How to manage your budget in times of crisis

When you are just starting out as a young executive, getting your first well-paid job seems like a pipe dream. After all, it will take years of preparation to become a professional in your field.

Our world has been gripped by an unexpected crisis in connection with the war in Ukraine. Due to Russia's invasion of Ukraine, the crisis has spread like wildfire across all countries and continents. War brought with it deaths that current generations have never experienced before.

Due to the unleashing of the war by Russia in Ukraine, many countries have experienced an economic downturn. This did not go unnoticed in Sri Lanka. Thus, the Central Bank on April 8 forecast official inflation of 28 percent over the next three months as Sri Lanka entered an era of soaring prices due to the boom in global commodity prices.

If there is one thing this crisis has clearly demonstrated, it is the fragility of the economy and the general unpredictability of life. Never before has the importance of having an emergency fund and good savings habits been so evident. Even if you're one of the lucky few who has managed to keep your sources of income relatively stable, it's important to limit unnecessary spending and stick to a tight budget.

Let's look at some tips for managing your budget:

Keep records

Probably the most important thing on this list, keeping track of your expenses is the first step in managing your expenses. This will help you separate your income and expenses and determine where you can cut costs.

Set realistic goals

Be realistic when budgeting. Saving up to 50% of your income sounds great, but in most cases it's just not possible and just completely demotivates you. Allow yourself one month of regular spending (remember to track it) and then set realistic savings and spending goals based on your usual level.

Cut costs

Once you have determined your expenses, your next step is to cut them where possible through greater frugality. The habit of sticking to a budget will stay with you even after the economy stabilizes and will help you rein in your spending. If your utility bills are getting out of hand, it's time to take a hard look at your living habits. Turn off unwanted lights and cut down on air conditioners. Use washing machines only when fully loaded and water your plants as little as possible. Lower your cable TV or Internet connection and cut your phone bills as much as possible. Cut where and when possible.

Try and increase your income

Although easier said than done, if you have an opportunity to make extra money, don't pass it up, even if it requires extra work. Every little thing counts and goes a long way, giving you peace of mind should you face a financial crisis in the near future.

Accumulate your savings

One of the key to any crisis is you always be prepared! As difficult as it may be, try putting a few thousand into a savings account. A small sacrifice now can be very useful in the future. If possible, try to budget a separate reserve fund so that unforeseen circumstances do not completely destroy your savings.

Avoid long-term financial obligations

While it may seem more practical to break up a large purchase into 2-3 year monthly installment schemes, try not to do this while the economic impact of the pandemic is still unclear. In the event that you end up losing your regular source of income, the large monthly expenses become a big burden. So unless it's a critical purchase, try to save up some cash and make the purchase in one go.

Avoid large, unnecessary purchases

In the same vein, try to avoid any large non-essential expenses and try to live until the economy calms down or picks up.


While budgeting during the crisis can seem almost impossible when you're just trying to survive, a little planning goes a long way and helps you prepare for any eventuality. Budget management is a trial and error process, and you may even need to borrow money to make ends meet. Finding what works for you is part of budgeting.

If you find yourself in a pile of debts and are not ready to provoke a force majeure, you can always contact a loan partner, such as our service - GostFinance, who can help you with a quick and easy cash loan so that you can find a way out of financial difficulties.