How can you manage personal finance in times of turmoil? As of the writing of this article there is a war raging in Ukraine, inflation is hitting consumers from all sides, gasoline prices are spiraling upwards, and the markets are in correction. How can you stay calm and stick to your financial plan? Sticking to a strategy can be difficult when so many things are uncertain, but with some planning you can come out ahead.
Debt and Budgeting
One of the best ways to combat a possible recession and inflation is to have a written budget in place and to have your debt under control. Uncertain times could mean a job loss, lack of raises and bonuses, and higher costs for basic goods and services.
There are a lot of factors that are out of your control, but you can control your personal spending. Now is not the time to overextend yourself. Get on a written budget and live within your means. If you have debt, then work on paying them off. Check out this site for some helpful budgeting and debt repayment advice.
Boost Income
Fortunately, the job market is strong, and a lot of employers are desperate for help. If you want to make some supplemental income, then you shouldn’t have much trouble landing a part time job.
Another good way to boost income is to sell unwanted items. The resale market is booming. A lot of the items that you may think are junk could be worth something to someone. See what you are willing to part with, then check out a few popular resale sites and see what those items are selling for.
Shopping Smart
The dollar store is your friend. So too are discount grocers. Buying online can save you money as well. Just be sure to compare prices, as online doesn’t always necessary mean cheaper.
Now is also a good time to use cash back apps, and credit cards to your advantage. Couponing and researching fliers for the best deals can also help you save money on your regular shopping trips.
Efficiency
Get creative with making your entire life more efficient. Plan trips in the car so that you stop at multiple places and take care of multiple errands at once. Replace all the lights in your house with LED bulbs. Buy a programmable thermostat so you aren’t heating the house when no one is home. Take shorter showers in the morning.
These are just a few examples, and the possibilities here are limited only by your imagination. Take a look around at your house and at your patterns and see where you can gain efficiency and cost savings.
Conclusion
How can you manage personal finance in times of turmoil? You can approach from many angles, and there are endless ways to both save and make extra money. Above were just a few examples of some things that you can try. What other ways can you weather the storm of uncertain times? Share your experiences below.
Read Also:
How to Invest During a Recession
5 Simple Steps to Creating a Budget
How to Create a Budget Calendar
How to Unclip a Coupon on Amazon
P.s. If you’re looking for a great article talking about the real cost of inflation Everybodylovesyourmoney.com has a great article comparing the cost of living in 1972 versus the cost of living today. You can find it here.
Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
