Experts Believe Budgeting Holds The Key to Sail Through The Pandemic
Who would have expected a pandemic in the 21st century considering the advancemnt in the medicine field? Though we know the environment is gradually declining and human activities are the trigger behind it, the sudden outburst of infection as massively spread as COVID-19 was unforeseen. Keeping the health issues aside, one thing that kept everyone awake was money.
It’s no secret that millions of people became jobless during the past year and several businesses shut. As such, everyday financial management became a matter of survival. Even today, when things have started to look up, continuous efforts need to be made to undo the damage that’s been done.
Experts suggest that saving money can get anyone through this challenging time, and we believe them completely!
Make budgeting your priority
By prioritizing budgeting, that is, cutting down unnecessary expenses and focusing on necessities, you’ll always have enough to get through. Figuring where your cash is going and consciously deciding where it actually should go is what budgeting is all about. Over time, try to inculcate the habit of spend-yet-save and witness how that benefits your bank and your behavior.
How to budget?
It’s not that complicated. Just start following these steps:
- Start with analyzing your income before and after-tax deductions.
- Next, decide how much money you need to keep aside for saving and how much is needed for mandatory expenses (loans, rent, bills, etc.). Try to avoid excess expenses on luxuries like alcohol, theatre, or shopping.
- Start paying off debts like student loans to make progress. Then at the end of each month, subtract your liabilities (debts) from your assets (savings) to figure your net worth. Through this, you can see whether or not you’re progressing.
- You can track your expenses through a spreadsheet. Only focus on significant expenditures, not petty expenses like a valet parking tip.
- Another great tip is to use a third-party app to keep a check on your budget. Such apps usually have an alert system that will remind you when the amount you fixed is exceeding.
Why is having extra income a boon?
In uncertain times, predicting who would be at the receiving end of trouble is difficult. Anyone can lose their source of livelihood in a moment. As such, it’s only wise to have an alternative source of earning along with a full-time career.
If you’re young and professionally inexperienced, you can look for side-jobs where you get paid well, say at a dog shelter, café, or a similar avenue. Experienced people can get into part-time roles like remote consulting, allowing them to manage their time well and make some extra bucks. Remember, doing a side-job for money won’t make you a failure; it will only strengthen your experience.
Budgeting isn’t as hard as it looks. With proper research and professional guidance, you can ace it and save quite a lot. Having a comfortable money cushion not only secures your future, but also gives you confidence to make significant decisions without worrying too much about failure.
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