At this point, we’re going to be in this pandemic for a while. And while the most devastating effects came early and hard for most, that doesn’t mean the hardships are close to being over. How can you financially survive the pandemic? That’s a question a lot of people have asked as record numbers of US employees were laid off or found their industries completely erased by the global crisis. While these tricks won’t immediately fix dire financial situations, it can help you prepare and be ready during a time of crisis.
Seeking advice from an experienced CPA is an important starting point for managing your finances and establishing a budget.
There are some great tips and tricks you can employ every day to help remain financially stable during the pandemic. And there’s plenty of ways to do this without panicking or hurting your life in other ways. There’s not need to strain yourself in multiple ways. But there are important steps to take.
Below are easy steps to take to help manage your finances in a sustainable way during a global health crisis like a pandemic.
Identify Survival Needs
Start by assigning what necessities you will need if the absolute worst happens. This generally means groceries, medications, shelter, and your savings or emergency funds. This doesn’t mean you need to suddenly panic buy things off the shelf, but work into your weekly budget a little extra grocery shopping for pantry essentials, have money set aside for expenses if you lose your health insurance, and know exactly what’s going on in your savings and how to access it if you need to in an emergency.
What Expenses Do You Have Monthly?
What sort of financial obligations will still hit you each month? For many people this is rent or mortgage payments, utilities, car payments, insurance payments, alimony, and debt payments. Are there any of these expenses that you can exorcise if needed? What are the fees for late payments? Make sure you’re not blindsided by these payments and know which ones you can easily put on hold if needed.
The Emergency Fund
While you may not have gone into the pandemic with an emergency fund, you can save one up for yourself. Ideally, an emergency fund will have enough for you to survive for six-months. However, that’s not often the case. Take your normally salary and monthly costs and try to have a number that can keep you comfortable for at least two months.
How can I save money on a budget?
You may think you no longer have disposable income or money to save, but there’s a lot you’re not doing right now: restaurants, movies, entertainment, shopping. Whatever you would normally be spending on this, put it in your savings.
What quick moves can I make to protect my budget?
One of the easiest things you can do right away is pick a subscription you use and cancel it. Maybe you don’t need all those streaming services or grocery delivery. Pick an expendable service and cancel the monthly payment.
Talk to your certified public accountant about your budget or talk to a financial advisor about how to get in touch with a CPA to help you with your pandemic budget.
Tax Avenger is a full-service tax and accounting firm that is committed to providing exceptional service to its clients. We offer a full complement of services from business, Individual, financial and tax consulting to accounting, and so much more. Whether you need to create a budget for your personal needs or your business, we can help. Call today for a Free Consultation.