Understand how poverty and trauma often go hand in hand. Learning about money and budgeting are just the tip of the iceberg. “A growing body of research indicates that cognitive, emotional, and behavioral issues are associated with negative financial management behaviors,” write Bruce Ross, an assistant professor specializing in financial therapy at the University of Kentucky, and Ed Coambs, a couples counselor, in an article in the Journal of Financial Therapy. In describing the impacts of psychological trauma on financial well-being, the two men go on to say that “various traumas can leave people trying to satisfy inner and outer voids through spending money, hoarding money, or controlling through access to or limitation of money.”

video

US had shortest recession in history: Economist Mark Zandi

Moody’s Analytics Chief Economist Mark Zandi argues the economy won’t kick into full gear until it’s at the other side of the coronavirus pandemic.

The recession is officially here. According to the National Bureau of Economic Research, after an unprecedented 128-month expansion, the economy peaked in February and has been going downhill ever since.

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RECESSION OFFICIALLY STARTED IN FEBRUARY, RESEARCHERS SAY

The big question now is, how long will it last? Unfortunately, no one can be sure, as there are many variables that can affect the economy, and many of these are unknown. Remember, before the advent of COVID-19, the economy was booming, and no one anticipated that a virus would overwhelm the world. There are also known possible instabilities — political and trade tensions abroad, an unstable oil market, and the likelihood that unemployment will remain high.

And then there’s your money. It doesn’t matter if you’re one of the 43 million workers who have applied for unemployment benefits or one of the lucky ones currently employed, you still want to preserve as much of it as you can. Here are six smart tips you can use now to make sure you survive the recession and come out the other side with your money intact.

1. Revisit your investments

This current recession has probably taught you a lot about your portfolio diversification. Did you take on too much risk and watch your portfolio decline even more than the broader market? If so, how did that make you feel?

FED WARNS ECONOMIC DAMAGE FROM CORONAVIRUS PANDEMIC COULD BE ‘QUITE PERSISTENT’

If the answer is “Not very well,” you may want to reexamine and rebalance your portfolio and invest in stocks that can provide more stability. Take a look at adding some dividend stocks, because you’ll still be earning income even if the stock price is declining. Or if you want even more security, consider selling some risky investments and putting money into Certificates of Deposit (CDs).

2. Don’t panic-sell

Fact: You only lose money in the stock market when you sell. So don’t panic sell! Did you know that the average long-term return of the SP 500 is around 10%? But in order to capture that return, you need to have a long-term investing vision and plan to hold through the ups and downs. If you panic sell in times of crisis — like now — you’ll miss out if your stocks recover and reach even higher highs.

CORONAVIRUS PANDEMIC HIT HALF OF AMERICANS’ FINANCES, POLL FINDS

3. Tighten your budget

You’ve heard it again and again: When the going gets tough, toughen up and tighten your budget. There’s no better way to generate free cash than to review your expenditures and eliminate — even temporarily — items that aren’t essential.

Considering that so much of the country has been on lockdown, and restaurants, theaters, movies, sporting events, and other entertainment venues have been closed, saving money should be easier now than it is during normal times. Where have you been putting the money you’ve been saving during these stay-at-home times? If you’re not sure, create a budget to track your spending and see where you’ve been saving. Then continue cutting back in these areas once the economy opens again.

4. Apply for a home equity line of credit

If you’re still employed and have equity in your home, it may be a good time to apply for a home equity line of credit (HELOC). You generally need about 20% equity to qualify, but if you do, you’ll have a credit line with a low interest rate at your fingertips in case you ever need it.

PERSONAL LOAN VS. LINE OF CREDIT: WHICH IS BETTER FOR YOU?

Many HELOCs have a 10-year initial draw period when you’re allowed to borrow money. During this time, you’ll only need to pay interest on the money you borrow and not on the principal. After 10 years, if there’s still an outstanding balance, it will convert to a regular mortgage loan and you’ll have a set number of years (often 20) to pay it back.

