What should you do if your income is affected by Covid-19 in the USA?
- Posted on August 06, 2020
By Karan Kapoor
The Covid-19 pandemic has hit every economy very hard. It made France take out its bailout money. It brought all the major companies to their knees. But more than anyone, you have been hit by it the most. Your life is at stake, and it might have reduced your income. You might be working in the travel industry, or in the service sector, your wallet might have suffered a lot.
In these hard times, we ourselves can take action to save ourselves in this pandemic.
Here is What you should do, if your income is affected by Covid-19. Even if it hasn’t, this is the time to be prepared for financial emergencies that the future might bring.
1. Unemployment Benefits (Apply ASAP!)
Unemployment benefits differ from state-to-state, and you can find everything out of it from here.
Under the Covid-19 Stimulus Package, the government increased the benefits of the state, to add such bonuses.
An extra $600 a week in unemployment income, for the next 4 months, freelancing, part-time employees
2. Use your COVID stimulus check well.
Everyone is not eligible for the stimulus bill. A lot of houses will get almost $1200-$2400, if your income was quite high, you might receive reduced(or maybe phase-out).
If anyhow you receive some benefits, make a good plan for how to utilize your money. It will help you make the most of what you have.
If possible, try saving some money for the future.
3. Find a temporary job, in the currently booming industry.
Not every industry is hit hard by the pandemic, some are booming and reaching new heights. If you cannot make what you desire, Try the following jobs.
Sanitation Industry
The more local small sanitation companies are now booming, and they are lacking manpower. This could be your chance for some extra money.
Entry Level Healthcare
The COVID Warriors join their battle in the front line. It could be a risky one, but as the numbers are increasing, hospitals will require every need they can get.
Internet Remote jobs
The internet is the only thing keeping people engaged, be a part of some online company that requires you to write or draw. Bring out the artist in you and go freelancing.
4. Check the credit card options.
It is okay to let go of your credit score in the time of such pandemic. Your credit score isn’t as dear to you as your survival. This is the time when banks come up with reduced APR credit policies to help people. Check all the credit options you can get. This is the time.
5. Store fresh food.
It is better to buy and store fresh food than to buy canned food. In the time when the masses are running behind canned food, there are some items with longer shelf life. Try to reach out for fresh food. This will help in the near future. Canned food has to be utilized once opened, fresh can be stored again.
These are a major reason why you should opt for fresh instead.
Wide availability
It can be frozen to keep it fresh for months.
It can be dehydrated for future use.
This is the time, I would suggest turning to a vegan for a while.
6. You should stop non-essential expenditure.
Recession is on our heads, but putting back some expenses will do no harm. Try to stick to more essential expenditure as much as you can.
Saving most of your money now will help you later. It is the time to save as much as you can, If you have abundant extra money, try putting it to use by investing in stocks, as the market is now very low.
There is a possibility that all essentials you want to buy now, can be cheaper from their prices now.
7. Get free deliveries.
Many brands and companies are providing food and supplies easily at door to door, without any additional delivery fee.
Many restaurants and other delivery services are reducing their fee or asking for no fee. So you can bring all your essentials without extra charges.
The bottom line is, you have to cut back enough to survive and endure the future.
Also, some tips to avoid financial crises in the future.
1. Start an EMERGENCY FUND.
An emergency fund is your savings account that will hold your extra cash or the cash you want to save for your future. An emergency could be anything, car breakdown, job losses. One should be prepared for every contingency.
2. Try to finish off your debt.
If you are debt-free then, you can be carefree. Being in debt isn’t bad if it isn’t done through impulse shopping.
If you are in debt due to impulse shopping, with half of your salary going in debt, then you have to cut back basic expenses to finish off debt. Try to increase income.
3. Investments may fail you.
Investments can be a great financial strategy, but they might fail you in case of an emergency. During economic slips, the investments can lose their value, and you might incur a loss.
They are a good strategy, yet not a great emergency fund.
4. Build your credit, so when in need, you can take on emergencies.
Having a very low APR will allow you to enjoy greater credit when in need. Your credit score is somewhat insurance for your finances. It will help you when in need.
Plan ahead, with the future in mind.
The final verdict would be to take care of yourselves.
Financial problems can give anxiety, so be peaceful and patient, slow recovery is a long-term recovery.
To learn more about how the financial world was hit by COVID-19, here are a few more blogs...
