The COVID-19 pandemic has forced many of us to change our lifestyles and adjust how we save and spend our money. Unfortunately, one of the communities that are disproportionately affected by this pandemic is the Black community. Black communities face more challenges that impact their already limited personal and shared resources and coping levels. Additionally, the Black community faces the need to make significant adjustments to their finances.
By now, you’re probably aware that the budget plan you’ve made pre-pandemic will not work well in this situation. Make proper adjustments by speaking to African-American financial advisors who understand your case to create an effective budget plan for you. When you’re working with a budget in mind, know that your system cannot be idle. Your budget plan should be able to adjust to your current lifestyle to accommodate your wants and needs.
If you haven’t done any changes to your budget plan during this global crisis, here are ways to help make necessary financial adjustments:
Tip # 1 – Develop a “new normal” money-saving strategy
Now that many establishments are closed and have stopped operations, this can help you reduce your need to spend on different services. Since you spend most of your days at home, you’ll have to start to do certain services on your own. For example, if you need to get a haircut, you will have to cut your locks yourself. This may save a couple of bucks from your expenses, which you can use for other essentials.
Since the pandemic has been here for quite a while, you’ve probably realized that some luxuries can be enjoyed within the comfort of your own home. Spend less by catching up with friends through video calls and create your meals and drinks in the kitchen. This is a better way to track your expenses and reduce your cost of living.
Tip # 2 – Re-evaluate your current debt repayment plan
The pandemic has pushed mortgage lenders and other loan companies to alter their payment plans and terms in response to this crisis. Although this has given a bit of breathing room, it is still necessary that you reassess your terms. Sometimes, these changes may affect your budget now and the coming months.
By speaking to African-American financial advisors, you will be informed of the adjustments that have been made in your plan and how you should move forward with these changes. When you have debt that needs immediate attention, your financial advisors can help you resolve this issue.
Tip # 3 – Your emergency fund should be on top of your list
Although it isn’t entirely wrong to have a little over $1,000 in your savings account, you are probably aware by now that this isn’t enough money during a crisis.
To sustain and protect you and your family, you must build an emergency fund as early as now. Keep in mind that creating an emergency fund isn’t easy at all. First, you need to create a numeric goal that would last for three months worth of expenses. Second, you need to divide the time and money you currently have now to reach that goal. And lastly, probably the most challenging part is making sure you don’t touch your emergency fund.
Although having an emergency fund is easier said than done, it’s still necessary to help you become financially secure and live with ease during a crisis.
If you want to get through your days during the pandemic with more comfort and security, it is best to make the much-needed financial changes in your lifestyle. Thinking about money can cause a lot of stress. However, when you speak to an African-American financial advisor, you can create an effective budget plan to help you get through these chaotic times. Spend time today to think of ways to improve your living by adjusting your budget to this new normal.
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