|Top Tips For Keeping Your Finances Stable During COVID-19|
The Coronavirus pandemic has made
life difficult for billions of people around the world. People are losing their
jobs, their livelihoods, their futures, and even their lives. We’re living in
unprecedented times and it’s important to do what you can to hold on, to keep
your finances stable, and to ride this storm.
You’re Entitled To
are doing their bit to help their citizens and the US government has been one
of the most proactive. Businesses and individuals have been offered loans,
grants, forgiveness programs, and deferments. If you find that you’re
struggling to make ends meet, take advantage of as many of these as you are
and look into the following:
Card Forgiveness And Student Loan Forgiveness
thinking that deferment was difficult. After all, lenders have been offering
hardship programs for decades and while these are great on paper, they haven’t
always proved helpful in practice. However, the CARES Act and public pressure
has pretty much forced their hand and they are now following through with their
potentially long-term problem, but it buys you some time and allows you to get
your affairs in order. Just contact your lender directly, tell them about your
situation, and they’ll work with you to find a solution.
Building An Emergency Fund
suffered a major reduction in income, you’re in a unique position, one that
millions of Americans would love to be in. Make sure you don’t waste it.
loan forgiveness, and less money spent on fuel, luxuries, bars, clubs,
stadiums, and concerts, there’s a good chance your finances will be growing.
Rather than spending cash on frivolous things to help you through the tedium of
lockdown, start building an emergency fund.
things eventually turn sour and you lose your job. You’ll also be protected in
the event of a second wave and a delayed vaccine.
hit, it’s still important to do what you can. Tighten your belt, limit your
spending to essential purchases, and move all additional income to an emergency
fund. As bored as you are and as desperate as you are to buy new games,
technology, or go on a shopping spree, those luxuries are not worth the future
health of your family.
Twice About Travel
trip abroad, a concert binge or some other massive expense once all of this is
over. However, that’s not a smart decision to make right now. Unless you’re one
of the few whose finances have actually improved during the COVID-19 pandemic,
you need to avoid big purchases and make more sensible choices.
and are worried about your budget being stretched, put them on the backburner,
get a refund, and keep that cash in a savings account instead.
Get Rid Of
on monthly subscriptions, spanning everything from Netflix, Hulu, and
Amazon Prime, to loot boxes, beauty boxes, and more. That’s a lot of money from
purely luxury purchases and what’s even more alarming is that 84% of Americans
massively underestimate just how much they spend.
subscriptions. It’s easy to dismiss them as costing just a few dollars a month.
But it all adds up. $5 here and there eventually becomes $100 a month or $1,200
a year, and some households spend even more, going over $200 and even $300 a
rid of unnecessary subscriptions. Some of the biggest offenders here are $30+
gym subscriptions that you don’t (and probably can’t) use, and TV subscriptions
that you started because of a free trial and never got around to cancelling.
find the ones you no longer need, and cancel them. Be honest with yourself, be
ruthless, and stop hoarding subscriptions!
Save All Extra
unexpected windfall as completely expendable cash. It wasn’t there before, they
didn’t do anything to earn it—easy come, easy go. This is true for lottery
winnings, inheritances, tax rebates, and more. But money is money, and if you
save it instead of spending it, you’ll secure and stabilize your financial
money and you should never risk the former just to save the latter. We could be
here for the long haul; it could be over soon. Whatever happens, it’s important
to stay strong, keep an eye on your bank balance, get help when you can, and
keep all of the above tips in mind.