Finances are usually a fickle subject for many. Some live paycheck to paycheck while others can’t even make it that far.
Regardless of where you fall on the spectrum, it’s probably safe to say that your finances have completely changed from what they were months ago. And, most of this is in part thanks to the COVID virus.
Unemployment is at an all-time high in the States and many people have been forced to relocate to the home office. Some are unfortunate enough to not even be working at all. Whatever the situation, it’s likely that you aren’t earning what you were before; you are earning less.
So how can one possibly keep their finances in check living like this?
Cut The Spending And Adapt
Yes, this one is common sense — but you’d be surprised at the number of people that mess up here. You know you are going to be stuck at home for the next couple of months so it is only natural to want to run out and invest in whatever you can to make home life easier and more entertaining. Maybe it is a new computer for streaming. Maybe it is a new gaming console to keep you occupied during the day. Unfortunately, this is not the way to approach the situation.
You already have the advantage of knowing that your income will be reduced in the coming weeks and months. This is why you’ll want to go ahead and cut back on the spending right now. The sooner you can start saving, the better off you’ll be. Do you really need all those streaming subscriptions when you’ve got the Internet and basic cable? Cut them back. You likely won’t be needing a cell phone since you aren’t leaving home that often. Cut back on your plan; become a minimalist.
Never Be Afraid To Borrow
There is no denying that borrowing money was tough before the pandemic hit. It’ll be even tougher now for certain individuals — but that doesn’t mean it isn’t impossible. On top of this, there are all kinds of alternative lending sources available these days. While taking out one loan to cover another loan might just seem like replacing debt for debt, it does help if you consolidate. Instead, of taking out enough money to cover one or two bills, why not go ahead and take out enough to cover an entire months worth?
It comes to a point in everyone’s life when they need to borrow money. If they can’t make a deal with their parents or friends, the only other option is to borrow it from a licensed lender. This is really not so bad because licensed lenders were specifically designed to help consumers in their times of need.
The lending process is generally not that complex. In fact, most lenders have simplified their lending processes to make them more efficient. If the process were too complex, consumers would shy away from it. Simplifying it ensures a continuous flow of business for online and offline lenders.
Save Whenever And Whatever Possible
Ten or 20 dollars doesn’t sound like a lot of money, does it? And in all actuality, it’s not these days — but it’s a start! Plus, taking the time to put $10 or $20 away when you can gets you into the right mindset; think of it as paying yourself first. Every month or week before you pay your bills, make it a point to stow away whatever you can for savings. At the end of the day, having power over your finances is all about planning. You have to have money on hand when unexpected expenses come up. And the only way to do this is by having savings. Even if you are currently in debt, having a small savings account will go a lot way mentally and fiscally.
Most consumers don’t have more than a few dollars in their savings accounts. So, when they face financial emergencies, they do not have any savings to rely on. It is really not that difficult to save money. You just need to be diligent and willing to reduce your spending. So the next time you go to the supermarket, try buying generic instead of name-brand. This can reduce your grocery bill by as much as $25 or more; of course, that all depends on how much you buy.
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