Managing your finances has always been important, but current global circumstances may have heightened your sense of urgency. The following tips will help you gain better control over your income, spending, and future financial planning.
Budgeting
Your budgeting tool can be as simple as a notebook and a pencil. Grab your calendar and create a budget for the upcoming month. Are there any birthdays or holidays you need to plan for? Be sure to include those expenses.
Certain budget items, such as car payments, rent or mortgage payments, and utility bills, will repeat regularly. If you’re looking to reduce expenses, focus on items you can easily adjust.
Mindset
Avoid seeing your budget as:
- A “money jail” that restricts enjoyment
- A punishment for past spending mistakes
- An unattainable goal
In fact, a budget can be liberating. If you discover a subscription or membership you no longer use, canceling it could free up money for the next month. You might not even notice these small recurring costs until you write them down.
Meal Planning
Groceries are one of the most flexible budget items. While reducing your housing costs by 10% each week may be impractical without the hassle of moving, cutting grocery expenses by 10% is fairly easy.
Start by checking your pantry. If you have pasta and red sauce, you’ve got the foundation for a meal. Add garlic bread and a salad for a complete dinner.
Look for other pantry staples, like rice or grains, to create versatile meals. A fried rice bowl, for instance, is a great way to use up leftover vegetables—add a scrambled egg for extra protein. If you typically eat meat, consider adopting a “meatless Monday” or going vegetarian a few days a week to lower costs and boost savings.
Meal planning becomes even easier when you know what’s on sale. Find out when your local grocery stores release their weekly flyers and plan your meals around discounted items. For example, if potatoes are on sale, incorporate them into meals like baked, roasted, or mashed potatoes.
Also, check out discounted items at various stores, like produce, meats, or dairy products nearing their sell-by date. These can often be bought at great prices and frozen for future use.
Mindset
Meal planning doesn’t have to stifle creativity in the kitchen. You can plan just a couple of meals each week, and still have room for flexibility. A well-organized calendar can be a useful tool for meal planning.
For example, if Wednesdays are busy, prepare stew in your crockpot in the morning, so it’s ready when you return home. Treat your family to frozen pizza on Fridays and enjoy a night off from cooking!
Once you’ve found a meal planning system that works, consider bulk cooking. Preparing two pans of lasagna or baked ziti may take a little extra time, but freezing one for later makes the process more efficient.
Sinking Funds
Review your banking and credit card history to identify annual or bi-annual expenses. If car registration fees always come as a surprise, building a sinking fund can help spread out those costs over time.
Check if your bank allows you to create “pots” or sinking funds in your savings account. If not, consider setting up an account with an online bank that offers higher interest rates. Create sinking funds for:
- Holidays
- Vacations
- Property taxes
- Insurance payments
- Large future purchases
A solid sinking fund habit can make buying your next car or covering other major expenses feel much more manageable.
Savings Challenges
While you have your calendar handy, consider trying a savings challenge. Do you have a month with no birthdays or holidays? That might be the perfect time to do a no-spend challenge.
A no-spend challenge is simple: you only buy what’s absolutely necessary. You can still fill your car with gas, but skip the candy bar or soda. Invite friends over for coffee and homemade cookies instead of dining out. Groceries are okay, but focus on buying ingredients rather than pre-packaged or prepared foods.
Another fun challenge involves cash. If you struggle with credit card spending, use cash for your shopping list. Any leftover change goes back into the envelope. You can also set aside $5 bills for a special event or future purchase.
Mindset
Make your savings goals tangible. For example, if your children love going to local fairs or carnivals, create a savings jar with a picture of a merry-go-round. Drop in spare change and small bills whenever possible. If your kids crave an ice cream truck treat but you have popsicles at home, hand them out and add a few bills to the jar.
Adults can create a similar visual by using a vision board. If you’re dreaming of a trip to a specific city for a concert or event, place images of the destination near your computer or as a screensaver on your phone. These images can help keep you focused on your goals and prevent impulse purchases.
Conclusion
Personal finance is a personal journey. Your financial goals don’t have to match anyone else’s, but you’ll have a better chance of achieving them once you define them clearly.
