Tools to Take Control of Your Finances In An Uncertain Time

|Fact: A 2018 survey by the Federal Reserve indicated 40% of Americans would not be able to cover a $400 emergency. In Canada, household debt rose in the first quarter as the COVID-19 pandemic began to take hold of the economy.

Statistics Canada reported that household credit market debt as a proportion of household disposable income rose to 176.9 per cent from 175.6 per cent. In other words, there was $1.77 in credit market debt for every dollar of household disposable income.

There is no doubt that the pandemic that we are currently experiencing is having an enormous and potentially devastating impacts on economies and individual household finances across the globe. The domino-effect of financial stress can be felt deeply in our emotional and mental health by decreasing feelings of self-worth and increasing a sense of hopelessness.

In a situation that may seem dire, there are tools and steps we can each take to take control of our finances which can improve our overall health and well-being, as well. Continue reading to discover free financial tools and tips to guide you in this uncertain time.
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Please note: This article does not contain financial, healthcare or therapeutic advice. If you are concerned about your health or well-being, speak with a health professional or visit your nearest medical facility in an emergency. This  is a collaborative article.

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Tools to Take Control of Your Finances
​In An Uncertain Time

Taking control of your finances (especially if you're just getting started) can feel messy and overwhelming. It can be easy to make the intention to get started and realize you don't even know where to start and so you have given up before you have even started! If this is you, trust me, you are not alone! 

There was a time when I was very content not knowing what was happening with my expenses. I had enough money to live and a credit card to keep everything afloat, so everything was all good. Right? When I actually sat down and took a long, hard look at where my fiances were actually at, it was a pretty rough realization that actually things weren't alright.

The impact that my finances were having on my mental health was also an important part of finally setting the intention and making steps towards taking control of my finances. I want to share a few of the crucial steps and tools that I have used over the past few years that have helped me, and that might be helpful for you, especially in such an uncertain economic and financial time.

Expense & Budget Tracker

One of the very first steps I took was to write down all of my recurring expenses, including any debts that I had. I used a simple excel spreadsheet but there are budget trackers you can access, as well. Personal finance is just that - personal! So finding the tools that work well for you is important.

Another interesting way to budget is to create a yearly budget. This might seem overwhelming, especially if this is your first time creating a budget, but it can be helpful to project how much you will spend in each category based on your income in the future.
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Once you have your expenses, debts, and income written out, it can be easier to understand your cash flow and work on areas that might need a bit of trimming (for example, the grocery budget), look for ways of lowering expenses or canceling subscriptions.

Having the knowledge of what's actually happening with your finances can help you to create goals. Consider your 'why' in wanting to take control of your finances. If you are feeling hopeless about your situation, what would it mean to consider yourself financially free? 

Track Net Worth

A great motivator for staying on track with your financial goals is to track your net worth. Your net worth is really everything you own of significance (your assets) minus what you owe in debts (your liabilities). Assets include cash and investments, your home and other real estate, cars or anything else of value you own.

​This net worth calculator calculator allows you to quickly understand your current financial condition. Whereas income and expense statements may show the flow of money over time, this calculator will show what your status is at a specific point in time.

​You can reuse this calculator periodically to see how your net worth has changed over time. Start at the top and work your way down the worksheet entering your assets and liabilities in each of the six sections. Once you have completed you can generate a printable report that you can use to compare against other dates.

​If you are working on paying off debt, or increasing your savings or investments, watching your net worth creep up month-over-month can  be a huge moral booster. It can also be important to remember the context while you are making your calculations. During a pandemic, your net worth might not increase very much, it's okay and completely understandable.

Debt Repayment

A huge part of the feelings of stress and overwhelm for me as I was starting to take control of my own finances was trying to understand my debt repayment. It can be very confusing to understand interest payments, how does compound interest work, and what is the best way to tackle debt. 

Keep it simple by using a debt payoff calculator and if you have more than one debt, consider what method of paying off these debts could work best for you. For example, the debt snowball (listing your debts from smallest to largest, paying off the smallest debt first and putting that payment towards the next smallest, and so on), or the debt avalanche (paying off the debt with the highest interest rate first). Side hustles also  helped me pay off debts even quicker!

I have to admit that I didn't find success and the tools that worked best for me on my own. I watched countless hours of finance vloggers who shared their best tips, tricks, and ideas and applied what made sense to me. It has been at times frustrating and tearful, yet an extraordinary time of understanding more about myself and growth.

A few podcasts and YouTubers that helped me along the way:
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• Money Nerds Podcast: Debt Payoff Strategies
• The Financial Diet: 8 Things Wealthy People Do Differently
• Dave Ramsey: How Do I Pay Off My Student Loan Debt AND Save Money?
• One Big Happy Life: 6 Simple Money Tips to Improve Your Finances Today

​It was a scary decision to take that first step into a deep dive of my finances, but as I continue along my own journey, I am so very grateful for having the courage to get started. The aforementioned resources helped me immensely at the beginning of my journey, and I am sincerely hopeful that they will also provide you with hope and tools as you continue along your own financial journey.​

Best of luck and feel free to drop a comment below about your own personal finance journey and share your favourite financial tools or vloggers!

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Related resources:

Willful: Online wills made easy - customized estate planning for your family.

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