Budgeting in Uncertain Times
Budgeting in uncertain times has many of the same basic steps you would take if you were creating a budget at any other time. Taking a close look at your personal finances and making a plan can help alleviate some of the stress around the current financial crisis.
Take a moment to look at your current finances. The first step is to figure out your starting point. Take note of what you have in savings and your current income. If your job or your partner's job may be at risk, even if you are still working currently, it is a good idea to familiarize yourself with your state's unemployment benefits. This will give you a good idea of what your adjusted income will be.
What are you spending? The second step is to figure out what your expenses are. Include all regular expenses, like rent or mortgage payments, utilities, car payments, credit card or student loan debt, and food. Less common expenses, such as fun budget items like eating out and other purchases for personal entertainment, should also be noted. Be mindful of how much you usually allot for these expenses and any changes you feel that you can make to these amounts.
Prioritize! Looking at the list of expenses that you have just created, determine what are the most important items on the list. Basic needs, like food and housing, are at the top of the priority list. The greatest cuts to your budget will be to areas that are wants and not needs.
Locate assistance resources. See what unemployment benefits or financial assistance you may be entitled to—keeping in mind that financial assistance is always a limited resource. A good starting place when trying to locate financial assistance programs is by calling 211 or going online at Link opens in a new windowhttps://www.unitedway.org/our-impact/featured-programs/2-1-1.
Save where you can. Even if your income is not impacted by economic uncertainty, it's a good idea to create a budget and create a savings plan. That way you'll be prepared for other possible disruptions in the future.
Remember this is temporary. Economic downturns may have a lasting impact on society, but things will eventually return to normal. The economy will recover. Continue to pay down debt where you can, even if payments are waived. This can help prevent trouble later.
Gaddis, A. (Revised 2024 [Ed.]). Budgeting during uncertain times (B. Schuette, Ed.). Raleigh, NC: Workplace Options.