Career & Finance, Money • 01/05/2020

How To Stretch Your Budget During Uncertain Times

By: Miss Moraa

Photo c/o @m_d_n_f_

 

Truth is, no one envisioned that there would be a pandemic at the beginning of 2020. However, since we are all here in this uncertain situation, we can adapt to the situation instead of panicking. One such prudent way would be by starching our budgets. To do that, we need to be aware of our finances; what we have, how much we usually spend, what are the essentials and all that.

Below, we break it down to bite-sized chunks that are easily implementable.

 

Know Your Balance

To achieve this, you first need to understand your finances. This is the first step in stretching your budget. Be aware of how much you usually spend, what you have in your account and how far it can take you – all factors considered. Thereafter, you can separate your expenses into three categories;

1. Essential expenses such as rent and food,

2. Important bills like loan repayments and transport costs which can be negotiated down so that you save more for the first category, and

3. Non-essential and non-important bills e.g entertainment, fast food, new clothes etc.

 

Cut Out Unnecessary Expenses

After you have listed all your expenses under these three categories, eliminate all the amounts in the Category 3 and allocate them to Category 1. All the extra amounts of money saved from category 2 should be allocated to category 1. This way, you will have money that will ensure you have a house and food for more months.

 

Negotiate Or Downsize Amounts For Lower Utility Payments

Utility payments are essential and may not be skipped from month to month. Therefore, for electricity bills, instead of having someone in the house shower for long periods, or someone reheating food ever so often, these activities can be done in such a way there is the energy consumed is minimized.

If possible, you can negotiate with your landlord for lesser rent, with say 10-20% off the normal rate.

With mobile payments, you can find alternative wallets that charge less, for instance, Pesalink, to transfer money in order to avoid excessive payments.

 

Avoid Panic Buying

Every time there is a major announcement by the government about the pandemic, you will find that most people rush to supermarkets to stock up. The danger of this type of shopping is that it is controlled by fear.

You may find that you will spend shopping for things you do not need. Or the supplies that you buy will get spoilt. To avoid panic shopping, have a shopping list of the items that are essential such as dry foods, sanitizers, cleaning products and medications which are absolutely necessary, and only shop when you know you are about to run out.

 

Buy In Bulk

Buying in bulk helps in two ways. First, you get more for less as retailers tend to charge more for smaller portions. Second, you spend less time shopping which reduces your risk of being exposed to the pandemic.

When you buy in bulk, you are also able to achieve financial peace in knowing that you have food and essential supplies that can last you for a few weeks before the next purchase, thereby freeing up your mental space to focus on other important things.

 

There you have it. What other ways are you stretching your budget in these uncertain times?