Difficult times call for tough decisions


Your financial plans for 2020 have likely been altered from your plan. Whether those changes are minor very significant, it is important that you confront those changes and look to take action to redo your or plans for 2020 and take the steps that will give you best outcome for 2020.
If our financial situation is in disarray where should we start?
For almost everyone, the first place to start is to get a handle on your next six months. What will be your income, what is your current level of expenses and what are expenses that are on the horizon. This is best accomplished by looking back at the last 3 – 5 months of expenses.
What is the next logical step to consider in making new financial plans?
The next step is the most difficult, you have to start determining where you need to make changes so that the remainder of the year is going to be the best that it possibly can be from a financial perspective. For some the changes might need to be drastic and can be difficult to consider.
What is the most difficult change that people may have to make?
The most difficult decisions are going to be centered around transportation and housing. If you have to make reductions, lowering your car payment and/or your monthly housing expenses may be your only options to capture the savings you need with your new level of income.
What are less drastic areas to consider for changes?
It starts with your financial habits and even though it is the most obvious place, most people don’t want to go there to make changes. It requires more discipline in your spending, a little extra effort when shopping and a change in behavior when it comes to everyday living.
Is there an expense category that should be a primary focus?
The first category to reduce is entertainment/communication category. This covers how much you eat out to the type of mobile phone plan you have and how many different streaming services currently use. This is where people will have to make the tough choices if they want to see any significant savings.
What about a behavior change that can net positive cash flow?
This one sounds simple but if can be very difficult because we are all time starved. Don’t shop at one place for everything that you buy on a regular basis. Compare prices and look for discounts and coupons before heading out to shop. Let these two actions drive the decision on where you will make your purchases and you should see significant savings.

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