- In January, I began using You Need A Budget, a budgeting program, to understand my spending habits better and expedite my debt repayment process.
- A quarter of my income was lost in March due to coronavirus and the subsequent treatment.
- When the economy is unpredictable, having a cash money helps to alleviate my worry because I know where my money is going.
There is a lot of financial uncertainty right now, affecting just about everyone. You may be anxious about your investments, even if you’re not concerned about your job or scrambling to figure out what being unemployed means.
The same is true for me. Even when things are going well for me as a freelancer, my earnings are somewhat unpredictable. Because of the coronavirus epidemic, which has affected many of my corporate customers, I’m unsure what the next several months will bring in revenue.
My gratitude for a budgeting tool has never been more tremendous. My coronavirus fears have been reduced by using this app to handle my money at this time of stress.
YNAB was the reason I began budgeting in the first place
I’m a confessed control freak, but I’ve never been a fan of budgeting. I may have been doing it wrong. I stumbled into You Need A Budget, and everything began to change.
You Need a Budget (YNAB) enables you to budget simply with the money that comes in. My freelancing income was too unpredictable to include in my budget, so this was a lifesaver.
I don’t know when my next paycheck will arrive, unlike other workers paid weekly or monthly. When a customer failed to deliver on time, it would throw off my financial plans in the past. As long as I’m using YNAB, I don’t have to worry about it. As a freelancer, I finally have a budgeting system that works for me.
YNAB’s second central principle is that every dollar has a job. Your yearly costs, including one-time ones like holidays, milestone birthdays, and vehicle registration fees, should be added up, and a portion of your monthly budget should be set aside for them. This serves as a form of emergency reserve, allowing you to prepare for the future.
I was hooked to YNAB after the free 34-day trial period. I was enthused by the prospect of knowing exactly where my money was going and prioritizing it. My financial objective for 2020 was to pay off all of my credit card debt with the program’s aid.
Prioritizing my financial well-being
I realized the coronavirus epidemic would affect my company. Clients were halting or delaying their work. I knew it would get worse. In March, my income was reduced by 25% due to the infection and reaction.
As a result, I first felt like throwing my hands in the air regarding my budget. In the end, I recognized that YNAB is now more critical than ever before.
Every time a check comes in, I go online and give each dollar a duty to accomplish. A budget helps me prioritize, even though I expect to be able to pay all of my expenditures shortly.
First, I ensure that I have enough money to cover my mortgage payments for March and April. After that, there’s health insurance, food, and gas. ; the Internet.
Before allocating funds to less critical areas, such as piano lessons (over the internet), I prioritize my spending.
Adjusting my budget in the event of a pandemic
I’ve had a budget for just three months has shown me the importance of maintaining a flexible spending plan. As a result of the current economic instability, I’ve changed my plan. Paying off my federal student loans and tax debt will be put on hold for the time being. Therefore I’ve set a zero balance objective for both accounts.
Dining out and extracurricular activities cost me almost nothing at the moment, so I decided to reallocate those dollars elsewhere. Instead, I’m using that money to ensure that I have enough money to pay my necessities for the following month (YNAB advises users to build in a buffer month). My next step is to pay off my credit card debt.
It’s more vital than ever to make wise financial choices right now. I hope that I will get through this crisis with little financial harm by being careful about what I buy. I’m able to do it because I have a budget.
Helping me reach my objectives and lessening my concern about the unpredictable future is knowing that I’m in charge of money and that I’ve budgeted for my critical costs.