If there was ever a time that money smart moves were called for it is now. Trying to survive financially through this pandemic and tough times is especially challenging. Therefore, this is a good time to monitor your spending and make a few adjustments with money smart moves to keep you and your family financially stable.
Having a monthly budget may not be the way you normally handle bill paying and expenses. However, if you simply cash a paycheck and pocket the money, then you really lose track of how easily that cash can disappear. In order to paint a clear picture of your expenses, a budget can help so you can form money smart moves that can help stretch those dollars such as in difficult times.
Limit Overlapping Expenses
Once you see an itemized list of your monthly expenses then you can spot some items that you possibly cut out or at least temporarily. For instance, I know a family that pays for two internet services just because one teen likes one while the other prefers another. Dropping one of those services doesn’t deny this family internet because they still are connected, it just is another of the money smart moves that can help better stretch their income.
While looking at that internet and cable bill, you may want to ask yourself if you really utilize all those extras like premium movie channels that you may also not even have the time to watch. What harm is dropping them until you have more money in your pocket?
Form a Second Bank Account
Why have two bank accounts you probably are wondering? Well, one bank account should be the one that you don’t touch except for bill paying of basic living necessities. These are fixed expenses like food, rent, mortgage, utilities, and insurance. Average what those monthly expenses usually run. Divide your gross income into four weeks of your month can help keep those reserved funds stay on track and going to the right places. Any extra is what you could spend more freely. The rest goes into a second bank account for savings.
Times may be tough, but money smart moves can help get you through these difficult times to keep your money protected.