The rapid spread of COVID-19 has left millions of our people without work or money to survive. Follow these budgeting tips to stretch a buck and even save – during a crisis or not.
Tip 1: Know Your Fixed Monthly Expenses
Knowing your monthly expenses by heart, such as rent, utilities, car note, and student loans, is an easy step toward financial stability. Follow this 1-2-3 trick:
- Determine your TOTAL monthly expenses
- Calculate your take-home earnings per month
- Subtract the monthly total from take-home earnings. What remains is your spending allowance (see Tip #3 for details).
Knowing these numbers can help prepare you for the unexpected. But what if you forget to pay?
Tip 2: Automate Your Finances
Setting up automatic payments is a great way to SAVE yourself FROM yourself. Since you already know your expenses by heart, setting up autopay can alleviate stress related to making payments. The key is to spend consciously – and automating expenses helps do that.
Tip 3: Give Yourself An Allowance
After determining your monthly expenses AND, if possible, putting money into savings, you’re left with an allowance: worry-free money to use!
To track how you’re spending it, use a personal finance app or stick to ONE credit or debit card for everything you buy. That way you can easily track spending, stick to the allowance you have, and trim waste during these hard times.
Stay safe and spend wisely!