Managing your budget through difficult times

Key takeaways

  • List your essential expenses (housing, food, insurance, transportation, etc.) and your discretionary expenses (takeout meals, subscription services, clothing, etc.).
  • Match income sources to your essential expenses and see where you might trim discretionary spending.
  • Revisit your replacement plans for items – make your existing assets work for longer, even if not in ideal state.

During difficult times, you may find yourself stressed about managing your day-to-day budget, especially if you have to manage through a pay cut. Taking a few small steps to better understand your expenses and sources of income can go a long way to alleviating stress.

 

Here are a few cost-savings tips to help manage your money more effectively:

Personal

Groceries

  • Consider buying heavily used items in bulk, but don’t overdo it
  • Buy non-perishable items, such as canned goods
  • Plan ahead, so you only shop for what you need
  • Price compare store brands vs. name brands

Child Care

  • Take advantage of any support your employer offers

Transportation

  • Walk, cycle, or take public transportation (where available and safe)
  • Carpool with colleagues/friends
  • Price compare for car/bike insurance
  • Take advantage of any commuting benefits your employer offers

Utilities

Electric

  • Use energy-efficient lightbulbs
  • Unplug electronics when not in use
  • Install a programmable thermostat


Telephone

  • Consider bundling (home phone, mobile phone, internet etc.)
  • Evaluate need for landline; consider internet-based alternatives to traditional providers

Television

  • Evaluate premium services and channels
  • Call your provider to get the best rates
  • Consider streaming alternatives to traditional providers
     
Money and coins

 


It’s important to understand how you’re spending today

Once you know that, it’s much easier to make trade-off decisions and figure out ways you can adjust your budget.

You may also like:

A simple three-step approach to saving and spending

Resources available to replace lost income during a crisis

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