The COVID-19 pandemic has balanced-out almost every person’s budget since the outbreak and strict lockdowns. Many Americans have lost their jobs, while others are struggling to stick to a COVID-19 budget. Even financially stable people and families have found it difficult to stay afloat during the pandemic. Following your old budget has become increasingly difficult in these unpredictable times. Overspending and being unable to save any sort of money are just a few problems Americans are experiencing.
Businessman and financial realist, Ronnie Lee’s latest book, Know Money No Problem contains some of the most essential and effective principles regarding good money management. During a crisis like this, Lee’s tips and strategies to help you budget, manage, and save money is extremely useful.
While we cannot predict when things will go back to normal. But we can prepare for building a new budget we can stick to post-pandemic. As per Mountain America Credit Union, here are a few tips to help you rebuild a post-pandemic budget:
· Don’t beat yourself up
You’ll likely have more success if you approach the issue with kindness toward yourself. No matter what shape your finances are in, there are things you can do to make it better. Start by forgiving past missteps and taking a fresh perspective. Think through what matters most to you as you assess your current money situation.
Stay optimistic—review your finances to get a realistic look at what you have, what you owe, and what you need to get by. If you co-mingle your finances with another person, do this part together. It’s easier when you can share the work as well as the reward.
· Cut back
Whatever the reason your budget has been thrown off track—lost your source of income, experienced a financial emergency, or something completely different—now is the time to arm yourself with information.
To build a budget that works, you must understand where your money is going. If your income has been drastically impacted, immediately consider expenses or subscriptions that you can pause or cancel. Then, for the next month or two, track every dollar that comes in and out of your account.
Once you know where your money is going, you’ll get a clearer picture of additional ways to cut back. Whatever you decide to cut, just remember, it’s not necessarily forever. Once you are back on track, you can opt to add your luxury spending back in as your budget allows.
· Make a game plan to pay off debt
There are many strategies to pay off debt when you don’t have to worry about cash and coronavirus anymore—especially credit cards. Whatever keeps you motivated is usually the best option for you. These two methods are probably the easiest to implement and stick to long-term. Get ready to kick your financial future into high gear!
· Find room for savings
It can be difficult to save while you’re trying to pay off debt, but it’s essential to maintain a positive savings balance. A savings account gives you a cushion in case of an emergency and can help you get closer to your financial dreams. The good news is that it doesn’t have to be a lot. The point is to build good habits!
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