5. Review your insurance policies

If you’re stranded at home and looking for constructive things to do, begin a review of your insurance policies. You may find lots of cash lurking in their nooks and crannies.

Consider raising your deductibles, which could lower your premiums substantially. Also, you may not need all the coverage you have, and perhaps you have duplicate insurance. The money you save by tweaking these policies can provide extra cash during recessions.

TOP BANKERS SAY US ECONOMY NEEDS TO REOPEN TO HELP REST OF THE WORLD

6. Invest for the recovery

Last, but definitely not least, manage your investments with at least one eye looking toward the future recovery. When the market tanks, it’s a stellar time to purchase growth stocks because they’ll be selling at a discount. Or consider adding to positions you already own, since you’re already familiar with those companies.

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The recession is a time when opportunity will be knocking, so if you don’t want to leave the door wide open, at least open it just a peep so you pick up some bargains.

The world may seem to be crumbling around you, but it’s only temporary. After all, nothing lasts forever. In times of recession, there are many ways to handle your money and generate new possibilities for now and the future. By following the above tips, you’ll be able to survive this challenging time and be prepared for the moment the economy and stock market soar again.

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Jonathan Halvorson

SAN DIEGO (KUSI) – If you wondering how you can make money during these unpredictable times, president of Wilsey Asset Management, Brent Wilsey joined Good Morning San Diego with the details on how to manage your money.

Wilsey discussed ways to make money off the volatility in the markets.

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5. Review your insurance policies

If you’re stranded at home and looking for constructive things to do, begin a review of your insurance policies. You may find lots of cash lurking in their nooks and crannies.

Consider raising your deductibles, which could lower your premiums substantially. Also, you may not need all the coverage you have, and perhaps you have duplicate insurance. The money you save by tweaking these policies can provide extra cash during recessions.

6. Invest for the recovery

Last, but definitely not least, manage your investments with at least one eye looking toward the future recovery. When the market tanks, it’s a stellar time to purchase growth stocks because they’ll be selling at a discount. Or consider adding to positions you already own, since you’re already familiar with those companies.

The recession is a time when opportunity will be knocking, so if you don’t want to leave the door wide open, at least open it just a peep so you pick up some bargains.

The world may seem to be crumbling around you, but it’s only temporary. After all, nothing lasts forever. In times of recession, there are many ways to handle your money and generate new possibilities for now and the future. By following the above tips, you’ll be able to survive this challenging time and be prepared for the moment the economy and stock market soar again.

The big question now is, how long will it last? Unfortunately, no one can be sure, as there are many variables that can affect the economy, and many of these are unknown. Remember, before the advent of COVID-19, the economy was booming, and no one anticipated that a virus would overwhelm the world. There are also known possible instabilities — political and trade tensions abroad, an unstable oil market, and the likelihood that unemployment will remain high.

Don’t miss these top money and investing features:

• The ‘Single Greatest Predictor of Future Stock Market Returns’ has a message for us from 2030
• Suze Orman: ‘You have to be crazy’ to put your money in this investment
• Money advice for men this Father’s Day: Copy how the women in your life invest
• 5 ways things are better for investors now
• Expect delays: A guide to this year’s tax season

These money and investing stories, popular with MarketWatch readers this past week, offer ideas about how to manage your financial portfolio at a time when doubts are growing about the extent to which economies can safely reopen as coronavirus cases rise.

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V, U, W or L — here’s what really matters about the shape of the economy’s recovery

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The ‘Single Greatest Predictor of Future Stock Market Returns’ has a message for us from 2030

Percentage of stock U.S. households own determines the market’s 10-year return, writes Mark Hulbert.
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The personal-finance celeb offered up some advice on what investors should be doing during the coronavirus pandemic.
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Corporate executives and directors are bullish on financial and energy stocks.
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Here’s how U.K. fund managers are investing, based on where they think inflation will go

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You support peaceful protestors. But would they approve of your investments?

