The coronavirus pandemic has left millions of Americans without a job. So, if you have been affected by this crisis, you should take your time to organize your finances. Take a look at this guide and learn how to tweak your budget.
If you are one of the millions of Americans that have lost their jobs due to the crisis triggered by the coronavirus pandemic, you should learn how to reorganize your budget and adapt it to your current situation.
Here's a guide that can help you organize your personal finances when unemployed. Take note of these tips!
Step 1: Apply for unemployment
Before you start reorganizing your budget, you should check if you qualify for unemployment benefits. This way you can get the exact amount of money you will count while you search for new job opportunities.
Bear in mind that the amount you receive will depend on where you live and the salary you were receiving.
Step 2: List out your expenses
In order to keep your budget real, you will need to check ALL of your expenses. Go through your latest bank account expenses, check your credit card balances and print out the statements of the last two or three months.
Once you've got all your expenses ready, you will need to identify the ones you consider essential (rent, loan payments, etc) and plan to cut those that aren't (dining out, coffee).
Step 3: Money sources
Although your income will change, you will need to make an inventory of all your money sources. Check out how much money you have in your checking account, savings account, investment portfolio, unemployment check, tenant rent, and how much you can get from other side-jobs.
Add this final amount to your budget so that you can analyze how much money you will need to cover your essential expenses for the next months.
Step 4: Lower your payments
Another important point while reorganizing your finances is to check if you can lower your payments. This means you should check if you can get mortgage and rent relief, refinance your loans or pause some payments.