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How to Create a Bi-Weekly Budget

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bi-weekly budget

There are a number of budgeting methods out there. Thankfully, you can always cater your budget to what your current needs are. For the most part, people find it easiest to set up their budget around when they get paid. Because many people get paid bi-weekly, the bi-weekly budget set up is the most common. Here’s how to set one up.

Different Budgeting Methods

When it comes down to it, there are five different types of budgeting methods to choose from. Depending on where you are in your personal financial journey, each has its perks.

  1. Line item budget: This type of budget is what people generally think of when they imagine a budgeting system. Think excel sheet with different expenses on each line. A line-item budget can be detailed and is generally good for beginners to get an idea of their expenses and incoming cash.
  2. Proportional budget: Proportional budgeting has you divide your budget into three main categories: needs, wants, and savings. Then you assign a percentage to each category. Typically, your needs and savings should be the highest percentages while you keep the “wants” relatively low.
  3. “Pay yourself first” budget: You’ve probably heard personal finance blogger after personal finance blogger telling you to pay yourself first. This budgeting method is built around that idea. You decide that you are going to save a certain percentage of each paycheck, let’s say 25%. Then you build the rest of your budget around what is leftover.
  4. Envelope budget: The envelope system is pretty old school. To do this, you have a set amount of money designated for each budget category and you put that cash into envelopes. In the digital age, you can do this by setting up different “envelopes” via online banking. The goal of this method is to make the cash in each envelope last throughout the entire month.
  5. Zero-sum budget: The zero-sum budget is what we will be looking at for our bi-weekly budget setup. At the end of each month, you will have spent all of the incoming money you have. Now, that doesn’t mean you will be spending frivolously. You will still have a line for savings and potentially even your investing contributions.

The Bi-Weekly Budget

So, how do you set up a bi-weekly budget?

Depending on your own personal needs, a bi-weekly budget may not work for you. You may benefit from a weekly or monthly setup more than bi-weekly, especially if you get paid more (or less) often. For us, we have our main income come in every two weeks and we set up a zero-based budget to make the most of those paychecks. Here’s how we set it up…

  1. First, print out a calendar or buy a planner. We use a planner for ours. This makes things more visual.
  2. Start plugging in your expenses to the calendar. Think about what expenses you have each month and how they are divided up throughout the month.
  3. Take varying expenses into account as well. If you have regular recurring expenses that aren’t on a monthly basis, make sure you take note of them and plan for them accordingly. The best way to do this is to set money aside into a sinking fund for these.
  4. Save! You should always have a line item for savings. Whether you are building an emergency fund or sinking funds, save some money out of each check and put it in your budget.
  5. Track your spending. Once you have what you think is a good budget in place, begin to track your spending to be sure your budget is accurate and will work for you.

Choose What Works For You

The last item in setting up a bi-weekly budget is possibly the most important. You have to choose a budgeting method that will work for you. Track your spending and get familiar with your finances. Doing this will ensure you are being realistic in your expectations. Similarly, if you are paid on a weekly or monthly basis, a bi-weekly system may not be the best option for you. Take all of your personal needs, financial goals, and expenses into account to find the best budgeting method for you.

Readers, what budgeting method do you use?

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How to Throw a Budget-Friendly Baby Shower

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budget-friendly baby shower

You may be just as surprised as I was to learn there are actually people who go into debt throwing their own baby shower. I have been checking out Pinterest boards and subreddits and, believe it or not, there are people that really spend thousands for their shower. Insane! We won’t be running our credit card for anything for our celebration. Here is how we plan to throw a budget-friendly baby shower.

The Average Cost of a Baby Shower

Baby showers typically cost between $100 and $1,000. Some showers may cost even more if you are anticipating a large number of people. I read about one couple who expected their shower to cost nearly $4,000! So, what makes up this seemingly astronomical cost?

First, the food people are eating is a huge part of the budget. Many people have their baby shower catered, so you are paying the caterer a “per person” price. This adds up quickly! Then when you factor in the cost of the cake, which can be up to $4 per serving, the price of food for your shower may be startling.

