Managing Your Money Now

Money for many of us is tighter in new ways than we could ever have imagined. How can you make life a little easier while you adapt to the changing world around you? 

It seems strange that while the world is turned on its head and we are living differently than we ever have before, there are still bills to pay, groceries and important items to buy, and other possible expenses heading our way. Before your tax return shows up and the stimulus check appears in your bank account, money might be very tight at the moment. For those of you who have been put on furlough or have been laid off from your job and you're now depending on an unemployment check or your savings, these times are even scarier. For those who don't have unemployment or savings, these times could be very dire. We understand, and we sympathize with you. With these changing times, we wanted to share a few tips and pieces of advice to help manage your money while the world is on hold. We hope these tips and suggestions help while you wait on your tax return, your stimulus checks, and to head back to work. 

• Pause every streaming service, monthly subscription, and monthly subscription box that you don't need right now. If you're streaming on Netflix, Prime, Hulu, Disney Plus, HBO, Apple TV, and beyond try and pair it down to one or two. Share an account with someone and split the price. Those fun little things in the mail and those services you don't use every day can add up, cutting back on a few or all of them can put some much needed money back into your pocket. 
• Call all of your credit card and loan companies and explain your situation to them, and see if they can help you in any way. Many companies have already jumped at the opportunity to help their clients. Some are not charging interest through the months that have seen shutdowns, stay at home orders, and closures. Others are working case by case. They could offer you more time to pay back what you owe so debt doesn't begin to pile up and your credit score doesn't start to plunge. It might take some time to get through to talk to someone on the phone since so many people are dealing with handling this situation. But, it's worth the wait. You're home right now anyway! Not paying your bills and not contacting the people you owe money to isn't a choice. Call them and they can and will more than likely want to help you as best they can. 
• As much as we adore supporting local companies and whole heartily support you doing the same, pick and choose how often you're eating out. Although many apps are eliminating delivery fees, some of our favorite restaurants can still cost a pretty penny when we get our takeout and delivery meals. That includes your fancy coffee drinks that you might still be getting too. We understand that these treats are needed to make you feel a sense of normalcy, but be smart about it. Try and cook most of your meals at home. This will save you money and help you follow social distancing and the work or home orders even better! 
• That being said, if you are financially able to without any issues or worries of being strapped for money down the line, we do suggest supporting local businesses. Keeping the economy as flush as possible will help the return to normal business. This will also help a ton of people who still need help paying their bills. There are some restaurants and businesses that are offering perks if you buy gift cards from them while they are currently shut down. You might not be able to use the gift cards right now or enjoy their services, but some of the perks that come with the purchase can be special.
• You're working from home right now, right? You now have a designated part of your home that is your office, and you are using your phone and internet to help workers throughout the day. Do you know what that means? Tax write-offs! Be very vigilant in keeping track of all of your business expenses while you're working from home. It might not help you right away, but it could be a big payoff for next year's taxes! 
• If you haven't already, file your taxes sooner rather than later. As we have discussed in recent blogs, tax day has been officially moved from April 15th to July 15th. Although that might be a relief to you so you don't have to pay what you owe right now, getting your taxes in sooner means getting your refund quicker. This will help boost your bank account for a bit in between receiving your stimulus checks, and your unemployment money, or even your current salary. If your income from 2019 is lower than that of 2018, you could be receiving a larger amount in your stimulus check, too! 
• Always be prepared. None of us are sure when this will all end and when our finances will return to normal. If at all possible, keep adding to your emergency fund and don't touch it until you have to. Also, keep saving for your retirement. We know that might be the last thing on your mind right now, but just like staying up to date on your bill payments, paying into your retirement needs to remain just as important. You don't want your future finances to be destroyed by what you're going through right now if you can help it. 
• It has also be recommended to leave your stock portfolio alone. The rise and fall of the stock market has been intense to watch recently, and for many, it has been very tempting to cash out now for fear of what could happen net. But, try and hold onto it! When we get back to business, can you imagine how the stock market will rise and prosper? It could very well be in your best interest to hang on. 
• Try and avoid touching your IRA or any other retirement savings. It is very hard to think about your finances in the years to come right now. But, even though you might need the money now, you don't want to put yourself in a difficult position later down the line. There are other options. Avoid touching this money until you have to. Your future self will appreciate it. 
• We have all felt the need to rush out and stock up and stockpile everything we think we need to get us through whatever else could be next. There is some merit to stocking up, but overbuying out of panic can put you in a financial pinch. Overbuying can lead to a lot of food going bad, and flushing money down the toilet. This can put a huge strain on the budget you're working with. Be smart when making your grocery trips and be mindful of what you need. 
• We are saving so much money on not getting our hair and nails done, not going shopping, not buying gas, or even eating out as often. Put all of that extra money into your emergency fund!
• Retail therapy will be very tempting. We are all at home on our phones or computers killing time or working, and those advertisements for our favorite products will continue to pop up. It will be so easy to shop online even more now, but try and curb those cravings. 

At the end of the day, the biggest thing you need to focus on is to not panic and to make wise decisions. Panicking can lead to some very drastic decisions, especially when it comes to your money. Please remember we are all going through this together. We are here to answer any questions you might have or to advise you during this difficult time. We are still here to offer everyone in Goose Creek the best tax services too. Please don't be a stranger. Give us a call or email us, we will figure out your next best step, together! 

---