More people now want their financial adviser to help them support social and political causes.
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Money advice for men this Father’s Day: Copy how the women in your life invest

Men and women have different styles of investing — and they can learn from each other.
Money advice for men this Father’s Day: Copy how the women in your life invest

5 ways things are better for investors now

There are some favorable trends, but don’t let down your guard.
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Asking a financial adviser these questions can help put your money in the right hands

Plus, questions advisers should ask about you before you fork over a dime.
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Expect delays: A guide to this year’s tax season

The Internal Revenue Service has tweaked the rules for this year’s tax season, including delays to payment deadlines and relief on some compliance measures.
Expect delays: A guide to this year’s tax season

If you’re tired of using third-party services to track your spending—either because they aren’t as useful as you thought they would be or you’re concerned about giving third-party services access to your bank account and credit cards—you can now connect your various financial accounts directly to Microsoft Excel. All you need is Microsoft’s new “Money” template.

However, there are quite a few caveats that make Microsoft’s setup potentially less practical than services like Mint or YNAB. For starters, you have to pay Microsoft to use it. That shouldn’t be a huge deal if you’re already using YNAB, but users of free finance services like Mint might not be thrilled at the idea.

The “Money in Excel” feature comes in the form of a premium template you can download only if you’re a Microsoft 365 Family or Personal subscriber; those on Microsoft 365 Enterprise accounts can’t partake. Microsoft’s cheapest subscription plan, 365 Personal, will set you back $7/mo or $70/year, which isn’t that bad given what you get (access to all the Microsoft office apps), but is still more expensive than free. And the idea of paying money to manage my money always strikes me as strange, but that’s just me.

If you’re a Microsoft 365 subscriber, visit the website for Microsoft’s “Money in Excel” premium template. There, you’ll find two options: Edit in Browser, which launches the web-based version of Excel, and Download, which you can use within your desktop or laptop’s Excel app.

Once you launch the template, you’ll get a crude-looking landing page that explains the general point of the finance-tracking spreadsheet, with a series of tabs at the bottom you’ll want to click through sequentially.

Before you begin, make sure you click that ”Enable Editing” link at the top, which will reveal your regular Excel setup—as well as a “Do you trust this add-in?” prompt on your sidebar. Provided you downloaded your file from Microsoft directly, click the option to trust the add-in.

You’ll then be asked to sign in with your Microsoft 365 account (again), thus ensuring that you can’t use this spreadsheet/add-in even if a friend sent it to you, because that’s how Microsoft rolls. You’ll next need to connect your financial accounts to Excel—helped along by Plaid.

Naturally, my import didn’t work at all. Thanks, Capital One. (When I mentioned this to Lifehacker finance queen Lisa Rowan, she noted this issue can happen with a number of different third-party finance services. Double thanks, Capital One. Get it together.)

I had better luck with my credit card accounts, however, and was able to import the information for multiple cards via my provider. All of my transactions then showed up in my spreadsheet, like so:

I was a bit bummed to see that spreadsheet’s “Snapshot” tab wasn’t working for some reason—apparently it was having trouble pulling in the months of my transactions, as the drop-down menu didn’t have any to pick from. I assume this spreadsheet is incredibly useful for an at-a-glance look at your spending habits; I really wish it worked, so I could confirm that my daily Jamba Juice habit is, in fact, a financial risk. I hope you have better luck.

Microsoft also lets you add two extra templates to your spreadsheet if you want more information about your spending habits. You can quickly calculate your entire net worth across all of your accounts—useful if you’ve connected everything to Excel—and you can scan through your spending to flag recurring purchases in case your subscriptions are getting out of control.

While you can connect accounts to Excel that aren’t directly related to your spending, such as your 401k, there’s not much Excel can do with that data. You’ll see your account balance pop up on the sidebar, but none of the spreadsheet make use of this information. That’s a bit different than other financial-tracking services you might have used, which may give you more performance metrics about your finances regardless of type.

I have noticed a few people complaining that they can’t connect multiple accounts from the same provider—your account and your spouse’s account, for example—via Excel’s setup. I wasn’t able to test this myself, as none of my friends would loan me their bank account information for the day (sigh), but it’s something worth considering before you move your financial tracking over to Excel.

