Help me budget during uncertain economic times
From everyday questions to more complex problems, we’re asking the experts to lend us a hand. Throughout the series "Professional Help," we’ll hear some direct advice for Minnesotans.
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In our current economy, there is a lot of uncertainty. Tariffs are threatening to raise prices of everything from gas to groceries. And thousands have lost their job or are worried they may with federal cuts impacting state and nonprofit work.
U.S. consumer confidence plummeted last month. It was the biggest monthly decline in more than four years. And it is leading people to change their spending habits.
So how do you prepare for the unknown when it comes to your finances? We turned to get some professional help.
Our ask: What are some budget tips during uncertain economic times?
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Our professional: Kim Miller, senior program manager and financial counselor with Lutheran Social Service of Minnesota.
Use the audio player above to listen to the full conversation.
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We attempt to make transcripts for Minnesota Now available the next business day after a broadcast. When ready they will appear here.
Audio transcript
NINA MOINI: Well, it's time for the next installment of our series, Professional Help, where we ask experts to help us with anything from everyday questions to more complex problems. Today, we're talking about budgeting and financial stress. Here's Minnesota Now senior producer Aleesa Kuznetsov.
[MUSIC PLAYING]
ALEESA KUZNETSOV: In our current economy, there's a lot of uncertainty. Tariffs are threatening to raise prices of everything from gas to groceries, and thousands have lost their jobs or are worried they may, with federal cuts impacting state and nonprofit work. So how do you prepare for the unknown when it comes to your finances? We're turning to get some professional help.
[MUSIC PLAYING]
KIM MILLER: My name is Kim Miller, and I help people feel confident about their money.
ALEESA KUZNETSOV: Kim is a senior program manager with Lutheran Social Services here in Minnesota and does financial counseling.
KIM MILLER: We meet people where they're at. The biggest compliment we get is that people do not feel judged and that they feel like they are able to give steps to gain confidence. So we walk alongside people in their financial journey.
ALEESA KUZNETSOV: US consumer confidence plummeted last month. It was the biggest monthly decline in more than four years, and it's leading people to change their spending habits.
KIM MILLER: People are really just concerned with trying to reduce their overall financial stress and trying to figure out how they can juggle everything. Even for me personally, on Friday, I just felt overwhelmed. There was a lot going on at work, a lot going on just in general. I remember just sitting in a chair and being like, I don't know where to start. And I think a lot of times when we do feel those feelings of uncertainty in dealing with our money is that a lot of people just don't know where to start.
ALEESA KUZNETSOV: Even Kim, a financial counselor, has money worries. She always tells people, you are not alone.
KIM MILLER: I think a lot of times we feel like we have to do it by ourselves and by asking for help it's by somehow not a good thing to do. And so I always encourage people, reach out for support. Start normalizing money conversations with your friends and family. Also, there's an assumption that everyone assumes that we know what to do with our money, that all of a sudden you become an adult, and you are just granted this knowledge of, I know how to manage my funds. And so people come to us all the time, and they're like, I feel embarrassed because I feel like I should know this and I don't. And we all go, we've all been there.
ALEESA KUZNETSOV: So if you're feeling some financial stress, here's what Kim suggests.
KIM MILLER: The main thing that I always encourage people is that when there's times of uncertainty, what really reduces financial stress is starting to feel organized. And I know people get annoyed when I say that because it's like, I don't want to deal with it right now. And I totally understand. There's a lot of things that we cannot control right now. We can't control the price of groceries or emergencies that may pop up or when our family members get sick. But what we can control is what are some different changes that we might be able to make to free up some money to set aside for a rainy day or for emergencies to reduce that stress so that when they do pop up-- we can't time it-- that we'll have that extra money to fall back on.
If you're completely brand new to creating a spending plan or budgeting and the thought of creating one seems paralyzing, just write down maybe the last 6 to 8 purchases that you've made. By doing that activity, not only does it all of a sudden keep you mindful as to where do I find that information? Is it a banking app? Is it a different thing? Is it Venmo? Where do I find where I spend my money? So it puts you mindful. It also tells you maybe where your spending habits might lie. Within the past 6 to 8 purchases, you might realize, oh, I am spending a lot of money doing XYZ. Then you can ask yourself, what's my next step? It does not need to be a full-blown plan. You can just say, what's my next step? And then you let the momentum take over from there.
ALEESA KUZNETSOV: Once you get rolling, budget planning will look different for everyone.
