Establishing an Emergency Budget During the Coronavirus

Since reaching pandemic status, COVID-19 has proven to be a major threat to the health and safety of all Canadians. In addition to jeopardizing Canadians’ health, though, the virus has wreaked havoc on many individuals’ finances. The government’s economic response plan outlines details of support that is available to individuals following job loss and businesses that have been unable to operate. Even though this plan offers extensive support and guidance, many people are still struggling, especially financially. This is why it’s important to establish an emergency budget for the Coronavirus pandemic. The following tips will help you get started and understand the basic principles of budgeting. 

Identify Your Needs and Sources of Income 

The first step to establishing your budget is identifying your most urgent needs. In a state of emergency, expenses cannot be spared for luxuries, so you must take an inventory of the expenditures that are required to live. This can be difficult as cutting out unnecessary spending is stressful in a time that is already upsetting for so many. Doing this is the first step to creating a budget and regaining financial security. Some of the costs to consider include the following: 

• Food 

• Transportation 

• Toiletries 

• Rent or mortgage 

• Utilities 

• Insurance 

• Health care 

All of these expenses are undoubtedly required to continue living comfortably in a crisis, but if it is still a strain to afford these essentials, it is important to reach out and inquire whether additional relief is available. After you have identified your expenses, you should make efforts to reduce them. Many utility providers, for example, are suspending collection until the pandemic is over or customers have regained employment. Compare your final count of expenses with your total income and determine how much should be spent weekly and monthly on each category. 

Money Mart Can Help You Budget During COVID-19 

Money Mart is committed to helping Canadians navigate the financial impact of COVID-19. With services such as prepaid money cards, cheque cashing, payday loans, and installment loans, we have the services you need to stay in control of your finances even during a crisis. Though budgeting can help you weather the pandemic, it is a simple fact that it may not be enough. Countless people have lost their jobs, and many businesses are unable to continue operations. The economic ramifications have been devastating, but Money Mart offers resources to bridge the gap between budgeting and surviving.