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Day 11: Recession-Proof Your Finances

Mar 26th, 2020 • Jasmin Snyder

Today was a big day, we got confirmation that the stimulus bill will likely pass tomorrow and the week’s unemployment numbers were delivered. Despite the 3+ million unemployment filings, the market remained up. In Pete’s estimation this is because the market already accounted for the high numbers and was prepared for it. Regardless, let’s get into Day 11!

Fixed Expenses

Today Pete dives into your fixed expenses and how you can cut expenses where you can. There are a couple of categories to consider: housing, transportation, loans/debt, and insurance.

Housing

  • home payment
  • utilities
  • regular maintenance
  • digital home

These categories cover all your home basics like gas, water, mortgage, landscapers & housecleaners, Netflix, Spotify, Disney+, etc. Okay, so not all of these are “basics” but they are what Pete has often referred to in the past as “new necessities”. Of course you have Netflix, everyone has Netflix! But we are in unique times and maybe you don’t need every streaming service ever. Cut where you can and move on.

Transportation

  • vehicle payment
  • insurance
  • other (car wash subscription, etc.)

Loans & Debt

  • credit cards
  • student loans
  • medical debt

Look, there’s not a whole lot you can do to reduce debt but with the new stimulus bill student loan payments are deferred until October with no interest. Take advantage of this if your savings is lacking or you’re strapped for cash.

Insurance

  • health
  • life
  • other

Other

  • subscriptions
  • memberships
  • pets

Fixed expenses are typically just that, fixed. But in this time of crisis we are looking in every nook and cranny for places to save. Go through your fixed expenses with a fine-tooth comb. You really have no other choice.

Vices

  • libations, legal drugs
  • clothes
  • home decor
  • music
  • dining out

Vices come in all shapes and sizes but one thing they all tend to have in common is that they cost money. Vices are a luxury, no other way around it. Watch yourself as your stress levels rise, this tends to trigger vices.

As always, don’t forget to like the Hey Money Facebook page to be alerted of these daily live streams!

If you are looking for more personalized guidance don’t forget that a Hey Money expert is always ready and waiting to help you sort out this mess. Use code ‘cheese’ to get a 10% discount on a monthly subscription just for being a part of the 30 day recession-proof your life program. Stay strong!

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