The next largest expense for your baby shower is the location. While some people choose to have it in their home, many people rent out a community center or other space for the shindig. Depending on your location, this can cost $200 and up.

Many people spend a fair amount of money on invitations and decorations as well. Invitations cost anywhere between $0.50 and $1 per invite. Decorations for the party can cost between $50 and $200 or more, depending on the size of the party and how many decorations you need to buy. Not to mention, you’ll need to buy plates, cups, napkins, and silverware as well.

On top of all of this, people generally play games at baby showers. So, you’ll need to purchase what you need for the games as well as prizes. For instance, our shower will have a diaper raffle. For every pack of diapers and/or wipes someone brings, they will be entered into the raffle for one of three prizes. You may also want to include party favors for your guests as well.

Tips for a Budget-Friendly Baby Shower

As you can see, the cost of a baby shower can start to add up really quickly. We have been able to cut costs in a few areas that will save us a bit of money. Here are some tips I’m using to throw a budget-friendly baby shower…

  • Hold it at a time where finger foods are acceptable. We are having our baby shower at 1 p.m. and providing finger foods. I’d suggest checking out some of the Aldi charcuterie boards, which you can put together really cheaply!
  • Have your baby shower somewhere free. We are having our shower in our home, so it’ll be 100% free. If your house isn’t big enough to hold a shower, look for free venues around you. Many parks offer covered picnic areas for events for free or cheap.
  • Get close friends and family to chip in. My mom and a few of my close friends are pitching in for the big things (food, cake, prizes for the games). Talk to your folks to see who might be willing to help.
  • Keep it small! We only invited about 30 people and expect about half of them to show up. Keeping it small will help keep costs low all around.
  • Send e-invites. We didn’t stress sending paper invites out. Instead, we just created a Facebook event and invited everyone that way. Those without Facebook we called or invited in person.
  • Don’t stress decorations. I think we will spend less than $50 total on decorations. Remember, the most important thing is that you spend this time with friends and family.
  • Hit the dollar store. When it comes to plates, napkins, silverware, and some of the prizes, we are hitting our local dollar store. You don’t have to spend an arm and a leg on these items.

Readers, how much did you spend on your baby shower?

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Low-Cost Ways to Celebrate Mother’s Day

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low-cost ways to celebrate

This Sunday is Mother’s Day and it is my first as an expecting mother. It is also the first in a couple of years that I will actually be able to see my mother and grandmother during the weekend. Most of us are on a budget these days, so we’ve been digging around for some low-cost ways to celebrate as well as frugal gift ideas. Here’s how we are spending the holiday.

Low-Cost Ways to Celebrate

The best way to save money on your Mother’s Day celebration and other get-togethers throughout the year is by hosting a potluck-style event. This year, we will all be bringing something over to my mom’s for our meal together. I was in charge of bringing a dessert, which is always a relatively low-cost part of the meal. I’ll be bringing cookies and a pie. Here are a few more ideas for low-cost ways to celebrate.

  • Have the party later. Typically, having your celebration the week after the actual holiday can help save you some money. All of the Mother’s Day gifts and cards will be on sale next week, saving you some cash. You will also miss the rush of people at restaurants and other events, which could potentially save you money as well.
  • Scope out deals and freebies. This is another great way to save money on your celebration. Every year there are retailers and restaurants that offer deals and freebies for Mother’s Day. In some cases, you may even be able to score mom a free meal.
  • Create memories instead of buying things. If you are truly focused on finding low-cost ways to celebrate, finding ways to create memories instead of spending money is a good route to go. Do free activities with her like visiting a park or find cheap, fun things to do with her instead of dropping money on a big gift. Chances are, these activities will mean more to her anyway.
  • Start new free (or cheap) traditions. For instance, we used to go on a walk after big meals together (just me and mom). These walks are a memory I’ll always have with her. Look for some traditions you can start with your mom this year that don’t cost much if anything at all.
  • Do lunch instead of dinner. If you are going out to eat, lunch is always cheaper than dinner. You can save a good bit of money by heading to a Mother’s Day breakfast or lunch instead of a dinner out.

