2020 has seen many of our finances change. Even the most financially responsible amongst us may have found ourselves slipping into debt or struggling to follow the usual financial guidelines that we’ve set ourselves.

Why? Well, the coronavirus and Covid-19 pandemic has seen countless numbers of us losing our jobs, operating part time or reduced hours, or simply having to accept a lower wage. Many of our usual financial routines and plans have been completely obscured and altered with minimal notice. So, it’s extremely important that we all do our utmost to help ourselves organise our new finances as best possible. Here are a few steps that can help you to achieve this.

Budget

The first step that you need to take towards maintaining your finances effectively is to create a new budget. If any of your circumstances have changed, a new budget will help you to ensure that you always live within your means, minimising your chances of slipping into debt and struggling long term. Now, creating a new budget is easier said than done, especially in times when many of our personal circumstances are changing on a regular basis. But reorganising your financial plans and spending really is essential with each and every change. If you want to make things as easy as possible for yourself, and to make the best decisions possible, you may want to use a Financial planner. Alternatively, you can take the following steps.

Calculate Your New Disposable Income

This involves grabbing a notebook and fighting your new take home pay. All too many of us make the mistake of reading their annual salary and assuming that this is how much we have available to spend throughout the year. This isn’t the case. Instead, you need to make sure that you account for the tax and other necessary legal payments that have to  be deducted from your pay. Your take home pay is your salary once tax and other payments have been deducted. Once you know your take home pay, deduct your necessities, such as rent or mortgage payments, payments for energy bills, and essentials like grocery shopping and prescriptions. What you have left over is your disposable income. Never exceed this.

Alter Your Essentials

If your take home pay doesn’t cover your essentials, you may need to look into altering your essentials. Of course, you can’t just not eat or drink. But you can reduce this cost by buying own brand or unbranded products at the grocery store. You can’t just decide not to use energy, but you can look into switching energy providers to get a better deal. Apply this thinking to all of your essentials and you may be able to cut costs until your take home pay does cover everything you need it to.

These steps may seem pretty basic, but so few people implement them into their life of their own accord and many people are struggling financially as a result. Hopefully, having them noted down plain and clear will help you to organise your finances as best you can!