Managing your finances has always been important, but current global circumstances may have heightened your sense of urgency. The following tips will help you gain better control over your income, spending, and future financial planning.
Budgeting
Your budgeting tool can be as simple as a notebook and a pencil. Grab your calendar and create a budget for the upcoming month. Are there any birthdays or holidays you need to plan for? Be sure to include those expenses.
Certain budget items, such as car payments, rent or mortgage payments, and utility bills, will repeat regularly. If you’re looking to reduce expenses, focus on items you can easily adjust.
Mindset
Avoid seeing your budget as:
- A “money jail” that restricts enjoyment
- A punishment for past spending mistakes
- An unattainable goal
In fact, a budget can be liberating. If you discover a subscription or membership you no longer use, canceling it could free up money for the next month. You might not even notice these small recurring costs until you write them down.
Meal Planning
Groceries are one of the most flexible budget items. While reducing your housing costs by 10% each week may be impractical without the hassle of moving, cutting grocery expenses by 10% is fairly easy.
Start by checking your pantry. If you have pasta and red sauce, you’ve got the foundation for a meal. Add garlic bread and a salad for a complete dinner.
Look for other pantry staples, like rice or grains, to create versatile meals. A fried rice bowl, for instance, is a great way to use up leftover vegetables—add a scrambled egg for extra protein. If you typically eat meat, consider adopting a “meatless Monday” or going vegetarian a few days a week to lower costs and boost savings.
Meal planning becomes even easier when you know what’s on sale. Find out when your local grocery stores release their weekly flyers and plan your meals around discounted items. For example, if potatoes are on sale, incorporate them into meals like baked, roasted, or mashed potatoes.
Also, check out discounted items at various stores, like produce, meats, or dairy products nearing their sell-by date. These can often be bought at great prices and frozen for future use.
Mindset
Meal planning doesn’t have to stifle creativity in the kitchen. You can plan just a couple of meals each week, and still have room for flexibility. A well-organized calendar can be a useful tool for meal planning.
For example, if Wednesdays are busy, prepare stew in your crockpot in the morning, so it’s ready when you return home. Treat your family to frozen pizza on Fridays and enjoy a night off from cooking!
Once you’ve found a meal planning system that works, consider bulk cooking. Preparing two pans of lasagna or baked ziti may take a little extra time, but freezing one for later makes the process more efficient.
Sinking Funds
Review your banking and credit card history to identify annual or bi-annual expenses. If car registration fees always come as a surprise, building a sinking fund can help spread out those costs over time.
Check if your bank allows you to create “pots” or sinking funds in your savings account. If not, consider setting up an account with an online bank that offers higher interest rates. Create sinking funds for:
- Holidays
- Vacations
- Property taxes
- Insurance payments
- Large future purchases
A solid sinking fund habit can make buying your next car or covering other major expenses feel much more manageable.
Savings Challenges
While you have your calendar handy, consider trying a savings challenge. Do you have a month with no birthdays or holidays? That might be the perfect time to do a no-spend challenge.
A no-spend challenge is simple: you only buy what’s absolutely necessary. You can still fill your car with gas, but skip the candy bar or soda. Invite friends over for coffee and homemade cookies instead of dining out. Groceries are okay, but focus on buying ingredients rather than pre-packaged or prepared foods.
Another fun challenge involves cash. If you struggle with credit card spending, use cash for your shopping list. Any leftover change goes back into the envelope. You can also set aside $5 bills for a special event or future purchase.
Mindset
Make your savings goals tangible. For example, if your children love going to local fairs or carnivals, create a savings jar with a picture of a merry-go-round. Drop in spare change and small bills whenever possible. If your kids crave an ice cream truck treat but you have popsicles at home, hand them out and add a few bills to the jar.
Adults can create a similar visual by using a vision board. If you’re dreaming of a trip to a specific city for a concert or event, place images of the destination near your computer or as a screensaver on your phone. These images can help keep you focused on your goals and prevent impulse purchases.
Conclusion
Personal finance is a personal journey. Your financial goals don’t have to match anyone else’s, but you’ll have a better chance of achieving them once you define them clearly.
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