FERNWOOD FITNESS - PULSE eMagazine - Issue#14 - Flipbook - Page 46
Re-build your buffer
• Create or top-up an
emergency fund (e.g.,
suf昀椀cient for 1-3 months
of essential expenses).
• Start small: even $20/
week adds up over
the year.
• Automate your savings
if possible. Once it’s
automatic, you’re less
likely to forget.
Re-align your budget
• Update your budget to
re昀氀ect reality: income,
昀椀xed costs (rent,
utilities, mortgage),
variable spending
(food, travel, leisure).
• Allocate leftover money
to priorities: debt
reduction, savings, then
discretionary fun.
• Consider the “50-30-20”
rule as a rough guide:
50 % essentials, 30 %
wants, 20 % savings/
debt. You may adjust
based on your situation.
Step 2: Curate your reset plan
Here’s how to build a
sustainable 昀椀nancial reset:
Trim the tail
• If you still have
lingering expense
commitments
(subscriptions you
forgot to cancel, gift
packs yet to be used,
etc.), cancel or pause
what you don’t need.
• If you over-spent
during the holidays and
are carrying a balance
on high interest credit,
raise the priority on
repayment.
• Adopt what is often
called the “14-day
rule”: for non-essential
purchases ask “Do I still
want/need this in 14
days?” If yes, revisit; if
no, let it go.
Build sustainable
spending habits
• Before booking your
next holiday or big
purchase, set aside a
savings pot dedicated
to it. That way you
avoid relying on credit.
• Use the “pay yourself
昀椀rst” principle: treat
saving like a 昀椀xed cost.
• Be realistic with
discretionary spending.
The holiday period is
behind us; now the aim
is 昀椀nancial stability, not
splurge mode.
