There's something major going on across the country (and maybe world?) right now. I've felt it personally. I've seen it in friends' faces, heard it in their comments, seen it in their posts. People are slipping financially, and that's scary.
When the balance on savings is going down instead of going up, or the credit card balance is getting to be out of hand, those things affect ourselves and our families. The most important take away you can get from this blog today: do not turn around in fear and get into a fight with your spouse about spending. If you're single, this means not raking yourself over hot coals for slipping behind. You're not suddenly doing things wrong, or overspending. The financial picture has drastically changed and affordability and inflation means that everything we're buying is costing us more.
How do we keep our footing instead of falling further behind? Try these four things-
1. Take a financial literacy course.
In 2019, David and I took a Financial Peace University class. Of all the things we've done financially, this has been the most significant. Don't like Dave Ramsey? There are lots of other classes available. Taking this as a couple can help end the arguments over spending and give you a framework to feel better about your financial position.
Don't have time or energy to do something this big while you presently feel you are drowning? Focus on the next 3 tips instead.
2. Try to get ahead of big purchases.
Maybe you know you need snow tires in November. Maybe you just found out about a big school trip abroad in May (true story). Birthdays, Christmas shopping, car insurance all are a little easier if you have a stack of bills set aside for them.
If cash isn't your style, try a Google sheet where you track money in your regular account by purpose as you earmark it. If you can make a separate account into a sinking fund (put a little in each week and pull out when you get to the purpose it's for) or an emergency fund (same exact thing but truly for emergencies).
3. Save Where You Can So You Can Spend Where You Wish
A former CFO I worked for gave me this phrase. While it might suck to think of trimming things right now (our financial system almost feels unjust), spending is one thing we have control over.
Subscription services? Give one the axe. Don't eliminate all fun, everything enjoyable, but you can make things more affordable. Instead of a dinner out with friends, join them for coffee (or invite them over for coffee or dinner at a fraction of the cost). Have a lakeside picnic instead of a paint and sip. Take your kids to free attractions with library passes. Institute a 24 hr waiting period before clicking check out on that shopping cart. You may not want that colorful toaster tomorrow morning.
Remember, you're the boss (or co boss) of your financial position. If something feels important, pool your resources to make it happen. Lean on community. Maybe family members would love to give towards something meaningful like that class trip for your children rather than toys. Maybe your daughter's babysitting money can buy her that lunch out she wants instead of it coming from the family funds.
If things get worse, lean on your community. If your mortgage or rent is really unmanageable, contact a local charity about temporary assistance. There's nothing wrong with visiting a food bank or starting a go fund me. Your church may be more than happy to help with the price of costly repairs. You are not alone in this world
4. You are MORE than your financial position
Your identity as a unique, amazing, quirky person is not on the line here. The economy at large, and your bank account personally, do not define you. Do not look upon the changing financial picture and interpret it as personal failure (while we all make personal mistakes, affordability right now is more like a tornado that struck our communities).Be humble enough to acknowledge the affordability issues, and you might find a kindred spirit with a shoulder to cry on.
There is more to this world than what you consume. Good, beautiful and amazing things are still available (for free). Enjoy parks, public libraries, free trails, stargazing from your yard or window. There's more to you that what you buy and what you wear, and who you provide for. Your kids won't be scarred hearing no from you. You're more than a provider and a consumer. Don't forget that!
