“Whew, I’m glad we had our emergency fund!”
If that’s what you are saying right now, congratulations! You are part of the very few who actually have money squirreled away and can better withstand the financial impact of this coronavirus pandemic.
For the rest of you, you may feel woefully unprepared. Your hours at work may have been cut or, even worse, you may have been furloughed or laid off. Trying to find toilet paper does not bother you as much as not being able to pay for it along with food to feed you and your family. Those without a financial reserve may find the next few months to be tough. You will get through it but it may not be much fun.
If you were living paycheck to paycheck before, this is an opportune time to make some changes in your financial behavior and to start putting some sound financial disciplines into place. You may have no other choice.
You Need to See Your Money Clearly
The first step is for you to see your money clearly and the only way to do that is to create a budget and put a system in place to track your money. The reality is you cannot establish any traction with your money without clearly knowing where you are and where you are going. Sure, some folks might get lucky, but the simple fact is that 78% of all Americans live paycheck to paycheck. It is difficult to get anywhere you want to go without a proper map and your spending plan is a map for your money.
Assess Your Priorities
Next you have to determine what is important to you. What do you value and what are your priorities? Ask yourself if your spending is consistent with what you really want to accomplish or are you buying things that are just for immediate and likely, temporary pleasure. Can you commit to a plan and stay focused on your goals?
Commit to Save
Once you decide to get intentional and create a plan for your money, you are ready to look at your spending and free up resources to finally start tackling your debt and manage the risks of the unexpected. This means stashing money away for an emergency so the next time something like this happens, you will be in a better position to deal with it.
Our routines have been significantly disrupted and some of us are experiencing economic hardships for which we were unprepared. Worrying about protecting your family’s health while also struggling to pay for rent, utilities and food is exceptionally stressful. Once you get through this situation (and you will), make the decision to put a plan in place to be ready for the next time.
Ask Yourself This Question
Emergency Fund: Would you rather have one and not need it than need one and not have it? How much better would you feel right now if you had enough money saved to cover 3-6 months of your household expenses?
If you need help figuring where to start, we can help. Schedule a Free Assessment Call to find out how one-on-one coaching can help you create a customized plan to get out of debt and build your emergency fund to protect you and your family from the unexpected.