The scenario of a perfect life would always be to have money and not suffer any unexpected event (like all of this COVID-19 that caught us off guard).
All this that is happening made me reflect on how prepared we are to face days like these, and I realize that there are people who live thinking that nothing bad will ever happen.
Let’s think about it: are you really ready for unexpected moments?
What is the advantage of budgeting and saving for emergencies?
- It serves to keep track of your fixed expenses (rent, services, pantry).
- To not spend more than you earn.
- To find out how much your personal tastes cost.
- To make your future plans real.
- To be more orderly in your finances and, therefore, be calm.
Tips to keep your budget in “quarantine season”.
- Identify your income. By knowing how much money you have, you will know how many resources you can cover your expenses.
- Identify your expenses. Keeping a record of these will let you know where you spend your money every month.
- Organize expenses. We recommend that in this phase, you classify them into categories such as education, health, housing, among others, and also catalog them as wishes or needs.
- In case you have to buy more pantry and you cannot leave the house, get creative and improvise with what you spend on your ideal weekend. Avoid panic expenses.
- If you start earning more, try not to increase your expenses because it always happens that “the more you earn, the more you spend.” Make your budget stick.
How do I make an emergency saving?
1. Observe the total of your expenses per month. Let’s call it the supreme budget. Be reasonable, and see how you can cut expenses. So that it is not at once, gradually save from each project or fortnight, for example:
One month 5%, second 10%, third 15%, and there will be a time when it will become a habit, and you won’t find it hard.
“If you have extra income, enjoy half and save the other.”
2. Compare, subtract the total expenses from the income in order to have a balance of the current financial situation, and that way, you will be able to identify if you are doing the accounts well or not. With this exercise, you will find out if you have money left or missing at the end of each period. If you are lacking, be alert and eliminate all the expenses to supply desires.
3. If you have fixed income, add up how much it is per year, subtract your total budget for each month and what is left over is your capacity to save emergencies. 4. Invest your savings. There are tools that “hide” that money so that in the future, you can face months where you do not know if you will have a job or to buy all the antibacterial gel you want, without getting into debt.
