It has been over a year since the start of the pandemic, but many are still feeling its economic effects. This is especially true for people who have lost their jobs for a significant amount of time. Making ends meet without a steady income source is a difficult feat.
The world is moving forward again, and more people are getting vaccinated. Shops are opening up. But, the risk of infection remains a looming threat. How do we make the most of our money during this time of uncertainty?
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Why is Budgeting Important?
Nobody expected a crippling pandemic to sweep the world. Our experiences this past year have taught us to always prepare. Shops may close down. Cities may enforce lockdowns. Friends and family members might fall ill.
We have been living in a constant state of anxiety over unexpected circumstances. But, budgeting is one way of exerting control over our limited resources. It helps us objectively assess our needs and movements and helps us plan for the days to come.
What You Can Do
Setting up a budget is easy enough. You write down how much you have and subtract amounts for bills and expenses. Here are some ways to make the most out of the money you have:
Write it down, no matter how small.
The concept of a budget has pretty much remained the same through the years. You start with what you have and subtract as you go according to your monthly (or weekly) needs. Usually, though, the most challenging part of budgeting is sticking to it.
One helpful budgeting tip is to write down every one of your transactions, no matter how small. It might take a while to get used to, but it’ll be second nature once you get the habit.
This way, you can get a more accurate picture of your spending habits, including your needs and wants. Having a good sense of your habits helps you make more informed decisions for future budgets.
Save up.
One way to start financial security is to build up your savings. It might not come as quickly to some, especially when your expenses eat up a significant amount. But as with budgeting, you can always start slow. You can begin by saving small amounts and build it up the longer you practice the habit.
If your income allows, you can even start by budgeting off your savings first. After this, you can then subtract for your expenses. This way, you guarantee consistent growth for your funds. Before you know it, you already have a safety net for when things get rough.
Look out for opportunities.
The pandemic has affected economies worldwide. Its devastating effects have pushed governments into providing financial aid to their citizens.
If you are struggling right now, you might want to look into some of these programs to see which ones you qualify for. There is no shame in receiving aid, especially if your income loss was no fault of your own.
Aside from receiving aid, you may want to take advantage of lower loan interest rates. Acquiring debt isn’t such a great idea, especially in a precarious financial position. But there will be times when your savings alone cannot cover emergency expenses.
It’s a good thing that online installment loans are now readily available. But, you have to make sure to do your research beforehand on the terms and conditions of each loan. It’s best to choose one with low rates and convenient payment methods.
