The novel Coronavirus has undoubtedly left its financial impact internationally in the short months it’s been around. With everything from major corporations furloughing employees and decreasing production to local businesses temporarily or permanently shutting down, regional, national, and global economies are hurting. If you’re worried about your finances, there are some steps you can take to help stay afloat during this difficult time. We’re all in this together.
Stick to a budget
Budgeting is an essential habit during normal times. But it can mean the difference between sinking or floating financially right now. A popular recommendation is the “50/30/20 budget — 50% of your take-home pay goes toward needs, like groceries and mortgage or rent, 30% to wants and 20% to debt payments and savings.” Of course, it’s not always possible to stick to this ratio. The important thing about budgeting is finding a plan that works for your particular finances.
If you had an emergency fund in place before the pandemic occurred, now may be the time to tap into it. But, to avoid doing so, stick to a reasonable budget that you and your entire family can follow.
Options when you’re unemployed
An unfortunate consequence of the stay-at-home orders is the unemployment rate. A recent report shows that “16 million people had been put out of work in just three weeks, an unheard-of figure.” If you are one of the 16 million, there are some steps you can take (beyond applying for unemployment) to protect yourself financially.
Consider home equity lines or refinancing
If you are a homeowner, paying your mortgage can be difficult, if not impossible, when unemployed. One option could be to take out a home equity line or to refinance your home. And, since COVID-19 emerged, “homeowners are sitting on historically high levels of home equity right now, which is good news for those who may have lost work or income in recent weeks.”
Get a gig job
Gig jobs like driving for Uber or working for Instacart can offer a well-needed financial boost if you’ve lost your primary source of income. Statistics show that “typically, side-hustlers earn an average of $1,122 per month from their part-time work.” If you do not want to over-expose yourself in grocery stores or with rideshare, other gig job options could be online tutoring or consulting.
Cut your spending
If your income is lower, your spending should be as well. Of course, not everyone can do this, but cutting your spending even a little can boost your finances. Limit your spending to the basics (utilities, food, gas) and confirm with your gym and other subscriptions if you can put temporary pauses on your account.
Important resources amid Coronavirus
Everyone has a different financial circumstance during the pandemic. For help with resources from unemployment to healthcare, Benefits.gov has provided a list. You can find a list of other resources on the Consumer Financial Protection Bureau site.
DEXSTA is still here for you
Despite the changes from Coronavirus, our hours have remained the same. And we’re here for our members in a variety of ways––from in-person appointments to drive-thru locations to applying online. With options from loans to credit cards, we can help you stay afloat. Get in touch today!