According to the report
released by United Way for ALICE
(ALICE is an acronym and stands for "asset limited, income constrained,
employed"), in 2019 every 1 in 2 Mississippi residents experienced financial
constraints, while a full third couldn't afford basic household necessities,
despite earning above Federal Poverty Level - and were thus unable to qualify
for government assistance.
And this was before the Covid-19 pandemic hit and brought
with it the worst economic recession since 2008. It's not far-fetched to assume
that during the pandemic, the financial situation of those who experienced
financial constraints moved closer to those who were in dire need.
If you fall in the ALICE category - i.e. earn too much to
qualify for assistance, yet not enough to comfortably cover all necessary
expenses, making ends meet in Mississippi will require reorganizing the way you
manage your money.
Here are 6 tips you could utilize to improve your situation:
1. Know how much you earn and how much you spend down to the last cent
The first thing you need to know while reorganizing the way
you spend money is to sit down and learn what it is you're working with
exactly.
What is your actual net income, after all the mandatory
deductions? What are your expenses - and how much do you spend on each
category?
Take a good look at your bank transactions, break down the
money you spend into separate categories, such as fixed mandatory expenses,
flexible mandatory expenses, and unnecessary expenses, and start reconciling
your budget. For a lot of people there will be times when it's impossible to
stick to their budget. This may be due to unexpected bills or the loss of a
job. If you find you are struggling and need some help with your finances in
Mississippi take a look at some of the loans on
offer in Mississippi.
2. Cut all you can cut. You can add it back later if you can't live without it
If you find any non-mandatory
expenses in your transactions, do your best to cut them. Cutting cable, for
example, is a long-living tradition of cutting household expenses. In the 21st
century, we can add all the subscriptions, memberships, premium apps to the
same category.
Cut as much as you can (ex. leave just one streaming
service, say Netflix, and cancel everything else), or switch to free
alternatives where there's a possibility.
If any app/membership/subscription turns out to be too
important, you can find a way to work it back into the budget later.
3. Keep money for fixed necessary expenses separate from the rest of your budget
Keep a separate account for expenses you KNOW are there
every month and look more or less the same. Rent, utilities, mobile and
internet, even gas if you have your average spending worked out, should be kept
separately so that you don't feel the temptation to dip into that money, when
living gets tight, especially when they're a few days left before the next
paycheck rolls in.
4. Cut down on food expenses
Food is, statistically, the most likely expense line you're
overspending on. And no, we don't just mean eating out.
Grocery stores are stacked in a way to force your hand to impulse-buy
and overspend. This can be comparatively easily mitigated by shopping with a
list. But there are other ways to leave less money on the counter.
Go to cheap stores that carry a lot of generics to swap out
the name brands (like Aldi). Stock up on
expensive items like meat and fish, as well as nonperishables when handy deals
come in - they can last for a long time in the freezer/pantry for several
months.
Check the options for bulk
buying. Getting a Costco membership might be worth it if you're in Jackson
metropolitan area (there's one in Ridgeland).
And, most importantly, don't fall under the sway of sales
and get too many perishables you can't store for long. Food waste might eat
through your paycheck even faster. Figure out your staples and keep the rest
under control.
5. Find someone to share your expenses with
This can go for the littlest things, like sharing a Netflix
password or Costco membership card with someone to moving to a cheaper
apartment with a(nother) roommate.
Cutting your rent and utilities even by a third could
relieve a lot of financial strain, but we understand it may not be possible due
to a variety of reasons. That doesn't mean there's nothing you can share. And
even a few dollars could mean a lot when you're trying to make ends meet.
6. DON'T skip out on insurance
When you're pinching pennies, insurance might seem like a
burden instead of a boon. Indeed, canceling insurance is almost as honored a
practice of cutting expenses as cutting cable.
Don't do this!!!
At the very least, having somewhat sufficient health
insurance, homeowners/renter's insurance, and car insurance (if you're a
vehicle owner) is a must if you want to keep your head above water.
No matter how useless it may seem now when you can't see any
grave problems either with your health, car, or apartment on the horizon,
cutting insurance is inviting trouble.
Because if something dire does happen, it could very well
pull you down and drain your finances very fast.
If you can pinch pennies to make ends meet, keep pinching
with insurance in mind.
