Has the COVID-19 pandemic shaken up your budget? I think it did for everyone! So what should you do to pandemic-proof your budget? Follow these steps to make sure your budget is strong. Especially if your income is at risk, be sure to do this immediately.
First, review your budget line-by-line. In order to make a substantial shift in your budget, you must first know your numbers. If you’re new to budgeting, now is a great time to start. I typically suggest to my clients to review their last three month’s worth of statements to understand your numbers.
Second, eliminate unnecessary costly items. A good place to start is to take a look at your subscriptions and monthly recurring charges. Could you pause these for a month? Could you reduce your subscriptions to perhaps use one instead of several? Could you try going to the library instead? Hint: it’s free!
Second, review your food costs. Did you know that food is often the most costly line item in the budget? Between buying groceries and eating out, food gets very expensive! I often spend most of my time discussing this line item with my clients and brainstorming ways to save money on groceries. My first tip is to stay out of the store. Go once per week or every other week if you can, make a list, and stick to it! You tend to spend more if you make more frequent trips, so try your best to plan ahead and stay out of the store!
Third, review your fixed expenses like your utilities and your insurance. For example, you could reduce your utility usage. Close your shades to keep the cold in and the heat out. You could turn your thermostat up a degree or two-everything helps! I also suggest reviewing your car insurance, life insurance, umbrella insurance and any other types of insurance you might have. Insurance is an area where folks often overpay. Consider working with an insurance broker that can shop several companies’ rates instead of a captive agent that works specifically for one company. You’d be surprised at how much you can save on insurance!
Your budget is your best tool to pandemic-proof your household. Know your numbers to make your budget behave. If you need help walking through this process, I’d love to help. As a money coach, I’m a budgeting expert. The pandemic won’t wait and neither should you. Ready when you are.
Mel the Money Coach $$$
Freedom Financial Coaching
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