This is usually a term we hear in the House of Parliament when the budget is being read. Well my dear 40-Forwarders, I am sure that for many of us parliament moved into our homes because tis the season of budget cuts!
Talk about a baptism! Thanks to the pandemic, the everyday man has gotten a crash course in Budgeting 101 – Chapter 1, Budget Cuts!
Businesses came to a standstill, job losses were on the rise and pay cheques were slashed. We had no choice, budget cuts were (are) the order of the day.
No excess weight. All our “priorities” were reassessed and anything not critical and integral for survival simply got cut from the budget.
You know those things you thought you simply could not live without – budget cut!
Have you ever seen those movies where the boat starts to sink and the first thing they do is start throwing things overboard? Well, in these here times, it’s time to start getting rid of some (or all) of those things that are weighing us down financially. It’s budget cut season.
To prevent the proverbial, throwing the baby out with the bath water, start by tracking your spending. Go back and read “Can You Handle The (Financial) Truth” to understand why this is an important step. Write down your expenses and categorise them if you can. What can you give the budget cut (temporary or permanent) treatment to? Now start throwing overboard.
40-Forwarders, we must admit that this season of forced budget cuts is not all bad. How can you say such a thing Rona V.?! Bear with me and permit me to adjust your lenses and viewing positions a tad bit. How many of us have …
- Maybe for the first time, really sat down and taken an in depth look at possible waste in our lives? I’m sure you called a halt fast, quick and in a hurry. That waste got flipped to wealth.
- Took seriously the need for dedicated emergency funds/saving for a rainy day? I am sure the losses from this “flood” season has woken us up to the need for budget cuts that will be rerouted to savings.
- Have started to learn to “live below our means” (one of Dr. Lynn Richardson’s preaching points)? Those things that were cut from the budget are not even missed!
- Woken up to the reality that what Dr. Lynn has been saying is true, “One stream of income is hazardous to your wealth?” This my dears is Bible!
- Had to learn new tricks? Quite a number of us who thought we were “too old to learn” have jumped online and started learning new skills. Thank God for budget cuts!
- Taken side hustles to higher heights and deeper depths? Business budget cuts meant that your “secure job” is gone. Now what?! Definitely not time to stress, it’s time to strategise. In Jamaica we would say, “Tun yuh han mek fashion” (Translated: Try your hand at something new. Try doing something you have never done before.) The struggle (and need) is real, so my dears, take what you know and turn it into an income stream. Get your hustle on!
- In business, had to get leaner and more creative? You know how you have been meaning to get your business from Offline to Online but you simply could not find the time? Well, the season is now! Rethink your strategy. Assess your processes. By the way, have you properly documented your business – not just your accounting books? Let me throw in some quality speak here. Have you written down (in detail) what you do, how you do it, what is needed to get it done, who does it, and how all the processes interact in your business? If no, get on it. This will help you determine what can be cut from your business budget and what cannot. 40-Forward business owners, you don’t have to “close up shop”. Get leaner. Eliminate those areas of waste and improve your efficiencies. Keep that legacy going!
- Learned every productive tool on our smart devices? It is not just about selfies and playing games. It’s time for business and the first employee is in your hands! (Selah)
- Started an online business? Even with budget cuts, and may I dear say, because of budget cuts, online businesses are booming! 40-Forwarders, don’t get left behind. Get in on the action! Consider turning your years of expert experience and knowledge into money online. Do your research and get going. It is not too late! It is not over!
These last two are, in my opinion, the best things to come out of budget cuts.
- Families (and close friends) had to get together and stick together. Those things that kept us busy are either gone or are simply unaffordable. As a family, we now pray together, plan together, eat together, cry together, support each other, and have fun together! “Staycation” is now a thing!
- As individuals, between the rock and a hard place that these budget cuts have forced us, we have reached out and pressed into God more!
How is your “adjusted” perspective on budget cuts now?
Drop in the Comments what this “budget cut season” looks like for you and what specific strategic moves you have had to make. Go ahead and also SHARE this post.
Thank God I have always been brought up not to be wasteful and ALWAYS to save for a rainy. That teaching is paying off big time these days especially when I lost my job a months ago. As the pandemic looms across the world, your problems are not unique and so if people were accustomed to getting support from others, there is really no where to get support these days because everyone needs the same support too.
This has certainly forced me and others to get even more lean and creative. Doing many Do It Yourself Projects (including, hair, nails and other things that I usually pay to get done).
Lately I have learned how to bake Vegan Christmas Cakes. There might be a market for this, but for now I will use this new skill to create gifts for my families and close friends this Christmas. Thank God for this kind of gift that I am able to create with my hands and heart, as I have always felt that Christmas has become too commercialized.
I believe the pandemic also servers as a time for us to Stop and Check ourselves. The sad part of it will be if we do not gain any positive learning experiences from this period.
Budgeting is the order of the day in my house. Grocery lists, travel routes and time management are key aspects of our lives…’if it can be bought at the local market then that’s where we will get it’. If we can go to three places with one trip that’s how it is going to be.
Believe it or not with our commitment to managing our finances has come more quality time, peace of mind, fading debt and clearer vision… we are now on the hunt for a sharper pair of scissors and new lens to make even better cuts!