Are we going to receive another stimulus payment this year? We’ve been consulting the proverbial magic eight ball, because lawmakers don’t seem to have a clear answer either — and it keeps replying “Ask again later.”
Here’s what wethink the current situation looks like: In early October, the administration paused stimulus negotiations until after the election. Later that same day, that decision may have been reversed. Now there’s talk of a standalone relief package, but finding middle ground in the Senate feels politically distant. Truthfully, everything seems unsettled at the moment.
So instead of continuing to shake a plastic fortune-teller, it’s smarter to take control of our own finances. Prepare for the worst, hope for the best. Below are reliable ways to give your emergency savings a little more breathing room:
1. Create a Budget
This may sound like basic personal finance — and that’s because it is.
With jobs in jeopardy, volatile markets keeping us anxious and everyday costs creeping up, now is a crucial time to keep to a budget. Staying within or below your budget helps preserve your emergency fund and keeps your long-term savings objectives intact.
If your hours or pay have been cut, one of the easiest approaches to regain control is the 50/30/20 rule.
Here’s the breakdown: If you still receive monthly income, split your after-tax pay in half. That portion is for necessities (50%). Of the remaining half, allocate 30% to discretionary spending and 20% to financial aims.
After you’ve allocated your expenses, identify what you can reduce, eliminate or pause until you recover financially. Redirect those savings toward essentials (rent, utilities, groceries) and toward your financial priorities (emergency savings or extra debt payments).
Find the split that suits your situation and commit to it.
If you currently don’t have income, write down your ongoing expenses and classify them as essential or optional. Cut back where you can so you minimize the impact on your savings account.
2. Trim Your Spending
While some bills are fixed, like rent or mortgage payments, there are many other recurring costs you can cut back on to help bolster your bank balance. Some changes can even become permanent money-savers. Here are a few suggestions to begin with:
Shop at Different Grocery Stores
Yes, getting groceries delivered from a premium store is convenient, but you could save a significant amount by shopping at more affordable supermarkets. Consider shopping at stores like Aldi, Trader Joe’s or Walmart. If that’s not possible, remember many grocers accept competitor coupons, so keep those circulars handy.
Lower Energy Use
Utility bills often surge during extreme weather, mainly because of heavy use of air conditioning and heating. By opening windows, using fans, or enjoying a fireplace and thick blankets, you can reduce reliance on major energy users and shrink those bills.
Small habits that add up include unplugging devices when not in use, switching off lights in empty rooms and taking shorter or slightly cooler showers.
Compare Insurance Providers
Auto insurance premiums shift frequently, and you might be paying more than necessary. Because you aren’t tied into a long-term contract, shop around to see if you can get the same protection for less money.
If you’d rather not handle it yourself, several websites will compare options on your behalf.
Drop Your Current Car Insurance
Here’s the reality: your current insurer could be charging you too much. But instead of hopping from company to company, use a comparison marketplace to view multiple offers at once. For example, a site like EverQuote can show you many alternatives in one place.
EverQuote is one of the largest online insurance marketplaces in the U.S., so it aggregates top choices from more than 175 carriers and presents them to you.
Answer a few quick questions about yourself and your driving history. With that input, EverQuote will suggest leading car insurance options. In just a few minutes, you could potentially reduce your annual premium by as much as $610.
3. Roll Your Debt Together
If you carry credit card balances, the interest you’re being charged could be costing you a small fortune.
There is a way to eliminate that costly credit card interest: debt consolidation. A free matching service such as AmOne could help you pay off your credit cards much faster.
AmOne connects you with a lower-rate personal loan to clear out your credit card balances in one go. Its rates can start as low as 2.49% — far below the 20%+ rates many cards charge. That difference could save you thousands over time.
Plus, you’ll be on the path to being debt-free sooner.
AmOne safeguards your information and keeps it private, which likely explains why it has maintained strong customer trust over two decades in operation.
It takes just a couple of minutes to see if you qualify for up to $50,000 online.
Also consider reviewing things to do with your stimulus check for ideas on how to use any relief money wisely.
