The two S’s. Sacrifice and Savings.
We are facing some challenging times right now, and now is the right time to start reflecting on all the new goals you have for the year. No new debt should be your primary goal. The key is not to borrow more money to pay what you have and get back into debt. The key is to negotiate what you already have, sacrifice and downsize on anything that you can.
Here are fast and straightforward ways to review your current debt. Know that if you can practice these skills and sacrifice now, you will thank yourself later. But first, let’s learn a few definitions. What are fixed expenses, and what are variable expenses?
Fixed expenses are expenses that cost the same amount every month, or weekly. Examples: Rent/Mortgage, Car Payment, Taxes, Health Insurance,…etc.
Variable expenses are expenses that you decide every day to spend your money on. -Examples: Eating out, Clothes, Coffee, etc.
Right now is not the time to be ordering out, right now is not the time to be buying new outfits.
Right now is the time to be making two lists of all your fixed and variable expenses and begin to cut back. Trying to cut back on your fixed expenses is the key. If you can negotiate your rent amount, your mortgage, and your credit card debt, now is the time to do it.
During these moments of uncertainty, we want to keep control of the only things we can control. So, keep your eye on the finish line and continue your pursue and adjust accordingly.