Budgeting During the Pandemic.

The COVID-19 pandemic has definitely made life difficult for everyone. Regardless of the socioeconomic status, this pandemic continues to sweep across the globe and cause damage in almost every aspect of our lives - physical first and foremost, as well as emotional, mental, and social, at times spiritual, and worst of all, financial. 

Aside from the health and wellbeing of millions of people, this disease has also threatened the livelihood of many - from entrepreneurs, to small and medium-sized enterprises, and even established companies and large scale industries. Many have lost their jobs, most businesses had to close temporarily, and some even had to totally cease operations or file for bankruptcy. 

During these trying times, how can we manage our money and take care of our finances? Here are some tips on budgeting during the pandemic.

Budgeting is very important, now more than ever.

Analyze Your Situation

There are three things to consider for you to be able to get a good grasp of your financial situation - your earnings, your expenses, and your savings. If you still have a steady income despite the pandemic, that's great. But if you or anyone from your household has been laid off or given a salary cut, then there's definitely a need to make adjustments to your budget.

You also need to check your savings as this can tide you over and help you with your expenses. Having a bit of money saved is good, but having saved more is better since we really have no idea as to when things will get back to normal. 

Prioritize Your Expenses

Before you check out that luxury brand lipstick or limited edition sneakers from your online shopping cart, think twice or thrice and ask yourself - "Do I really need this right now?" 

When it comes to spending, you need to prioritize the essentials first: food, utilities, housings costs, and insurance. These are your non-negotiable expenses - basic needs that you really need to spend money on month after month. 

Lee Sung Kyung in Weightlifting Fairy Kim Bok Joo (2017).

Then comes your variable expenses, or costs that can change over time. This includes your spending on gas, clothing, personal care products, travel and recreation, or even that Venti Flat White that you have to have every morning on your way to work - or so you think. Categorizing your expenses will help you determine which ones are the most important, and which ones you can do without. 

Spend Wisely

Work hard, be frugal, spend smart. 

Spending money wisely means getting the most out of your money's worth. You can do this by taking advantage of sale events, couponing (using vouchers to get discounts on products), and using cash back apps if you are purchasing online. With the cash back feature, you get back a percentage of the money you spend. Some credit cards also offer cash back programs, but be wary when using your credit card as there is a tendency to overspend when you're mindlessly swiping (or tapping) at the check-out counter. 

Jin swiping his rare Black Hyundai card.

Reduce Your Debt

Budgeting, saving money, and paying off your debts might seem impossible with the current financial situation. There is a way to work around this, only if you avoid adding more to your debts. Because of the pandemic, many companies are giving leeway to customers and helping them work around their bills by extending payment due dates and reducing interest fees. Some companies even have payment schemes to help their customers get by during these trying times. Get to know more about debt payoff here.

Without a doubt, the COVID-19 pandemic has plunged us into a whole new world of uncertainty. But with the right budget and a positive mindset, we will be able to get by. Always see the good in everything. And as the cliche goes, every cloud has a silver lining.