The COVID-19 pandemic has clearly changed many aspects of our daily lives. The way we work, interact with others, and go about our days have all been forced to modify for the safety of ourselves and others. One area in particular that has been greatly impacted is peoples’ personal finances. The US economy shrank by 5% during the first quarter of 2020, and many folks are either out of work or concerned about losing their jobs, putting them under significant financial stress.
Current economic conditions have made many eager to save money or generate an additional stream of income because of the crisis. The following ideas can be a starting point for those who are of this mindset.
Things To Do
Build a New Side Business
Do you have a passion or hobby that can be turned into some side income? For example, if you know how to write well, there are numerous online businesses that will pay you for your written work. This may be a perfect time to start it up during which your regular career may be a bit slower.
What expenses can you trim? Cable TV? Extra movie channels? Ordering takeout? Keeping the AC at a fairly low temperature? These are a few of many things you may look at to pare back your expenditures.
Look for Better Savings Rates
Even though interest rates are abysmally low, it still makes sense to look for the highest interest rates for your savings. Bankrate offers a listing of the top-paying online savings accounts for savers.
Actions to Avoid
On the other hand, some actions are better not done. Two things to avoid are:
Dip Too Much into Savings
You may be tempted to dip into your savings or emergency fund. Indeed, you may have to, but try to limit the drawdown. Hopefully, as mentioned above, by generating some amount of side income, you can limit the depletion of your savings.
Spend Money Without a Plan
Many folks spend according to a budget. In times like these, this is sage counsel. Avoid indiscriminate purchases. If you need help making a personal spending budget, check out some online resources here.
By following these suggestions, or at least some of them, you may find your financial situation remains stable or even improves during the pandemic.