Has your financial situation been impacted by the COVID-19 pandemic? If so, you are definitely not alone. Whether you have experienced a change in your job or living situation, it is easy to feel overwhelmed and unsure of what to do to improve your finances. Luckily, there are simple steps you can take to gain better control of your financial situation and make a plan for the future.
1. Know what you need to spend.
It is important to know exactly what you’re spending now so you can figure out what to cut back, save, and plan for your future. Make a list of all of your regular expenses, then determine which expenses are essential. Seeing how much you spend each month as well as how much of that is non-essential can help you feel more comfortable moving forward. This will help ensure that you know which bills must be paid each month to avoid future financial problems. It can also help you see which expenses you can cut down on or cut out completely.
2. Find ways to save.
Now that you’ve listed out your monthly expenses and determined which ones are essential, you can start finding ways to cut back and save money. An easy way to cut back is spending less on ordering takeout or delivery. Instead, make a plan when you go grocery shopping so you can buy foods you’ll be able to use to make meals for yourself and your family. You can also turn to the internet to help you learn how to repair household problems on your own instead of having to spend money on a professional. The internet can also help you develop new hobbies that can help you save money—such as learning how to sew so you can fix up your clothing instead of buying new pieces.
3. Make a financial plan for the future.
When you know what you need to spend each month and start finding ways to cut back on your current expenses, you’re not just helping your current self—you’re also helping your future self. If possible, open a new savings account where you can deposit extra income as it becomes available to you. Even if you’re only saving a little here and there, this can help you create a safety net that can get you into a better spot in the future. You should also keep track of your financial goals, whether they are getting out of debt, building your savings, or making a large purchase such as a car or house in the future. Making a plan that includes goals can help you stay motivated.
