There aren’t many people who avoided the negative financial impact of 2020. Unemployment is high, as is economic uncertainty. People have been affected in many different ways. It might seem like your financial life has had a huge setback. Well, you’re not alone. 

If you’re trying to find your financial equilibrium, or want to futureproof your finances as much as possible, then read on. 

Look at your spending habits

Now is a great time to look at what you’re spending your money on. It’s likely you’ve been unable to do a lot of your usual social and spending activities. There are many apps that you can use to connect to your bank accounts and credit cards that will analyze your transactions and give you an overview of exactly how you’re spending your money. You might be surprised. 

Look at your credit commitments too as this can affect your credit rating if you fall behind. It might seem that money is created out of thin air then lent to us, but you need to consider your debt and credit commitments when planning your budget. 

You can then start stripping out the non-essentials and identify areas that you can make savings. It might be something as simple as taking your lunch to work rather than buying it every day or finding a bunch of monthly subscriptions you never knew you had.  Every cent you can save will add up. 

Get the best deals and savings 

Once you know what you’re spending your cash on, and what expenditure is vital, then you can start looking for better deals. Most people are too lazy to find better pricing on energy bills, cell phone contract,s and insurance. Instead, they just let it auto-renew every year. 

By searching around got the best deals, you could potentially save yourself hundreds of dollars per month. 

You don’t have to spend hours doing the research either, look for price comparison websites. You only need to enter your data once and they will give you prices from a range of suppliers. 

Create a tiered budget

Putting a budget together is a great way for you to get a grasp on your spending. Either use a spreadsheet or an app to help you. Whichever you prefer. Create a tier of a budget that you can use depending on your financial situation.

For example, tier-one can include all of your vital expenses such as rent/mortgage, car payments, bills, food, and insurance. 

Tier two can include some ‘nice to haves’ which could be an allocation for socializing, entertainment subscriptions, or other little luxuries. 

Even if your finances haven’t taken a hit this year, it’s still a good idea to have this budget. It can make your money go further and allow you to save even more. This can really help with removing the anxiety around finances. 

Start saving

Saving money might be an impossibility for the moment. Financial experts always recommend that you pay off your debts first so that you reduce the amount of interest you are paying. 

Putting away any spare change you have should become a habit, even if you are using it to pay off your debts. There are bank accounts that let you round up to the nearest dollar, and put the extra money in a savings account. For example, if you spend $1.80 on a latte, then the transaction will be rounded up to $2  and the 20c will be put into a savings account. If you think of how much you spend on your card over a month, this could really add up. You can then put the money towards paying off debts or leave in your savings accounts.