COVID-19 is not only a threat to our health but also our finances.
With the imposition of strict lockdown measures across the globe, thousands of businesses are on the verge of collapse. Some enterprises decided to lay off their employees to stay afloat, while others chose to shut down for good.
Because of this, millions of people have lost their only sources of income while facing monthly financial responsibilities. The unemployment rate in the United States as of April 2020 swelled to 14.7%.
It’s a struggle to make both ends meet during this health crisis. So, for people with reduced income or no livelihood at all this pandemic, here are practical ways to maintain financial security in the next couple of months.
Government Grants
With the duly signed $2 trillion relief package, $260 billion of the total budget has been allocated to provide assistance for victims of unemployment.
The program provides four-month insurance coverage of $600 weekly for individuals who lost their jobs due to the effects of the pandemic. Freelancers, part-timers, self-employed, and contractual employees are also eligible to receive these benefits.
So, if you’re suddenly given the ax at work, you can request financial aid to your state offices. You can go to their official website to access their contact information and specific details about the cash grant.
With the surge of insurance requests, US states are increasing their staff members to accommodate each and every applicant. Almost 10 million Americans were able to secure their applications in two weeks last April. While individuals might experience busy lines and website problems, states made it clear that they are working hard to improve their system.
This aid will surely help with your day-to-day expenses, so you’re currently in need of financial relief, it wouldn’t hurt to phone in or log onto your state’s website.
Modified Mortgage Payment
Despite the financial crisis we are experiencing, we still have bills to pay. But if you don’t have enough funds to settle your monthly dues, you can always request a different payment scheme. You can either pay through installment, in reduced amounts, or on an agreed-upon timetable.
Don’t worry because the government mandates mortgage institutions to provide leeway to individuals affected by the pandemic. So, contact your mortgage company and decide on a possible payment scheme that is convenient for you. Make sure you are aware of the policies applicable for mortgage concerns, so you won’t be forced to cough up all your remaining funds.
Strict Budget Rules
It’s time to cut down on your daily expenses this lockdown.
If you’re still subscribed to satellite cable, Netflix, Amazon Prime, and Spotify all at the same time, then you better know your priorities. You must be able to cross out all the things that are chipping away at your remaining debit card balance.
In an economic crisis like this, you must be able to adjust your lifestyle accordingly. Allocate your money on everyday essentials like food and avoid making the mistake of spending it on your long list of wants.
Also, don’t get into the habit of hoarding. Avoid going into a state of panic and grabbing everything you see at the grocery store. We tend to buy food items we think we need but end up stashed in the cupboard for six months. There’s no need for you to hoard because there are policies in place to regulate prices on essential items.
Right now, you have to focus on your immediate needs because this is not the right time for you to make poor financial decisions.
Side Hustle
If you are in deep water right now, the best option for you is to look for a different source of income. There are plenty of ways you can rake in money while you’re stuck at home.
The internet is teeming with job opportunities that allow work-from-home setup. It might not always be in line with your previous work experience, but you should grab every opportunity that allows you to generate income amid this pandemic. Whether it is online teaching or providing virtual assistance, you shouldn’t refuse a good offer.
This is also the perfect time to pursue passion projects that you can turn into business opportunities. Capitalize on your baking skills by selling your banana bread and mint cookies on Instagram or cash in your love for knitting by putting your handiworks up for sale on your Facebook. If you get the hang of it, you’ll be generating money like a piston filler and depositor in no time.
Whatever you earn from your full-time job or side hustles will surely help ease your financial burden. So, if you find yourself struggling to keep your head above water, these practical tips will surely be helpful to you.
