When a crisis like COVID-19 hits, the impact it can have on your budget and your lifestyle can be significant. A crisis budget can help you prioritize bills that need to be paid and adjust your daily spending if you have to live on a reduced income.
Focus Only On The Necessities:
- Gas for your car
Eliminate Non-Essential Expenses:
- Cable TV
- Dining out
- Gym memberships
- Movie tickets
- Expensive cell phone plan
How to Create a Crisis Budget
During a crisis such as COVID-19 you could be living on reduced income or even get laid off. We want to help you prepare. To create a crisis budget, start by identifying the bills that need to be paid to keep the things that are important to you, and the income you will have during this time to do so.
- Reach out to all utility providers, financial institutions you have loans with, and credit card companies
- Determine which bills need to be paid and which carriers are providing assistance with bills
- Determine which loan payments need to be paid and which loan payments can be deferred
- Determine the income you are going to be collecting during the crisis
- If your income is significantly reduced or you have been laid off, consider your resources:
- Government stimulus
- Emergency savings
- Try to avoid using your credit cards as your resources if possible
Having a crisis budget in place can help you be prepared financially, reduce stress you feel because of money during the crisis, and ensure your essential bills get paid.