Have the recent changes from the current crisis subsequently resulted in you having to file for unemployment, work fewer hours, or deal with the stress of transitioning from a two-income to a one-income household? Unfortunately, you’re not alone. As if the coronavirus hasn’t already done enough damage (i.e. infecting millions and killing thousands), across the country people are starting to feel the financial strain of this pandemic.
Though the country is slowly starting to reopen and job opportunities are trickling back onto the market, millions of people are still struggling to get by and fearful of how long they can continue surviving in this new normal or how they can live off their assets in the meantime. Seeing that it could take the national economy years to bounce back, those who are presently struggling financially are encouraged to find effective ways to manage their money.
Take Advantage of Financial Resources
One of the first bits of advice would be to take advantage of the financial resources that are out there. There are programs available to assist those who are considered low-income as well as individuals whose finances have been directly impacted by the coronavirus pandemic. You could get help with utilities, rent, mortgage, groceries, health insurance, car insurance, and much more. No matter how many of these programs you end up qualifying for, it takes away some of your financial burdens.
Only Apply for Loans You Can Afford
When you don’t have the financial means to make a purchase, taking out a loan is typically the next best thing. Though having a few extra hundred bucks to tide you over during this crisis can provide peace of mind, this is only in cases when you can afford to repay the loan on time and in full. So, if you’re in a jam and need quick loans as a financial lifeline, be sure that you only borrow what you can afford.
Hold Off on Big Purchases
It can get tempting right now to want to purchase big-ticket items like a house, car, or vacation. This is especially true with all the deals being thrown at you on a regular basis. While cars, houses, and travel accommodations are cheaper than ever before, you may want to hold onto your money until things start to even out with the economy. Should there be a second wave of the coronavirus in the fall (which some have predicted) or if things don’t bounce back as you’d hoped they would, you now have another debt you have to cover and less money for things you really need.
Cut Back On Spending
To make the most of the income you presently have, it is highly recommended that you start evaluating your spending habits and cutting back wherever you can. You could ditch cable and opt for streaming services, reduce the number of streaming services you’re presently subscribed to, eliminate monthly subscriptions you’re not using, use coupons and shop store brands when grocery shopping, sign up for a more affordable phone plan, and cook meals at home instead of ordering takeout.
Stick to a Budget
Budgets are strong financial management tools that can be used to help you stay on track during the current crisis. They allow you to see how much income you have coming in compared to how much is going out so you can make sound decisions on maximizing your income and savings. Create a budget based on your new financial status and review it regularly to effectively live at or below your means.
Find Ways to Earn Money on the Side
Having more than one income source is so important. Now that you’re struggling financially, the extra cash can be instrumental in helping to keep you afloat. There are plenty of opportunities to earn extra money on the side. You could walk dogs, babysit, deliver takeout or groceries, join a rideshare company, provide lawn care services, complete handy jobs for neighbors, and much more. Simply think about your skills, talents, and experiences and look for related small business or side hustle ideas that can help you generate revenue.
Proper financial management has always been recommended as a way to set yourself up for life – no matter what it throws your way. Unfortunately, no one could have ever predicted that something as catastrophic as a virus would cause financial unrest. Though things are difficult right now, it is important to stick to financial management practices like those listed above to survive until things get “back on track”.
