Last Updated on Mar 26, 2020 by James W
The Coronavirus has wreaked havoc on the peace of minds, individual’s health, and economies in a matter of weeks. Plenty of people are worried about catching the virus while others worry about how they will pay rent or keep their utilities on. The service industry along with plenty of entrepreneurs are scrambling for ways to survive. Plenty of business owners are putting themselves far into debt hoping the crisis will end in the near future.
Lockdowns are not something that most people plan for financially when coupled with the inability to work due to government mandates. Below we will delve into a few strategies that can help you avoid financial disaster personally during the Coronavirus pandemic.
Your 401K will be Fine
The last thing that most people want to do is to remove their money from their 401K early especially after the market has dropped substantially. For those closer to retirement this might be a little different as the market always recovers. The prediction of a global pandemic dooming.
businesses around the world could not be predicted. The pandemic is the first in around a century with the Spanish flu ravaging the world in the 1910s.
Most financial experts think that this Coronavirus crisis will allow for many to make large amounts due to the downfall of the market. The selling off of shares impacted plenty of stocks negatively even though it did not reflect the valuation or current earnings of the companies.
Create an Emergency Budget
For those that have completely lost their form of employment due to their business closing down or being let go, a change in your current budget must be written out. Listing all expenses can give you a great idea of where you can save and what costs are as low as possible.
Below are fixed costs you need to consider to lower immediately:
- Your phone carrier is likely not the cheapest. Even some cable companies like Spectrumhave gotten into the mix and share the network of a large telecommunications
- Cable can be canceled and be replaced by a streaming service for a fraction of the
- Keep the electric bill down by keeping the AC off as much as With the summer approaching this will seem impossible in states that are locked down like Florida.
- Groceries can be a huge expense, especially when eating all meals at Choose the generic brand as most consumers can rarely taste the difference in a blind taste from a name brand.
The one aspect that you will find you are saving money in is that of entertainment. Not being able to go out to dinner or happy hour with friends will help save. The ability to eliminate the commute for those that are lucky enough to be working through this crisis provides savings on tolls and gas.
Freelancing Can be an Option
The freelance world is very healthy online which can be done while on any type of lockdown. The ability to earn during trying times is important and supplemental income can allow a person to save in case of an emergency. Freelance writers are commonly thought of when working from home is referenced. Skills like that of the organization of files or being a virtual assistant can provide steady income. Being able to work and make a little money can help a family stay afloat along with lifestyle modifications.
The following are a few examples of gigs that a freelancer can find online:
- Writing jobs can include podcast transcription, product descriptions, blog posts, articles, and longer pieces of content like an
- Web design work is prevalent with quality being
- Business consulting gigs are available for certain
- Voice over artists are commonly found on platforms like
Freelancing might not be able to replace a full-time income but can help you from plunging too far into debt during this unprecedented time.
Potential Government Intervention
The relief of the people is on the minds of all politicians regardless of their party affiliation. There have been a few proposed amounts of money per month that will be given to those qualifying for the relief. The best thing that an individual can do is to try to make it without these checks and use the checks in case of an emergency. The checks are not sure to keep being generated after businesses are allowed to operate normally again so keep this in mind if you will be job searching. Floating the Money on a Low-Interest Credit Card
There are plenty of credit cards that allow their users to defer payment for a year or up to 18 months. For those people that will have jobs when this crisis ends, this can be an option. If government checks do come in like mentioned above using these to pay off this debt and pay other cash expenses will be wise. The last thing that anyone wants is to rack up debt without being able to go back to work.
The Coronavirus crisis has no end in sight currently which is a terrifying reality for those people that are without work. Being unsure of when you will be able to earn an income again is the ultimate stress. If you do rack up debt during this time there are going to be options for you.
Debt settlement services can be a lifesaver for those that have accumulated debt in order to pay a lump sum rather than allow penalties and other interest to add up.
Debt settlement professionals will go to bat for you in the case of debts that you do not believe are feasible to pay back in their current forms. Having an expert negotiate with creditors can allow you to shed thousands of dollars of debt for an easier to understand debt payment process. These are uncertain times so debt will become a reality for those that have always been financially healthy. You will likely have to modify your lifestyle now and possibly months into the future but you will make it!