Life as we know it came to a grinding halt because of the COVID-19 pandemic. A lot of people became conscious of their health and most businesses are coping with major economic uncertainty as they are forced to close or leading to retrenchment.
But now things are slowly starting to open back up again, this is also a good time to take a fresh look at your financial situation. Here are the 4 R’s that will help you do that:
Rework your Budget
A lot of businesses experienced low incomes during the previous months which resulted in making big reductions in spending. The key here is to make sure you’ve looked at the numbers and take your spending seriously so that you won’t exceed your income. It is time to revisit your budget and make adjustments as much as you need to. Consider all types of situations and take into account the uncertainty of the moment.
Remember that you can work with a professional bookkeeper or advisor while doing this so they can guide you to make better decisions to keep your business finances intact.
Rebuilding Your Emergency Fund
If there’s one thing the pandemic has taught us, it is that we need to be prepared for whatever life throws our way. Rebuild your savings will be one of your top budget priorities to avoid getting caught off guard if something goes wrong again. Keep your spending as low as possible to have enough cash reserve that can cover three to six months of expenses.
One of the better options is to open a high-yield savings account and budget in contributions every single time you get a paycheck so you can build your emergency fund as soon as possible.
Reset Up Debt Paydown
If you acquired some debts during this crisis, highly assess your financial status as quickly as possible because you definitely don’t want to be stuck paying your debts for more years to come.
Always set up your goal when do you want to get your debt paid off then focus on paying one debt at a time. Make automated payments and build this into your budget after covering other essentials and emergency savings.
Reconsider Your Long-Term Financial Goals
A lot of things have changed in the last few months. Now that things are slowly straightening out again, it’s a good time to reconsider your long-term financial goals. Reflect your priorities and set things that more matter to you. Determine whether your budget can shore up your new long-term goals, if not then it’s time to reshape it.
If you need bookkeeping and tax services support, let the FAS Bookkeeping and Services help! You can contact us today at firstname.lastname@example.org or 713-855-8035.