KIM MILLER: I always encourage people to ask themselves what amount of money can put my mind at ease, reduce stress? Or is there a certain area in my finances that I'd like to focus on that I have motivation for? If you tell myself, an extra $300 would really give myself a peace of mind, OK, so what might be a realistic amount that I can set aside every time my paycheck comes in? Can I set aside $25? OK. So now I have an idea in mind of I want to save $25 each paycheck. What might be a change that I could make that could help me achieve that?
ALEESA KUZNETSOV: Kim says budget planning can also take some habit building, especially if it's not something you've done before. Here's an example.
KIM MILLER: A lot of times people then talk about meal planning and saving money that way. And so then it's like, OK, is there a habit that I'm already doing that I can pair meal planning to? So for me personally, it's I like to sit and relax at night, and I watch TV. What can I do at the same time? Fiddle on my phone, create some meal plans, maybe find a grocery app to make a list. And so I'm already doing something that I enjoy doing. I just pair it with a habit that's not necessarily my favorite. And voila! I have a little bit of extra money saved because I've planned some meals. I'm not rushing around. It reduces my need to do fast food or takeout when I'm feeling rushed. So those are the kind of steps of it saves you money. It also builds new habits.
ALEESA KUZNETSOV: Your finances can be really emotional. And Kim says, during an uncertain time, take a breath when feeling panicked.
KIM MILLER: That's where sometimes, unfortunately, we see people searching for options late at night on the internet. And sometimes those options may end up being a little bit predatory or not in people's best interest. And so I always encourage people, I know it feels like there are no options or that you're feeling embarrassed or ashamed. And I'm just here to tell you that we're here to support people. There's a lot of options available for you, and you don't have to pick the extreme option.
ALEESA KUZNETSOV: Managing your money doesn't come with a snap of the fingers. It takes time, habit building, and even some checking in with your emotions. But it's time that's worth it in an uncertain economy.
KIM MILLER: We set aside time for certain things. We set aside time for exercise, or we set aside time to learn to go to school, to learn different things. Managing your money may also need to be that same thing, where you set aside 15 minutes each week to focus on your money. It might be I'm going to call this place to get a refund today, or I'm going to look at my bills, or I'm going to open my mail. I call those money dates with yourself. So just set up those times each week just to check in to make sure-- and it gets easier. Anytime you build a habit, it's really awkward, and it feels weird right away. Takes up a lot of our time. But as we do it more and more, it'll become another skill set that we've learned.
ALEESA KUZNETSOV: For "Professional Help," I'm Aleesa Kuznetsov.
[MUSIC PLAYING]
NINA MOINI: Good stuff, good advice. You can hear our series called "Professional Help" every other Thursday here on Minnesota Now. Or if you missed one, find the whole collection at nprnews.org.
[MUSIC PLAYING]
ALEESA KUZNETSOV: In our current economy, there's a lot of uncertainty. Tariffs are threatening to raise prices of everything from gas to groceries, and thousands have lost their jobs or are worried they may, with federal cuts impacting state and nonprofit work. So how do you prepare for the unknown when it comes to your finances? We're turning to get some professional help.
[MUSIC PLAYING]
KIM MILLER: My name is Kim Miller, and I help people feel confident about their money.
ALEESA KUZNETSOV: Kim is a senior program manager with Lutheran Social Services here in Minnesota and does financial counseling.
KIM MILLER: We meet people where they're at. The biggest compliment we get is that people do not feel judged and that they feel like they are able to give steps to gain confidence. So we walk alongside people in their financial journey.
ALEESA KUZNETSOV: US consumer confidence plummeted last month. It was the biggest monthly decline in more than four years, and it's leading people to change their spending habits.
KIM MILLER: People are really just concerned with trying to reduce their overall financial stress and trying to figure out how they can juggle everything. Even for me personally, on Friday, I just felt overwhelmed. There was a lot going on at work, a lot going on just in general. I remember just sitting in a chair and being like, I don't know where to start. And I think a lot of times when we do feel those feelings of uncertainty in dealing with our money is that a lot of people just don't know where to start.
ALEESA KUZNETSOV: Even Kim, a financial counselor, has money worries. She always tells people, you are not alone.