Otherwise, if you’re already a Microsoft 365 subscriber, there’s no reason to not test out Microsoft’s Money setup for Excel. It’s not perfect—far from it—but I have always enjoyed the clutter-free experience of a spreadsheet versus a web app. If your financial-tracking needs aren’t great, it might be all you need (plus a pivot table or two) to get better control of your spending and budgeting.

Oh, yes, that; you’ll have to build budgets yourself in Excel’s spreadsheet, as the Money add-in strangely doesn’t include any budget-creating tools whatsoever. That seems like a pretty egregious omission to me, given that those who track their finances would probably also like some way to ensure that their spending matches up with what they planned to spend in a given month.

A budget shouldn’t be hard to set up manually (if your Snapshot tab works), but if you’re not Excel-inclined, it might feel overwhelming. I’m sure Microsoft will add the feature as it rounds out Money with new features, but it’s not there yet—and that’s kind of how I feel about the Money template in general. It’s helpful, but it’s not quite good enough to handle much analysis and tracking beyond the basics.

Shon Anderson, a certified financial planner and president at Anderson Financial Strategies, LLC, says that he and his spouse have used credit cards for years but they are really in it for the travel rewards.

“The best part is, as avid international travelers, we have been able to take advantage of bonus miles and travel rewards and have flown for free more times than we can count, including free round-trip tickets to three different continents,” Anderson tells CNBC Select.

To help cover the cost of their flights, Anderson and his spouse have used credit cards like the Barclaycard Arrival Plus® World Elite Mastercard® (this Barclays credit card offer is no longer available), the Capital One Venture Rewards Credit Card, as well as various airline cards by American Airlines, Frontier Airlines, Southwest Airlines and United Airlines.

But for those itching to travel right now, Anderson has one piece of advice before you jump on any credit card offer: “It really depends on when the bonuses are the highest — it’s worth waiting,” he says.

Before applying for a new credit card, compare any targeted offer you received with offers on the issuer’s website for that card, as well as do some research on what that same card has offered in the past to make sure you are getting the best deal.

For frequent travelers like Anderson and his spouse, a good sign-up bonus is worth taking advantage of. “Most of the time that is the biggest benefit,” he says.

Anderson suggests that after you get a new rewards credit card and the initial welcome benefits end, call your card issuer and see if you can have your annual fee waived or if you can be downgraded to a lower-cost version of your credit card without an annual fee. This way, it becomes less expensive for you to hold onto and you can keep the credit line open and not be dinged for closing an account.

“Remember, credit is kind of counterintuitive,” Anderson says. “You actually want to have a large amount of open credit compared to the monthly amount you are using. So, more cards and credit actually helps your score! Just remember, you should always pay off credit cards each month and only open one to two cards per year.”

Information about the Bank of America® Cash Rewards credit card, Capital One® Venture® Rewards Credit Card, Amazon Prime Rewards Visa Signature Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.

(Newswire.net — June 19, 2020) — Americans are spending approximately $18,000 a year on non-essentials. In fact, the average person overspends eight times a month. That’s $315.16 of unnecessary spending when you could save instead. 

Don’t flush your hard-earned money down the toilet! Instead, start learning how to manage your money. With these tips for managing your finances, you can start saving for the future.

Keep reading for the 10 tips you need for smarter savings!

1. Start Setting Goals

It’s not enough to cut spending or stash your cash in the bank. Instead, consider making a list of your goals and priorities. Giving yourself reasons to manage your finances will keep you on the right track.

For some, learning how to manage money is attached to a big expense, like a wedding ring. Maybe you want to save up for a car or vacation. Some people learn how to manage money better to get out of debt.

Think about your personal goals every time you feel the itch to spend instead of save. Your goals will keep you motivated and focused on the future. Otherwise, you might end up splurging.

Remember, unnecessary spending will only shove you off track. You’ll slow your progress down, leaving your goals further out of reach. Instead, keep that goal in sight.

Setting your long term goals will give you a reason to manage your money. 

