Welcome back to this series on extreme budgeting for extreme times.
Last time, we looked at some of the enforced reductions to your spending that lockdown has caused. Things like eating out, holidays and the like which are simply not happening or perhaps are not happening as much (depending on where you live).
Today, we move onto phase 3 in our 4 step extreme budgeting plan, which looks like this:
Phase 1 - Check Your Past Spending
Phase 2 - Your New Reality
Phase 3 - Cutting Back
Today we have a guest post from Kathryn Rucker, the founder of the personal finance website CashforKat. Take it away Kat...
We are currently experiencing a period of time where many of us are unsure of what our lives will look like a few months down the road. With talks of a recession happening in almost every country due to the recent COVID-19 outbreak, there is much concern over the future of various industries as they attempt to weather the storm.
One thing that we all know for...
Yesterday, we looked at how to create a budget based on what you have been spending over the past 12 months. This will act as your baseline - your starting point.
In these unusual times, a lot of people will need to cut back. Yesterday a record 6.6 million people registered jobless claims in the US and we have had just under 1 million people register for unemployment benefit in the UK. This crisis is hurting and a lot of people will need to cut back.
If you missed yesterdays...
As I write this here in the UK, we are roughly 10 days into our government imposed lockdown. Although the government has said that they will review the situation after easter, it looks very likely that the lockdown will be extended for several weeks beyond this point.
We are not alone - all over the world, people are now locked in their homes, businesses are closed and the economy has ground to a halt.
Of course the real crisis here is the health crisis and nothing can be taken away...
Today we have a guest post from Gavan with iCompareFX. Take it away Gavan.
Travelling overseas brings with it a range of positive experiences. However, people who’re new to holidaying internationally might find dealing with money matters a little daunting. The good thing is that paying attention to a few simple aspects can go a long way in helping you make the most of your money.
The number of people who buy travel insurance cover and make subsequent...
A lot is said nowadays about ‘financial rules of thumb’. In essence, these are ‘shortcuts’ designed to tell you in an instant how to answer some of the biggest financial questions, for example:
How much should I be saving for retirement?
Should I pay off my mortgage or invest with excess income?
How much of my total income should I spend on housing?
Financial rules of thumb will try to give a simple-to-understand solution to these biggest of questions.
Money is the number one cause of conflict in relationships. In fact, recent research has shown that money is the number one reason given for divorce in both the UK and the US.
This is not surprising really as someone’s money personality is not really something we think about when choosing a new partner. Perhaps we should though, because money has the power to impact almost all elements of our lives.
The type of work we do, the food we eat, the health choices we make, where...
Spending money used to be a topic of anxiety in my house. When I started on my journey to Financial Freedom around 5 years ago, I knew I wanted to be free, but I didn’t really know how to get there. I hadn’t worked out the formula yet.
I knew I needed to save a whole load of money and so I tried to put my spending on complete lockdown - and failed!
You see – I like spending money. It allows me to do things that I like doing. It allows me to travel and have weekends away. It...
Sometimes you have to make a decision that is not black and white. Most people following this blog will be committed to some degree to Financial Independence. This requires saving a large amount of your income and possibly making some minor sacrifices (I don’t think you should deprive your life of all enjoyment now to achieve Financial Independence later – find out why here).
But, some decisions are not that simple. Sometimes you have to decide if you are going to prioritise your...
When you set off on your journey to Financial Freedom, it can seem like a long way to travel.
Perhaps at the moment you are struggling to make ends meet or perhaps you are deep in debt. How do you go from there to Financial Freedom?
The leap often seems too big to contend with and so human nature is simply not to try. When we perceive things as too difficult or ‘impossible’ we often give up before we have gotten started to save ourselves from the potential failure.
As with all...