We’re all in new territory, working to do more with less. No matter what your current status, now is an ideal time to analyze your expenses.
Determine your essentials.
The first thing you need to do is determine what is absolutely essential. Pull up your online banking statements and go through your expenses line by line. Circle or make note of what you need, including food, housing expenses, insurance, and medications.
Cut out what is not necessary.
Now it’s time to start making cuts. Go through every single subscription and cancel what you can live without. Do you really need Netflix, Hulu, and Disney Plus?
Most of these subscriptions have low monthly costs, but by canceling a few, you can easily save $50 or more per month.
“The most impactful thing you can do is be ruthless with your discretionary expenses and quickly eliminate everything you can live without right now,” said Kelly Crane, Certified Financial Planner.
You can also cut back on what is essential. For instance, don’t buy foods at the grocery store that you wouldn’t normally eat just to stockpile. You can also look into decreasing your internet speed or cell phone plan to save for the next few months.
Make minimum payments when you can.
Whenever possible, make minimum payments on your mortgage, student loans, and other debt. Even if you qualify for payment deferment, making payments helps you stay on top of debt.
Call your lenders, banks, and service providers.
If you cannot make payments, call your lender or service provider immediately. Many essential services, from mortgage lenders to utility providers, are providing assistance during this time. Learn what your options are and how this will affect your payment plan moving forward. Be prepared to be patient, as many are experiencing a lot of calls right now.
Budget your donations.
People everywhere are helping in any way they can, which for some includes monetary donations. If you have the funds for it, budget your donations so you still have a safety net should your situation change.
Do you have any more tips for cutting back on expenses? Let us know!