Focus on what you can control, not what you can’t.

 

In the turbulent, troubling world of Covid-19, there are plenty of things we can’t control. Rather than let that be a complete discouragement, identify what you control, and take can charge.

One area where I have more opportunity now to slow down, analyze and control is finances. Going out, spending freely, and mindlessly updating my wardrobe (necessary or not) all had the brakes involuntarily pumped due to the lifestyle changes Covid brought. Lockdown brought about the time and energy to focus on what I could control, and helped to give an outlet to rampant worry about the things I couldn’t control. Personal finance became an area of concentration, with a hard look at the Three S’s below. I began by reading up on financial topics in articles like this article on budgeting, then applied what I learned. 

 

Spending

Spending slowed down when lockdown happened, mostly because there weren’t many interesting “shiny things” to attract my attention or dollars. Drinks on a Friday night, dinner out on Saturday, cute tops and new work clothes all became impossible or unnecessary. Sure, there were temptations from home. Amazon’s siren song played softly in the background constantly. The realization hit me, I didn’t NEED much during this timeframe. Food, check, deliveries were happening. Supplies, check, toilet paper and Lysol were the most important acquisitions to manage during a few stressful months.

But needs vs wants became an easy internal conversation. So many things I might have wanted were suddenly so unimportant in the Big Picture. I could do without, and it wasn’t painful.

 

Saving

The benefit of reduced spending is…you guessed it, saving more. At first it was just nice to see the bottom line in accounts plumping up (kinda like me after 3 months of sweatpants and Zoom meetings). Once that little perk caught my attention, I determined to become more intentional about continuing to grow the accounts. I searched out savings apps (Ibotta, Checkout51, Fetch) and put those into faithful use as well. Amazon and TJMaxx gift cards are my favorite rewards, and I can treat myself without dipping into the account with these earnings.

Another litmus test for purchases now is asking myself, “Which do I want more, earlier retirement or this item I’m eyeing?” Nine times out of ten, retirement wins and the item goes back on the rack.

 

Smart Financial Steps

Keeping the momentum going on a redesigned Financial Future, I took a few actionable steps in bigger areas. After postponing for the very longest, I researched the cost of new auto insurance policies. I had been with the same company for my entire adult life. During investigation, I came across the recommendation that insurance rates should be reviewed very three years. Now that my rate is cut almost in half, I plan to revisit the policy every three years.

Ditto for mortgage rate and refinancing the home loan. Rates were lower, I just didn’t realize how much lower. There are some costs associated with refinancing, and if you’re not going to stay where you are for a long time, it may not be worth it. We plan to stay, so the costs have already been recouped and we will enjoy the reduced rate for years to come.

Lastly, I paid attention to rates and fees my banks charge. I don’t carry a balance on credit card debt (the one solid financial strategy I have ALWAYS practiced) but still, I don’t want o pay any fee I don’t have to. No overdraft, no ATM withdrawal, no nothing. Becoming more aware of potential charges made me much more deliberate in my actions. Now I’m saving more, thanks to avoiding those sneaky little fees.

I had operated on financial autopilot for quite some time, and now resolve to up my financial awareness. Not only will I continue the practices I put in to place during lock down, but I continue to research additional ways to shore up my bottom line. I’m focusing on what I can control!