Small Gifts

Another way we’ve managed to keep costs down this Mother’s Day is by limiting the amount we are spending on gifts to under $20 per person. It may not seem like a lot, but the gifts we’ve picked out are meaningful. They each also signify each of our mother’s “graduation” into grandmotherhood with the coming of our new child (something each of them is excited about).

All in all, the best thing you can do to keep your Mother’s Day celebration low-cost is by setting a budget and sticking to it. This goes for all of the holidays throughout the year. If you are strict with the budget you have set for your celebration, you’ll be golden.

Readers, how much do you budget for Mother’s Day each year?

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How Much Does It Cost To Have a Baby?

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how much does it cost to have a baby

There are a lot of expenses that should be considered when you have a little one on the way. Prenatal care, the cost of delivery, and then the cost of taking care of your child should all be factored into your budget. So, how much does it cost to have a baby and how can you prepare?

Cost of Prenatal Care

Prenatal care is the first set of expenses you will face when having a baby. The costs associated with prenatal care can vary wildly based on your medical history, special needs, and choices you make throughout the prenatal phase. For instance, if you decide to have genetic testing done, it can increase the overall cost of your prenatal care. Similarly, if you are tested for gestational diabetes and need insulin to maintain your blood sugar, that will impact the cost as well. If you have a difficult pregnancy and require more care than others, this will also increase expenses associated with prenatal care.

Prenatal visits cost between $100 and $150 each and there are around 14 visits throughout your pregnancy. The average total cost lands around $2,000. Without insurance, you can expect to spend between $95 and $200 per visit. However, some appointments where lab work is performed can cost as much as $800. Most insurance companies will pay between 80% and 95% of these costs. So, if you have insurance, you may pay about $15 out of pocket for each visit.

The insurance I have only cover 60% of these visits though. At the end of it, I will be paying $1,060 out-of-pocket for my own prenatal care, possibly more depending on how the pregnancy progresses. If you’re in the same boat, don’t worry! Your doctor will likely have a payment plan available for prenatal care costs. I am paying $278 per month for insurance and $260 a month out-of-pocket directly to the doctor’s office.

Delivery Costs

One of the bigger expenses, of course, is the delivery of your new child. This is not included in your prenatal care costs. For patients without insurance, the cost of a natural vaginal delivery can range from $9,000 to $17,000, depending on your location. If you need to have a C-section or there are complications with your delivery, this can increase the cost to somewhere between $14,000 and $25,000. Other services that may add money to your total will be the induction of labor with drugs and whether or not you have a private room for aftercare.

Individuals with insurance may still have to pay at least a four-figure balance after delivery. The out-of-pocket costs can range from $1,500 to $3,000, but they can very well reach your out-of-pocket maximum for the year. For my insurance plan, the maximum out-of-pocket cost for the year is $6,000. I may very well reach that, depending on the cost of delivery and any unforeseen costs throughout the process.

These delivery costs only cover the cost of caring for the mother though. Your baby will also receive a separate bill. This bill will range from $1,500 to $4,000 for a healthy baby delivered at term. If your baby is premature or has any health complications at birth, this bill can increase significantly.

Cost of the First Year of Life

Beyond delivery and prenatal costs, you will need to think about the other “unseen” expenses of having a new baby. The average middle-income family in the United States can expect to spend about $12,000 on their child during the first year of life. By age two, this increases by about $500 annually.

In the beginning, you can expect to spend about $50 per week on diapers alone. Throughout the first year, this can rack up to an astounding $3,000. So, if you are invited to someone’s baby shower, they really do appreciate receiving those diapers. Oh, and new moms, if you find you have too many of one size, you can take them back. Huggies and Pampers will be accepted at any major retailer to exchange for a different size. If you receive store-specific diapers, you will need to return them there.

On top of the cost of diapers during the first year, new parents typically wind up spending $6,000 on other baby items such as the crib, strollers, car seats, and other big-ticket items to get ready for the new baby. Talk to experienced parents and get an idea of what you really need. You may be focusing on things that aren’t going to get all that much use, to begin with.

How Much Does It Cost To Have a Baby?

