If you’re unable to work at the moment because of coronavirus, then chances are you’re eligible for the furlough scheme. The furlough scheme is helping to pay the wages of UK employees not able to work during the pandemic. But, there are restrictions and many workers are now left navigating how to manage their money with 20% less income.

We spoke to one Emma user who’s been furloughed. We find out how they’re managing with a reduced income and how Emma has been helping them along the way.

Hey Hanya! Could you tell us how Coronavirus has impacted your finances?

Coronavirus hasn’t really had a massive impact on my day to day finances, but being furloughed does mean I’m not able to put any money aside for savings.  This also means that I have had to be a lot more stringent with my budgets. There’s now no room for overspending.

Have you had to change the way you manage your money since being furloughed?

Tracking my spending has been vital to ensure I’m staying on top of my committed spending.  Initially I used an excel budget planner to plan out where I was spending my money. With savings on travel and commuting it worked out well and I was able to track my spending efficiently, however I felt something was missing and that there was more I could be doing.

How has Emma helped you manage your money whilst on furlough?

When I came across Emma, I thought it was the perfect app to have as I was able to see all my accounts in one place (credit & debit), set budgets, and manage my finances better that way.

With the notification reminders constantly letting me know where I’m tracking against my budgets, it was much easier to stick to my budget which made me able to save more money than ever before.

The fact that the majority of my transactions were automatically categorized really helped me see where I was overspending and going above the targets I set for myself, so I was able to cut down on spending easily with that overview.

I find the app super easy to use and the function of creating my own categories very useful. I like to have certain bills split out into their own categories, and shopping split out between clothing and essential personal care items. This extra level of detail really helps me know how much I’ve spent, and how much more I have to spend. Overall the app has really helped me manage my finances a lot better, so thank you!

So, How Else Can We Help?

Other than setting budgets and tracking your spending there are lots of other juicy features on Emma that can help anyone struggling with a reduced income due to furlough.

Our subscriptions feature scans your transactions and shows all your monthly payments in one place - helping you spot the bills you’re paying for each month. It might even highlight subscriptions that you don’t need any more, and can cancel to reduce your monthly outgoings.

Our Save Money tab helps you find new ways to save on areas like your energy, broadband, and phone bills. We’ll provide suggestions of cheaper plans that you can easily switch to in a matter of minutes.

If you’re finding that a reduced income means you’re not able to spend as much money in the shops, then we also have a cashback section with big discounts from big brands. You can get money off your purchases from retailers like Boots, Wilko, Iceland, B&Q, Currys PC World, and many, many more.

Other Tips For Living On A Reduced Income:

If you find yourself on reduced furlough pay it can also be a good idea to spend some time organizing your debts. Go through each of your repayments and figure out which debts you need to focus on first. The consequences of missing some debt repayments may be higher than the consequences of missing another.  Make sure you know which ones to prioritize.

There are also ways you can get help with your debt repayments. Whether that’s through interest-free overdrafts. Payment holidays on loans and credit cards. Mortgage payment delays. Pausing energy bills. Or even the option to access your savings early. Make sure you get in touch with your creditors to discuss your situation and see what support is available.

If you need emergency help dealing with a reduced income then visit the Step Change site.  They’ll show you different ways to get financial help and share information on food banks and charities set up to support your needs.

Summary:

If your income has been impacted by the Coronavirus pandemic it’s important you reevaluate how you manage your money. Living on reduced furlough pay is never easy. Take as many steps as possible to ensure this does not leave you in a bad place financially.

Emma can help you take control of your finances. We make budgeting and tracking your spending easy (and dare we say, fun?) We can also help you reduce your monthly expenses by highlighting unwanted subscriptions, saving money on your bills, and offering great cashback deals.

Emma is available for download on both the App Store and Google Play Store