On June 8, it was officially declared that the United States is in a recession due to the COVID-19 pandemic. Almost 22 million Americans are collecting unemployment due to lost jobs and the numbers continue to rise.
You’re not alone if you’re struggling financially due to the current recession. But, just because the country is in a recession, that doesn’t mean you should accept financial ruin and stop trying.
Keep reading to discover a few steps to help take control of your personal finances during this uncertain time.
1. Research the Available Benefits
Because so many Americans have money problems right now, there are plenty of benefits out there.
Here are just a few of the benefits and programs you should look into:
- Coronavirus Economic Impact Payment
- CARES Act which provides addition unemployment benefits
- Forbearance on federal student loan payments
- Eviction and mortgage relief programs
As the pandemic continues, there’s the possibility of further benefits appearing.
2. Nail Down Your Budget
Once you’ve researched relief benefits, it’s time to combat your financial problems with your budget. Now is not the time to spend extra money on eating out or cable TV.
Start by figuring out how much income you have coming in each month. Then, write out all your essential bills and expenses. This includes housing costs, utility payments, groceries, and gas to get to work.
Cancel any unnecessary subscriptions and avoid spending money outside of your established budget. Put any leftover money at the end of the month in savings. You always want to save for emergencies during uncertain times.
3. Pick Up a Side Hustle
Are you still wondering how to deal with financial stress? Are you unemployed and unable to cover even your basic monthly budget? If so, it’s time to pick up a side hustle.
Look into one of the many delivery services, like UberEats or Shipt. Since people are staying home more than normal, you can make a decent income off of the gig economy.
If you’re looking for something more guaranteed, apply for a part-time essential job. Remember that your side hustle doesn’t have to be permanent, just something to help you temporarily.
4. Consider a Payday Loan
If you’re still struggling with money after trying the above tips, it may be time to consider a payday loan.
A payday loan is a small loan with a shorter repayment period. People use these loans when the need has quickly, such as paying a bill or buying groceries. To receive a loan, lenders traditionally require proof of employment but many are making exceptions due to high unemployment.
Be sure you learn about the repercussions of missed payments on your payday loan. Because of these, only use a payday loan as your last resort.
Struggling Financially? Life Will Return to Normal
Due to COVID-19, many families have fallen on tough times. The important thing to remember is that you may be struggling financially now, but it won’t last forever.
Eventually, a vaccination will be invented and the virus will subside. With it, the economy will recover and so will your personal finances.
If you’ve lost your job due to the pandemic, be sure to read over the Hiring & Employment section of this site. There you’ll find resources on how to land the perfect job.