All of the costs above considered, to have a baby and get them through their first year of life, you could very well end up spending $50,000. Depending on your insurance plan, the help you receive from friends and family, and other financial factors, this could be dramatically less. There are also a number of resources you can use to decrease the overall cost of prenatal care and delivery. For instance, using a midwife instead of a gynecologist for delivery could save you about 30% of the overall cost.

Additionally, you can look for secondhand clothing, take hand-me-downs from friends and family, and do some bargain hunting when it comes to providing for your child. There are a lot of coupon programs and freebies you can receive that will help you deal with the cost of a new baby.

Readers, how much did it cost you to have a baby? What were the biggest expenses?

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Paying Off Debt vs Saving: Which Is Better?

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paying off debt vs saving

A few weeks ago we talked about how you don’t necessarily have to give up investing to further your debt freedom progress. Another hot debate in the finance community is paying off debt vs saving. Should you be stacking up savings if you haven’t paid off all your debt? Dave Ramsey would say no. Get your $1,000 emergency fund in place and focus on your debt payoff efforts. But which is really better?

Paying Off Debt vs Saving

First, let’s talk about why this is such a hot debate. If you’re an avid Dave Ramsey follower, you know paying off debt to be the number one priority as far as your finances go. This is because once all of your debts have been paid, you will have more money freed up to put towards savings, retirement, and investments.

However, this simply doesn’t work for everyone. I don’t know about you, but $1,000 isn’t enough to cover a huge emergency in my life. With a new addition on the way, I’ve been feeling the push to save more than ever. Of course, part of that is definitely getting some things paid off to have more cash flow in general, but actually saving plays a role too.

So, which is truly better? There is honestly a case for both.

The Case for Saving

When it comes to deciding whether you should be saving or paying off debt, there is a good case for saving money. The more cash you have to fall back on in the event of an emergency or major life change, the less likely you will be to rack up more debt. For example, if you have a few month’s expenses set aside, you are less likely to lean on your credit card in hard times.

Similarly, if you are expecting a big change like we are, saving more money may seem appealing. Again, you will have more money stashed away for when things change for you. In our case, having a baby is a huge change, especially from a financial standpoint. When you are facing something like that, stashing away some extra savings is never a bad idea.

The Case for Paying Off Debt

While you are saving, you could certainly be paying off debt with that money. Many people in the debt-free community would argue that savings could be saving you money on interest, etc. That is absolutely true, but it provides less peace of mind and immediate cash on hand in the event you run into a financial emergency. That being said, there is a case for paying off debt instead.

When you focus on paying off debt vs saving you will be able to free up more money on a month-to-month basis. For example, if you are focused on paying off your car, paying that off can free up some serious cash monthly. In our case, paying off our car would mean an extra $488 per month. That would make a huge difference. Arguably, once you pay off these bigger bills, you can start saving more quickly. You can also free up more money to put towards other debts, making even more money available month-to-month.

Bottom Line: Do What’s Best for Your Family

Whether you are on team savings or debt payoff, you should always make whatever decision is best for your family. There is no one-size-fits-all for finance. Personal finance is just that: personal. If having more savings in the bank decreases your anxiety when it comes to your financial situation, stash away some extra money. At the same time, if making progress on your debt freedom goals provides you with more peace, focus on that.

Readers, what side of the fence are you on when it comes to paying off debt vs saving?

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Setting a New Budget With Variable Income

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setting a new budget

If you’ve been following the blog recently, you know my husband got a new job. That’s great news for us. Two incomes are always better than one. However, that also means we need to go about setting a new budget.

Why We Are Setting a New Budget

So, obviously, the main reason for setting a new budget is that we now have more money coming in month-to-month. We also have different bills, goals, and needs than we did even four months ago. Because of this, it is crucial for us to sit down and really take a look at our finances.

My income has been steady for several years and will still be leaned on to pay the majority of our bills. This means his new income will be used to do things we’ve been putting off, stashing away money for savings, and paying off debt (yay). The biggest challenge with setting a new budget is that his monthly payments will vary.

