COVID-19 has caused a lot of things to change over the past few months, including your budget. Now that some of the uncertainty is behind us, it is a great time to take a closer look at your budget and make adjustments. Here are some things to consider when creating a budget during this time.
1. Take a Look at Your Income
Whether you have had a stable job over these past few months or you have lost your job and are receiving unemployment benefits, it is beneficial to glance over how much income you have coming in. If you have been furloughed or have lost your job due to COVID-19, it will make an impact on how much you will be able to expense per month. Take the time to sit down and write out how much you are able to spend each month based on your current income.
2. Categorize Expenses
During challenging times, many of us do our best to stick to the essentials in order to maximize our money. When you have a moment, make two categories: Essential and Discretionary. List out the items that fall into those categories as well as how much you spend on each of those items monthly. Based on the income from above and your expenses, you will be able to change the numbers to figure out what you feel comfortable spending on each item and adjust as necessary.
3. Continue to Make Minimum Debt Payments
The faster you can pay off your debt, the better. However, if you are tight on money, make at least the minimum payments so you don’t hurt your credit. Debt can feel overwhelming, but don’t get behind on your payments as it will only snowball.
4. Save Your Money
No matter what, the best choice is to save whenever you can. If you haven’t lost any income, consider putting away the money you would have normally spent on eating out or traveling. By saving, it allows you to have more money for a rainy day or in case of emergencies like COVID-19.
As we work together to get through these ever changing times, let us know how we can help! Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or visit us online at caminofcu.org for more information. We are here to help you on your financial journey.