COVID-19 has forced many of us to spend our days at home. On one hand, you might expect to build up savings (assuming you have income coming in) because staying at home reduces a lot of expenses. Don’t make the mistake of assuming you can save prior to creating a new budget – there are additional costs to consider since you are spending your time at home.
- Utilities Will Become More Expensive
We don’t really think about it, but there is a temperature range where we are all most comfortable; when our environment becomes uncomfortable, we seek to fix that. Given that the temperature is on the rise, there is a good chance you will be running your air conditioner while you are at home, but now you are always at home. As such, you should leave room in your budget for twice your usual utilities bill. Add the fact that while you are home you are likely watching tv, using the computer, running the dishwasher more, or doing something that takes electricity, and you can see how there are hidden costs to staying home. If you want to offset this increase, be vigilant about using as little electricity as possible (start by turning lights off in rooms you’re not in).
- Your “Fun” Budget Might Balloon
Building off the concept that we will find ways to be comfortable, isolation and a pandemic can cause people to become seriously uncomfortable, and they need a way to relieve that stress. According to the data, many people have increased their alcohol and marijuana intake; both industries have seen a marked increase in their profits during the stay-at-home order. That’s not to say the entire country is becoming drunkards, but it does show how most of us respond to high stress situations, and it is important to realize that this will also impact your budget. With all this stress, a bottle of wine may not last as long as it used to, so consumption goes up and cost along with it. Consider finding a cheaper brand that you enjoy if you must, but ideally find a way to not increase how much you drink by using other methods of destressing. Tea, meditation, or yelling at the tv all work. When this is all over, we will have to go back to normal; habits are hard to break especially when they become coping mechanisms.
- Subscriptions Add Up
Subscription services are seeing a major uptick in business as well during these shutdowns, and it makes sense. We have a lot of free time on our hands and are in a peculiar position where we aren’t allowed to fill that time with fun outdoor activities; we’re stuck at home. Naturally, that leaves the screens in our house. If you have Disney+, Hulu, Netflix, Amazon Video and CuriosityStream (if you like learning, check out CuriosityStream), you now have about $60 in recurring expenses. Subscriptions won’t break the bank, but make sure to account for them in your budget.
At the Chernov Team we understand that knowledge is power, and knowledge about new complications with your stay-at-home budget is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.