Covid 19 has changed people’s lifestyles around the world. Aside from health issues, we also have to deal with the socioeconomic impact. Our income and livelihood are being affected by this pandemic. Mostly because of business closures that resulted in job losses. To adapt to the pandemic situation, people had to scramble for alternative income and reset their family budgets. Like many consumers, we’re still scrambling to get our finances back in order as the country recovers.
Taking a second look at family income after downsizing salary or slashing work hours can have drastic effects on our spending and lifestyle.
Before the pandemic, our income was enough to cover our basic needs and a few indulgences. Because of shortened work periods, my husband’s take-home pay was reduced during the lockdown. With that came an increase in family expenses from disinfection at home and protective gear for the family. Compared to pre-pandemic times, this is a dire situation. At this point, we’re even worried about getting sick because we can’t afford health care.
Coping with Loss of Income
The reduced take-home pay still had a huge impact on our family budget. To make ends meet, I calculated everything from credit card bills to auto expenses to groceries to utility bills down to the last centavo. Luckily we have skills fit for home-based projects and we are able to find freelance opportunities that can supplement our income. Additionally, we have a budget rule that says we should always spend less than we earn.
Financial Planning and Savings
Apart from planned and calculated expenses, our family budget now includes a savings goal. This means we’ll set aside money for the future and for medical emergencies. To do this, everyone in the family needs to take part in budgeting family funds or minimizing expenses. Including the kids in the process can make them understand the importance of saving.
Getting the most out of Our Budget
Saving money for the future is one of the smartest things you can do. Keep an eye out for discounts, freebies, and other deals that give you the most bang for your buck.
Due to the Covid 19 situation, we have had to re-calibrate our family budget to make sure we can still provide for our families. It’s the same with family budgets, though, as any changes in income or family needs have to be re-calibrated.