Budgeting for a Market Crash

Hi, I'm Chelsea. I am in my early 30's making ends meet as best as I can!

Things must be getting quite serious if DIY With Chelsea is writing about budgeting during the market crashing? Right? Not necessarily, but there are plenty of ways to better prepare yourself for a financial fall out. "DIY" wears many hats, take control of your budgeting as a whole!

The goal below is to get you thinking about what you CAN change, vs what you CANNOT change immediately like your housing costs. Let's face it, we are NOT the rich and elite. The lower to mid class are all struggling.

Download the FREE Follow Along Here: Follow Along - Budgeting In a Market Crash | DIY With Chelsea

DIY With Chelsea - Downloadable Folow Along - Budgeting for a Market Crash

Things you should already be doing:

Budgeting with yourself or your family on a piece of paper or an elaborate spreadsheet like I do: Basic + Budgeting Sheet (Sheet Only) | DIY With Chelsea
1. Keep track of ACTUAL costs of everything, keep your receipts and re-budget assuming costs will be going up.
  1. Start an album in your phones photos and snap a photo of every receipt so you don't lose!
2. Are you following the general rule: 50/30/20?
  
  50/30/20 Rule
  1. 50%: Needs - Housing, Utilities, Groceries, Transportation, Insurance, Healthcare
  2. 30%: Wants - 10% if you have student loans
  3. 20%: Savings - See below for some ideas
  4. No one talks about student loans.... they need their own category... this is about 10% of your income. Oh well, you take away 10% from your wants until you get them paid off.
    DIY With Chelsea - Downloadable Budget Sheet
Have a savings of some kind: (3-6 months' worth of income)
1. Retirement (401k) - Fidelity Investments - Retirement Plans, Investing, Brokerage, Wealth Management, Financial Planning and Advice, Online Trading
2. Robinhood - Download the app and hook up your bank!
3. Crypto - Coinbase is most popular, but look into wallets as well.
4. Bank Savings - Normal savings with low interest rates. Find one that has incentive when you open a new account!
5. Oportun / Acorns / Mint - (Apps that help you save)
6. Brokerage Acct - Vanguard is completely free to open: How to open an account | Vanguard
7. ROTH/ TRADTIONAL IRA - How to open an account | Vanguard
8. Bonds / CDs

Do you have at least these two things going? If not - It is totally fine, don't get discouraged. Following the links upstairs ^ and get yourself in a good position to understand your finances before I overload you with suggestions.

LETS GET READY TO GRUMBLE!

... yes, grumble... I hear you over there. Don't let this stress you out. It is just helpful advice.

Things you should start doing:

#1 Canceling Non-essential Subscriptions:

Make a list of all of these - Do you really need 10 streaming stations for video and audio? Don't forget Amazon Prime.... Walmart or Sam's Club Membership!

#2 Stopping Habits That Cost You:

Smoking / Drinking
Starbucks... Coffee
Snacks
Eating out for lunch @ work
Duplicate trips to the grocery store
FOMO - Is this still a thing? Fear of missing out? Sometimes it is best to say "NO."
Frivolous spending

Chelsea Reminiscing on all the Money Spent on Bad Habits

#3 Search Around for Better Car Insurance:

Each state / provider will have different costs. Play them all against eachother. You are allowed to get quotes! Progressive is best for super young drivers.. I didn't see a drop until almost 29 years old, I always had progressive.
Michigan folks - I highly recommend Lifetime Insurance Services in Macomb/Shelby Twp, MI. They might have changed to SWITCH insurance :). Great people!

#4 Turn OFF Your Lights!

Be aware of your cost per kilowatt-hours (kWh). Turn off lights / electric when not in use. Useful information on lights here: Choosing Grow Lights
Do some research for lights that cost - LESS! Switch over to LED's: https://amzn.to/3G7kp41

#5 Limit Toilet Flushing

Yes, we do this. Don't forget your sewage has both a usage cost and a cost to flush your water out... if its yellow... let it mellow... you know the drill.

