The Coronavirus has created economic turmoil – and not just for big banks and corporations.
Everyday Americans are feeling the financial squeeze, whether it’s due to lost hours of work, lost jobs, lower traffic, or other impacts.
As a result, many families are dealing with less money but larger child care obligations.
The stress of all these different variables can be a lot to handle. However, we’ve gathered some tips so you can approach your financial difficulties with a clear mind.
With the right strategy in hand, you can get control of your finances and get back on track to your financial goals.
Tip #1: Contact Your Loan and Credit Card Companies
If you’re struggling to make payments on your home loan or credit cards, it might be worthwhile to actually contact those companies.
Don’t wait until you’re in deep trouble, either. As soon as you realize you’ll be short on cash, contact customer support.
In many cases, companies can do things like lower your interest rate, lower your minimum monthly payments, and even defer payments all together.
The important action to take is to actually reach out and communicate your issues as soon as possible.
Tip #2: Consolidate Your Debt
Consolidating your debt is another good option if you feel like your debt is unmanageable. Debt consolidation gives you the ability to lump all your credit card payments into one lower monthly payment.
In turn, your debt is less expensive to carry so you can pay down your balance faster.
Besides debt consolidation, you can also use a debt settlement company which can deal with creditors on your behalf.
Just make sure you choose a reputable company because there are many scammers who try to take advantage of vulnerable people desperate to get out of debt.
Tip #3: End Your Subscriptions
Do you have a gym membership still charging you membership fees through the virus? Time to can that membership!
It’s also a good idea to reduce or completely eliminate any entertainment subscriptions as well.
If you’re not sure what subscriptions are still active, use an app that finds them for you so you can get rid of them in a timely manner.
Tip #4: Use CBD
If you’re really having a hard time managing your stress, CBD might be able to help.
After all, you can’t think straight if anxiety and stress are clouding your mind. If you have a vape pen already, try CBD vape juice.
CBD can provide you with the calming effect you require to deal with an overwhelming to-do list.
Tip #5: Create and Use a Budget
Although creating a budget isn’t the most fun activity in the world, it can provide you with deeper insight and understanding into your finances.
Create separate categories for your income, fixed expenses, and variable expenses.
Make sure you cut down expenses where you can, like discretionary spending on restaurant dining and entertainment.
Tip #6: Monetize a Hobby
Are you skilled at writing? Are you an IT whiz? Do you crochet?
If you have a hobby, you can monetize it. Turning your passion into extra money is a great way to deal with financial stress.
That extra money can be tucked away in a high-yield savings account or an investment so it can grow. Or, you can use that money to pay off debt or buy necessary daily expenses.
Tip #7: Ask for a Raise
Although there are tons of companies that are dealing with the economic blowback from the virus, many e-commerce companies are profiting off the virus and experiencing a huge boost to their bottom lines.
If you know you’re working at a company that’s been in the green for the past few months, consider asking for a raise.
The worst thing that can happen is your manager or supervisor says no.
Of course, it’s a good idea to have reasons for the raise, like your work performance and sales, for example.
Conclusion: Dealing with Money Problems
The Coronavirus has put financial pressure on many families across the country and world. However, if you stay calm and create a proper framework for your finances, you can get back on track.
With these tips, you can overcome any financial stress.