Four tips for living on a Covid budget
Make a new spending plan: Has your salary changed? Are you working less hours? Are you receiving unemployment benefits? Make sure to write down your monthly income and monthly expenses and take note of how your spending patterns may have changed.
Think of different ways to find and save extra cash: Can a neighbor who is out of work help you provide reduced cost child care? Can you shop around for a cheaper phone plan? If possible, reduce retirement plan contributions, make minimum payments on credit cards just to protect your credit score, switch your credit card to a non-fee credit card, use food pantries, reduce charity donations or plan meals. In general, review your expenses to find where you can cut back on extra expenses.
Build an emergency fund: Setting any amount aside will give you some sense of support in case you need it. Start with a small amount and then increase progressively at your own pace when possible. Your tax return might give you a good start to build your emergency fund.
Bring more income: Search for on-demand jobs, such as delivery, dog walking, personal shopper, virtual customer service, bilingual translator, online teaching or sell or rent stuff you don’t use. Consider applying for benefits such as unemployment, food stamps, or cash assistance. Any of these options can bring you some temporary income that can help compensate for any lost monthly income.
Let’s work on your spending plan! Make an appointment with Bernard at bsaavedra@neighborhoodtrust.org, call (929) 465-1283 or set up an appointment here
