Returning to the office post-coronavirus can be a stressful experience. Not only is there the risk of catching the virus, but many are dealing with reduced hours or reduced pay due to the economic crisis. It’s important to create a budget that reflects your current financial situation and provides a plan for how you will manage your expenses when returning to the office. There are some important steps you can take to make sure your budget is set up effectively and you’re not overspending. Here’s how to fix your budget for your office return.
Importance of a Budget
Before you can address how to fix your budget for your office return, it’s important to understand why a budget is so important. A budget is an essential tool for making sure you don’t overspend or inadvertently create a financial situation for yourself that will put you in debt. It helps you clearly set out and understand your financial situation so you have a plan for how to manage your income and savings. A budget can help you to:
• Monitor all of your incoming and outgoing money
• Recognise spending trends
• Prioritise spending, including recreation and luxuries
• Plan for unexpected expenses and future goals
• Create a basis for debt repayments
Understanding Your Financial Needs
Before fixing your budget, it’s important to sit down and understand your current financial situation and how returning to the office has changed it. Ask yourself what your household expenses are as they were before returning to the office, as well as any additional costs you will incur. Analyse how much money you need to maintain your current lifestyle, as well as how much you can afford to invest in returning to the office and any accompanying expenses. Identify any fixed costs associated with your job such as transport, lunch or work supplies. Think about any possible future changes you may need to make, such as reducing your hours or adjusting your job role.
Creating Your Budget
It’s important to ensure your budget can take into account both your current and future expenses. Think about what sources of income you have and how these will be affected by returning to the office.
Budgeting Template
You should use a budgeting template to get a better understanding of your financial situation. This should include all of your sources of income, as well as your fixed costs and variable expenses.
• Sources of Income:
o Salary
o Side Hustles
o Government Support
o Investment Returns
• Fixed Costs:
o Accommodation
o Utilities
o Insurance
o Transport
• Variable Expenses:
o Groceries
o Clothing
o Education
o Eating Out
Adjusting Your Spending
Once you have identified your sources of income and your fixed and variable costs, you can begin to adjust your spending. Begin by conducting a spending audit to identify any areas where you can reduce spending. First, cut out any unnecessary expenses such as subscriptions and luxuries items. Look at where you can save money— you may be able to get better deals on utilities or switch to discount grocers.
At the same time, focus on your income sources. Namely look at how you can use your existing income sources more effectively. Consider taking on additional side hustles or even changing jobs if your current one cannot accommodate your financial needs. You may even be able to supplement your income through government support such as JobSeeker or an equity stake release program.
Setting Financial Goals
Setting financial goals can help you stay on track and keep your budget in line. Goals should be realistic and achievable, such as finding a new job, saving a set amount each month, or paying off existing debt.
Create a timeline for your goals and use this time period to adjust your budget so that it is geared towards reaching those goals.
Tracking Your Progress
Once you have set up your budget, tracked your spending and set financial goals, it’s important to track your progress. At least once a month, review your expenses and spending and make any adjustments that are needed. This will help you to stay on top of your budget and ensure you are meeting your financial goals.
Returning to the office post-coronavirus can be a stressful experience financially. To make sure you don’t overspend, it’s important to create a budget that reflects your current financial situation and provides a plan for how you will manage your expenses when returning to the office. By understanding your financial needs, creating a budget template, adjusting your spending and setting financial goals, you can fix your budget and get back to the office with confidence.
