Do you regularly use a budget? That’s great. But chances are that during tough times you’re going to need to create an emergency version.
Whether it’s a personal crisis, a financial speed bump, a pandemic or global recession, getting through financial hardship requires careful planning. For some, crisis planning is all about stripping your budget down to just the essentials. For others, it’s more about really prioritising where your dollars go.
Whatever circumstance you may be facing, your budget is likely made up of three components: expenses, savings and money left over. In dire times, there may be little or no left over cash, so focus in reducing expenses where you can.
- Clean up your subscriptions – do you need 3 streaming services?
- Manage your debt – how’s that mortgage rate looking? Is it possible to move to a lower rate? Can you consolidate high interest rate debt into a loan with a lower rate?
- Prioritise your wants and needs – do you need takeaways twice a week?
- Look for ways to save – when did you last compare energy providers?
Here’s some more savings hacks to help keep expenses low and those ‘rainy day’ funds steady and ready for tougher times.