Author: Kaitlin Schaeffer Yardley, CFP®

The uncertainty of the economy and big changes in Washington are enough to make anyone pause and take a look at their own finances.  Whether you are concerned about the direction of your investment accounts, unsure of your job stability – or just don’t know if now is the right time to splurge on a family vacation, it is always helpful to dial in on your personal budget.   The reality is that something can negatively affect your financial plan at any time.  Use these uncertain times to take control of what you can – rather than focus on what you can’t – to make your financial picture stronger than ever.

1. Track your income and expenses, for real.  Many of us are just paying the bills without formalizing how much is coming in and going out each month.  You can use a free app, or even just a simple spreadsheet, but keep your tracking system simple so you don’t get behind.  With up-to-date knowledge, you can adjust as necessary before it’s too late.
2. Cut any unnecessary expenses.  Now is the time to prioritize needs over wants.  Ask yourself, what can I live without? 
3. Reduce debt ASAP.  Don’t be afraid to seek free professional help and make a plan.  Tackle the highest interest rate first? Maybe consolidate the debt? Negotiate with creditors?  The longer you carry debt the bigger it becomes. 
4. Strengthen your emergency fund.  While you are cutting back on non-essential entertainment items, use that money to make sure you have a few months of savings set aside.   An emergency fund, never your other retirement assets, should be used if you find yourself between jobs. 
5. Set realistic goals.  Know your budget and be honest with yourself.   Set financial goals that are attainable to you, and don’t compare them with friends or family members goals. 
6. Stay flexible, adaptable, and emotionally ready.  It is easy to feel overwhelmed in uncertain times.  Maintaining a budget will help you be prepared for the unexpected and give you peace of mind to weather the storm. 

Kaitlin Yardley, CFP®, is the Chief Compliance Officer for Schaeffer Financial, LLC, a financial planning consulting firm located in suburban Washington, D.C.  She has been advising clients for over 10 years and has been teaching for the National Institute of Transition Planning since 2017.  Kaitlin is a member of the Financial Planning Association in Houston, Texas.