Empowered Life Empowering The Filipino
These days, it seems impossible to be productive and think about anything other than the unbearable heat and the global health crisis. You may feel like your life is out of control, with the influx of distressing news and the lifestyle adjustments you have to make as we face the new normal.
Don’t let your fear get in the way. Take back control of your life and start making the right choices – beginning with wise budgeting. Here’s how:
Assess your current financial situation
Start with your income and savings. Determine your new baseline for income, factoring in any changes in your salary. Ideally, you would have saved around 3-6 months worth of expenses. Use this emergency fund to supplement your income and cover your expenses.
Categorize your expenses
Track your expenses to have a better understanding of your spending. Each expense must have a category.
Fixed expenses include necessities such as housing, food, utilities, and insurance. The rest will fall under variable expenses (e.g. shopping, entertainment), and irregular expenses.
Learn how to prioritize
It’s important to preserve your income and savings especially in the face of a pandemic. Reduce your spending and cut out optional expenses like beauty treatments, electronics, and clothing. Keep variable expenses low while staying at home by avoiding unnecessary spending like ordering food for delivery or on non-essential subscriptions.
Review your spending
Take advantage of payment extensions for rent and utility. Know your options for suspending credit card payments or reducing the interest rate.
Invest your surplus savings
Being in home quarantine means you get to save on costs like transport. Set these aside and put them into liquid funds. Opt for low-risk investments like money market funds and bond funds.
Budgeting is crucial in preparing you and your family for emergencies. In times of unprecedented crisis, you need to think ahead so you can sustain your day-to-day living. Together, we can overcome this crisis by being ready for changes and adjusting accordingly.
Keep safe and healthy, everyone!