How to Set a New Budget on a Variable Income

Because we have both had pretty set incomes in the past, budgeting on a variable income is a little different from what we are used to. So, I did some searching to see what some of the best tips for budgeting on a variable income are. The personal finance blog Money Crashers had some pretty great tips in a guide on their website. Here’s what we are taking away to use in our own budgeting method…

  1. Add up your non-discretionary spending, meaning the bills you have to pay every single month. Usually, this includes things like housing, utilities, groceries, transportation, insurance, debt payments, child care if you have kids, and taxes. Normally, if you are being paid a variable income, you will have to set aside money for taxes on your own, so it is a good thing to keep in mind.
  2. Take a stab at calculating your discretionary spending (the little things). This can be a little harder. Discretionary spending includes everything from holiday spending around Christmas to those tiny day-to-day debits like your morning coffee. You can take a stab at getting a solid number on this by looking at the spending on your bank accounts and credit cards. Formalize the difference between discretionary and non-discretionary expenses for your family. Know what is necessary and what is not.
  3. Then calculate the average monthly income you’ll have from the variable source. Generally, there will be the lowest amount per month you can expect from a job with a variable income. Then there will be higher amounts that may come in. Consider the higher-paid months windfalls and nothing more. Base your budget on the lower amount you may be paid. This way you won’t be caught by surprise if you don’t get paid as much as you’d hope.
  4. Set aside savings first. Once you have all of that figured out, be sure you set aside some savings as soon as your check from the variable income job hits. This money will serve as something to fall back on during the months you don’t make as much or the months where your expenses are higher (i.e. during the holidays).

Readers, have you had to set a budget on a variable income? How did you go about doing it? 

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The Quest for Cheaper Housing

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cheaper housing

As I’ve been talking about for a few weeks, we are looking at moving… again. If you have been following the blog for a while, you know we started our financial journey while living in a motel (that is just a step above being homeless). We got moved into our apartment after that, then shortly after got the offer to move down to Atlanta. Since being in Atlanta, we’ve moved twice, and now we are just ready to move away from Georgia altogether. So, we started looking for cheaper housing to start saving more but questioned if it was the right decision.

Cheaper Housing vs. Quality of Living

The first thing you really need to decide is how much of your quality of living you’re willing to give up for cheaper housing. Cheaper is almost always going to mean giving up something. You may find it means shared laundry space, small living quarters, or heavily used appliances.

Consider how much money you would be able to save and how that would help the progress of your financial goals. Would that be worth giving up your quality of living for a short period of time? As a family, we’ve done this. We have been in a studio apartment for going on two years now and it wasn’t worth the discomfort we saved moving here. It has sent us running away from apartment living altogether. Giving up space was not the right decision on our part.

Which brings me to my next point, what are your limits when it comes to pursuing cheaper housing? Is it space, is it amenities, is it location? For us, being able to stay the next place we land for a while is important. We want to have a yard for our dog, extra room for expanding our family, and a home office. This way, we can stay put until we are either debt-free or ready to buy a home.

Should You Relocate to Save Money?

Another thing people often think of doing to help them financially is relocating. Especially now, when many people are working from home, relocating may be a good option. For instance, if you are self-employed, you may consider moving to a state with a lower income tax or if you are starting a family you may want to move somewhere with good schools and low property tax.

You may also find some rural areas have cheaper rent prices and even cheaper real estate. Those moves seem enticing when you look at the large savings, but you should also consider how it will impact your day-to-day life. How far will you have to drive to the store? Will you have to pay more for an internet connection?

Bottomline

There is more to making decisions about your life than how much money you’ll save making that move. You should consider your entire life, happiness, and long-term goals when you are making any big decision in your life, even if it is something as small as seeking cheaper housing.

When it comes down to it, making decisions about your everyday life should take more thought and consideration. For us, our next step will be to find reasonably priced housing that our family can grow into and stay in for a while. Somewhere we can reach debt freedom and start saving for our first home. To me, this will be the perfect find over saving (insert amount here) each month.

Readers, what things do you place more importance on when making decisions in your life? Have you ever made a similar choice about housing? 

