This is the first time in modern American history that we’ve all be been facing the same financial stress level. It’s unprecedented, but also comforting in a small way. Today Pete covers the big budget moves you can consider during this hard time.
Big Budget Moves
We aren’t in a typical or normal situation. That being said, if we were in normal situation and your budget was hurting these are the top three things you would need to change: your income, your housing expenses, and/or your transportation expenses.
Look, this is a tricky subject right now. You may be one of the millions of people now relying on unemployment to help you. This is not an easy subject, nor one we take lightly. Our normal advice if you are in financial trouble is this: cut your expenses as much as possible and then get a second job. Obviously, that’s not an option right now.
Where this can help is in the next 6-12 months. Pete’s guess is that by the end of the year there will be an uptick in seasonal work during the holiday shopping season. This can be when, if needed, you get a second gig to help make up for this mess. But don’t forget to use this time to cut expenses as much as possible. A second income at the end of the year can only help if you’ve cut as much as possible first.
We are in extreme times. Which is why we feel comfortable suggesting offloading your house if it’s holding you back. If your house payment plus utilities is more than 40% of your income you have a huge issue. Especially if your income has suffered. Don’t be afraid to make a drastic change. Chances are if your housing costs are that high your house was too much to carry even with a steady income. Now is the time to reset.
Raise your hand if your car is just sitting in your driveway/garage collecting dust 🙋. You aren’t alone, but it really stings when you have an enormous car payment. A big car payment can get in you trouble several ways. Is it time to call the loss? Hard to know for your situation but it’s worth exploring your options.
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!
These live streams are still going strong and we still have a lot of ground to cover. To catch the live broadcasts like the Hey Money Facebook page to be alerted when Pete goes live at 2:00 pm EST daily.