What's next?
You don't have time or money for elaborate measures. Checking figures. Making projections. Hiring an advisor.
Your bank balance is dropping. You've got to do SOMETHING. Introducing the "Just for Now" Budget. It will help you start saving money right away -- or at least spending less -- until you figure out what to do in the long run. Take the easiest route 'just for now,' or choose more drastic measures, including 'better.' (Saves more, too.) If you're at rockbottom, then the final category, 'necessary', may be, well,...necessary.
Before you start, take time to list your monthly bills, including rent/mortgage payments, utilities, insurance and other regular commitments. These are items whose cost is consistent, month by month. (We have these taken directly from our bank account, thanks to the Brick setting up automatic deductions. No worries about late fees, even during the cruise..)
Doing this is also a good reminder that extra cash you do have -- like your stimulus check -- is already spoken for.
You need to know exactly what you owe -- and when. Then you can begin to deal with each.
RENT:
Just for now: If your lease still has months to run, you don't have a lot of choice: you need to pay this. Try talking to your landlord -- some have agreed to discounts, others to a reduced payment for now. Can you offer your services, like shoveling snow or cleaning halls, for a reduced rate? It might work.
Better: Can you get a place where at least part, if not all of the utilities are included? How about a parking spot? (See Transportation in Part Two for more on this.)
Make that rent payment on time, no matter what. If you don't, you'll be on the hook for a late fee -- even worse.
Necessary: If you're in a month-to-month lease, it might be necessary to look for a cheaper place. Better start now. Consider giving notice. (You're usually required to do this a few weeks beforehand.) Hold a yardsale, or sell possessions, to pare down and pay for moving costs. (Or your rent for that month) It is possible for one family to live in one room -- it may not be fun, but many immigrants have done it -- and are doing it. Do what's necessary...for now, until things improve.
MORTGAGE:
Just for now: Talk to your mortgage company -- they might have short-term programs that could help. (Or try some of the alternatives proposed in 'Rent.') Have you paid down your mortgage to the point that mortgage insurance is no longer necessary? If so, cancel it -- pronto.
Better: Do as much as you can to maintain your property, without hiring someone.
Inside: Clean walls and floors, countertops and appliances will make quarantining more bearable -- and life more pleasant. Thrifty Mom in Boise accomplishes this, doing what she calls 'fifteen minute chores.'
Outside: Keep the lawn mowed, branches picked up and more. Five bucks or so of long-wearing, forgiving plants like petunias will keep your flowerpots bright and appealing all summer long. Because:
Necessary: Have you considered roommates, or renting just one room (with kitchen privileges) as a temporary measure? Can you invite family members or friends to move in, and share costs? (This works with rentals too, provided the landlord agrees.)
You may have to refinance. Fortunately, interest rates are low right now. If worse comes to worse, put the house on the market, before things get even more chaotic and real estate does a freefall. That is certainly preferable to losing your home to foreclosure.
UTILITIES:
Just for now: Turn down your air conditioning or heat, at least 5 degrees. Don't wait -- walk over, and do it right now. (Then put on a sweater, or change into cooler clothes.) Make showers quicker. Find out what has the most impact for the least energy -- and use it. (Example: run the dishwasher only when it's full.)
Does your utility company have a program for lower-income users? You're that -- at least right now. Find out more, and apply. (You can always decline the help when things improve.)
Better: What can you do to cut costs? It may mean landscaping that takes less water -- and getting rid of a portion of lawn. (Do the research and work yourself.) In our trailer, running the electric fireplace occasionally for heat actually costs less than keeping the entire system on. Check and experiment to find out what works for you. These tips may help, too.
Necessary: Don't ignore the bill, or delay paying it -- no matter what. You'll end up paying late fees, making your costs even higher. Or even worse, the power will be turned off...and you'll still have to pay extra fees. These can really eat up extra cash.
In extreme cases, turn the heat off. Use your stove only as necessary... bake a lot...keep plenty of shawls, blankets and such for snuggling. Think this won't work? This family lived through 1 1/2 winters without heat, until they could afford to repair their furnace.
CABLE TELEVISION:
Just for now: Many streaming services allow more than one user to share a membership. Does yours? Do family members or friends use the same program? Designate one user, then split the costs.
Better: Are you actually watching? Keep a tally -- and cancel the services you're not using that much. Look for the cheapest. (Some are free, provided you're willing to watch ads.) Or use only the services (Amazon Prime is a good example) that give you additional benefits, like free shipping. (Yes, you can share this, too.)
Necessary: Grit your teeth -- and cancel. If you really enjoy these services , and use them often, sign up for a free trial -- then cancel when it's over. Learn more about the free tv channels in your area.
If your family continues to whine about missing their favorite Disney movie, consider subscribing again -- as a Christmas or birthday present. But only after the free trial ends!
Part Two is coming! But these budget tips should get you started.
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