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Managing Your Finances in the New Normal

  • December 14, 2020
  • By Nick Vincent
Managing Your Finances in the New Normal

A beautiful pair of Jimmy Choo shoes. That sexy, alluring, black Versace dress depicting that sense of fashion in London City. Have a cup of coffee and a slice of cake in Paris. Sample each exotic cuisine that the world has to offer. Sign-up for a pottery workshop in Athens. Take a long vacation and stay in an elegant villa in Barbados. Visit the world’s most famous tourist destinations. Leave everything behind, and be like Julia Roberts in that movie, “Eat Pray Love.” I want all of these things, and maybe more.

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In life, we want a lot of things, but the real question is, do we need them? When you start working and earning your own income, you get to have a taste of that power, no matter how little it may seem. It’s your money, after all. You did not borrow or steal from anybody, you worked hard for it. You have earned it. Now, it’s your decision what to do with it.

If you’re young and single, it’s easy. You pretty much have the world at your feet. No obligations, no responsibilities. However, we all grow-up, whether we like it or not. When you’re an adult, the responsibilities start to come. When you start your own family, the obligations begin to pile-up. It’s inevitable. How do you manage your finances smartly? 

Here are 4 easy budgeting tips that may help:

  1. Focus on your needs, not wants. Each family needs everyday essentials like food, clothing, a roof over their heads. In some cases, a member of the family (if not all) needs medication. Think about all the items that you cannot absolutely live without in your day-to-day lives. Beach vacation? That can definitely wait. An empty stomach? Not a chance.
  1. Create a simple list. It doesn’t take a genius to simply subtract and add numbers, and if it gets really difficult, you can always use a calculator. Are you and your spouse both working? How much money do you each make? Think of your monthly income first, then list down all your expenses for the month. Think about how much you need to pay for your mortgage/rent, food, utilities, medications, car payment, etc. Having everything put down on paper helps you to keep track of your expenses, and study the numbers. This also allows for you to make the most of the money you bring home and find a way to balance your needs and wants.
  1. Combine shopping in effective ways. Find a store that offers more than food. A one-stop-shop, as they say. If you have to buy food, kitchen supplies, bedding, prescription, etc., it’s great to buy them all in just one store. Not only will it help you to save on gas money, but it will also save you a lot of time and effort. 
  1. Try buying in bulk. Do you always run out of milk? Can’t your kid get enough of those cereals? Check what items in the house run out easily and next time you shop, try buying it in bulk. It’s very sensible and less expensive. 

By Nick Vincent, December 14, 2020