Money Lessons from COVID
I’m going to come right out and say it COVID has sucked in so many ways, but it has also taught us so many things, about life, about ourselves, and about money. I want you to take the nuggets it is trying to teach you and roll with them.
The main lesson that COVID taught us is that we can live off of less. Whether it was from a big impact on your income, or because you had less places to spend your money, you very likely had many months where your spending was down. How can we take what we learned and use it to make changes as we move forward?
#1 - By saving for a rainy day.
Now more than ever, it is clear that life can throw us big financial curve balls. Regardless of where your income comes from, things can happen in the blink of an eye that impact it in a big way.
What should you do?
Start or grow your emergency savings fund. Think about how different a financial emergency will feel with enough money in the bank to cover all your expenses for months, and use that as your motivation to get saving!
Set up an account that is only for your emergency savings.
Automate transfers to this account every payday. Start with what you can, and increase as you are able to. By paying your emergency savings account first, and through automation, it will make saving so much easier.
Make adding to this account a priority. If you get a pay increase, a bonus or income tax refund, designate some of that money to go into this account.
If you know you will be tempted to spend the money if it is easy to access, start an account at a different bank than your main account so that it is out of sight.
#2 - By being more intentional with our spending.
Taking what you have learned and using it to help keep you super focused! My life event that caused this shift was getting fired. I am so grateful that it opened our eyes and shifted our spending habits to be super intentional. To be clear, it is not about never spending, it is about not spending on shit you look back at a month from now and wish you had the money instead. What if all the things that you see as you look around you that you don’t use or love turned back into the money that it once was? How would that change your life today?
By making the switch to always being really intentional with your spending, you can get to that place.
How?
Remove your saved cc information from all the online stores you shop at AND google or apple pay. The goal is to have to get up and get your wallet when you want to make an online purchase. Having to take this action takes enough time to make you really think about the item(s) you are buying. This has saved me so much money! There’s a reason the stores ‘help’ you by remembering this information for you, they want you to be able to mindlessly scroll, add to cart and buy without a second thought.
If there is an area of your life that you know you are spending more than you want on, start using cash to make your purchases, even for a short amount of time. Between tapping or swiping cards, we often don’t even look at the total before paying. Using cash will flip a switch because you will have to pay attention to the total AND because having to take money out of your wallet registers differently than tapping a card.
Build a budget. That’s right, you knew it was coming. A plan for your money shows you what is possible when you successfully implement it. Include the things you love (like vacation savings) and your goals (like saving for a down payment) in your plan so that you get excited about seeing your money go towards things that you are motivated for!
#3 - By understanding that life is precious and that we should live each day to the fullest, in all aspects of our lives.
I want you to be able to make a huge transformation away from working for the weekend and counting down the weeks until vacation, to not needing a vacation because you love what you do! I want you to know that IT IS possible. I had my eyes opened to this possibility a few years ago and I want you to know it too!
This sounds great Sherry, but where the hell do I start? I know it feels overwhelming if you feel stuck in your job. You don't know where to start, and it feels impossible. So today I am sharing the things that helped me after losing my job.
Ask yourself what your dream career or business would look like. What do you love to do? What things do you do that cause you to lose track of time? Then think about how you can make money doing those things! Get creative and figure out how to start making money doing what you love! I know this sounds way easier than it is, but the work will be worth it!
Get your money right. Seriously, it’s time for a budget. Getting on a budget can help you pay down any debts, and grow your savings. This will help you to invest in what is next, and have a nest egg to help you take the leap when it is time!
It was a shitty situation that led me to a life where I am so fulfilled because I have my dream job. A key piece of the puzzle was getting our finances figured out. I hope that my transition can inspire you to start building your dream business or pursuing your dream career!
Sherry
