The coronavirus pandemic has brought with it new measures like self isolation, quarantine, lockdown, social distancing and the like, something we now call the new normal. Many will agree that it has also brought a financial crisis with it with many already having to deal with the problem of unemployment and some may still be on the chopping board ready to face the axe if the virus insists on staying. With all this happening and with none of us knowing exactly when the virus will go away, people must start learning how to live with with the virus. So how do we live with something that never even existed in the first place? I’m not sure even I have all the answers but emergency budgetting is surely one of the ways in which we can live with our new enemy. Emergency budgetting is a plan on how you are going to save your money while still spending amid an unexpected situation. So how do you go about emergency budgetting? Below are a four tips on how you can do the budgetting;
Tip 1: Figure out your current cash flow.
When doing your budget the first thing you need to do is to figure out how much have you got coming in at the moment. If you have lost your income or job don’t worry about that because there is little or nothing you can do about that at the moment focus on what is in your range like besides the income which you lost what other money inlet did you have or that you have now that is still bringing you money at the moment. You need to learn to focus on what you can control when drawing your budget.
Tip 2: Resist spending on what you do not need at the moment.
After figuring out your current cash flow you need to resist spending your money on what you are not in need of at the moment. At a time like this you should eliminate expenses you don’t need from your budget. Bars, restaurants, movie theatres are all closed, the driving of vehicles is less often and with fuel prices already dropping with the largest margins ever seen one need to eliminate such expenses from his or her list since you do not need them at least at the moment. Vacations plans should not even cross your mind at a time like this. So what I’m trying to put across is that you need to look at your budget and look for everything you can live without only for this period and cancel them out from your list.
Tip 3: Prioritize your spending on the remaining expenses.
After making sure that in your list all you have remaining is only that which you need during this period you should prioritize your spending on the remaing things in the list. Make what is really important your top priority and at the bottom of the list be the things that are equally important but not that much. While it goes without saying that things like housing and food should be your top priorities since we can’t live without food and also live without a roof over our heads. You start from the most important stuff making your way down to the least important thing while budgetting.
Tip 4: Make minimum debt payment
You need more cash coming in during this pandemic period and less going out. Paying debts will eat into your budget and thus you need to make the necessary adjustments. You need to grab your phone and call your debtor to see if you can pay less the amount you are supposed to pay or to see if you can make changes in your debt payment plan and maybe pay after this pandemic is over or stuff like that. You can even propose paying back at lower rates during this period and at higher rates after this coronavirus situation is fully contained.
While the above tips are not a must that you should follow them you should at least consider them and put some in play while drawing your emergency budget.