#6 Home-making:

Make a weekly schedule - Save money by planning!
1. Try this: https://amzn.to/3YwLVy5
2. Activities
3. Meals
4. Appointments
  
  DIY With Chelsea's - Fridge Weekly Planner
Make a Daily Schedule
1. Purchase for $1 Here: DIY With Chelsea - Basic Daily Planner | DIY With Chelsea
  Downloadable DIY With Chelsea Daily Planner
Second-hand Thrift Shop for:
1. Home goods
2. Clothing
3. Kitchen Appliances
4. Birthday Presents
5. Christmas Presents
Start a Recipe Book Based on Family Needs
1. Use an old 3-ring binder
2. Make recipe cards out of scrap paper / index cards
3. OR print off recipes and put into binder
Plan Your Meals Around Sales and Oldest Pantry/ Freezer Items
1. Start Here: Family Meal Budget (2025)
2. Free apps that take into account your pantry expiration dates
3. Make your own excel spreadsheet for the family
  
  Grilled Meat and Bread From DIY With Chelsea's Freezer
Bring Your Own Lunch to Work!
1. Start Here: Meal Prep - Easy
2. Cut out opportunities to eat out.
  DIY With Chelsea - Buffalo Chicken Meal Prep
Start a Garden Based on Your Family's Needs
1. Start here: Garden Building 101
2. Already have your garden built? Click Here: Seed Starting on a Budget?!
  Chelsea's First Garden in Fixer Upper Home - 2017
3. Save your seeds each year
  1. Sell excess plants and seeds locally to make up for any functioning costs
  2. Use ziploc baggies or envelopes to store in a dark cool place
  3. Organize your seeds!
  4. Be a vendor with excess goods, see here: Cottage Law & Farmers Markets
  Chelsea's 2024 Seeds Saved in Plastic Bags
4. Compost Your Kitchen Scraps to save on fertilizer costs in the garden
  1. You can use the corner of your yard or an old bin
  2. Stay tuned for a lesson on compost this year with DIY With Chelsea
5. No room for a garden?
  1. Start something indoors, it doesn't have to be costly - although if you can do a grow room like I did and afford to light it year-round, it is definitely an investment that will pay-off over time. See here: Indoor Grow Room
    Chelsea With Her Homegrown Tomato Seedlings
    
    DIY With Chelsea @ Hancock MD Farmer's Market
Raise Livestock
1. Local groups on social media have exploded since the bird flu craze. Get in on one to swap chicken coop ideas!
  1. Chicken(s)
  2. Cow(s)
2. You can raise rabbits and small rodents for meat.
  
  Chelsea With Cows
Canning of Goods
1. Get yourself some second-hand canning books
2. Find second-hand canning jars
  1. Always sterilize
  2. Always have new lids
3. Salsa is easy to make at home! See here: Zesty Salsa - Water Bath Method
Homemade Breads / Baked Goods / Pizza Dough
1. Look into sourdough starter
2. Always have flour(s) and other bread ingredients on hand
3. Sell extra(s) at local farmers market for extra cash
Dehydrated Vegetables / Meats / Fruits / Dog Treats
1. Second-hand dehydrators can be as low as $20
2. You can use the summer sun to dehydrate goods
3. Dog Treats? See here: Dehydrated Turkey Bites - Dog Treats
Make Your Own Laundry Detergent
1. Ingredients to have on hand: Borax, Dish Soap, Baking Soda, Hydrogen Peroxide
  1. Martha has it covered: How to Make Homemade Laundry Detergent
2. Other options: 9 Best Homemade Laundry Detergent Recipes and Ideas
Make Your Own Cleaning Supplies:
1. Vinegar works wonders and is cheap! Are you in a pinch? You can use 1 part vinegar to 1 part water.
Make Your Own Soap / Bath Bombs / Deodorant / Lip Balm
1. This is the easiest and fun thing to do with your kids, or yourself.. if you are like me!
  1. You can buy a massive chunk from a craft store of soap and customize to your family's likings. Or you can get super creative if you have these ingredients on hand: coconut oil, shea butter, essential oils, olive oil.
  2. Bath Bombs for special occasions can make bath time fun and cheap for your kids, or yourself. Ingredients you might already have: baking soda, citric acid, epsom salt, coconut oil, olive oil, essential oils, flower petals,
  3. Deodorant / Lip Balm Ingredients you might have on hand: cocoa butter, Vitamin E, shea butter, baking soda, beeswax, almond oil, zinc oxide, essential oils.
    1. Get creative, use a mason jar to warm ingredients then pour into some sort of mold you can use to slap some DO under your armpits!
    2. Lip Balm is Easy, you can use containers or simply put into a mold and store in an airtight bag.

Have I lost anyone yet? You can obviously stop at subscriptions if you don't have the time and effort to put into the home-making, but a lot of this is your "needs" and your "needs" have become ridiculously overpriced.

Keep on checking back for DIY projects to save you some money!

~ DIY With Chelsea

Budgeting for a Market Crash

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