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5 Things to Avoid to Live Debt-Free

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Live debt-free

Reaching financial freedom is far from easy. Only 29% of Americans consider themselves to be financially healthy. Once you obtain debt freedom, you want to be able to stay there. So, there are several things you’ll want to avoid to live debt-free.

1. Budgeting is Always Crucial to Your Financial Health

You had to budget to get out of debt. That doesn’t stop just because you no longer have creditors to pay off. In fact, budgeting is even more important once you’ve paid everything off. If you don’t set a budget you run the risk of racking up debt again if an emergency arises.

Remember that your budget needs to be 100% cash. Don’t consider your credit cards or any other form of money spendable.

2. Overspending is a No-No If You Want to Live Debt-Free

That directly ties into overspending. If you start considering the money available on credit lines to be spendable, it is more likely you’ll restart the cycle of debt in your life. You certainly don’t want that after all of your hard work to get where you are.

Instead, plan for bigger purchases and save up for what you want. You should also have a set budget for recurring expenses and other plans. Don’t deviate from that budget.

3. Don’t Stop Saving Your Money

Saving money isn’t just important during your debt freedom journey either. As mentioned in the point above, it is important to save money for large purchases and planned expenses. However, it is also always a good idea to keep money saved.

Having an emergency savings fund will keep you from tapping into credit lines if something comes up. Additionally, saving money can help you secure your financial future and ensure you’ll be able to retire someday.

4. Giving Up on Investing Isn’t an Option

When it comes to saving for retirement, you should also continue to invest while you live debt-free. Even though you may not have as much cash flow or you may be tempted to spend cash, it is a good idea to invest in a diversified portfolio.

Not only will this allow for you to have financial freedom throughout the rest of your life but it can help you expand your current finances. Avoid being afraid of the stock market once you’ve paid off your debts.

5. Neglecting Insurance Will Cost You

Renter’s insurance, homeowners insurance, car insurance, and health insurance. Purchasing coverage is important to protect your finances. In the event of an accident or emergency, these policies can help you avoid racking up debt.

Even though the monthly cost of insurance may seem like a pain, it can help you replace damaged items, restore your health, and protect your belongings. Without it, it is easy to swipe your credit card. Insurance is crucial if you want to live debt-free.

Readers, what else would you add to the list? How do you live debt-free?

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Debt-Free and Bored: How to Manage Life After Debt Freedom

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debt-free and bored

If you’re like me, you are probably still daydreaming about what it might be like to be debt-free. Surprisingly, many of the people I chat with once they reach financial freedom find it a bit boring. So, here are a few things to consider if you’re debt-free and bored already.

What it Means to be Debt-Free and Bored

You may be thinking, “how can you be bored with being debt-free,” but it is possible! The road to debt freedom is anything but boring. So, once you pay everything off, some individuals find themselves wondering, what next?

Many people actually slip back into debt at this point (almost like they are looking for a financial challenge). They’ll begin doing things they never would have done before paying things off. So, why now?

Well, financial freedom is very freeing but it also removes structure from your finances in some cases. If you were sitting down and budgeting to pay off debt, you knew where everything is going and typically have a few problems to solve. But, once you’re debt-free, things can get a little boring after a while. What’s next?

Things To Do

If you want to stay debt-free without boredom though, it can be difficult. There are so many things out there tempting you to swipe a credit card or take out a loan on. Here are a few things you can do if you find yourself debt-free and bored…

  1. Plan something you have to save for. Whether it is a vacation or a new car, you can always find something exciting to save up for. If not having a new financial issue to solve is the problem, finding a reason to save can help with your boredom.
  2. Take on DIY projects. Homeowners can take advantage of the freed-up cash they have from paying off their debts to make some improvements around their home. Put in that dream bathtub you’ve always wanted or re-do the kitchen. It’ll keep you busy and you’re putting money back into your real estate investment.
  3. Invest. Generally, once you’ve paid off your debt, you can start looking at different ways to invest. Be sure you’re maxing out your retirement contributions. Then, think about looking into other places to invest. The stock market can be an exciting place if you’re feeling bored.
  4. Bet on yourself. Maybe you’ve always wanted to quit your job and travel or start your own business. Without any debt attached to your name, you can bet on yourself. Take the extra cash you have and put it towards your next adventure, whatever it may be.
  5. Donate. Now that you can, donate some of your money to good causes. Take time out of your day to volunteer.
  6. Find new challenges. Just look for something else to challenge you financially. For some people, this may mean becoming active in the stock market. Others may look into peer-to-peer lending or different ways to expand their cash. Look for something that interests you.

