We are in trying times and Hey Money CEO Peter Dunn is rising to the occasion to ease your fears and give you a clear plan for the future. Each day for the next 30 days at 2:00 pm EST/ 11:00 am PST Pete will go live on the Hey Money Facebook page to walk you through the coming recession and what practical steps you can take to recession-proof your finances.
For Day 1, Pete covers some simple changes that can make a huge impact on your finances during this time. Big change doesn’t require a lot of money or time, but it does require a bit of guidance and discipline.
The goals for this 30 day period are for you to:
1) Cut monthly spending by at least $500 a month
This sounds like an incredibly large goal, but the reality is your spending is going to be cut naturally by staying home a lot more. Use this as a jumping off point.
2) Press reset
Reset on what? Everything. Your life has likely turned upside down. There is never a better time to cut bad habits, go lean, and start living the financial life you’ve always needed to.
3) Stop guessing
Everyone does this or has done this at some point. Can I afford dinner out tonight? Eh, sure. Can I afford this online shopping? Eh, sure. It’s all guessing and it’s worked out okay so far, but now is the time when guessing has to stop. There is no more room for error in a recession.
Some quick tasks you can do right now to bring some clarity to your financial situation:
First, get organized. Start by getting your latest bank statement, all your current debt statements, a pay stub, and insurance details (car, home, etc.). We will use these gathered statements over the coming days.
Second, we’ll start to dig into those bank statements. Your task is simple. Highlight every time you spend money. You may be making this face right now 🤔, wouldn’t you be highlighting every single line? Not necessarily. Pete’s referring to consumer expenses like groceries, Amazon purchases, trips to Target, clothing for you or your kids, pit stops at CVS, etc. Add all these up for the month and see what your total is. When you’ve recovered from sticker shock, remember that number. This is likely a number that will SIGNIFICANTLY decrease over the next month as you socially isolate and businesses are closed. Use this savings wisely. Don’t absorb it.
Lastly, count your consumer transactions per week. Did you swipe more than 21 times? Eek. In the 16-20 range? Not great. 11-15? Really good! Under ten? You should have written this post! Again in your social distancing this number will likely go down naturally, but as you reintegrate into society in the coming weeks watch these numbers.
Pete will be back tomorrow and for the next 29 days helping you recession-proof your life, like the Hey Money Facebook page to keep up to date on the events.
And if you haven’t heard, Pete is also doing FREE one-on-one session with those impacting in the hospitality industry to help them create a game plan for the future. Seriously, he will call you for free and help you out. Don’t wait, schedule right now.