These uncertain times are forcing more and more people to reconsider their finances and rewrite their household budgets.
According to the Pew Research Center in a survey conducted shortly after the start of the COVID-19 crisis, 33% of Americans lost their jobs or suffered a cut in wages or reduced working hours. Additionally, 49% said the outbreak is a major threat to their personal finances.
Whatever your situation, reviewing your budget and making certain changes can save you money and secure your financial future. Here are four ways to budget wisely.
• 1. Calculate the net result.
Calculate your basic income. Then rank the expenses according to what you need to maintain your standard of living, such as a mortgage, utilities, groceries, and insurance. Another category should include non-essential expenses. Determine if you also want to save money for savings, retirement plans, or tuition.
And, experts advise planning at least three to six months of spending for emergencies. Once you have these numbers, you can calculate what you will need on a monthly basis.
• 2. Eliminate or reduce the good guys.
If your spending is still too high or you want to save more, review discretionary spending and find ways to cut back. An easy way to save is to cancel premium TV channels, upgrade to a basic plan, or even sign up for a streaming service instead (Sling, Hulu, etc.). You can also drop your DVR option to save on the monthly bill.