Lessons from 2020
The year 2020 will be remembered for decades to come, for all the wrong reasons.
As if a global pandemic wasn’t bad enough, we dealt with insane politics, riots, closed businesses, murder hornets, wildfires, random explosions….you name it. It was like the “disaster of the month club”.
The overarching theme of all the bad stuff was the fact that you and I, the average Joe, had no control over these events in any way, shape or form. We could just sit and watch and wonder what’s next.
But unfortunately, that has led a lot of people to believe that there is NOTHING in their lives that they can control, and so they don’t even try. And that has led to far worse circumstances for them than necessary.
There was actually a lot of benefit to be found for some people though, at least financially speaking.
There were plenty of people who got MORE money in their pocket from unemployment than when they were working….a highly controversial thing politically, but it is what it is.
Those with student loan debt have had a moratorium on interest accrual for most of the year, and into 2021. This meant a huge opportunity to make faster progress on reducing that debt.
Some people never lost their income, got overtime pay, and extra $1800 from the government in stimulus checks.
But this attitude of helplessness has infected even many who have benefited financially. The result is wasting of a golden opportunity to build an even better financial future.
So what’s the mindset shift that is needed?
Simply this: realize that you CAN control a LOT of things in your life that really matter. And you must.
You can change your money habits and say “Never again!” to being caught unprepared in the future.
The #1 way to do that is to learn how to live on a budget….yes, a spending plan for your income. I don’t care how much or how little you make, you can control where your money goes, even when it seems like you can’t control how much you get.
A budget ensures that you…
Put food on your table before the credit card bill gets paid.
Keep a roof over your head, with lights, heat and water, so you’re able to then deal with other issues.
Can get out of debt in a defined period of time.
Can build up an emergency fund to get you through the next pandemic shutdown.
Can find some extra money to help those who are in far worse shape than you are.
A budget is simply telling your money where to go, instead of wondering where it went.
A budget isn't restrictive, unless you make it that way. It actually gives you PERMISSION to spend, because you desi