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| 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.
Table of Contents
Get What
You’re Entitled To
Governments all over the world
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
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
entitled to.
Don’t let pride stop you from eating or keeping a roof over your head
and look into the following:
and look into the following:
• Unemployment Benefits And Food
Stamps
Stamps
• Credit
Card Forgiveness And Student Loan Forgiveness
Card Forgiveness And Student Loan Forgiveness
• Mortgage Payment Deferment
• Loan And Credit Card Deferment
You could be forgiven for
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
promises.
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
promises.
It’s a short-term fix to a
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.
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.
Start
Building An Emergency Fund
If you haven’t lost your job or
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.
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.
With mortgage payment deferments,
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.
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.
This fund will protect you if
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.
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.
If your finances have taken a
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.
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.
Think
Twice About Travel
It’s tempting to spend big on a
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.
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.
If you already have travel plans
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.
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
Unnecessary Subscriptions
The average American spends more
than $111
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.
than $111
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.
That’s the problem with monthly
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
month.
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
month.
It’s time to trim the fat and get
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.
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.
Go through all of your payments,
find the ones you no longer need, and cancel them. Be honest with yourself, be
ruthless, and stop hoarding subscriptions!
find the ones you no longer need, and cancel them. Be honest with yourself, be
ruthless, and stop hoarding subscriptions!
Save All Extra
Cash
The average American sees an
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
future.
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
future.
Summary:
Stay Strong
Health is more important than
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.
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.
