workers, or restaurants. Search with an open mind and ask yourself what you would enjoy and be willing to try.
4. DIY (Do It Yourself)
Do things yourself. Ideas in this arena include selling your crafts and creations on Etsy, cleaning your own house, mowing your own yard, and for minor fixes around the home get on YouTube to find ways to fix things yourself. Doing things yourself can help save you money and give you gratification and confidence!
5. Cut Costs
Cutting back on costs can be kind of fun to figure out yet still be content. Things to look at are the number of visits to: the hair salon, getting your nails done, trips to the grocery store, and the car wash. Other ways to cut back are to shop at a lower-priced grocery store, and to be mindful of your utilities: shower or bathe once a day instead of two, turn off the lights when not using that specific room, turn the thermostat down one or two notches, ‘when it’s yellow let it mellow when it’s brown flush it down’, turn the faucet off while scrubbing those pearly whites. Things like that. Here’s a great post on how to save money grocery shopping that you should check out.
6. Sell stuff
Sell stuff through Facebook Marketplace, Mercari, or other trustworthy platforms. This is a great time to declutter your home and really ask yourself if you need certain things. Selling your things is a lot easier these days too. If you don’t want to hassle with a garage sale, sell things online. I have done well using both methods. In my last garage sale, I squashed a money problem using my profits. It felt so good!
7. Be smart
Make smarter buying decisions on the necessities. Okay, toilet paper baffles me, unless you have an underlying condition like Crohn’s, colitis, or cancer, cool your jets on the TP. Simply take what you need for two weeks then manage the toilet paper you have in the house.
Ask yourself if you really NEED a particular item before buying it. Look for deals or coupons. Opt to never buy full price for anything! Always keep your receipt in case you have buyer’s remorse and want to return an item.
8. Whoa-back on large money deals
It’s human to be uneasy during uncertain times, but only allow yourself one day to ‘freak out’. After that, get your battle face on and make adjustments. However, the one caveat to making change is to not make any major financial decisions in the first 7-14 days. For instance, don’t cash in your 401K buy a new car/house, or rank up your credit cards. Put your mind to work and figure out some ways to adjust in ways that help you and not hurt. Put together a budget and get a plan in place.
9. Emergency fund
When all is back up to speed, start to build your emergency fund for the next time something like a pandemic or war sucker punches us again. One way to do this is to put a little bit away every paycheck. Some people do 10%, others 5%, and so forth. You will be amazed at how quickly this adds up, especially if you put it in a savings account that accumulates interest.
I believe in you. You totally got this. Just remember your first priority is to take care of yourself and your family with the necessities. Work together as a family. Working together will not only bring you all closer together and working as a team, but it will be a lasting memory and bring more happiness into your home.
Before you go, check out these great blog posts:
By CT Copyright © 2020 Simplify Firefly All Rights Reserved.