The impact of this crisis is worldwide. While some are still adapting to remote work, others are less lucky and were made redundant. In any case, it's imperative to reduce costs.
Undoubtedly, this is a hard time for everybody. The Coronavirus has impacted in different ways in people’s everyday lives. It's time to review your financial situation and take action in order to protect your home economics. This is a passing crisis, but nobody knows how long it’ll take to overcome it. Look at these saving strategies!
1. Cut back your expenses
Your life has changed and you should adapt your bills to the new situation. This said, you can cancel your gym membership and suspend your monthly beauty treatments. Seek for free entertainment, like free streaming services or free E-books.
2. Revise your insurances
You can lower your life insurance plan by using Gabi. This platform will help you get better deals for all your insurance plans. Take a look at your life, auto, and home insurance policies and find out if you're overpaying for them.
3. Make the most of your savings
If you already have some savings, don't let them unattended. You should put them to work and earn money through interest. Therefore, you should look for a high yield savings account, and let the interest rate do the rest. You can even start a new savings account with your stimulus check.
4. Find the right tax software
Now that tax day was postponed, you’ve got more time to prepare your taxes. If you want to do it easily and as quickly as possible, you should go for the property tax software to do this task. For example, you can try with Credit Karma Tax and Tax Slayer.
5. Adjust your car expenses
Now that your car is laying around most of the time, you can reduce its expenses. Not only will you spend less on gas, but you can also ask for a discount on your insurance policy. Some companies adjust it to the average miles that you drive monthly.
How to live with one income
Whether you've lost your job because of the current crisis, or you’ve decided to stay at home with your children, you need to figure out how to live with one income. Here you'll find some tricks to cut expenses.
Create a realistic budget
If you're used to living with two incomes, now you'll have to redraft your family's budget. Write down all your expenses, and try to cut reduce some services that aren’t essential, like cable TV. You may also have to negotiate with your current service providers, like your Internet’s, in order to get discounts, arguing that you can't continue paying their bills.
Always compare prices
You'll need to spend some time comparing prices for everything you regularly buy for your household. You should always buy the cheapest items by selecting the offers in each store. It's very easy to compare prices if you make your groceries shopping online. And, if you choose to pick up your purchase, you'll save the delivery's cost.
Review your insurances
Check your home insurance policy to see if it covers what you need. Maybe it's overrated, and you can ask for a lower option. In the case of your health insurance, decide which plan is best for your current situation. You may not need maternity coverage or high dental plans for the moment.
When planning your errands, you'll save time and money on your car’s use. Try to stay organized by using an app, sticky notes or a calendar in order to optimize your trips. This way, you'll cut your gas money and other consumables.
Differentiate Want vs. Need
There’s a large list of things that you and your family need to buy every month. There are others, like a new phone or a new version of your TV, that can wait. When living under a tight budget, it doesn't necessarily mean that you've to cross out these purchases. Simply leave them for a better moment, if the opportunity appears.
Don't neglect retirement!
Even with one income per family, you'll have to think about your retirement. Always keep at least 1% of this income away. Utilize the income earner’s 401K if offered. Otherwise, educate yourself in IRA’s and growth stock mutual funds. There are lots of tips to increase your retirement savings!
The do’s and don’ts of fast cash in times of coronavirus
Due to the Coronavirus outbreak, more than 35 million Americans had to file for unemployment benefits in the US. Many people were unprepared for this crisis and didn't save enough money to protect their personal finances.
The pandemic has had a severe impact on employment, which has led many people to start looking for alternatives to earn fast money to pay their bills.
Nevertheless, before you turn to any fast cash method you should learn about their pros and cons. Read our guide to understand how these methods work and which one suits you best.
1. File for unemployment benefits
If you have been laid off during the pandemic, you should file as soon as possible for the unemployment benefits. However, this method takes time and you should look out for scams!
Bear in mind that the bill known as the CARES Act has expanded the unemployment assistance. Due to this update, it will give laid-off workers an extra $600 a week on top of any state-level benefit they receive. Moreover, it will also offer freelancers, gig workers and self-employed people the chance of being eligible for half of the state-level benefits, besides the extra $600.
2. Payday loans
If you are turning to this method to earn some fast cash, you should know this is actually not a good idea.
These kinds of loans are quick and short-term, of $500 or less, designed to be repaid in a single payment. Although this may seem interesting, you should know that payday loans come with extremely high fees and interest.
Many people who have chosen this method find themselves unable to pay off the loan because of the high-interest rates. This story usually ends up in a spiral debt, as they need to borrow more money to settle those debts.
3. Credit-card cash advance
Although this is not one of the best options, it could be considered a last resort in desperate times.
As well as payday loans, this method also comes with large interest rates and fees. Besides, it could even have an impact on your credit score!
4. Cut your spending
Take advantage of the lockdown and start analyzing which spending could be cut. For example, you won't be needing gyms or manicures for a while, and there are other many expenditures that you can revise.
You may also want to take a look at your checking account as you may be paying for apps or services that you just forgot you've signed up for. Check those subscriptions you keep paying and aren't actually using.
Another way to save money is by changing your cell phone plan. Check with your carrier if they offer a cheaper plan that covers all your needs.
5. Get a gig job
This could help you earn money fast and temporarily help you pay your bills. First, you need to check which one suits you better, you can either start to write for a blog or sell homemade clothes.
Before you apply for a gig job, make sure you choose one that doesn't involve close interaction with other people. Remember social distancing!