The Girl who is Cutting Expenses

We are all well aware that we are going through some hard economic times. This can be hard on the bank, however, it is important to remember that we are all going through this together, and some will fare better than others.

So, what can you do to ensure you end on top of this recession, best you can anyways?

Ways to Overcome the Recession

• Budgeting

  • Budgeting is important to ensure your money is going exactly where you want it to. While it is important to have fun and enjoy life, Recognizing your money shows you where your priorities are. If something isn’t adding up, then it is time to reevaluate.

• Investments

  • While there is a ton of talk about “the stock market is down” or “Wall Street is freaking out.” Whatever the headlines are, there is one rule to keep in mind. “Buy low, sell high.” Or in my case, invest when the market is down, and forget about it. (In a separate blog, I will write about this more in-depth to give you a better idea of investments for you to consider.)

• Life-Style Changes

  • If you have created a budget and noticed that your money is not reflecting what your values are, now is the time for some lifestyle changes. Do you eat out often? How often do you buy coffee? How many of your purchases serve your goals?

As my lease comes to an end, I realized that my apartment costing $1,415 quickly became a $1,800 apartment with all of the hidden fees. While I could still choose to live at my current residence, it is not in my best, long-term interest. In other words, I can do better. While having a pool, gym, roof-top bar, private theater, and underground heated parking is awesome, I do not need it to live. In fact! If I find a new place for <$1000 I could use those extra dollars to take another trip across the world! (Which is much more on-brand for me than having a theater I never use).

Side Note on Rent: Aim for paying 1/3 or less of your monthly income. If you can get it into the 20-30% range, even better!

This is honestly proving to be a bit of a headache, so honestly, if you just decide to stay where you are, I do not blame you. Finding a new place and moving can be a bit of a pain.

Depending on your lifestyle, your needs, and your goals, there are a number of things you can do to cut down on expenses. Here are a few to get you started.

Areas to Cut Down Expenses

• Rent

  • Rent is one of the biggest expenses out there. If you feel like you are paying too much for rent, chances are? You are probably right. Spend some time thinking about what you can sacrifice or give up to lower the amount you spend. For instance, “Is adding a roommate right for me?” “Do I need to have the location I am in?” “What amenities can I give up?” Spend time looking at the options available to you!

• Groceries

  • Groceries can get pretty expensive, especially with the percentage increases that we are seeing in today’s market. Consider shopping at the places where you can find things for the cheapest amounts. I know the “Walmart and Aldi” lifestyle is not flashy, but it feeds you. Be sure to price check before going to the stores and create a meal plan for the week. Be specific with exactly what you want to eat for "Breakfast, Lunch, Dinner, and Snacks.” This will not only help you cut down on costs and impulse buys but also help you live more intentionally.

• Car Payments

  • If you are pretty serious about cutting down and find that your car payments are more than what you feel comfortable with, consider a less glamorous mode of transportation. If you are getting to the end of your car payments, consider making double or triple payments to end that expense sooner.

• Non-Sense Spending

  • How often do you eat out? Buy new clothes? Give into the newest “must have” on Social Media? Spending money intentionally is never the wrong thing to do if these experiences help to foster a relationship, grow you as an individual, or provide you with the tools you need to be the person you want to become. It is never a mistake, maybe just be aware of the true amount that you invest.

While the state of our economy is painful, it is important to stay true to your goals, stay calm, and make educated choices. There are some people who have their biggest wins in the midst of economic turmoil.

Just so you know, disclaimer I am not a financial advisor, and although I do find the topics to be quite interesting, please do not sue me. Do your own homework.