Sreeni Rao’s steps to creating a COVID-19 budget
SAN DIEGO (KUSI) – Creating a good budget means recreating one over and over again depending on any new needs, recommended Sreeni Rao, VP of Member Investment Services at Mission Fed Credit Union.
Rao joined KUSI’s Good Evening San Diego to give tips and tricks on setting a budget for the current COVID-19 times.
The first step, Rao said, is to identify total monthly income and expenses, which should include mortgage/rent, insurance, groceries, utilities, debt payment, transportation and child care.
Don’t forget to factor in grocery expenses, which have risen since the pandemic began.
Creating an emergency fund should always come first, even if it means putting away a little of your paycheck each pay day and building it over time.
Next would be contributions to a retirement account.
Many banks offer online saving programs such as auto-save, which can help you meet your goals of establishing an emergency fund.
When depleting debt, start by paying off highest-interest debt and consider negotiating for lower interest rates.
While you’re negotiating for lower interest rate, consider refinancing your mortgage since rates right now are at an all-time low.