As quarantine lifts, it’s time to examine monthly spending and prioritize needs, wants

Life in quarantine appears to be coming to end for many. Has it been a time of rest alongside close family or has it been an anxious time wondering, “What is next for us?”

However the past few months have treated you, now could be a great time to plan for life outside of the home.

What are you most excited to do? Favorite restaurants, sporting events and even a simple trip to the park are at the top of my list. Whatever you are itching to do, how does it fit into your monthly spending plan?

Maybe you haven’t thought about your spending plan in a while. If that’s you, that’s OK. If you’re still at home, now is the time to fine tune the details or start thinking about a spending plan.

Here are few first steps as you modify or create your post-quarantine spending plan.

Examine your monthly inflows and outflows

One of the key steps in establishing a solid spending plan is truly knowing what’s coming in and out of your bank account. It’s very difficult to put a plan in place if you don’t know your numbers.

Living expenses often “drive the boat” toward reaching whatever financial goal you might have. There are resources available such as Mint, one of several budget tracking tools, that can help you monitor your monthly expenses. Once you know the numbers, you are now able to start putting together a plan that works for you.

Post-quarantine life might look different than it looked in early 2020. If that is you, this step is even more important as your inflows/outflows might also look different.

Prioritizing needs versus wants

Once you know what you’re working with, it’s time to examine what is important to you. Your needs and wants might look completely different than those of your neighbor, and that is expected.

Taking the time to reflect on what is important to you will help you progress toward reaching your goals.

Establish an emergency fund

The COVID-19 pandemic has caused loss of jobs, income and security for many. If you had to tap into an emergency fund during quarantine, you know exactly how valuable one is. If not, you now realize that the unexpected can happen at any time.

How much should you put into an emergency fund? One quick benchmark could be looking at what it took for you to live in quarantine. If you had to go through it again and depend on an emergency fund, how much would it take for you feel comfortable about paying for your monthly living expenses?

Set goals

As you prepare for life outside of quarantine, it may be difficult to look toward the future. Setting goals and coming up with realistic steps to achieve those goals could be rewarding. Incorporating your goals into your spending plan could also be helpful.

Pay yourself first

As you’re wrapping up your spending plan, it’s important to remember to pay yourself first. Build the habit of putting money toward savings before allocating money to other areas of your plan.

What items are on your post-quarantine bucket list? Incorporate them into your spending plan so you can find enjoyment in the post-quarantine world.

Nolan Keim is a Certified Financial Planner professional and an active member of the Financial Planning Association of Greater Kansas City. He serves as a Client Service Associate for Mariner Wealth Advisors in Overland Park.