COVID-19 has triggered panic across the globe and hitting the economy severely. At the same time, people are juggling new challenges where finance is their main concern. Many of us have little to no savings to cover such unexpected emergencies. Therefore, if you are experiencing tough financial times or have the anticipation of salary drop, job layoff, or salary delay, then you should make an emergency budget to manage your expenses in this debilitating situation.
Here are five smart ways you can manage your expenses during corona outbreak so that you do not face any scarcity of daily needs at least for next few months:
Categorizing your day-to-day expenses according to your needs is a good way to reduce your financial stress. You need to consider the things that you have to spend money on every month to maintain a basic standard of living such as housing, utilities, food, groceries, dairy, sanitation, and so on. So, in this way you can get the estimation of the money you need to spend on necessary items.
In order to survive in this critical situation, it’s advisable to curtail the irregular expenses that you have included in your previous budget for 2020. Your emergency budget should erase the spending on luxury items. Shopping, movie, salon, gym, dining out, and outstation vacation, all should be on halt for the coming few months. This money you can save to meet the future requirement if lockdown will extend further.
Work from Home
Corona is bad, but lockdown is giving you opportunities to keep your money in your wallet. As the government has asked to work from home for some time, it saves your money that you spend on daily commutation. You can easily save hundreds of rupees while sitting at home. Also, you are getting escape from spending those extra bucks for coffee breaks, weekend parties, or dining out with friends or colleagues.
Another way to manage your expenses is avoid hoarding. The government of India has already ensured that there will be no scarcity of grocery, fruits, vegetables, and dairy products in the market so there is no need to make out of pocket expenses to hoard all these items. Buy the stuff as you do for every month and keep that extra money for contingency fund.
Opt for Health Insurance
If you still do not have health insurance then opt it now. It can save your lots of money that you may need to spend in case of any medical emergency occur during lockdown. With comprehensive health insurance plans you and your family can get protection against coronavirus or other critical diseases.
You can check the health insurance plans offered by Religare Health Insurance, a trusted brand in health insurance. It has customized plans to cater all your health care needs. From hospitalization expenses to treatment and medicine costs it covers all and gives you complete coverage.
Thus, it is a wise to prepare an emergency budget to manage your available finances to avoid getting into financial crunch in this tough situation.