With everything going on, I know a lot of you are facing some potential financial hardships. I have clients who will be out of work for weeks, and others who are paying for extra childcare while kids are out of school.
With these next few months being a huge financial question mark, I wanted to share some of what I'm telling my clients to do that are potentially facing some financial strain:
PAUSE THE SNOWBALL AND START SAVING LIKE CRAZY
If you feel like your hours might get cut, or your income might dip, then it's a good idea to pause your debt payoff plan temporarily.
Pay minimums on all debts and pile up cash. When the financial storm is over, you can take the money you set aside and dump it on your snowball (mathematically no ground is lost). If push comes to shove and you need cash to pay the bills or feed your family, you have it in savings.
BE PROACTIVE WITH YOUR BILLS AND OBLIGATIONS
Instead of waiting for bills to get behind, be proactive. Call your utility companies, loan holders, and service providers. Explain your situation and see what they are offering right now. The world is in a crisis, and many companies are willing to work with you during this time.
If you get a "no," trying calling again a few days later. Getting a different person on the phone might give you a different result.
STAY ON TOP OF YOUR BUDGET
It's easy to throw the budget out the window when life is crazy. Just because your income is suddenly unpredictable, or the expenses have changed, doesn't mean budgeting stops. In fact, it's more important than ever to budget right now!
Do a quick run through of your budget and see where you can trim back until income becomes more consistent. Consider budgeting on a "worst case scenario" income if you feel like yours might dip.
If you're concerned about where things are headed financially, I'm here to help. Click here to book a free 30 minute coaching session.