Over 40 million Americans have filed for unemployment benefits since mid-March, according to the U.S. Labor Department. Much of this is a result of shutting down due to the Covid-19 pandemic. As part of the legislation enacted by Congress in March (CARES Act), many people are able to take advantage of an additional $600 a week in unemployment benefits from the federal government on top of the payment from each state’s individual jobless benefit. These payments will last through July 31, barring any further legislation. However, we all need to look at the best ways we can be pinching pennies and reducing expenses before those extra payments end.
According to the TransUnion financial hardship survey from May 2020, 56% of Americans are impacted financially by Covid-19. Two-thirds of impacted consumers are concerned about how they will pay their bills and loans. If this describes you, the next question is to ask what is your game plan?
Here are some ideas on trimming costs:
- Cancel any unnecessary subscriptions
- Negotiate your bills
- Change providers
- Lower your interest rates
- Limit online spending
According to the report, the top 3 items for those surveyed were cutting back on discretionary spending, cancelling subscriptions or memberships, and cutting back on saving for retirement. In our Personal Strategic Sessions, we focus heavily on reducing discretionary spending. It could be the daily Starbucks run, bringing your lunch more often, or skipping the vending machine, to name a few. The fact is that coaching can help tremendously in this regard. When you are down in the trenches, you see things in one way. But when you are able to view it from a higher objective level, the coach can tell what your strengths and weaknesses are. These are just some of the tips we have for pinching pennies and reducing expenses.
Schedule your FREE consultation NOW and let’s start working through YOUR Cash Flow Worksheet.