For the past six months Americans have grappled with the astronomical effects of COVID-19. This pandemic has had a roaring impact on our health and finances, with over 10 million Americans having lost their jobs in the first two weeks that our economy shut down. Luckily, the United States is beginning to bounce back financially; but what if you're still experiencing an interruption or complete loss to your income? Here are four tips to consider that can help you stay financially healthy even if your income has hit a snag:
1. Revisit Your Budget and Prioritize Expenses. Now is a good time to take a look at your budget and think about what you can afford and what you should cut. Maybe now is the time to finally cut the cord on cable, meal prep so you can save money at the grocery store, or use energy efficient techniques to cut the cost on your electric bills. If you have any outstanding debt, find ways to lower your interest rates or monthly payments by consolidating or taking advantage of 90 day deferred payment plans. Figuring out what you can and can't live without is the fastest way to start saving money.
2. What Can Your Work Offer? Just because you can't go into the office doesn't mean you have to be out of a job completely. Since March, thousands of companies have opted their employees to work from home or remotely. Is there a creative way you can work outside of the office? Is there an option to cash out any unused vacation time, PTO, or paid sick leave to help you sustain an income for the time being? If you're tapped out of time, see if your company offers short-term disability insurance or employee assistance programs.
3. Consider Your Assets. Do you have a savings account or a rainy day fund you can dip into that will get you by for the time being? Cash savings accounts and non-retirement investments are options to dip into if you're without an income. However, make sure to pay it back once you are financially able to. You can also borrow against your 401k or cash it out during financial hardships. But fair warning, doing so comes with penalties so please consult a financial advisor before taking this route.
4. Talk to a Financial Wellness Counselor. Whether you've had a temporary pause in your paycheck or are experiencing long term loss, talking with a financial wellness counselor can help you prioritize and take the necessary steps needed to secure your finances. Financial counselors can help you assess your situation, provide creative ideas and support, and help you bounce back to financial success.
Whether you're facing financial hardships or just looking to improve your finances, Telhio Credit Union offers a variety of checking, savings, and investment options designed to fit your needs. For more information visit telhio.org.
