7 financial tips for uncertain times
The last few years have been…rough, to say the least. And if you’re anything like us, then you have felt overwhelmed and uncertain about what’s next. While there are a lot of ways we’ve covered to help you recenter and move forward, one we haven’t yet tapped is finances. So we pulled in Samantha Bush, Financial Advisor with LPL Financial, to share her insights.
Here are some financial tips to help you remain calm and controlled when the world seems to be anything but:
1. Revisit your budget. This task seems simple, but writing your income minus expenses can help you focus on the actual vs. the unknown. You can do this by pay period, weekly, or monthly, whatever works for you!
Start with necessary and consistent expenses – rent/mortgage, utilities, gasoline, and food. Remember to adjust for current inflation - see reducing expenses below.
Compare your budget to your bank activity to see where your money has been going.
Reduce discretionary expenses (travel, dining out, entertainment, shopping).
2. Increase your savings. Keeping 3–6 months of expenses in an emergency fund (savings account) helps with unexpected costs and job loss. An emergency fund reduces the need to withdraw funds from retirement accounts or borrow money during unfavorable times.
After completing your budget, if you have surplus income, add it to your savings.
READ MORE: Breaking down the College Choice 529
3. Reduce your expenses. After completing the budget in step one, where is there an opportunity to reduce expenses?
Groceries: Use coupons, shop the sales, plan meals, remove the expensive items, and use alternatives – the center of the grocery store is typically the most costly (and unhealthy).
Subscriptions (including that gym membership!): Are you using them? If not – cancel them.
Eat in: There are sooo many budget recipes online.
4. Pay down your debt (if you have your emergency fund and a surplus each month).
5. Don’t panic about your long-term investments. It is never a good idea to make financial decisions based on emotion. While an economic recession or personal financial hardship can be scary, it’s important to remember that they are temporary. Always take time to cool off and think through major investment decisions. Stick to your financial plan.
6. Earn extra income. The two variables are money coming in and going out, and you decide on both. There have never been more options for earning extra income than now.
7. Stay positive. Take a mental health break from the news, markets, politics, etc. They will still be there when you return.
Following the simple steps above will help to maintain a strong financial foundation.
For additional guidance, please contact Samantha for a complimentary consultation at 317-868-7100 x 3 or sbush@lpl.com.
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.
Samantha Bush is a financial advisor with LPL Financial at Indy Wealth Advisors. She currently holds her series 7 and 66 securities licenses through LPL Financial as well as her Indiana life and health insurance licenses. Samantha is a graduate of Indiana University School of Business. Her passion is educating and empowering people to pursue their financial dreams.
Whether you are beginning your financial journey or ready to retire, Samantha can help create a path to pursue your financial goals. As a CERTIFIED FINANCIAL PLAN- NERTM with comprehensive financial planning software, she can deliver a plan that is easy to understand, interactive and adapts to the changes in your life. With over 8 years of experience in wealth management and financial planning, she understands that every situation is unique. Samantha is a SmartVestor Pro. She feels blessed to be in a career where she can make a direct impact on her clients. Samantha is married to her husband Mike and they have three daughters, Britain, Isabel and Abigail. In her spare time she enjoys wellness, reading, traveling and spending time with family and friends.
