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Create a Budget
Let's cover the basic and foundational tip first. It's beneficial to know how your expenses are allocated and prioritized. If you don't already have a budget created, this is a great time to do so. A budget is an itemized summary of expected income and expenses for a duration of time- usually a month or year. It's a way for you to know how your money is being controlled and it will give you insight on how to refine it.
Gather all your financial statements.
Record all sources of income and expenses.
Categorize your expenses into fixed (consistent) and variable (fluctuates).
Total your monthly figures and it will show you what is left over.
It will also let you make adjustments to see what happens if you make changes. Make cutbacks on anything you don't need or isn't useful.
If you want a step-by-step assistance with a budget try Nerd Wallet's Budget Plan
Read up on Money
Be Smart with Your Money
Here is a list of ideas to adjust or eliminate during the COVID 19 threat:
unhealthy items: Alcohol, cigarettes,
unnecessary clothing, movies, video games, unused subscriptions
sell furniture or anything else you aren't using
prevent wasting food
low cost recipes- eat more leftovers rather than Takeout and delivery
After speaking with several experts, taking a budgeting class, and reading on the topic using numerous books, I finally figured out where my biggest money issues stemmed from:
Spending money that had nothing to do with my goals, savings, or major interests. Alot of that included fast food, instant gratification, and peer pressure (buying popcorn at the movies).
I didn't have clarity on my goals. I had never really sat down and thought about major purchases or why I wanted to buy it. When I did, every time I bought something unexpected I envisioned my goal getting further away.
We often don't analyze the consequences of our decisions. Sure, a new paying job sounds great. Does it still sound great when it's a longer commute. longer hours, or will require fancier clothes? Think about 2nd or 3rd consequences past the initial appearances. Think longer term.
Things started changing when I committed to setting aside $5 a week in an investment account. I know it wasn't much but it made me feel "less poor" because I was saving for my retirement. It started adding up and then it became a game to add funds. It made me focus on the future. I personally use Acorn because it automatically transfers my spare change from transactions into my investment account. It helps me save without thinking about it.
Be Frugal
This is a great time to learn how to sew on that button or repurpose an old pair of jeans instead of buying brand new clothes. The word “frugal” has many negative associations. People think that if you are frugal, then you are cheap, boring, and even a bad person. Many assume that frugal people only eat rice and beans (and nothing else ever), that they just sit at home all day and do nothing, that they have no hobbies, and more. Happiness doesn't come from spending money. You want to avoid debt. It will benefit you to live a simple life and have fun with frugal habits. Use this time to appreciate everything around you. Let go of the need to impress people with your processions. And, for many people, it isn’t until they are much older that they realize how much money they wasted when they were younger. They realize that they could have been more thoughtful about their purchases, saved more, and spent more time focusing on finding happiness through simplifying their lives. It's not about how much you make, it's about how much you keep.
Take Advantage of Available Programs
Do you need help paying bills? Our organization is based in the Denver area. Be sure to do a quick Google search for program sin your specific area.
Colorado Child Health Plan Plus- (800) 359-1991
What do you do with your 401(k) after a layoff?
Don't spend it. If you do, you will be paying income taxes and if you are 59 1/2 or younger you will also pay a 10% tax penalty. There are some exceptions for those with high medical bills or disabilities but you will have to qualify.
You can roll it over to a new employer plan, which didn't use to be an option. It's becoming more acceptable among larger companies. It may not be a great idea to consolidate all your investments into one place. A financial planner can give you more insight on your specific situation.
A better idea is to roll it over into an IRA account. You will be able to control your investment allocation moving forward as well. Speak with your plan administrator to see if this is a viable option for you.
Find Part-time Work
Apply Online to Employers:
Find a Side Hustle
Notary Public Service: generally costs less than $100 to get started; You could become a loan signing agent like this guy Brian who made $1,500-$2,000 a month overseeing mortgage signings in your spare time. Check out this Loan Signing System for more information.
Real estate investing is one of the oldest and most popular side hustles in the books. New platforms like Roofstock make it easy to shop for and buy income-generating properties with tenants and property management already in place.I liked Austin Miller’s creative approach to building his rental portfolio, which was up to 17 properties worth $1.2 million when we spoke. The kicker? They were all acquired “free”–without any of his own money.
Virtual assistants provide administrative support to clients from their home office, and generally charge $15-40 an hour. If that sounds like a fun side hustle you can set up shop on your own or jump on board with an established VA company. check out the free video training from Abbey Ashley, who started her VA business on the side. Click here to learn more about becoming a virtual assistant.
Many companies use customer interviews to get feedback on new products. User Interviews and Respondent.io are a pair of cool services that facilitate those interviews that take place online and over the phone. The best part? The average compensation is $50-100 an hour!
Help other businesses with their accounting and finances. This can be a great option for people with an accounting background from school, your day job, or just for people who aren’t afraid of math. Virtual bookkeepers can earn $60 an hour or more. Here’s a free training on how to get started.
Baking or Selling quick lunches: I once met a woman who made burritos, sandwiches, and cupcakes and made a full-time living delivering it to busy corporate offices.
If you are particularly knowledgeable you could try tutoring a child or creating an online course on Udemy.