Family Budgeting During the Covid-19 Pandemic

The Pandemic has brought nations, corporations, and business to their knees. People have lost their jobs; others have faced pay cuts. This has forced individuals to survive on their savings and while others are in deep debt because of personal loan no collateral.

Governments have even tried to provide stimulus packages to their citizens to cushion them. But, the packages are not enough since the Pandemic has led nations into economic recession.

In the Philippines, economists have predicted the country will suffer the first recession in 29 years. They even stated the economy is expected to bounce back in 2023. Which begs the question, how will you and your family survive amid the Pandemic? This is why your family needs to budget to survive the virus woes.

How to manage your finances during the Covid-19 crisis   

There are various ways one can manage the family finances amid the Pandemic. Here are some smart moves to make to remain afloat.

  1. Divide your expenses into categories

Divide all your expenses into two types: Variable and Fixed. Classifying your monthly expenses helps you to eliminate unnecessary bills. Plus, you’ll know your family’s financial standing and budget accordingly. Let’s see how the classification works.

  • Fixed

This refers to expenses that occur every month without any delays and have to be sorted immediately. Some of them include amortization or rent, loan, water, internet, and electricity bills. Other expenses are Bank fees, Mortgages, Property tax, Strata fee, or Condo fee.

  • Variables 

However, when it comes to variable expenses, one spends less or more of their monthly budgets to pay the bills. The expenses are groceries, fuel, online subscriptions, clothing and shoes, lottery, work lunches, daycare, and sports.

Once you have identified the expenses, it’s time to cut down on them; there are certain goods and services your family can survive without for some time. We call them luxuries or unnecessary products. This is what we recommend you cut down on to ensure your family remains afloat.

  1. Review your expenses 

Before sharing your expenses, you should make a list. Budgeting is an essential part when it comes to cutting down on expenses. Therefore grab a pen and paper and list down every expense. This helps to figure out your monthly expenditure and plan accordingly.

For example, if you realize the list contains some unnecessary products remove them from the list. If a family member is likely to be affected by this, call them, and explain why the products need to be forgone.

On the other hand, we would recommend talking to each family member to explain why there is a budget cut. This guarantees everyone is on the same page about the cuts, and none feels left out. As they say, a house divided shall not stand.

That said, if you find it hard to come up with a list of the expenditure, here is how to organize your list to ensure every item is listed accordingly.

  • Monthly utility bills
  • Payment for mobile and internet
  • Buying clothes
  • Car Maintenance
  • Courses, coaching, training
  • Buying food
  • Medical expenses
  • Credits and loans
  1. Calculating your average income

Your income determines the kind of lifestyle you and your family will have. We all know at the end or begin of the month; you’re entitled to a salary. Even when you are self-employed, you usually pay yourself and the staff before reinvesting the business’s profits.

Hence, whether you’re a single parent or not, you need to calculate your average income. This, in turn, helps to cover all the necessary bills amid the Pandemic. Here are some of the ways to calculate the average income Pre and Post Covid-19. The easiest way to know your average income is if you get a stable salary once a month. With the pandemic, some people are lucky to still receive their salaries at the end of the month. While wages may not meet your expectations, you must survive with them until the end of the pandemic.

If you get paid 2 times a month or weekly, add up all these amounts to see your monthly income. When it comes to fluctuating wages, we recommend summing up the income earned in the last four months. Once this has been done, divide it by four to find the average. However, the average can always change if your salary is not the same as your monthly salary. So you will have to look through your budget every time to find the average income.

  1. Fantasize and economize

Savings are good to have since you never know when it’s needed. However, you’ll need to invest part of the cash into a business. This ensures cash is generated, and there is an income flow during the Pandemic. One can invest in online business, such as stocks, lending firms such as the RoboCsash Group.

On the other hand, you still need to use the funds in moderation. If your organization wants you to work from home, do it. This helps to cut on the lunch and travel expenses that would have used up your savings.

  1. Allocate your budget

You need to budget according to your finances to guarantee all the necessities are covered. To ensure your family budget is in line with your income, sum all the expenses. Later, subtract it from the total income, and if the answer is above zero, then your income has covered all the expenses. Nonetheless, if the answer is beyond zero, it means you still need to scrape off some bills from the list.

For example, your monthly income is PHP 60,000, and the monthly expense is PHP 30,000. Subtract the two to get PHP 30,000, which leaves you with an extra PHP 30,000. This shows your expenses are all covered, and your family can survive with the PHP 30,000 until the next pay survives during the Pandemic.

  1. Take Advantage of Discounts

Discounts are the best when it comes to cutting costs and saving. Though in the Philippines there is no couponing being done by firms, but there are discount coupons. These are usually given by the business to entice you into buying a product or service. Therefore, take advantage of such discounts and capitalize on them to save cash amid the virus.

  1. Shared use concept

During this pandemic we all have a limited budget, so you need to cut costs. The ideal way to do this is to share some of the resources available. For example, if one of your children has a smartphone, let the other children use it one at a time. You do not need to give everyone a smartphone or tablet, so you encourage them to share one device. This will help you minimize Internet bills, as well as keep them on the Internet.

During this pandemic, we all have a limited budget, so you need to cut costs. The ideal way is to share some of the available resources. For example, if one of your children has a smartphone, let the other children use it one at a time. You do not need to give everyone a smartphone or tablet, so you encourage them to share one device. This will help you minimize Internet bills, as well as keep them on the Internet.

  1. Emergency credit aid

If you’ve tried all the measures given above and nothing seems to change, then you need RoboCash by your side. RoboCash is an online lending company that offers you loans faster and with the lowest interest rate. Plus, the loan tenure is flexible enough to ensure you have ample time to repay it.

Therefore, if you still cannot calculate the budget in a new situation and urgently need money, you can borrow from online lender.

Article by Born Realist