A Cash Flow Cleanup in Quarantine

by Kate Hynson

Financial Frequency. myCash

April 13, 2020 . 3 min read

You’ve likely heard the saying “Attitude is everything.” While it sounds cliché, it’s arguably never been more relevant than now. As most of us are hunkered down trying to stay home and stay healthy, we’re also working on keeping our spirits up and remembering that being able to be home safe right now is a privilege. 

So, we want to make the most of this time. We’re soaking it up with family and baking the recipes we’ve put on hold for too long, but we’re also taking this time to do a financial cleanup on some things.

Are you following a spending plan?

One of the first steps to a good financial cleanup is knowing what your cash flow looks like. It’s a good idea to check in on this every so often, and especially at a time like this where your cash flow may be changing due to unforeseen circumstances.

What is coming into your bank account each month and what is coming out? If more money is going out than is coming in, that is a sign that you’re spending more money than the income you’re receiving, and it’s time to cut back on some things. At myWorth, we recommend using a spending tracker. This helps you identify your spending habits, and know how much is going toward discretionary vs. non-discretionary expenses.

What subscriptions can you get rid of?

One of the easiest things to cut back on can be subscriptions. How many times have you set up a free trial where you’re required to link your credit card and then forget to cancel after the trial? You’re not the only one! It’s a sneaky system and it becomes easy to lose track of what is free and what you’re paying for each month. 

With some extra time around the house, go through your credit card statements, your bills and emails, and decide which subscriptions you’re actually putting to good use. A little extra money each month can quickly add up and be put toward something you actually need or would use.

Check in on how financially protected you are

As you evaluate your cash flow and cut down on some subscriptions, you may find that you do have some extra money that could be put toward savings or paying off any debt. Those are great uses of some extra cash, but so is ensuring that you’re financially protected. 

Now more than ever, we’re realizing how essential financial protection is for us and our loved ones. However, the importance of financial protection goes beyond just the impacts of the COVID-19 Coronavirus pandemic. Checking in on this now will be the gift that keeps on giving long after we experience “normalcy” again.

Check in on your financial goals

To help ourselves stay positive through this pandemic, we’re working on our mindsets and implementing routines like we normally would. Part of that includes checking in on goals that we set back in January. 

What financial goals did you set for yourself this year? You may find that reevaluating your cash flow and subscriptions will help you to reallocate some money to help you achieve your financial goals. 

Give yourself some grace if these goals haven’t been top-of-mind. The world threw a curveball at us this year! You may find after looking at them that some aspects of your financial situation have changed - it’s okay to change your goals to reflect that. You also may find that you’re able to save some extra money being home so much, allowing you to achieve those goals even sooner.