Budgeting is never an easy task for anyone but keeping on tabs where you spent or where will you spend your money has become difficult over the past few months. The COVID-19 pandemic has taken its toll not only on everyone’s public health but on individual finances as well.
A lot of people have lost their work because of this COVID-19 pandemic, some of them lessen their work hours, and some of them were temporarily furloughed or are still out of work. To be honest, I know some of them and some of them are my friends. Because of these, many people including me is worried about what the future may bring especially with the virus still lingering, economic uncertainty remains.
Whatever our current situation right now, if you haven’t budget your finances before, I think this is the right time to do that. We need to plan and to start to evaluate and prioritize our finances and also start saving for difficult times.
There are lots of tips that you can ask google on how to improve your budget especially during this COVID-19 pandemic but let me share to you some tips that I personally started to do few months ago.
Figure out your cash flow
Like what I have told you. a lot of people was financially affected with this COVID-19 pandemic that is why your income may have changed depending on your employment status. So for me, the first thing you need to do is to figure out your cash flow. What I mean here is that you need to check where do you spend your finances. For example, you spend more on the groceries and electric bills right now because everyone is at home if your set up is work from home.
Prioritize your spending
When creating a budget, we should prioritize our spending first to our shelter especially our utility bills if you are working from home, next our food and other essentials. If you have extra, do not forget your savings and health insurance because it is very important during this times.
Needs versus wants
Before COVID-19, my mantra before was I will only live once, so if I want something even I don’t need it, I should buy it no matter what. Even If I have to spend my savings for that particular item or product. But COVID-19 happen, I started to realized I was wrong. It is true that we only live once but there is more important than buying what you wants than spending it to your important needs and savings.
Always use a calculator when creating a budget
Some of you might find this funny but this is my number one rule myself when creating a budget. Why? Because it is much easier for me (and I think for you too) if you will use a calculator to help you budget your money. I don’t need to count on my fingers or have a bubble pop up on my head to solve. If you don’t have a calculator at home, try calculator.me. I’m very sure it will be a big help to you.
Share and Help
You might be thinking that I added this on my tips. I always believe that it is better to give than to received and it is always right to share your blessings. A little help goes a long way.
With this simple tips that I share, I hope it will help you somehow. It’s not too late to start creating and planning your budget now.