The COVID-19 pandemic has made inroads into every area of people’s lives. They may have lost their jobs, they may be facing a cut in hours or pay, or a family member may have become ill. They could also be unable to find childcare and have to stay home with their children as a result. Financially, it is a highly stressful time. Hornet Partners explains how to stay afloat in the difficult times caused by COVID-19.
– Examine Your Budget
The most important thing you need to do in order to weather the economic storm caused by COVID-19 is to tighten your family budget. While some people have been able to save money by not going to restaurants, many of these people are still paying large amounts of money for takeout each week. Cut meals out to once a week or less.
Work on repurposing things instead of buying new ones. This is an important habit to practice even when economic times are good. Secondhand shopping may not be possible right now but look at ways you can reuse older possessions.
– Cut the Cord
This is an excellent time to move from expensive pay-TV cable packages to streaming services. By using streaming services instead of premium cable packages, you may be able to save yourself $75 to $100 per month.
– Pay off Debt
This is a good time to focus on paying off high-interest credit card debt if you have the financial means to do so. If you can, try to pay your highest-rate balances first. Always make sure you are paying more than the minimum due.
If you are in dire need at the moment, you may be able to work with your creditors to lower or eliminate late fees as well as preventing late payments from going on your credit report.
– Hospital Payment Plans
Many patients are not aware that not-for-profit hospital systems frequently operate their own installment payment systems. They can also work with you to reduce your payments based on your income. This may become handy if you or a family member becomes ill with COVID-19 or another disease.
– Start a Side Hustle
This may be a good time to become a rideshare driver, delivery driver, or personal shopper. Crafters may want to turn their hobbies into a business. Writers and designers could freelance. Bringing in extra money will be handy in these challenging economic conditions.
– Look into All Government Programs
The federal government, as well as many states and cities across the country, have put COVID-19 relief actions into play. If you are eligible for unemployment, healthcare assistance, or disability payments, it is important to take advantage of them.
– Emergency Funds
If you have the financial means to start an emergency fund and don’t already have one, the government stimulus payment may make a good start. Many people who are in crisis have had to spend this money on rent and necessities, but if you are in a financial position to do so, you could potentially save yourself a future headache. As a rule, your goal should be saving three months of expenses, but if you can’t get that far, saving enough to cover two paychecks is a good start.
– Keep Networking
Even if you have lost your job, it is key to stay current in your field. Don’t stop networking, and professional contacts may learn that you are looking for work and direct you to a place that is hiring. Staying current is excellent advice for people who have been out of the workforce for any length of time, including parents who have been on maternity leave.
– Check Your Investments
You may not want to look at your investment accounts right now, but you may be able to find opportunities if you have the money to spend. If you have 20 or 30 years to go before retirement, keep your money in the market and work to leverage it for the future.
The economy will eventually rebound, and people who had the ability to reshape their finances will come out winners in the end.
– Surviving Economic Disaster
When you use these nine tips from Hornet Partners, you will have an easier time withstanding the severe conditions of today’s economy. Focusing on cash flow, savings, and investments, you will be able to get yourself back on your feet.
If you have lost your job or had medical misfortunes, be aware that there are programs meant to help you. Companies like Hornet Partners can offer services that help people in financial distress get the relief they need.