7 Smart Tips for Budgeting Your Money During A Crisis
We live in tough times nowadays. The economy is on a recess. Jobs are lost. Sometimes it comes and it goes. Those who land a job these days are lucky. For others who can’t find work, they have it worse.
But, if you’re one of the fortunate then good for you. What’s not good for you is when you’re not budgeting during a global crisis. You might not feel the effect now but it will come and when it does, it will come fast and hit you hard.
Financial readiness is key. Wave a temporary goodbye to all the luxuries you have for here are simple yet effective ways on how to budget and survive for more tough times ahead.
1. Ditch your extra and unnecessary expenses
A Netflix subscription is a prime example of an unnecessary monthly expense. It might be entertaining to watch a movie and show but it’s a total waste of time. Keeping up with the latest trends in electronics and fashion is another way to waste money. Don’t buy impulsively. And avoid food deliveries. Cook from home.
2. Look for extra income opportunities
Once you’ve cut all your costly luxuries, spend your free time looking for a job and work in it. It can be menial work but as long as it gives you money then go for it. You can even opt to sell some of your homemade products online. What matters is you won’t go hungry and keep a roof above your head.
3. Make a budget plan
Do the math. How much money are you willing to spend monthly enough to survive? How much will you keep for emergencies? How much money is your aim for a monthly deposit? Once you answer all of these questions, you’ll be 10 steps ahead of surviving compared to those who mindlessly spend. Use a budgeting app. I recommend Mint.
4. Eliminate your debt and avoid future ones
Do you have an existing credit card debt? The interest rates will eat up a portion of your monthly budget. It is best to pay them all now. If you can’t do that at the moment, try to haggle your debtee for a little weight of the financial burden taken.
You can also transfer your existing credit into a creditor with lower interest rates. When you’re free from debt, prevent yourself from making new ones.
5. Minimize your bills
Cut down on your electrical and water consumption. If you have an expensive internet, now is the time to evaluate if you really need an uncapped data deal. The same goes for your network subscription.
Do you really need data on your phone? If not, then it would be wise to downgrade your plan. And pay your bills on time. Ignoring your monthly bills will only pile up making it harder to pay the sum of dues.
6. Keep up with routine maintenance
Health is wealth. Don’t scrimp on your supplements. Stay healthy and avoid being sick. Illnesses mean more bills to pay. You’ll also lose precious time being in bed when you could’ve used those moments earning cash.
This applies to your house and car as well (provided you own one or both). When a compartment needs replacement, repair, and maintenance, tend to it ASAP. Don’t wait for major problems to occur as these problems will cost more than maintenance.
7. Don’t withdraw from your savings too often
In times of crisis, savings accounts will look like a piece of your favorite food begging to be eaten. No, don’t give in to the temptation. If your monthly salary provides enough money for you to survive with a little extra for savings, stay in the budget. You should stack up on your savings for the most desperate of emergencies, not the other way around.
He who buys what he does not need, steals from himself – Swedish Proverb. So start budgeting your money now. The future is always unknown, that’s why it’s best to stay financially prepared at all times. Save and earn. Hustle hard!