We can all agree that 2020 has been a particularly trying year. And this is especially true for so many working in the Gig Economy, where financial ups and downs are so prevalent. The good news is that there are steps you can take now to adopt new money managing habits that will see you through this emergency and beyond.
Tip 1: Understand the difference between “want” and “need”
An important first lesson in money management is understanding the difference between “want” and “need.”
- You need groceries, shelter, clothing
- You want that new iPhone because it makes you feel good
If you find that you’re mostly purchasing things to feel good, it might be time to adopt the “need” mindset. To make this mantra stick, go to Tip 2.
Tip 2: Check your financial temperature
- Take a close look at your cash flow and debt situation, and be honest with what you see. It may be time to create a simple budget. Click here to learn how to set one up.
- If your debt concerns you, but you’re not sure how to resolve the problem, there is help. Until September 30, 2020, CEIRP members can arrange a free consultation with a credit counselor from the Credit Counseling Society.
Tip 3: Invest in you
- Another good habit to adopt is paying yourself first. Each payday or at another regular interval, contribute an amount you can afford to savings, like a Tax Free Savings Account. By making it regular and automatic, you’ll basically save it and forget it. Let it grow and it’ll be there for a rainy day.
- One positive aspect of this pandemic is that it has afforded us time to simplify our lives. Take advantage of this by taking care of yourself and adopting new personal habits that add value to your life. You may find that by investing into your mental and physical well-being, your financial situation will also improve.