2. Know Your Income

What’s your monthly household income? Knowing how much you’re bringing in will inform how much you can spend and how much you should save.

After all, it’s difficult to learn how to manage your money if you don’t know what’s coming in. Check your paycheck and add in any money you make from a side hustle. Then, write that number down.

Once you determine your monthly income, you can use the rest of these tips for managing your finances effectively. 

3. Track Expenses

Once you know how much you’re making, it’s easier to determine how much you can spend. 

Gather all of your expenses over the next month. Grab your receipts, bills, and try to track how much cash you spend, too. 

Then, separate all of your expenses into separate categories. Here’s a breakdown of the frivolous ways Americans spend their money each year (a lot goes to Cheetos). These categories can include:

• Travel
• Transportation (gas and car payments)
• Household expenses (including rent and utilities)
• Food (groceries and eating out)
• Entertainment
• Debts and loans
• Miscellaneous

Where are you spending the most money? Where can you start cutting costs?

Now that you know where all your money is going, you can set an informed budget for yourself. 

4. Establish a Budget

Take a look at each of the categories you set in the step above. Now that you know where you’re spending the bulk of your money, you can start managing that money.

First, set a firm budget for each category. Reduce how much you usually spend. Then, you can reserve the money you don’t spend in a savings account. 

Make sure to put your savings in a safe place. You can learn more about private family banking with Living Wealth.

Establishing an overall budget and separating that budget into categories will help you better manage your money. 

5. Motivate Yourself

Managing your personal finances can seem daunting. If you’re struggling to stick to it, give yourself a little motivation. 

First, write down your goals and keep them in a place you’ll see every day. What are you saving up for? Consider creating a vision board with photos as a reminder.

For example, if you’re saving up for a family vacation, post pictures of your destination up alongside your goals. A daily reminder of your goals will keep you motivated.

If you’re still struggling, reevaluate your plan. You might need to adjust your budget after the first month. That’s okay.

Try adjusting how much you’ll spend for each category while keeping your overall budget the same.

6. Minimize Spending

There are many ways you can avoid splurging and unnecessary spending. For example, take a look at how much money you used to spend on food each month. Did you order takeout or eat at restaurants a lot?

Instead, start cooking at home as a family. Establish a menu for the week that repeats the same ingredients for different meals. The next time you go shopping, stick to that list.

You can also cut back on subscriptions like Hulu and Netflix. Evaluate where you’re spending your money and look for ways to cut back.

7. Plan for Emergencies 

Sometimes, an emergency can derail your long-term goals. Preparing yourself for an unexpected emergency can help you learn how to manage your money, too.

In addition to your savings account, consider creating a rainy day fund. Save a little to that fund every month. 

Many people didn’t expect to lose their jobs when COVID-19 hit. Medical emergencies, funerals, and other surprises could slow your progress, too. By preparing for those financial emergencies, you can manage your money without draining your savings account. 

8. Reduce Your Debts

Do you want to get out of debt as one of your goals?

Start looking into ways to lower your interest. You might want to consolidate your loans, too. Working off even one debt can help you better manage your money. 

9. Use Cash Instead

If you want to focus on managing your finances, set your credit card aside. Instead, start using cash.

Look back at the budget you set for yourself. Giving yourself a monthly allowance in cash will help you see that budget dwindle down over time. As you start running out of cash, you’ll see how much you’re really spending each week. 

10. Remain Consistent 

Once you start using these tips for managing your personal finances, stick to it! You might even find methods that work better for you along the way. For example, many people use phone apps to track their spending.

Others use apps like Acorns to invest a little each time they spend. 

Once you find a strategy that works for your lifestyle, keep it up!

How to Manage Your Money: 10 Tips for Smart Savings

Ready to learn how to manage your money? Start putting these tips to the test! With a strong money management strategy, you can prepare for the future without worrying.

That little nest egg you save can help for a rainy day, family vacation, or the new car you’re saving for. Remember, saving a little at a time can make all the difference. 

Explore the Finance section of our blog for more helpful tips!