Going back to work?
As the economy reopens and communities go back to work, MonsterMortgage.ca is helping people prepare their budgets. There is no denying that COVID-19 will have lasting effects on the economy and as a result, many are re-evaluating their personal finances.
Here are our Monster tips on how to do some post COVID-19 budgeting:
Step 1: Determine housing expenses
Step 2: Determine non-housing expenses
Step 3: Talk to Monster!
Before you panic, we have some advice for you! To get started with a budget, financial experts are recommending that you separate your expenses based on needs and wants, especially during uncertain times. During a financial crisis, budgeting is a little different since you don’t have the same income coming in as you normally would.
Understand your Spending Habits
It’s important to take a hard look at where you have been spending your money over the past year. They key to creating a budget is knowing where your money goes before seeing what you can do with it today. Make sure to gather your credit card and bank statements to get an idea of where you are spending money. Examining the sources of your spending can help you differentiate between the essentials and non-essentials, or the housing and non-housing costs. This way you can try eliminating the non-essential spending moving forward.
Separate the Needs and Wants
After understanding where your money is going and how you are spending it, you can get on with cutting expenses. With all the feelings of uncertainty going around, it is crucial to distinguish between your needs and wants in a crisis time and categorize your budget expenses. Cutting costs during a difficult financial situation can make things a lot less stressful. The essentials, like housing costs, need to be separated from the non-essential non-housing costs. So your mortgage payment and the new pair of jeans you bought, won’t fall under the same budgeting categories. Once you have that figured out, you’ll be able to see what you have to put aside. Try to prioritize your debt and keep it from growing.
Debt repayment should be high up on the priority repayment list when creating your budget. This is critical for maintaining a good credit score for your future. Government programs and payment deferrals are ways that can help manage the expenses and increasing debts. Calling your mortgage lender can lead to helpful payment reductions and deferrals.
If you’re new to budgeting, or just need some help being pushed in the right direction, MonsterMortgage.ca is here to help! Monster is helping people prepare their budgets as the economy begins to reopen and the community returns to work. No need to panic when you have the Monster on your side!BACK TO BLOG FEED