The COVID-19 pandemic has been a disruption to our everyday way of life. There’s almost nothing that hasn’t been changed by the virus, from conference calls in our slippers to our personal finances.
Most people have suffered financial loss during the lockdown. This may be because they have lost their job or been placed on furlough with a reduced income. But for some, this hasn’t stopped us killing spare time by spending our money.
We’ve decided to avoid long supermarket lines with costly delivery services. Amazon sales have skyrocketed too, with The Guardian reporting we are spending $11,000 each second at the e-commerce giant.
So, how can we manage our money smarter during this unprecedented period?
Make a New Monthly Budget (and stick to it!)
Every family should make a monthly budget so they can monitor their spending, but a monthly budget could be even more crucial right now. If you need help to create an effective money management budget, you can download the popular Wonga template for free.
Or if you want to go it alone, remember:
- Include all your current expenses
- Calculate your current income during COVID-19
- Update your budget as you cancel payments and buy items
- Reassess your budget as a family after the first week or two
Cancel Your Luxuries
When we are working hard every week, we deserve our luxury purchases. These items could range from a magazine subscription, TV package or something else.
But during the pandemic with a reduced income, it may be worthwhile to cancel these luxury purchases or put them on hold if possible. That will free up some extra cash for your household bills, rent or mortgage.
Cook More, Order Less
If two things are certain during lockdown, they are that the grocery line will be long and getting an online shopping delivery slot is a stellar achievement.
This has forced a lot of us to cook less and order more home food deliveries. However, the cost of these services and the food is usually more than double the cost of making them yourself. It’s much better for your bank balance to wait in the supermarket line and cook at home.
You don’t have to join the lockdown bread-making revolution, but simply cooking more can make a big difference.
Speak with Your Creditors
If you have a mortgage or owe debt, you should speak with your creditors to see what support they are offering during this period. Some governments have introduced mortgage blackouts and payment holidays on loans.
Your creditor may be doing this as well, but they are not as likely to advertise it. Discover if you can slash your outgoings during this undateable period by picking up the phone or shooting off an email.
Remember, when the chips are down there are still effective ways to budget!