The Pandemic has caused worldwide panic and despair. It was such an unexpected crisis that caused everyone to panic. Millions have become infected and even died. Our lives had been changed practically overnight. No one was allowed outside, many stores are still closed and may never open. Unemployment hit all time highs. It was pure chaos and something no one could ever anticipate.
My first blog post talked about this and how by using new relief policies of credit card companies I was able to jump start my path to becoming debt-free. It was something of a shimmer of hope among all this despair. My Father-In-Law was now recovering from his infection and my family seemed to be settling down. It was time to look towards the future and try to move on. Or rather move through these dark times.
I was already working from home, assisting my blogger wife, when working on your couch became the new normal. Drastic changes to our society took place within weeks of lockdown. Many had no job to turn to. Others had to adapt with Zoom calls and homeschooling. Ordering takeout was the only option for many while they were trapped indoors. It was a whirlwind of financial disasters.
Becoming debt-free was already my main focus at this point, so I was highly sensitive to these changes happening around me and worked hard to find ways to save money. Many things that were considered normal were now impossible or things I was trying to avoid. Grocery shopping still makes me very uneasy. Everyone is wearing masks, but social distancing is a joke when inside a New York sized grocery store.
My wife and I began reviewing our finances weekly, looking for ways to make more money and ways to save and budget appropriately. It wasn’t going to be perfect. In fact it’s almost impossible to have a perfect plan in these imperfect times. But we came up with a strategy that worked for us and let us remain excited and motivated to move through it.
Saving Money on Food Each Month
Since we have been locked up here for months, my wife and I basically spend all our time either in our apartment or down the street at her parents. She recently transformed her childhood home into an office space. We needed an extra space to package prints and other shipping needs for our shop so the extra space was appreciated. All the back and forth meant less time for us to dedicate in the kitchen. We had no energy or patience at the end of the day to even consider spending an hour cooking and cleaning.
Enter my Mother-In-Law. Since the lockdown she has taken up the mantel of cooking in her household. Her husband had been sick with the virus and was recuperating. It’s truly been a blessing to have a home cooked meal. And the cherry on top is it was free! We don’t eat there 7 days a week, but enough that we save up to $150 to $200 on food a week. As we’re saving for a house, this has definitely been a huge help.
For those that can’t have this great opportunity, there are other options available to you. The main one is to stop ordering takeout. It’s so expensive always makes me feel sick afterwards. Planning out meals for the week and buying off-brand items can help save you a ton.
On a side note, I’m not a monster. I plan to order out still once and awhile. I can never neglect my pizza Fridays! I’m working hard to save money, but I’m not going to suffer. You should enjoy the process of getting ahead in life, not feel like you’re still drowning, trying to avoid living your life. Proper budgeting and careful review of your spending can enable you to enjoy life.
Spending Money on Unnecessary Things
Like I said before, I don’t plan to deprive myself of happiness by just saving every last penny. But I looked at what I spent money on and knew that wasn’t contributing to my happiness. I don’t need dozens of shoes, shiny watches or a case of beer every week. Luckily I don’t spend money on any of these things, but just wanted an example.
I’m a simple man, just ask my wife. I wear my shoes till they have holes in them and still wear t-shirts I got in college, 8 years ago. But just because I don’t spend money doesn’t mean I wasn’t smart with my money. The opposite argument could be made as well. I should spend a little money on things I would enjoy. It all comes down to budgeting for what you can afford.
Since unemployment rates skyrocketed almost overnight, the idea of stability became almost a fantasy. My wife and I work for ourselves, so we were untouched by those statistics, but the fear of losing everything still plagued our thoughts. We have since remained focused on the main goals in our future, like debt-free, home ownership and a family. Prioritizing what is important to you to accomplish and creating a budget to reach those goals. Anything leftover can be spent on small items that can contribute to your happiness.
Create a Peace of Mind Fund
I created a blog post on this here, but I’ll say it again because it’s so important. Setting up a peace of mind fund is vital to ensure you live your life happy and with less worry.
You could lose your job or get sick and have no way to financially cope with that. Setting up an emergency fund can literally save your life and keep you afloat. Luckily the government stepped in with some extra help for everyone on unemployment, but what happens if this occurs again? We can’t wait around and hope they give us more money next time.
Saving 3 to 6 months worth of expenses can help keep you from falling into the deep abyss of debt and keep you settled until your finances can stabilize and return back to normal.
Have discussions before any big purchases are made
Communication has played a big part in our financial awareness. Any purchase that is made or big expense comes up is discussed between the two of us. We weigh the importance of this expense and decide the best way to approach it. Like I said, we aren’t going to restrict our lifestyle too severely, so a purchase here and there is okay as long as that expense is tracked.
A budget is your holy grail, being the deciding factor if you can make a purchase or not. Straying too far from what you allotted for free spending can throw everything off, so be careful!
Conclusion
This pandemic provided my wife and I with focus on what is important and to remain determined to reach those goals we set for ourselves. Budgets are your friend and have helped us move forward and out of that deep slope of debt.
- Watch spending on food and groceries. Generic brands are just as good as the expensive brands.
- Careful of spending on unnecessary things, but don’t deprive yourself too much that it effects your happiness.
- Prioritize what is important you and your future. Create a budget and a plan to accomplish those goals and make it happen.
- Create a peace of mind fund for emergencies. Having that money set aside in case of emergencies can give more confidence to live your life with less worry.
