As the world starts to adapt to a new way of living, we’re slowly wrapping our heads around a new normal. With that in mind, why not take this time to think about a ‘new normal’ for your financial future too?
Now’s the perfect time to re-evaluate some choices and reflect on old habits that no longer fit in these trying times. Here are some good money habits to adopt for a start:
Re-evaluate your financial habits
Understand your financial standing and map out where you want to go. Start with:
It’s everything you own less everything you owe. Keep track of it regularly and identify weak points.
It’s time to switch things up from your pre-pandemic days. Start with regular tracking of your expenses and income. Identify changes in your budget in this new normal. For instance, your transportation costs must’ve decreased during work-from-home. But you may have added a new list of necessities such as face masks and sanitizers.
The shift in your spending
Lockdown orders have by default forced a shift in our spending pattern. We’ve started cooking, doing our own hair and nails, and meeting friends online without spending the extra buck. Dig through your bank statements and receipts during quarantine and compare it to the pre-pandemic days. Identify where you saved money and adopt those changes for the future.
Cutdown on unnecessary spending
Don’t feel guilty about occasionally splurging during quarantine. But, now that we’re settling into this new normal, it’s time to be more conscious about your spending.
Prioritize emergency funds
Reviewing your budget expenses will give you a clear picture of how much you need for necessities and how much you can save. Put aside money into your emergency funds at the start of the month before making any other expenses.
Pro tip: Financial experts recommend keeping between 3-6 months’ worth of household expenses in your emergency fund.
Don’t forget about investing
It’s a must! Investing supports your financial goals and keeps your lifestyle up. Similar to an emergency fund, put aside some money for your investments at the start of the month.
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