I’m still working towards my own debt freedom goals, but thinking about a day where I might be “debt-free and bored” is exciting to me. Debt-free readers, what have you done to maintain your financial freedom?

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Picking and Choosing What to Pay During the COVID-19 Pandemic

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COVID-19 pandemic

Jobless claims in the United States have reached more than 6.5 million as of last week due to layoffs amid the COVID-19 pandemic. Because of this, many people are falling behind on their bills, despite the stimulus package. In our home, our monthly income has been sliced in half, leaving us picking and choosing what bills get paid now.

Establishing a Financial Cushion

If you’ve been keeping up-to-date with our financial journey, you know we just recently established our $1,000 emergency fund (again). Well, due to my husband’s layoff, we needed to use a chunk of that to cover expenses of moving his tools and covering bills. After doing that in March, we are re-evaluating how we are going to tackle the COVID-19 pandemic financially.

Initially, I was just going to maintain all of my payments across the board, but that leaves us essentially paycheck-to-paycheck (which is a little iffy in the current environment). However, after seeing our EF drained, I reconsidered that and decided to take a break from 2 larger monthly payments just to refund our emergency savings. Having cash saved and on-hand right now would provide our household with some peace of mind.

That being said, my student loan is under forbearance until September and my car company is giving me a three-month break from payments. This will allow us to bank $768 each month for the next three months, which will be a nice emergency savings fund.

Consider What You Need

For us, having that buffer cash on hand is going to be key in keeping us financially stress-free during this time. Believe me, the last thing you want to do is to be stuck in the house with your spouse fighting about money. You may be thinking, “well, we HAVE to make payments on the credit card, car, etc.” That may not be entirely true.

Many companies are offering breaks on payments or lower payments in order to help individuals impacted by the coronavirus outbreak. Call and discuss your options with each business. Get your bills as low as possible.

If your available cash still doesn’t cover what’s due, consider what you need. Tiffany Aliche, aka the Budgetnista, told NPR in an interview, “then I would ask myself, is this something that I must pay for because I have to maintain my health and my safety? That comes first and foremost.”

So, if it doesn’t pertain to your health and safety right now and you don’t have it, take a breath. It is important to remember what you do and do not control at a time like this.

Putting Plans on Hold

COVID-19 pandemic

This photo will be us for a while: at home. Unfortunately, many of our plans have been put on hold, postponed, or canceled for the next few months. It is not yet clear whether some events will be refunded or not (I wish!).

We’ve put plans to visit home (Charlotte) on hold indefinitely. Hopefully, by mid-May, we can decide on a solid date to re-plan that trip. On top of that, just about everything else has been postponed or canceled in some form. This will likely help save us money and, in the long run, staying home will too.

Finding Ways to Stay Busy at Home

I’ve thankfully been able to continue working because I’ve worked remotely for more than five years. That isn’t to say being indoors isn’t driving us a little crazy! We have been able to find ways to stay busy though.

COVID-19 pandemic

I, for one, have been cooking a LOT. We recently discovered Sam the Cooking Guy on YouTube and his videos have me looking in my pantry to see what I have and what I can make. Here’s one of his quarantine recipes…

In addition to cooking, we’ve also been taking Enzo on a lot of walks (and he certainly isn’t complaining). Remember, you can still get some fresh air. Just avoid contact with people and if you can wear a mask!

COVID-19 pandemic

When we aren’t doing those two things, I’m fully reaping the benefits of some of our subscription services. Amazon has a plethora of free Audible books, Kindle reads, and things to watch right now. I’ve listened to about six books in the past week and a half (ha!).

No matter what you do to keep busy, it is important to stay inside and stay healthy. Remember, you have options when it comes to your finances. The most important thing is your health. Stay well. 

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