Today’s Solutions: October 23, 2021

At the beginning of the year we shared a story on making financial new year’s resolutions. As the economic impacts of the pandemic continue to affect our lives, we’ve got some more financial tips on improving your financial stability during challenging times. 

  1. Hit the reset button. A study from Laurel Road found that over half of millennials and Gen Zers regretted how they handled their finances over the past year. The new year is a perfect time to wipe the slate clean and start practicing all the good financial habits you wish you had implemented last year. 
  2. Look into your money habits. The Klontz Money Script Inventory quiz will help you discover more about your finances than just where you spend your money. It can help you dive into your money beliefs, financial behaviors, and unconscious financial habits to make better decisions moving forward. 
  3. Practice mindfulness. When making financial decisions, take stock of your emotional temperature first. Feelings, both positive and negative, can cause us to make impulsive financial decisions. Take a step back and check in with yourself if you’re making an emotionally-motivated purchase. 
  4. Make a budget. Take the time to actually document your monthly expenses and income. Mark expenses as fixed (rent, car insurance), flexible (food, entertainment), and savings. A good rule of thumb is the 50-30-20 rule. 50 percent of income for fixed necessities, 30 for flexible spending, and 20 saved. 
  5. Set savings goals. Be realistic with your savings goals and think about long term potential expenses to set money aside for like retirement, buying a home, and a rainy day fund. 
  6. Refinance loans. Refinancing loans, especially student loans, can maximize your savings and reduce overall expenses. 
  7. Don’t panic about debt. Debt is not the end of the world, but you should be responsible about how you manage it. Some debt, like student loans, are worth the hassle. Consider looking into debt management strategies like negotiating a lower credit card interest rate. 
  8. Reach out to your network. It’s often considered taboo to discuss finances with family and friends, but reaching out to people can be a good way to seek advice and support during a difficult time. Financial counselors and planners are another great resource if you want some professional advice on your particular financial situation. 

Money doesn’t equal happiness, but maintaining a managed and stable financial plan can help you avoid financial hardships and save up for investments that really matter to you. Even during challenging times, you can improve your financial planning and it might even help you find some calm and security during an uneasy period. Use these tips to get you started and good luck!

Solutions News Source Print this article
More of Today's Solutions

Algae wrapped in droplets improves efficiency of artificial photosynthesis

In our quest for the most sustainable, most renewable sources of energy, humanity continues to look to nature for inspiration. One of nature’s most efficient energy systems is photosynthesis, which is how plants convert sunlight, ... Read More

Evidence shows Vikings arrived in Americas nearly 500 years before Columbus

Researchers have known for a while that Vikings from Greenland founded the village of L’Anse aux Meadows in Newfoundland around the turn of the millennium, but now, a study published in Nature has finally pinpointed ... Read More

Egypt’s State Council swears-in the nation’s first female judges

Egypt’s State Council was established in 1946 and is an independent judicial body that deals with administrative disputes, disciplinary cases, appeals, reviews draft laws, decisions, and contracts that involve the government or a government-run body. ... Read More

Is group or individual work more productive? Here’s what science says

Are you a group project person or do you prefer to fly solo? We all have our work preferences, but what does science say about teamwork and productivity? A new study conducted by Quartz aims ... Read More

Wildlife filmaker provides a unique insight into the daily lives of bees

You may have seen bees flying around your backyard or local park, but it can be difficult for the naked human eye to grasp the full complexity of the lives of these pollinators. During the ... Read More