7 Questions to Re-Think Your Budget Strategy During COVID-19

Published: May 4, 2020 | Posted by: Ricky Publico | Lifestyle


Budget Strategy - How to Budget During COVID-19

From wedding plans to family vacations, almost everyone had to pause their way of life due to the enhanced quarantine. It may be a good idea to spend your free time re-thinking your budget strategy and assess whether you’re ready for any unexpected COVID-19 expenses. Ask these questions and use the answers to help build a better and more flexible budget strategy.

Re-Thinking Your COVID-19 Budget Strategy

How much do I really spend every month?

Budget Strategy - expenses bacon

After at least a month of being on lockdown, you probably noticed that your expenses have lowered. You’re not spending on transportation, for one, and you’re not eating out with friends, so that’s two. List down other obsolete expenses and see if you can completely eliminate them. You’ll never know how much you’re saving until you start auditing your budget.

Read more: Financial To-Do List to Finish During the Lockdown

What expenses should I prioritize?

Budget Strategy - paying the bills

Do you have debts that need paying? Do you have bills that need settling? Do you have medical supplies that need maintaining? These are the things you should consider now that most things aren’t as accessible as they were. Choose an expense that needs prioritizing and dedicate a large portion of your budget to it. Ideally, the needs should be prioritized over wants.

Read more: Pay Bills Online with These Convenient E-Payment Services

Do I have enough source/s of income?

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Here’s another thing to consider for your COVID-19 budget strategy. If your company is allowing you to work from home, that’s great! But if you find yourself on the verge of unemployment, you need to think fast and find another source of income. Also, don’t be afraid to ask your family and friends for financial aid. You’ll need all the help you can get in these trying times.

Read more: 6 Simple Ways to Earn Money While on Lockdown

How much can I save if I cook all my meals?

Budget Strategy - cooking at home

Delivery services are a lifesaver in the COVID-19 era, but they can sometimes deplete your budget if you rely heavily on them. What if you prepare your meals yourself? After all, restaurants are already offering uncooked batches of their signature meals for cheap[1]. Take advantage of these offers and see how it can help you build a better budget strategy.

What expenses can I set aside for a later date?

Budget Strategy - delayed delivery

While the lockdown can get soul-crushing at times, it’s still not the best time to think about spending money on trivial things. Take a break from shopping online and focus on your necessities. Determine which expenses can be delayed for the meantime. This is to keep your budget lean and flexible so you can build your savings or emergency fund at home.

What services should I keep and let go?

Banking Strategy - netflix binge

How many subscription services do you have right now? Are they all essentials to your survival? Time to eliminate some services you don’t really need. Even if they are extremely cheap, these payments still add up to an amount that you can add to your savings. Do you really need three online streaming services to watch your favorite movies and TV shows? You probably don’t.

What’s my game plan for emergencies?

Budget Strategy - emergency fire

What will you do if, knock on wood, you or any of your loved ones contracted COVID-19? Even if it’s not COVID-related, you should still be prepared to address any type of emergency that could come your way. Do you have enough money on your emergency fund? Better start formulating a better budget strategy right now while you’re still financially and physically capable.

Read more: Build Your Financial Freedom: How to Start an Emergency Fund

Ultimately, there’s one important question you need to ask: “Am I happy with what I have right now?” This question is a bit personal, but answering this will help you find more incentive to continue saving money and working hard in preparation for the new normal. And if the question is “No,” then maybe it’s time to re-think your budget strategy. Now go quiz yourself!

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