adjust your budget

How To Adjust Your Budget For The Global Pandemic

The global pandemic that swept across the globe in 2020 completely shifted our way of life! Leaving work early and going shopping for office supplies is a thing of the past. Now it’s suggested that we stay home to prevent the spread of COVID-19. Of course, this left many business owners in a pickle, some being forced to shut down, while others needing to take a good look at their spending. Unfortunately, we have to face facts. You NEED to adjust your budget. 

Every time I talk to my daughter about adjusting her budget to cut expenses, her first thought is to hunker down, spend nothing, and hoard every dollar that comes into her bank account. This isn’t an effective way to cut costs. You want to adjust your budget without losing out on the joys of life or compromising your business! 

So, without further ado, here are my top tips on how to adjust your budget for the global pandemic so you can keep your business financially stable. 

adjust your budget

Do Your Research and Stay Informed

The very first thing you should do is stay informed. Make sure you know the details of the pandemic. Is the government planning to keep people at home in quarantine? Are businesses supposed to close their doors to the public for a few weeks? Anything can happen, and it’s good to do your research and stay informed about what might happen. 

Make sure to look up several different sources! The news is FULL of bias and misinformation these days. Try not to pay attention to the commotion on social media. Some people share OPINION instead of fact, and you don’t want to act based on someone’s prediction. 

Sit Down With Your Family And Talk About Potential Changes

How many of you have tried to form a budget, only to have your husband blow it on a new lawnmower? 🙋 When you’re planning to adjust your budget, it’s important to make sure your ENTIRE family is on board. Sit down with everyone and discuss the financial changes necessary. Make sure everyone is on the same page so everyone can implement the budget change. 

Evaluate Your Spending

COVID-19 has shed new light on my financial habits. I’m sure I’m not the only one out there noticing the bad habits that pop out now and again, like subscribing to a ton of monthly subscriptions and meaning to unsubscribe but forgetting entirely. 

Mhm, I see you. 

Go through EVERYTHING you’re spending in a month. Figure out what you’re paying monthly, then figure out what you NEED to run your business. Once you know what you need to spend to keep your business running smoothly, it’s time to look at what you can purge. 

During this crisis, you might not need that monthly Ipsy box, sending you makeup that you don’t use often. Unsubscribe from any unnecessary subscriptions, and try to cut down on leisure activities that end with you spending a boat-load of money. 

Make Sure You Can Pay Your Bills

Everyone has bills. Unfortunately, COVID has made it very difficult for some people to afford paying their bills. If you’re struggling to make payments, there are financial relief options out there for you. Keep in mind that using these options doesn’t mean you don’t owe the money. You will just be pausing or reducing your payments from the total amount due. So when the program ends, you’ll still owe the whole amount. 

Look At Your Debt

Thanks to COVID-19, you have more leniency than you typically would with your debt. You can either pay down your debt or work on saving as much money as you can. I recommend reducing your credit card usage and using the debt snowball method to pay down your debt. Try not to incur a ton of debt during this time, since the future is so uncertain. 

Create A Budget

The last step in this process is to create your budget! Before we do that, you must understand what a budget is. 

A budget is a plan for your money. We typically track your income and expenses for the month, then create a plan to meet your financial goals! So if you want to create an emergency fund of $1,000, we’ll take a look at your income and expenses and see what costs you can cut to help you meet that goal! 

This information will help you better understand where your money is going, so you can plan for the future! Here are some ways you can adjust your budget for COVID-19!

Related: The Easiest Ways To Cut Down Costs When You Need A Little Extra Cash

Save, Save, Save! 

Anything can happen! We could be forced to quarantine for another few weeks, or COVID can completely disappear overnight, and everything will be back to normal! Okay, so maybe the chances of the latter are super low, but it’s never zero! 

Either way, you want to be prepared in case the worst happens. So I highly recommend you put money in savings. Set aside money each month to add to your emergency fund. Over time, that fund will grow, and you’ll have a decent amount of money in savings to bail you out if you need it! 

Avoid Social Media Ads

I can’t be the only one who’s fallen victim to the millions of social media ads that flash across my screen! Your phone knows precisely what you like, and it will work to put your favorite items in front of you, so you’re tempted to purchase that item. Try not to go down the social media ad rabbit hole. I highly suggest staying off social media as much as possible if you’re prone to impulse purchases. 

Plan For Irregular Income

Many business owners and employees have noticed a shift in their hours. Either you don’t have enough customers, or you’re working from home. There’s a big chance that your income isn’t going to be the typical amount each month. Figure out how much income you’re receiving each month, and make sure you have enough money for bills, groceries, and any other necessities. If you have any leftover, I highly suggest you stash it in savings. 

Adjust Your Budget

Creating a budget is not one of those “set it and forget it” kind of things. You will continuously have to check-in and assess your spending, see if you’re on track, and make changes to meet your financial needs. 

Some costs have completely gone down, but others have gone up due to high demand. Adjust your budget to reflect any changes you spot.


Adjusting your budget might seem like a daunting task, but it’s easier than you think! All you have to do is look at your current spending habits, work to get rid of bad habits, and work on building that emergency fund!


Need help adjusting your budget? Click here to book a call with me! I’ll help you get started so that you can stay financially stable during COVID-19.

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