Strategies for How to Budget for the New Normal

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It has now been many months since COVID-19 arrived and changed the daily lives of people for the time being. All through these months, people have been finding ways to adjust to the circumstance as best they can. And one area that should not be ignored is our finances.  

You may be pondering about the best ways to save money during this pandemic. If your finances are feeling a hit from COVID19, it is important to take action and make a plan now. As you look toward the future, take into account these tips for budgeting and saving money during the COVID pandemic and the new normal.  

Take a financial inventory of your past & present situation: 

Before you make your plan to save money, you must outline what the new normal seems like for you. It is going to be a little different for everybody.  

In the last few months, several places all through Canada have moved through different types of restrictions. Now, businesses are reopening with specific health and safety guidelines, often requiring clients to put on masks & stay physically distant.  

Outside of these public circumstances, take into consideration what your life specifically looks like now. Are you working from home? Were you furloughed or laid off? Are you getting unemployment benefits? If so, how long will that last? What is the status of your health care/health insurance plan?  

You can start to take a financial inventory of your previous & present situation by asking yourself these questions. This will help you to roadmap the next several months ahead as you plan for your future and assess your needs during that time.  

Create a new budget: 

Canadians are no strangers to budgeting. But because of the unique nature of the COVID-19, it is probable that your budget needs to change as a result. Taking your personal inventory into account, you should create a new budget. This is especially critical if you are facing a change in income.  

Discover new opportunities to save money: 

As you look at creating a new budget for yourself, you may find new possibilities to save money as a direct outcome of the pandemic. You may find that you are able to cut down on expenses in particular areas and redirect that money towards more crucial expenditures such as rent or utilities.  

Maybe your weekly dinner date with your spouse or children is on pause. Or you are not able to make use of your gym membership right now. Or maybe, since you are working at home, you are not driving 50 miles round-trip to the office and filling up your fuel tank one time a week anymore.  

These savings are somewhat spontaneous. And it may be useful to put at least some of these savings toward developing an emergency fund if you are capable of covering other expenses.  
 

Disclaimer: The information in this commentary is for informational purposes only and is not meant to be personalized investment advice. Please contact your investment professional for investment advice and before investing in any product. ACPI does not publish market research and Sunil Chugh is not registered as a research analyst. The content is from sources believed to be accurate and the opinions expressed are those of the author and do not necessarily represent those of ACPI

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