Like many of us, these last 9 weeks have been the hardest ones ever due to a stay-at-home order. Not because of the stay-at-home per se, but the financial situation. Trying to live on one or no income is the scariest thing possible. But, this could be a good opportunity to start using simple tricks to help your finances from home.
If you are one of the lucky ones to be working from home now and have no need to commute, You can start by putting those extra dollars in your savings account.
Consider adding these Simple Ways To Help With Your Finances 3 tasks that will help you change your financial situation.
Basic Financial Planning
Start by listing your priorities, creating a budget, thinking about making a debt-repayment plan, and trying to establish an emergency fund. This can be the hardest part.
1 Create a Budget
It doesn’t matter if you already have one, This is the perfect time to give your budget update and take a better look at your spending habits. If you have already experienced a loss of income, It’s a must to adjust your budgeted spending accordingly. Money may be tight going forward, so saving wherever possible will only help you in the future.
2. Debt Repayment Plan
Thinking beyond your credit card debt, if you have any high-interest debt something like a personal loan, Ect, and your income still consider in good condition, think about paying off or making some extra payments to that debt now, even if this could mean a small financial squeeze in the short-term, of course, only if you are able.
Think that if something happens due to the circumstances we are living in right now and your income gets affected (you or your partner lose your job or your job hours gets cut), you may not be able to make your payments on time to reduce this debt. This debt/loan will continue to accumulate its interest. By the time you are able to make payments again, it may be possible that the amount you owe may be much higher than you expect. Paying down that debt as much as possible now—even if you can’t pay it off entirely—can help you down the line.
If you don’t already have an emergency fund, now’s the time to make one. With so many common sources of spending currently unavailable think travel, eating out, and entertainment. If you have part of your income set aside for non-essential spending, consider marking it for emergencies instead. Any amount you can tuck aside now specifically to help support you and your household during an emergency will help you later. Household spending is likely to climb once businesses begin reopening, so plan accordingly.