Preparing Your Finances for Post Pandemic Life

If 2020 derailed your financial goals, you’re not alone. Now that things are beginning to get back on track, you can do the same. When preparing your finances for post pandemic life, there are a few things you can do to make 2021 your best year yet. 

Rework your budget for the new year 

Budgeting is an important part of financial planning. But it’s also something that can get put on the back burner when a financial crisis happens. First, take a hard look at your 2020 spending habits. 

Did you spend way too much money on takeout and online shopping? Did you save on transportation and daily drive-through coffee? Once you have a clear picture, look at where you can save for this year. 

If your commute has shortened to a five-minute walk down your hallway, take the money you usually budget for gas and put it toward utilities or in your savings account. Challenge yourself to keep track of every expense and question: was this necessary? 

How to go about making a budget varies from person to person. The point is, do something that works for you and is easy to keep up. Are you on your phone all day? A budgeting app could be perfect for you. Are you more old school? Keep a notebook that can fit in your purse or car and write down spending habits there. Make sure to do a mini-audit each month. 

Make a plan for deferred payments

Financial breaks offered blissful relief during COVID, but deferred payments, unfortunately, can’t last forever. If you were able to defer your mortgage or loans, now’s the time to prepare for payments to return. 

The easiest way to do this? With research and budgeting. Look into your particular deferment plan and understand the terms and dates––such as when the payments will start again and how much you’ll owe off the bat. From there, you can work your returning payments back into your budget so you don’t miss a beat. 

Monitor and build your credit 

We get it, building your credit has probably been at the bottom of your priority list. It can be a finicky task, but it’s one that sets you up for future financial success. 

You can start by only keeping a couple of credit cards open and regularly paying them off. If you need to close a card, follow our guide here. If you’ve been thinking about opening a new card, look into interest rates and rewards. 

Remember that your credit score is dynamic. Check it regularly with credit monitoring apps and go through your statements to ensure there aren’t fraudulent transactions. Not ready to open a line of credit for a while? Freeze it so no one can open an account in your name. 

Set aside a rainy day fund 

As we’ve seen, anything can happen to undermine carefully planned finances. Having a rainy day fund means you’re ready for the next curveball life throws. While it’s recommended to save up to a year’s worth of expenses, you can start with a more obtainable goal––like $500––and go from there. To help meet your goals, work your rainy day goals into your monthly budget. Money saved is money earned. 

Trust your finances with DEXSTA

2021 presents a new opportunity to boost your finances. As you’re preparing your finances for post pandemic life, keep in mind these tips. DEXSTA is here for all your financial planning, loan, and credit needs when you’re ready.