When speaking with my clients since COVID19 began, I've noticed that some of them are absolutely thriving financially during this time. Their income has not been interrupted and their expenses have been cut, and they are reaping the rewards in terms of saving more.
One of the conversations I've been having with them, is how to sustain some of the savings they have been seeing once things begin to open up again. It's not enough to just say "oh I'll never do...(x)...again", a plan is needed to be able to address your 'new normal' cash flow!
I did a live video where I talk in depth about this in my private Facebook community group for women, but here are my top 5 tips to thrive financially after COVID19:
1) Compare pre-COVID19 cash flow to during COVID19 cash flow:
Review April and May spending and compare to January and February spending, which for most of us was before COVID19 locked most of us down. Print off your bank and credit card statements to get an idea of what your spending has been like to find the money leaks and money savings in each of those time periods.
2) Create a new Cash Flow Plan:
Use the data you collected above to create your new cash flow plan. If you have found that your grocery bill is higher now and the kids are going to continue to be home, maybe that higher amount is the new amount you should be using. Has your commute to work changed, therefore lower or eliminating your gasoline or public transportation costs? Make sure you factor that into your new plan.
3) Have intention behind your savings:
This one is super important. In my experience, when you leave money in your bank account and it doesn't have a job to do...like paying a bill or being invested, it often gets spent. If you have seen savings in a certain area of your cash flow plan than give it a job to do! Define what you are saving for - is it a family vacation, a new TV, or should it go towards an extra debt payment? Make a plan for your savings - trust me, you won't regret it!
4) Make sure your new plan is realistic:
This is another important point to make. If you are like me and have seen significant savings from not having your manicures, daily lattes and drive thru lunches, the tendency might be to say "I'll never do that again, look at all the money I'm saving!". What ends up happening is that old habits creep back in, and even the best intentions can really mess up your new cash flow plan IF it's not realistic. Maybe instead of your monthly manicures, you make it quarterly. Instead of your daily latte, you make it a treat once a week. Whatever you decide to do, build it into your plan and be realistic.
5) Have a weekly money date:
My clients will agree that implementing this is a game changer! Review your finances once week with yourself (if you are solo) or your spouse (if you make financial decisions together) to celebrate successes, talk about setbacks and revisit your financial goals. Have your goals changed? Instead of the family vacation, is it a boat that you want now? Staying on the same page and being an active money manager in your finances will not only help keep you motivated to repay debt or continue your savings but it will help course correct if your plan needs some tweaking.
I wish you all the success in your finances as many of us enter into Phase 2 of reopening the economy. Stay healthy and safe and if you are interested in having a customized cash flow plan created for you, please be sure to check out my Fix Your Finances Course which can be found by clicking HERE.
Yours in financial health,