Skip to main content

How to Save Money If You've Lost Your Job Because of COVID-19

With the COVID-19 crisis rendering many businesses across the country inoperable, millions of Americans are losing their jobs and taking cuts to their work hours. Even without a global pandemic, nearly 50% of small businesses fail within the first five years because of debt and insufficient capital.
According to CNN, over 30 million unemployment claims were filed since the middle of March alone. Up to 87% of businesses say their markets have become more competitive and 14% of companies have downsized their IT departments.
If you've had your hours cut or if you've been laid off due to the outbreak, traditional money-saving advice won't be all that helpful. That's especially true when you have kids. With the coronavirus pandemic, the normal rules of life are out the window and you need realistic ways to slash expenses in line with your new financial situation.
That being said, here's what you need to do if you've recently lost your job due to the COVID-19 outbreak.

Defer loan payments if you can

Make a list of your outstanding debt and the monthly payments you make. Contact each creditor to determine what relief options they have available for people who have been laid off or furloughed due to the crisis. You may be able to defer your payments for up to three months. Federal student loans have already been placed on an automatic deferral through September 30.
However, before you ask for deferment payments, make sure that you're aware of what your creditor's deferment policy is. For instance, Bank of America recently filled 150,000 deferral requests on mortgage loans, but all three mortgage payments are expected to be paid in a lump sum at the end of 90 days.

Stop putting money in savings

It's okay if you don't have the finances to incorporate savings into your monthly budget right now. Put savings goals like college funds and retirement plans on the back burner and focus instead on important bills and other essentials.
Granted, it's still good to have a small emergency fund. According to The Balance, an emergency fund should be somewhere between three to six months of expenses. But aside from this fund, hit the pause button on other savings.

Apply for Medicaid

While you're in the process of applying for unemployment, it's also in your best interest to apply for Medicaid if you received your healthcare benefits through your employer. Medicaid provides health care coverage to those who can't afford it, no matter what age you are or how much money you were making prior to being laid off. Medicaid determines your eligibility based on your current monthly income.

Know where you stand with pantry necessities

With so many meals being eaten at home right now, it's not easy to stay within budget when it comes to your grocery bill. But by taking stock of what you have in your pantry, fridge, and freezer, you can get a better idea of what your necessities are and what you really need from the store. You can plan your meals around the food you already have in your pantry to spend less at the store.

Cut cable packages and opt for streaming services instead

With schools turning to online learning during the COVID-19 outbreak, chances are you can't cancel your Internet to save money on monthly expenses. However, you can cut cable packages if you have your cable and Internet bundled.
Instead of using cable services, consider using streaming services instead. With streaming services, you'll be able to cut down on cable costs while still allowing your kids to watch their shows online when they're not attending their school's daily Zoom meetings.
At this moment, everything might feel overwhelming. But it's important not to worry about the long term. Instead, focus on what you can do for yourself and your family in this moment to get through the next few months. Planning for now rather than later allows you the flexibility of being able to take on new opportunities as they come available.


Popular posts from this blog

Copycat Boston Pizza's Bandera Bread

Have you ever had a craving for something but then once you looked at it you realized, I can make that myself for next to nothing? That's how I felt last night I thought about ordering in some food but then realized I really don't want to spend any money. I really wanted pizza bread from Boston Pizza. So I recreated it and oh my goodness was it ever good.  Don’t knock the simplicity this dish is sweet and salty and savoury all in one. The best Bandera Bread you can make is at home in your own oven, it costs Pennie’s on the dollar making it a frugal craving fixer that anyone can create!   Pizza Bread Dough 1 cup warm water 1 tsp instant yeast 1 tsp sugar 2 cups flour 1 pinch of salt  Seasoning 1 tbsp melted butter 1 tsp garlic powder 1 tsp onion salt 1 tsp parsley 1 tsp rosemary 1 tsp basil 1 tsp oregano 1/2 tsp sugar 1. Combine the water, yeast, and 1 tsp of sugar and pinch of salt in the mixing bowl and let stand for 5 minutes. Add the flour and salt

Affordable Ways To Make Your Home Look Luxurious

How do they do it? Professional designers seem to pull it off so effortlessly, but how will you make your home look more luxurious? You could just employ a professional or you can personally undertake the task of transforming your home into a place of luxury on a budget. In order to save money on your purchases, be creative and vigilant in your pursuit for the perfect style. Follow our budget-friendly ways for making your home a vision of luxury. Think it through, choose a style Luxury look isn’t enough to go on, so before you start shopping and wasting your money on furniture and decorations you might not even use in the end, first do some research. Go online and do some window shopping and find which style is more to your liking . An elegant Victorian style or something more modern and chic? Don’t get me wrong, you may want to mix and match, but before you commit by buying anything, consider what look you are going for. White is the color of elegance Choosing white as yo

DIY Table Revamp

I wanted to share a little DIY with you guys that involves duct tape! A few months ago my daughter's little chair that goes with her table she sits at every day tore and she made it worse by pulling all of the stuffing out of the seat! What started out as a quick fix turned into a great idea. She loved her seat so much that she has now decided that her table has look cool too so being the smarty pants that she is, she tore her table!