KIM MILLER: I think a lot of times we feel like we have to do it by ourselves and by asking for help it's by somehow not a good thing to do. And so I always encourage people, reach out for support. Start normalizing money conversations with your friends and family. Also, there's an assumption that everyone assumes that we know what to do with our money, that all of a sudden you become an adult, and you are just granted this knowledge of, I know how to manage my funds. And so people come to us all the time, and they're like, I feel embarrassed because I feel like I should know this and I don't. And we all go, we've all been there.
ALEESA KUZNETSOV: So if you're feeling some financial stress, here's what Kim suggests.
KIM MILLER: The main thing that I always encourage people is that when there's times of uncertainty, what really reduces financial stress is starting to feel organized. And I know people get annoyed when I say that because it's like, I don't want to deal with it right now. And I totally understand. There's a lot of things that we cannot control right now. We can't control the price of groceries or emergencies that may pop up or when our family members get sick. But what we can control is what are some different changes that we might be able to make to free up some money to set aside for a rainy day or for emergencies to reduce that stress so that when they do pop up-- we can't time it-- that we'll have that extra money to fall back on.
If you're completely brand new to creating a spending plan or budgeting and the thought of creating one seems paralyzing, just write down maybe the last 6 to 8 purchases that you've made. By doing that activity, not only does it all of a sudden keep you mindful as to where do I find that information? Is it a banking app? Is it a different thing? Is it Venmo? Where do I find where I spend my money? So it puts you mindful. It also tells you maybe where your spending habits might lie. Within the past 6 to 8 purchases, you might realize, oh, I am spending a lot of money doing XYZ. Then you can ask yourself, what's my next step? It does not need to be a full-blown plan. You can just say, what's my next step? And then you let the momentum take over from there.
ALEESA KUZNETSOV: Once you get rolling, budget planning will look different for everyone.
KIM MILLER: I always encourage people to ask themselves what amount of money can put my mind at ease, reduce stress? Or is there a certain area in my finances that I'd like to focus on that I have motivation for? If you tell myself, an extra $300 would really give myself a peace of mind, OK, so what might be a realistic amount that I can set aside every time my paycheck comes in? Can I set aside $25? OK. So now I have an idea in mind of I want to save $25 each paycheck. What might be a change that I could make that could help me achieve that?
ALEESA KUZNETSOV: Kim says budget planning can also take some habit building, especially if it's not something you've done before. Here's an example.
KIM MILLER: A lot of times people then talk about meal planning and saving money that way. And so then it's like, OK, is there a habit that I'm already doing that I can pair meal planning to? So for me personally, it's I like to sit and relax at night, and I watch TV. What can I do at the same time? Fiddle on my phone, create some meal plans, maybe find a grocery app to make a list. And so I'm already doing something that I enjoy doing. I just pair it with a habit that's not necessarily my favorite. And voila! I have a little bit of extra money saved because I've planned some meals. I'm not rushing around. It reduces my need to do fast food or takeout when I'm feeling rushed. So those are the kind of steps of it saves you money. It also builds new habits.
ALEESA KUZNETSOV: Your finances can be really emotional. And Kim says, during an uncertain time, take a breath when feeling panicked.
KIM MILLER: That's where sometimes, unfortunately, we see people searching for options late at night on the internet. And sometimes those options may end up being a little bit predatory or not in people's best interest. And so I always encourage people, I know it feels like there are no options or that you're feeling embarrassed or ashamed. And I'm just here to tell you that we're here to support people. There's a lot of options available for you, and you don't have to pick the extreme option.
ALEESA KUZNETSOV: Managing your money doesn't come with a snap of the fingers. It takes time, habit building, and even some checking in with your emotions. But it's time that's worth it in an uncertain economy.
KIM MILLER: We set aside time for certain things. We set aside time for exercise, or we set aside time to learn to go to school, to learn different things. Managing your money may also need to be that same thing, where you set aside 15 minutes each week to focus on your money. It might be I'm going to call this place to get a refund today, or I'm going to look at my bills, or I'm going to open my mail. I call those money dates with yourself. So just set up those times each week just to check in to make sure-- and it gets easier. Anytime you build a habit, it's really awkward, and it feels weird right away. Takes up a lot of our time. But as we do it more and more, it'll become another skill set that we've learned.
ALEESA KUZNETSOV: For "Professional Help," I'm Aleesa Kuznetsov.
[MUSIC PLAYING]
NINA MOINI: Good stuff, good advice. You can hear our series called "Professional Help" every other Thursday here on Minnesota Now. Or if you missed one, find the whole collection at nprnews.org.
Download transcript (PDF)
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