Now's the time to stack your cash
Preparing for a down fall, economic turn and having an emergency cash fund should be at the forefront of our minds right now. Not saying a full-blown recession is for sure going to happen but everyone has the fear of the unknown on their mind and instead of only stocking up on toilet paper, we should all be cautious of spending and acquiring/building a safety net. I did a poll on my Instagram and asked around a bit to the thousands of people that read my blog and one of the most common responses to what they want to read is about financials and being savvy with money. I have worked on so many more things other than fitness and being financially secure and having money smarts is definitely one of them! I’ve also blogged about how I paid off $80,000 in student loans and other debt quickly and became debt free by the age of 33. In case you missed that, check it out here at (https://www.addictionofchoice.com/post/debt-free-financially-responsible )
Going through times like now, I get it. I have been an adult for a while among the working class and the ‘hustlers’ and what I wanted to do first just came naturally to me. It’s how I think. I want to just stop unnecessary spending and start stacking up my cash. These are 2 separate areas and I will dive more into each of them individually. I will say what is happening now makes it easier to halt the spending. You can’t go anywhere and spend money mindlessly as we are all confined to our homes, social distancing, and having minimal activity out in the world (which btw I totally support!). So, like I said, I naturally did this. No questions asked. No one needed to tell me, it’s just how I think. Then of course I started to listen to some of my favorite people like Gary Vee and Rachel Hollis and they said the exact same thing! Gary said that hopefully during this time everyone will learn to be better savers. Rachel said that for her and her business “Cash is Queen!” I felt everything these 2 were saying because I already started practicing this behavior and it just makes sense. PS. Check out their podcasts, they’re great!
Eliminate the Unnecessary
Personally, I went through my expenses, programs, subscriptions etc. of things I don’t need at this time and cut them loose. I stopped them or put them on a freeze. All this extra cash I freed up will go directly into savings for the next few months or until everything calms down. You will be SHOCKED at how much this added up too. I was able to find an extra $685 dollars/month!! I know you think that’s crazy but it’s true. Some of the extra cash came from good habits such as paying extra on my mortgage to more of a ‘treat yourself’ monthly facial subscription. I said goodbye, temporarily, to both of them. I promise, look through where your money is going and free up some to SAVE. During this time when we are advised to stay home and places people gather shut down, it makes it easy to take that money and spend it online or unnecessarily so be mindful of that because the point is to save the cash. Fast forward a couple months, maybe your work has slowed down, they’ve laid off people or you are working less hours and not making as much because the economy is in a slump. How will you hold up? If you take the above advice you will 1. Have a safety net just in case and 2. Created behaviors that allow you to be frugal when needed. It’s a win, win.
What is the necessary?
Food, your required monthly expenses, and health related items. That’s it. Some may argue that the 3rd isn’t necessary but I have a different outlook. Right now, our health is the most important asset we have and if you invest a little more into it now, it will help you keep your mental and physical health in good standing. Obviously, food is a must! This could be a great time to experiment with food prepping or new recipes. I love to cook so that’s easy for me but if you want to save money and eat healthy, learning how to prepare your own food can be a great way to do that. Keep it simple, explore the internet and work on sharpening your cooking skills on your resume! This could also be a great time to practice fasting or intermittent fasting. I love doing it to maintain lean muscle and minimize fat. I posted a while ago about IF and it was wildly popular with almost 1K views! Check it out here: https://www.addictionofchoice.com/post/gain-muscle-lose-fat-have-balance-one-trick-pony
Some suggestions on health-related items could be items for at home workouts (coming soon!), green powders or supplements (more here! https://www.addictionofchoice.com/post/supplement-your-life-mental-clarity-physical-gains ) or essential oils, items for salt baths – you name it! Self-care is super important and I think as we find ourselves at home more we need to take those relaxing baths, meditate, infrared sauna and disconnect from the internet and social media for a period of time. It can do the mind, body and spirituality good.
Now is the time to beef up your savings
Now that we’ve covered the other 2 things this one is pretty simple. Don’t spend money on stupid sh*t right now. It’s not worth it and it’s not the right time. If you are fortunate to have a job still or can work from home or have an income I would start saving more. If you are looking at this opportunity as glass half full – which I recommend (it’s WAY more fulfilling ;)) You can learn some pretty incredible habits. It seems like we all have a little extra time on our hands right now. I know I do. Use that time wisely. Check on the budget, find out where you can cut costs and expenses and set up some auto transfers. Research says that if you have your money or paycheck auto transfer to savings, you are much more likely to do it. If you leave it up to you making the button clicks, you can easily talk yourself out of it. If you aren’t a saver, that’s okay. Start slow and make small transfers. It becomes fun and addicting watching your money grow.
Hope this is helpful and of value! Next up! An at home workout because our homes are a hot commodity right now and it’s important to find a way to be active and work towards those goals…. Stay tuned!
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