Re-Aligning Your Budget During Covid-19
Not many people can say they’ve been through something like Covid-19 before in their lifetime. These are uncertain times that we’re living in. Every individual is faced with a myriad of decisions each day.
Whether it’s related to your career, education, or your finances, many of us have to make changes to survive these trying conditions.
Draw up a Budget
For those who don’t already have one, now is an excellent time to make a spreadsheet of all your income and expenses. This will help you to see where you can reduce your spending if you have been affected by a job loss or facing a decrease in income for a period.
Make sure to separate your fixed expenses and the variable costs. It’s essential to detail these under different sub-headings because usually, variable costs can be decreased significantly if needed.
Make Contact With Financial Institutions
Many banks and other lending facilities are accommodating where they’re able to be. Don’t be afraid to make a call or drop them an email concerning your situation. If you’ve been negatively affected by Covid-19, many institutions are offering payment holidays or reduced interest rates.
You must make contact with the relevant person if you’re having trouble with repayments. You must not fail to make a payment arrangement or neglect to make contact. This can be seen as mismanagement from your side.
Don’t Be Hasty to Cancel Insurance Policies
Sadly, this is one of the most common mistakes people make. When they’re facing challenging times, the first thing they do is cancel insurance policies. Motor vehicle insurances and home coverages go out the window without a second thought.
Learn more about how you can keep your coverage in place. You might be surprised at how accommodating businesses can be. Remember, we’re all in this together.
Plan Your Spend for the Affected Period
If you’ve been told that you’ll earn fewer wages for a period, adjust your budget so that you’re clear on how much you have to spend on groceries each month. If you usually splash out on luxury food items, you might need to give them up while you’re on a tighter budget. Make a list and stick to what you need.
If you can keep a little bit extra aside for unexpected expenses, this can go a long way. This will also give you greater peace of mind, knowing that you have a little stashed away just in case.
Don’t Make Any Impulse Buys
Even if you have sufficient money in the bank and some savings, don’t be quick to make any impulse buys. Decide on whether you need something before spending your hard-earned money.
There are still many unknowns and a lot of uncertainty surrounding this worldwide pandemic. It makes sense to play it safe and keep some money set aside in a rainy day fund.
If you’re not used to living on a budget, it can be quite an adjustment. However, when drastic measures arise, you have to dig deep and find a way that works for you. Plan carefully so that you have enough money to get you through the near future.
It might take some time, but eventually, a new normal will find its way into our lives.
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