Don’t let your finances scare you this Halloween
Halloween can be a fun, and scary time as everywhere we look, there is something to scare us. We see cobwebs, vampires and skeletons at every turn. The one thing, however, which we don’t want to be scared of when looking, is our finances. Getting a fright when checking the bank account is never a fun thing, especially when unexpected expenses come up. Although we are unable to provide advice on how to prevent us from being scared of vampires and spiders (which we wish we knew!), we can suggest some tips on how we can better manage our money so we can sleep easier this Halloween.
Recently, we reached out on Facebook and asked, “How do you stop financial scares from impacting you?” You guys responded and gave us so many helpful tips that we just knew we had to share. We decided to select a few of the more common ones as well as some unique ones, and share them with you all so that we can stop being scared of our finances, together.
“I like to have a good healthy emergency fund! It makes me feel secure and not worried about future financial scares!”
Emergency funds are great as they provide security for us for when times get tough. We recommend having both a savings and an emergency fund which we regularly contribute too as it helps prevent us from touching our savings. Read one of our Emergency Fund blogs to get more information on how having one could be useful.
“Only buy on Credit Card what I could have brought without, so purchases are paid off by the end of the month. Good emergency fund though.”
Most of us now days have credit cards that we use from time to time to help us get by. Using these cards while remaining under the limit can handy as they help build credit score as well as generate reward points. Making purchases with credit cards that exceed what we are capable of paying, is a quick-fire way to get into a debt cycle. Failing to make your monthly repayment amount can put pressure on your finances due to extra costs as well as more interest added on top. Borrow what you can and borrow responsibly, read our credit card vs personal loan blog for more information.
“Always live by the 70 – 30 rule, of my pay, 70% is spent on the necessities; food, power, rent etc. and the other 30% is put between 2 different savings account. Some weeks need more money spent than others which slightly blows the savings part, but in general, it works.”
Budgeting seems to be the number one advice we received, and that’s for a good reason. By budgeting, we don’t have to live week by week, wondering if we are going to get by. In a previous blog, we suggested the 50/30/20 rule, but everyone has their own personal costs and are in different situations. Additionally, having multiple savings accounts will help us meet multiple goals! When we achieve one goal and such as saving for a holiday, and withdrawal our money, we will still have the other untouched accounts that we can continue saving with.
“I pay everything weekly. I split the phone bill payments weekly, power payments, and anything else. I also have separate accounts for insurance and loan payments so if I have extra money I can put them into those accounts and be ahead.”
Similar to budgeting and splitting up our income, splitting up our expenses into a consistent amount can help us keep on top of our finances. Sitting down, figuring out how much needs to be paid each week can bring consistency to our lives and give us a fair idea on what we can and cannot spend. We should set an amount that we think can cover bills for the week, plus a little extra and deposit it into our bills account as soon as the money comes in. Putting in extra funds each week will mean we will end up building a small buffer, meaning we are covered if the power bill is big for the month.
“Generally I don’t let it worry me, too much stress isn’t good for thinking about money it just stresses you out more if I’m really hard up for money I’ll ask family.”
Stress leads to more stress, we know it’s hard not to worry when times get tough, but freaking out can cause us not to think clearly and to make poor decisions in the heat of the moment. A great way to relieve stress off our finances is to admit that we need help. We should consult a family member or a financial adviser, let them know of our situation and see if they can find a solution for it. If our debt re-payment amounts are too high, we should see if we can adjust them with no additional costs. Most people are willing to listen or find a way to resolve our issues with us.
We will leave you with this tip that we had sent in, which pretty much covers everything:
“Easy earn $100 spend no more than $99.”
We hope some of these tips will help make dealing with your finances, not as scary. If you would like to read more blogs that could help, we recommend the following: