Let’s Talk Money!

If you have been awake at all over the past five years, you have seen hyper inflation with prices that more than trippled what they were in 2019.

Managing money in difficult times is tricky at best but can be done. If you are on a fixed income like I am, it pays to be thrifty. First, we’ll go back to the basics. While I was still working, a fellow coworker and I were engaged in a conversation about money. In the conversation, she revealed she never balanced her checkbook. I could not help but laugh and said, “How do you know your balance is correct?”Oh, I know how much I spend.” I’m still laughing, and so I said,”so you account for your husband’s checks, bank fees, and automatic drafts, right?” Well, no, she said I just estimate it. I am just about hysterical at this point. This person was a nurse. Someone that you would think would be intelligent enough to manage her finances. It wasn’t that she wasn’t capable of being able to do it she simply didn’t take the time to do it. Balancing your checkbook is critical for several reasons, like accountability and security. Regardless of whether you write checks or conduct all digital transactions, you still need to balance your receipts and/or checks against your bank balance. How often you balance is up to you. Some people balance daily while others do it only once a month.

Treat your household like a business. Set a budget, maintain your journal (check register), and keep a ledger of important accounts like mortgage payments, building supplies (particularly if you are doing any renovations), credit cards, etc. Yes I know, you don’t  have time. Taking the time will give you a better vision of what you’re spending, where it’s going and how to eliminate or reduce any waste.

Now that you have set up and are maintaining your corporation, it’s time to diversify. Put your money in several baskets. Money markets and CD are always safe places to park some cash. I am not a fan of cash apps but do recommend the use of an online bank for things like Etsy stores, royalties or other payments that are digital that you do not want mixed with your personal account. Silver and gold are solid and good for retirement and certainly secure if you house it in the right place.

In a tight economy, you do want to keep spending to a minimum, but don’t cut yourself off at the knees. Allow enough for small vacations or day trips to keep you sane.

If you are thinking about crypto, I recommend XRP because of its affordability, and it is gaining momentum in value. I personally do not have crypto for religious reasons, but like everything else, it is a personal choice.

Lastly, stay on top of current trends by following sites like money.com that give you a lot of information on a lot of topics.

Have a great day!