Uncertain Income? Tips To Cut Your Spending

Whether you’re still working or already in retirement, you may feel less confident now about your income than you did in January due to the ongoing fallout from the coronavirus pandemic.

It’s natural to want to proceed with extra caution going forward. One way to get your finances back into your comfort zone is to trim spending over the next few months so you can build up a cash cushion.

Mari was interviewed by long-time journalist Kim Lankford of AARP magazine about ways to cut spending without sacrificing quality of life.

We shared proven ways we’ve seen clients reduce expenses by cutting car payments, refinancing mortgages, and relocating to less expensive areas.

“You can make a very significant reduction in the cost of living when relocating, especially if you move to a smaller house,” said Mari. One client recently slashed the cost of annual hurricane insurance coverage on her home by thousands of dollars when moving from South Florida to the Jacksonville area. Others have trimmed monthly bills by merely downsizing from a too-big single family home to a smaller and updated residence with easier monthly maintenance.

The Takeaway: It’s not always easy to navigate changing financial circumstances. But one thing we learned in the 2008 financial crisis is that clients who know where their money is going, and stick to annual spending guidelines, are able to sail through the crisis with flying colors. That’s especially important when you are in or nearing retirement, and no longer generate working income. We’ve found the more you know about your spending, the more likely you’ll enjoy a successful and fulfilling retirement.

A recent MintLife Blog survey reports that 3 out of 5 American have no idea what they spent last month, let alone what they spent it on. If you want to get a better handle on your spending, just ask us for a copy of our cash flow worksheet or use one of many available free budgeting apps. It will help you group your spending into the right categories, so you can make sure your money is going to the things that really matter to you and your family.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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