There are some folks out there that when COVID hit, they took a long hard look at their budget, and made sure that they were good if their income took a major hit. Meanwhile, there’s others who kept Amazon-ing like it was 2019. If you’re in the second group, the good news is it isn’t too late to budget. Here are some things to revise ASAP:
- Don’t be in denial. Logging into your credit card account and seeing a big number in red isn’t any fun, but avoiding your debt isn’t going to make it go away. To take control of your budget you’re going to have to take a long hard look at it first.
- Limit expenses. You don’t need an accounting degree to add up your monthly expenses. Just a pen and some paper. Sit down, write things out, and start getting ruthless with your cuts.Like that boujee takeout budget.
- Prioritize debt. Determine what debt you need to prioritize and what could be deferred. The people who had to learn this all on the fly after a surprise layoff would probably tell you to figure this stuff out before you have to. Look into how the federal eviction moratorium and loan payment deferrals work and what relief programs are available near you.
- Create a budget. The typical 50/30/20 budget with 50% going to needs, 30% to wants, and 20% to debt and savings doesn’t really apply for 2020. In the new normal the “wants” budget might be reallocated to the “needs” portion that you should have gone through with a fine-tooth comb. Sorry, Hulu is not a need. Adjust your budget as necessary but it’s never been more important to make sure you’ve got an “emergency fund” ready if things take a turn.
Source:LifeHacker