Managing your finances during COVID-19 might seem like an extra challenge. Whether you took a pay cut, lost your job, or resorted to online retail therapy to fill the absence of routine activities, you might be wondering how you should take care of your finances during the pandemic.
Consider these tips and tools to help you determine how you should be budgeting and what you should avoid in order to maintain your budget.
One way you can instill a small amount of financial security amidst the pandemic is by doing your research on unemployment benefits and services. If you received a pay cut, you might actually be eligible for a certain percentage of unemployment benefits. If you still have your job and pay, research your state’s unemployment benefits anyway. You’ll feel empowered by taking the initiative, and you can create a plan if you need to use your state’s unemployment services in the future.
Prioritize Food and Home Expenses
To create a detailed budget that cuts away excess expenses, focus on what you absolutely need to get by, like food, housing, and utilities. Install a budgeting app on your phone to help you find out how much you spend on essentials every month. Once you have divided your paycheck among these three areas, you can place the remaining amount in your savings.
Reduce Clutter in Your Home
Retail therapy not only reduces the amount of money that can go toward essentials, but it also clutters your home. Use this time when you cannot see friends or family to reduce clutter from your life. Clean out your closet and junk drawers, and donate items that are no longer of use to you. Find a financial abundance mantra that will help you instill values of wealth in immaterial things, which will help you clear your mind and focus on what really matters during this time.